CAP. 251 INSURANCE ACT BELIZE
INSURANCE ACT
CHAPTER 251
REVISED EDITION 2000
SHOWING THE LAW AS AT 31ST DECEMBER, 2000
This is a revised edition of the law, prepared by the Law Revision Commissioner
under the authority of the Law Revision Act, Chapter 3 of the Laws of Belize,
Revised Edition 1980 - 1990.
This edition contains a consolidation of the following laws- Page
ARRANGEMENT OF SECTIONS 3
INSURANCE ACT 15
Amendments in force as at 31st December, 2000.
BELIZE
INSURANCE ACT
CHAPTER 251
REVISED EDITION 2000
SHOWING THE LAW AS AT 31ST DECEMBER, 2000
This is a revised edition of the law, prepared by the Law Revision Commissioner
under the authority of the Law Revision Act, Chapter 3 of the Laws of Belize,
Revised Edition 1980 - 1990.
This edition contains a consolidation of the following laws- Page
ARRANGEMENT OF SECTIONS 3
INSURANCE ACT 15
Amendments in force as at 31st December, 2000.
THE SUBSTANTIVE LAWS OF BELIZE REVISED EDITION 2000
Printed by the Government Printer,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Insurance [CAP. 251
[ ]
3
CHAPTER 251
INSURANCE
ARRANGEMENT OF SECTIONS
PART I
Preliminary
1. Short title.
2. Interpretation.
3. Insurers to which Act applies.
4. Supervisor of Insurance.
5. Supervisor may act as arbitrator.
6. Registers to be maintained by Supervisor.
PART II
Regulation of Insurance Companies
Registration
7. Only bodies corporate may carry on insurance business.
8. Only registered companies may carry on insurance business.
9. Application of section 8 to existing business.
10. Share capital and deposit required for registration.
11. Application for registration.
12. Application for existing businesses.
13. Conditions for registration.
14. Certificate of registration for insurance companies.
15. Notification of changes in particulars in application.
16. Grounds for cancellation of registration.
17. Failure of review.
18. Summary cancellation of registration.
19. Effect of cancellation.
20. Application of section 19 where registration refused.
21. Display and surrender of registration certificate.
22. Registered company may be prohibited from writing new business.
Deposit by Insurance Companies
23. Amount and form of deposit by companies.
24. Further provisions relating to deposits.
25. Establishment of statutory funds.
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26. Method of trusteeing.
27. Duties of trustee.
28. Investment of statutory funds.
29. Particulars of liabilities and assets with respect to fund.
30. Inaccurate or misleading particulars.
31. Company to furnish Supervisor with information.
32. Review of direction by Supervisor.
33. Assets in statement deemed to be assets of statutory fund.
Investment and Prohibitions
34. Investment requirements of statutory fund.
35. Local assets ratio.
36. Prohibitions relating to loans.
Administration and Accounting Requirements for Insurance Companies
37. Insurance companies to maintain principal office and appoint
principal representative.
38. Maintenance and separation of funds.
39. Preparation of annual accounts, etc.
40. Group accounts.
41. Audit of accounts of insurance companies.
42. Keeping of records by foreign companies.
43. Periodical investigations to be made into financial position of
companies carrying on long term business.
44. Transfer or amalgamation.
45. Returns to be made in case of transfers or amalgamation.
Investigation by the Supervisor
46. Supervisor may demand information.
47. Power to make investigations.
48. Power to obtain information.
49. Divulging of information.
50. Action after completion of investigation.
Judicial Management and Winding-Up
51. Winding-up.
52. Petition for judicial management or winding-up.
53. Margin of solvency.
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54. Judicial management.
55. Cancellation of judicial management order.
56. Report by judicial manager.
57. Decision of court on report of judicial manager.
58. Indemnity.
59. Subsidiary companies.
60. Supplemental provisions as to winding-up.
61. Ascertainment of value of liability under policies.
62. Reduction of contracts as alternative to winding-up.
63. Application of deposits.
64. Rules.
65. Guarantee companies.
PART III
Associations of Underwriters
66. Association of underwriters to be registered.
67. Applications for registration.
68. Conditions for registration.
69. Documents and information relating to insurance business to be
furnished to the Supervisor.
70. Grounds for cancellation of registration.
71. Implementation of proposal to refuse to register or to cancel
registration.
72. Registered Association may be prohibited from writing new
business.
73. Policies issued before rejection of application for, or cancellation of,
registration.
74. Deposits by association of underwriters.
PART IV
Registration of Insurance Brokers, Salesmen, Agents and Sub-Agents
75. Registration of insurance brokers, salesmen, agents and sub-agents.
76. Application for registration.
77. General restrictions on registration.
78. Conditions for registration.
79. Certificate of registration for insurance broker, etc.
80. Grounds for cancellation of registration subject to right of appeal.
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81. Implementation of proposal to refuse to register or to cancel
registration.
82. Summary cancellation of registration.
83. Information to be supplied to Supervisor.
84. Production of certificate of registration.
Miscellaneous Provisions Relating to Agents, Brokers and Salesmen
85. Agency.
86. Fraudulent representation.
87. Liability for unlawful contracts.
88. Advertisement.
89. Paying over of premiums to insurer.
90. Compensation for placing or negotiating insurance.
91. Rebating.
92. Bona fide salaried employees.
93. Returns of insurers.
94. Keeping of records by registered brokers.
PART V
Long- Term Insurance Business
Issue of Policies
95. Rates of premium.
96. Commissions and reductions of premiums.
97. Form of proposal.
98. Notice regarding proof of age.
99. Procedure where company declines to accept proof.
100. Mis-statement of age and non-avoidance of policy.
101. Provisions relating to state of health of insured.
102. Minors.
103. Insurable interest.
Protection of Policies
104. Interest of insured protected in certain cases.
Paid- Up Policies, Surrender Values and Non-forfeiture
105. Paid-up policies.
106. Surrender of policies.
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107. Relaxation of obligations as to surrender values.
108. Non-forfeiture of ordinary policies in certain cases of non-payment
of premiums.
109. Non-forfeiture of industrial policies in certain cases of non-payment
of premiums.
110. Treatment of debts on grant of paid-up policies.
Payment of Policy Moneys
111. Payment without probate or administration in certain cases.
112. Death of holder of policy not being life insured.
113. Company not bound to see to application of moneys paid by it.
114. Unclaimed moneys.
115. Further provisions relating to unclaimed moneys.
Provisions Relating to Industrial Life Insurance Business
116. Objection to policies.
117. Return of industrial policies and premiums-receipt book after
inspection.
118. Falsification.
119. Avoidance of policy by reasons of particulars in proposal filled in
by agent or servant of company.
120. Particulars to be set out on policies.
121. Issue of premium-receipt book.
122. Premium receipt books to show date to which premiums paid, etc.
Mutualisation
123. Conversion into mutual companies.
PART VI
Miscellaneous
124. Registers to be kept.
125. Registration of policies.
126. Lost policy.
127. Effect of suicide or capital punishment on policy.
128. Condition as to war risk void.
129. Offences by company not to invalidate policies.
130. Pension fund plan or scheme.
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PART VII
General Insurance
Conditions
131. Application of this Part.
132. Computation of reserve liability.
133. Dividend not to impair capital.
134. Contravention.
135. Appropriation of profits towards surplus.
136. Additional reserves-motor vehicle insurance.
137. Notice of expiration, etc., of cover notes and policies.
138. Issue of policies.
139. Notice of total loss.
140. Jurisdiction of local courts.
141. Payment of money in local currency.
142. Power to pay money into court.
143. Issue of capital by companies.
144. Publication of authorised, subscribed and paid-up capital.
145. Voting by post.
146. Inspection of documents.
147. Documents to be received in evidence.
148. Authority to sign documents.
149. Printing of documents.
150. Service of notices.
151. Power to collect statistics.
152. Decisions, etc., of Supervisor subject to review by Minister.
153. Gazetting of registration, etc.
154. Restriction on use of insurance terms.
155. Extension of limits.
156. Reports.
157. Regulations.
158. Exemptions.
159. Fees for registration, transitional provisions, etc.
160. Fees recoverable as civil debt.
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Offences
161. Offences.
162. Penalties.
FIRST SCHEDULE
Provisions relating to Deposits under sections 23 and 74
SECOND SCHEDULE
Assets in which the Statutory Fund may be invested
THIRD SCHEDULE
Bank Guarantee
CHAPTER 251
INSURANCE
[19th July, 1976]
PART I
Preliminary
1. This Act may be cited as the Insurance Act.
2.-(1) In this Act, unless the context otherwise requires-
“accident and sickness insurance business” means the issue of, or the
undertaking of liability under, policies of insurance upon the happening of
Short title.
15 of 1975.
10 of 1992.
S.I. 44 of 1976.
Commencement.
Interpretation.
personal accidents, whether fatal or not, disease or sickness, or any class of
personal accident, disease or sickness;
“actuary” means a person who is a member of a professional body or
society of actuaries which the Minister has recognised for the purposes of
this Act by order in the Gazette;
“agent” means any individual, firm or body corporate appointed by an
insurer and not being an employee of such insurer, to solicit applications for
insurance or negotiate insurance on its behalf, and if authorised to do so by
the insurer, to effectuate and countersign insurance contracts;
“annuities on human life” does not include superannuation allowances and
annuities payable out of any fund applicable solely to the relief and
maintenance of persons engaged or who have been engaged in any
particular profession, trade or employment, or of the dependents of such
persons;
“association of underwriters” means an association of individual
underwriters, organised according to the system known as Lloyd’s,
whereby every underwriting member of a syndicate becomes liable for a
separate part of the sum secured by each policy subscribed to by that
syndicate, limited or proportionate to the whole sum thereby secured;
“auditor” means-
(a) a person who is a member of a professional body or
society of accountants which the Minister has
recognised for the purposes of this Act by order in the
Gazette; or
(b) a person recognised by the Minister as having adequate
accounting knowledge and experience;
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“bond investment business” means, subject to subsection (2), the business of
issuing bonds or endowment certificates by which the company, in return for
subscriptions payable at periodical intervals of less than six months, contracts
to pay the bond holder a sum at some future date, not being life assurance
business, industrial assurance business or sinking fund business;
“carrying on insurance business” includes the receipt of proposals for or
issuing of policies of insurance in Belize or the collection or receipt in Belize
of renewal premiums on policies issued in Belize by an insurer or through an
agent or as agent but does not include the collection or receipt in Belize of
renewal premiums under a policy issued outside Belize to a person resident
outside Belize at the date of issue of the policy and who is temporarily
resident in Belize or the making of payments due under any such policy;
“class of insurance business” means any class of insurance business specified
in section 3(l);
“company” includes a company incorporated or registered under the
Companies Act, a corporate body incorporated outside Belize, and any
statutory corporation, which carries on or proposes to carry on any
insurance business in Belize;
“court” means the Supreme Court;
“employers’ liability insurance business” means the issue of, or the
undertaking of liability under, policies insuring employers against liability to
pay compensation or damages to workmen in their employment, but does
not include any business carried on as incidental only to marine, aviation and
transit insurance;
“financial year”, in relation to an insurance company, means each period of
twelve months at the end of which the balance of the accounts of the
company is struck, or, if no such balance is struck, means the calendar year;
CAP. 250.
“foreign company” means a company incorporated outside Belize;
“general insurance business” means insurance business of any class or
classes specified in section 3(1), not being long-term insurance business;
“industrial life insurance business” means the business of effecting insurance
upon human life, premiums in respect of which are payable at intervals of
less than two months in each case and are contracted to be received, or are
usually received, by means of collectors sent by the insurance company to
each policy-holder, or to his residence or place of work;
“industrial policy” means a policy in respect of which the premiums are
contracted to be paid at intervals of less than two months and are
contracted to be received or are usually received by means of collectors,
and includes-
(a) a policy that has at any time been such a policy; and
(b) a paid-up policy (not being a policy expressed to be a
non-industrial policy) granted in lieu of an industrial
policy or of a policy referred to in paragraph (a);
“insurance business”-
(a) means the assumption of the obligations of an insurer in
any class of insurance business; and
(b) includes reinsurance business;
“insurer” means a company carrying on insurance business and, except
where otherwise stated, includes all the members of an association of
underwriters which is registered as an insurer;
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“life insurance business” means the issue of, or the undertaking of liability
under, policies of insurance upon human life, or the granting of annuities upon
human life, but does not include industrial life insurance;
“life insurance fund” means the fund to which the receipts of an insurer in
respect of his life insurance business are carried, and from which payments in
respect of that business are made;
“life insurance policy” means life insurance policy, an industrial life, insurance
policy or a sinking fund policy;
“life insurer” means a registered insurer carrying on life insurance business;
“local company” means a company incorporated in Belize under the
Companies Act or any other Act for the time being in force in Belize;
“local policy” means a policy issued in Belize and includes an ordinary life
insurance policy issued outside Belize and subsequently made payable in
Belize at the request of the policy-holder which the policy-holder has agreed
in writing shall be treated as a local policy for the purposes of this Act, but
does not include an ordinary life insurance policy made payable outside
Belize at the request of the policy-holder which the policy-holder has agreed
in writing shall not be treated as a local policy for the purposes of this Act;
“long-term insurance business” means insurance of business of all or any of
the following classes, namely, life insurance business, industrial life insurance
business and bond investment business, and in relation to any company,
insurance business carried on by the company as incidental only to any such
class of business;
“marine, aviation and transit business” means the business of effecting and
carrying out, otherwise than incidentally to some other class of insurance
business, contracts of insurance-
CAP. 250.
(a) upon vessels or aircraft, or upon the machinery, tackle,
furniture, or the equipment of vessels or aircraft; or
(b) upon goods, merchandise or property of any
description whatever on board vessels or aircraft; or
(c) upon the freight of, or any other interest in or relating
to, vessels or aircraft; or
(d) against damage arising out of or in connection with the
use of vessels or aircraft, including third party risks; or
(e) against risks incidental to the construction, repair or
docking of vessels, including third party risks; or
(f) against transit risks (whether the transit is by sea, inland
water, land or air, or partly one and partly another)
including risks incidental to the transit insured from the
commencement of the transit to the ultimate destination
covered by the insurance, but not including risks the
insurance of which is motor vehicle insurance business;
or
(g) against any other risks the insurance of which is
customarily undertaken in conjunction with or as
incidental to any business referred to in the foregoing
paragraphs of this definition;
“motor vehicle insurance business” means the business of effecting contracts
of insurance against loss of, or damage to or arising out of or in connection
with the use of, motor vehicles, including third party risks;
“mutual company” means a company whose capital is owned by the policy-10 of 1992.
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Insurance [CAP. 251
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holders of the company;
“ordinary life insurance” means insurance business whereby an insurer
assumes in return for the payment of a sum or sums of money a contingent
obligation dependent upon human life but does not include industrial life
insurance, personal accident, sinking fund, or cancellable group life
insurance;
“policy”-
(a) in relation to life insurance business or industrial life
insurance business, includes an instrument evidencing a
contract to pay an annuity upon human life; and
(b) in relation to accident and sickness insurance business,
motor vehicle insurance business, marine, aviation and
transit insurance business or employers’ liability
insurance business, includes any instrument under which
there is for the time being an existing liability already
accrued, or under which any liability may accrue; and
(c) in relation to bond investment business, includes any
bond, certificate, receipt or other instrument evidencing
the contract with the company;
“policy-holder” means the person who for the time being has the legal title to
the policy and includes any person to whom a policy is for the time being
assigned;
“principal office” means the office notified to the Supervisor in accordance
with section 37;
“principal representative” means the representative notified to the Supervisor
in accordance with section 37;
“property insurance business” means the issue of or the undertaking of
liability under, policies of insurance, against loss or damage to real or
personal property of every kind and interests therein, from any hazard or
cause, or against loss consequential upon such loss or damage, not being
risks the insurance of which is motor vehicle insurance business or marine,
aviation and transit insurance business;
“registered insurance agent” means an insurance agent registered in
accordance with Part IV;
“registered insurance broker” means an insurance broker registered in
accordance with Part IV;
“registered insurer” means an insurer registered in accordance with
Part II or, as the case may be, with Part III;
“salesman” means an individual employed by an insurer or an agent to solicit
applications for insurance or to negotiate insurance on behalf of an insurer
or an agent, as the case may be;
“sinking fund policy” means a policy whereby one party to the contract
assumes the obligation to pay, after the expiration of a certain period or
during a specified period, a certain sum or certain sums of money to a
particular person in return for the payment from time to time of certain sums
of money by the other party to the contract;
“statutory fund” in relation to a company means a statutory fund maintained
by the company under section 25;
“Supervisor” means the Supervisor of Insurance appointed under section 4.
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(2) Where, in return for subscriptions payable at periodic intervals of
less than six months, a person or body of persons, whether incorporated or
not (not being or being deemed to be registered under the Trade Unions Act
or the Credit Unions Act or established under the Building Societies Act or
the Friendly Societies Act) undertakes, by prospectus or otherwise, to pay
to the subscriber at a future date the amount of the subscriptions with interest
thereon (with or without a right on the part of the subscriber to the return of
his subscriptions in the meantime), that business shall for the purposes of this
Act be deemed to be a bond investment business, and the card, book or
other document in which receipts of subscriptions are entered shall be
treated as the instrument evidencing the contract, and the subscriber shall be
treated as the owner of the policy.
3.-(1) Subject to this section, this Act applies to all insurers, whether
established within or outside Belize, carrying on within Belize insurance
business of all or any of the following classes-
(a) ordinary life insurance business;
(b) industrial life insurance business;
(c) property insurance business;
(d) accident and sickness insurance business;
(e) bond investment business;
(f) sinking fund business;
(g) motor vehicle insurance business;
(h) marine, aviation and transit insurance business;
CAP. 300.
CAP. 314.
CAP. 310.
CAP. 317.
Insurers to which
Act applies.
(i) employers’ liability insurance business;
(j) any other class of insurance business.
(2) A company as defined by section 2 of the Companies Act, which
carries on insurance business of a class specified in subsection (1) in any
part of the world, other than Belize, shall for the purposes of that subsection
be deemed to be a company carrying on such business within Belize.
(3) For the purposes of this Act the reinsurance of liabilities under
insurance policies shall be treated as insurance business of the class and
type to which the policies would have belonged if they had been issued by
the reinsurer and all the provisions of this Act shall apply to such
reinsurance except that a company or an association of underwriters
carrying on such reinsurance shall not be required to make in respect of
such reinsurance any deposit as required by section 23 or 74.
(4) Part II shall not apply to associations of underwriters.
(5) This Act shall have no application to-
(a) any person or body of persons registered under
the Trade Unions Act or established under the,
Building Societies Act or the Friendly Societies Act or
the Credit Unions Act;
(b) any association of persons which may be declared by
the Minister by notification published in the Gazette to
be exempt from the provisions of this Act.
4.-(1) For the purposes of this Act there shall be a Supervisor of Insurance
who, subject to the directions of the Minister, shall be responsible for the
general administration of this Act and whose office shall be a public office.
CAP. 250.
CAP. 300.
CAP. 310.
CAP. 317.
CAP. 314.
Supervisor of
Insurance.
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Belmopan, by the authority of
the Government of Belize.
Insurance [CAP. 251
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(2) Where any function is by this or any other Act or by any statutory
instrument made or issued thereunder, required, permitted or otherwise to be
performed by the Supervisor, that function may be performed by some other
public officer authorised in that behalf by the Supervisor.
5.-(1) Where, in relation to any policy, any dispute or difference arises
between an insurer and a policy-holder, the Supervisor may act as arbitrator
of the dispute or difference.
(2) An arbitration under this section shall be conducted in accor-
dance with the provisions of the Arbitration Act.
6. The Supervisor shall maintain or cause to be maintained separate
registers of-
(a) companies registered to carry on in Belize the various
classes of insurance business specified in section 3(l);
(b) associations of underwriters; and
such registers as may be required to be maintained under the Act or any
regulations made thereunder.
PART II
Regulation of Insurance Companies
Registration
7. Subject to this Act no person other than a body corporate shall carry
on insurance business in Belize.
Supervisor may
act as arbitrator.
CAP. 125.
Registers to be
maintained by
Supervisor.
Only bodies
corporate may
carry on
insurance
business.
8.-(1) Subject to section 9 a body corporate shall not carry on in Belize
insurance business of any of the classes specified in section 3(l) unless-
(a) it is registered by the Supervisor under this Act in
respect of that class of insurance business; and
(b) it has made the deposit required by section 23 in
respect thereof; and
(c) in the case of a foreign company, it has filed with the
Supervisor the names and addresses of one or more
persons resident in Belize and authorised to accept on
behalf of the body corporate service of process in any
legal proceedings.
(2) Nothing in this section shall operate to avoid or render
unenforce- able any contract made or policy issued in contravention
thereof.
9. Section 8 shall not, for a period of six months after the commence-
ment of this Act or such further period as the Minister by order published in
the Gazette may direct, apply to an insurance company which was carrying
on insurance business in Belize immediately before such commencement.
10.-(1) Subject to subsection (2), no company may be registered to carry
on long-term insurance business or general insurance business in Belize
unless it has a minimum paid-up share capital of not less than two hundred
fifty thousand dollars if incorporated under the Companies Act, or if
incorporated otherwise, unless it has a paid-up share capital of not less than
five hundred thousand dollars.
(2) No company may be registered to carry on long-term insurance
business or general insurance business in Belize unless, in addition to
Only registered
companies may
carry on insurance
business.
Application of
section 8 to
existing business.
Share capital and
deposit required
for registration.
10 of 1992.
CAP. 250.
10 of 1992.
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the Government of Belize.
Insurance [CAP. 251
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27
complying with subsection (1), it has deposited with the Supervisor the
deposit required under section 23.
(3) Subsection (1) shall not apply to an insurance company which is a
mutual company.
11.-(1) An application for registration under this Part shall be made to the
Supervisor in the prescribed form and shall be accompanied by evidence of
payment of the prescribed fee and by such documents as may be prescribed
or as may be required by this Act.
(2) The Supervisor may, upon receipt of an application under this
section, request the applicant insurance company to furnish such additional
information as he may consider to be relevant in relation to the application
and the company shall comply with any such request.
12. Every company carrying on insurance business in Belize immediately
before the commencement of this Act shall, within three months of that date,
and in accordance with section 11, apply for registration to the Supervisor
who shall, if satisfied that the application is in accordance with this Act,
register the company within three months after the receipt of the application.
13.-(1) If the Supervisor, after appropriate inquiry, or by the production of
documentary evidence, or both, is satisfied in respect of the applicant
insurance company that-
(a) the requirements of sections 7, 1 0 and 11, in so far as
they are applicable, have been complied with; and
(b) the company is solvent under the provisions of section
53; and
(c) the class of insurance business for which the application
Applications for
registration.
Applications by
existing
businesses.
Conditions for
registration.
is made will be conducted by the applicant in
accordance with sound insurance principles; and
(d) the company is likely to be able to comply with such of
the provisions of this Act as would be applicable to it;
and
(e) in the case of a company which carries on, or proposes
to carry on, some other form of business in addition to
insurance business, the carrying on of both insurance
business and that other business is not contrary to the
public interest; and
(f) the name of the company is not identical with or does
not so closely resemble the name of an insurance
company already registered under this Act as to be
likely to deceive; and
(g) being a foreign company, it-
(i) is lawfully constituted in accordance with the
laws of the country in which it is incorporated
and has undertaken insurance business in that
country for at least two years before the date of
the application; and
(ii) has appointed some person resident in Belize to
be its principal representative in Belize and has
informed the Supervisor in writing of the name
and address of that person,
the Supervisor shall, either unconditionally or subject to such conditions as
he may specify, register the insurance company in respect of such class or
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Insurance [CAP. 251
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29
classes of insurance business, shall notify the applicant accordingly, and shall
by notice publish the registration in the Gazette.
(2) If the Supervisor is not satisfied, in relation to all or any of the
classes of insurance business in respect of which the application is made, as
to one or more of the conditions set out in subsection (1), he shall notify the
insurance company in writing that he proposes to refuse to register it or, as
the case may be, that he proposes to refuse to register it in respect of one or
more of the classes of insurance business for which application is made,
giving his reasons for so doing and shall notify it of its right under section 152
to request the Supervisor to refer his proposal for review by the Minister.
14.(1) The Supervisor shall subject to the payment of prescribed fees
furnish to every company registered under this Act a certificate in the
prescribed form that the company has been so registered, and the certificate
shall state the class or classes of insurance business for which it is registered
and shall be prima facie evidence that the insurance company specified in
the certificate has been so registered.
(2) Every certificate issued under this section shall be valid for one
year from the date of issue and may be renewed for a like period upon
payment of the required fees.
15. If, after the registration of any company under this Act any change
takes place in the particulars specified in the application of the company for
registration or in the particulars of the information or documents required to
accompany the application, the company shall, within thirty days of such
change, notify the Supervisor in writing of the change.
16.-(1) Subject to subsection (2) the Supervisor may notify in writing an
insurance company registered under this Act that he proposes to cancel its
registration, giving his reasons for so doing (and notifying the company of its
right under section 152 to request the Supervisor to refer his proposal for
Certificate of
registration for
insurance
companies.
10 of 1992.
Notification of
changes in
particulars in
application.
10 of 1992.
Grounds for
cancellation of
registration.
review by the Minister) if at any time-
(a) the Supervisor is satisfied that-
(i) such registration was procured as a result of
any misleading or false representation or in
consequence of any incorrect information
(whether or not done wilfully); or
(ii) the company is insolvent in the terms of section
53 or having regard to its financial record and
any other matter the company is likely to
become so insolvent; or
(iii) the company’s insurance business or any class
thereof is not being conducted in accordance
with sound insurance principles and practice; or
(iv) in the case of a company which carries on, or
proposes to carry on, some other form of
business in addition to insurance business, the
carrying on of both the insurance business and
that other business is or is likely to be contrary
to the public interest; or
(v) any of its reinsurance arrangements are not
satisfactory; or
(vi) it has been guilty without reasonable cause of
delay in the payment or settlement of any claim
payable under any policy issued by it; or
(vii) it has contravened any provision of this Act or
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of any regulations made thereunder or of any
condition, direction or requirement imposed under
this Act by the Minister or by the Supervisor, or
has been an accessory or party to the
contravention thereof by any other person;
(b) a judgment is obtained against the company in any court in
Belize which remains unsatisfied for twenty-one days, and
no appeal from such a judgment is brought or taken within
twenty-one days of the judgment, or if it is so brought is
abandoned or dismissed.
(2) So long as an insurance company remains under any liability in
respect of local policies belonging to any class of insurance business, the
Supervisor shall not cancel the company’s registration in respect of that class
unless he is satisfied that adequate provision has been or will be made for that
liability and that adequate arrangements will exist for payment in Belize of
premiums and claims on those policies.
17. Where an insurance company has been notified under section 13 (2) or
under section 16 (1) of its right to request the Supervisor to refer the proposal
concerned to the Minister for review and either-
(a) fails to make any such request; or
(b) having made such request, withdraws the request or the
result of the review is the confirmation, with or without
variation, of the Supervisor’s proposal,
then, subject to any such variation, the Supervisor shall give effect to his
proposal and notify the company in writing accordingly.
18. The Supervisor may at any time cancel the registration under this Act
of an insurance company-
Failure of review.
Summary
cancellation or
registration.
(a) if proceedings for its winding-up have been begun;
(b) if he is satisfied that it has not, within two years of its
registration, begun to carry on in Belize insurance
business of any class;
(c) if he is satisfied that it has ceased to carry on insurance
business in Belize for more than one year;
(d) if the insurance company, or its liquidator, judicial
manager or trustee so requests.
19.-(1) Notwithstanding section 8, upon the cancellation of an insurance
company’s registration-
(a) it shall be lawful for it to continue to carry on business
relating to policies issued before the date on which it is
notified of such cancellation (hereinafter in this section
referred to as the date of notification) and it shall
continue to carry on such business unless the
Supervisor is satisfied that it has made suitable
arrangements for its obligations under those policies to
be met;
(b) it shall not be lawful for it, after the date of notification,
to issue any new policy or to enter into any new
contract in relation to which registration under this Act
is required.
(2) Nothing in subsection (1) (a) shall be taken as authorising the
renewal, after the date of notification, of any policy issued before that date,
and where any such policy is renewed after that date the company shall be
regarded as having issued a new policy in contravention of paragraph (b) of
Effect of cancel-
lation.
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Insurance [CAP. 251
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that subsection.
(3) Any person who contravenes the provisions of this section
commits an offence and is liable on summary conviction to punishment in
accordance with section 162.
20. The provisions of section 19 shall apply (with the necessary modifi-
cations) in relation to an insurance company that was carrying on insurance
business in Belize immediately before the commencement of this Act and
whose registration is refused, as they apply to an insurance company whose
registration has been cancelled.
21.-(1) Every company registered under this Part shall prominently display its
registration certificate at its principal place of business in Belize, in a part
thereof to which the public have access, and a copy thereof shall be similarly
displayed at each of its branches in Belize.
(2) On the notification to an insurance company that its registration
has been cancelled, it shall forthwith surrender the registration certificate and
every copy thereof to the Supervisor.
(3) Every person who without lawful excuse fails to comply with this
section, or who displays a registration certificate or any copy thereof which is
not currently valid, commits an offence.
22.-(1) If, after consideration of the report of an Inspector appointed by the
Supervisor under section 47 to investigate the affairs or any part of the affairs
of a registered insurance company, or after other appropriate inquiry, the
Supervisor is satisfied that it is in the interest of the policy-holders or
prospective policy-holders to do so, the Supervisor may by notice in writing
prohibit any such registered insurance company from writing new policies in
any class of insurance business in respect of which such company is
registered.
Application of
section 19 where
registration
refused.
Display and
surrender of
registration
certificate.
Registered
company may be
prohibited from
writing new
business.
(2) The Supervisor shall in any notification under subsection (1) state
the reasons for his decision and inform the insurance company of its right
under section 152 to request the Supervisor to refer his decision for review
by the Minister.
Deposits by Insurance Companies
23.-(1) A company shall not be registered under this Act to carry on, and
may not carry on, any class of insurance business unless it has deposited
with the Supervisor a sum equal to ten per centum of the premium income
net of reinsurance premiums of the company earned from all insurance
business carried on in Belize during the financial year last preceding the date
of deposit.
(2) Subject to subsection (4), at the end of each subsequent financial
year a company, having made a deposit as required by subsection (1) shall,
where necessary, deposit or be refunded, as the case may be, an amount
equal to the difference between the last preceding deposit and ten per
centum of the premium income during such financial year.
(3) Notwithstanding subsection (1) the minimum amount to be
deposited with the Supervisor under this section shall be as follows-
(i) in the case of a company incorporated under
the Companies Act - twelve thousand dollars;
(ii) in the case of any other company - one hundred
thousand dollars.
(4) Any deposit made under this section may be either in the form of
approved securities or partly in cash and partly in approved securities or
where a company is carrying on motor insurance business in the form of a
bank guarantee made in the form set out in the Third Schedule.
Amount and form
of deposit by
companies.
10 of 1992.
10 of 1992.
CAP. 250.
Third Schedule.
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(5) The amounts of the deposit payable under this section may,
from time to time, be varied by the Minister by Order published in the
Gazette.
24. The provisions contained in the First Schedule shall have effect in
relation to deposits made with the Supervisor pursuant to this Part.
Statutory Funds
25.-(1) Every company carrying on any class of insurance business shall
establish at the date of the commencement of its financial year next after the
commencement of this Act and shall maintain, a statutory fund as provided
for in subsections (3) and (4) under an appropriate name in respect of each
of the classes of insurance business carried on by the company.
(2) For the purposes of subsection (1) a company carrying on more
than one class of long-term insurance business shall be regarded as carrying
on only one class of long-term insurance business.
(3) In the case of long-term insurance business, every company shall
place in trust in Belize assets equal to its liability and contingency reserves
with respect to its local policy-holders as established by the revenue account
of the company for the last preceding financial year.
(4) In the case of motor insurance business, every company shall
place assets in trust in Belize equal to its liabilities and reserves less the
amount deposited on account of such business in pursuance of this Act
with respect to its local policy-holders as established by the revenue account
of the company for the last preceding financial year.
(5) A statutory fund of either class-
(a) shall be as absolutely the security of the policy-holders
10 of 1992.
Further provi-
sions relating to
deposits.
First Schedule.
Establishment of
statutory funds.
of that class as though it belonged to a company
carrying on no other business than insurance business
of that class;
(b) shall not be liable for any contracts of the company for
which it would not have been liable had the business of
the company been only that of insurance of that class;
and
(c) shall not be applied, directly or indirectly for any
purpose other than those of the class of insurance
business to which the fund is applicable.
26.-(1) A trust mentioned in section 25 shall be created by trust deed, the
contents and the trustees of which shall be approved by the Supervisor
prior to creation.
(2) Notwithstanding subsection (1), the Supervisor may, on such
terms and conditions as the Minister may think fit, allow the assets required
to be placed in trust in Belize to be placed in trust outside Belize.
(3) For the purposes of this section, the Supervisor may allow the
assets required to be placed in trust to be held by a bank to the order of or
on behalf of the Supervisor and such assets shall be deemed to be placed in
trust and such bank shall be deemed to be a trustee.
27.-(1) The trustee may not deal with any assets placed in trust pursuant to
section 26 (3) except on the instructions of the company so placing those
assets or where this Act so requires.
(2) The trustee may not deal with or release any assets held on trust
by him in pursuance of section 26 without the prior general or specific
approval of the Supervisor.
Method of
trusteeing.
Duties of trustee.
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(3) Every trustee appointed of a trust created in pursuance of section
26 shall in the event of a contravention of the provisions of this section, be
under the same liability as if the appropriate policy-holders had been
beneficiaries of such trust.
28. The assets of a statutory fund shall not be invested except as
provided by this Act.
29. A company shall, within thirty days after the date of establishment of
any statutory fund and thereafter within six months of the expiration of each
financial year furnish to the Supervisor a statement in accordance with the
prescribed form showing-
(a) particulars of the liabilities of the company in respect of
which the fund is established, as at the date of the
establishment of the fund;
(b) particulars of the assets comprising the fund.
30. If it appears to the Supervisor that-
(a) a statement furnished to him under section 29 is in any
respect unsatisfactory, incomplete, inaccurate or
misleading or otherwise fails to comply with the
requirements of that section; or
(b) the value of the assets, or of the assets included in a
particular class of assets as shown by the statement is
insufficient or excessive,
the Supervisor may, after considering any explanation made by or on behalf
of the company, give to the company such directions in writing as he thinks
necessary-
Investment of
statutory fund.
Particulars of
liabilities and
assets with
respect to fund.
Inaccurate or
misleading
particulars.
(i) for the variation of the statement;
(ii) for an increase or decrease in the value of the
assets respectively,
and the company shall within thirty days comply with any directions so
given.
31. A company shall, if directed by the Supervisor, within thirty days
furnish him such information as he requires for the purpose of exercising his
powers under sections 29 and 30.
32. A company aggrieved by any direction of the Supervisor given
under section 30 may seek a review therefrom in the manner prescribed in
section 152.
33. The assets shown-
(a) by a statement furnished to the Supervisor by a
company under section 29; or
(b) where directions are given by the Supervisor, or on a
review, by the Minister, for the variation of the
statement, by the statement so varied,
as being assets of any statutory fund, shall be deemed to form part of those
assets, unless they more properly form part of the assets of some other
statutory fund.
Investments and Prohibitions
34.-(1) The securities in which a company may invest the assets of its
statutory funds are set out in the Second Schedule.
Company to
furnish Supervisor
with information.
Review of
direction by
Supervisor.
Assets in
statement deemed
to be assets of
statutory fund.
Investment
requirements of
statutory funds.
Second Schedule.
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(2) The Minister may from time to time by order amend the Second
Schedule.
35.-(1) Subject to subsections (2) and (3), every company shall have
invested in assets in Belize an amount equal to at least fifty per centum of the
Belize dollar liability in each statutory fund and in this regard shall invest at
least seventy per centum of annual gross premium income until this target is
reached.
(2) Within one year of the commencement of this section every
company shall have invested in assets in Belize an amount equal to at least
ten per centum of the Belize dollar liability in each statutory fund.
(3) The Minister may, after the expiration of the year referred to in
subsection (2), by notice published in the Gazette, determine the minimum
ratio that, after the expiration of one year from the date of publication of the
notice, the assets in Belize held by companies in a statutory fund shall bear to
the Belize dollar liability of that fund; but any such minimum ratio shall not
exceed ten per centum and any subsequent variation of such ratio shall not
exceed five percentage points in any one period of a year reckoned from the
date of publication of the notice determining the first minimum ratio.
(4) In the case of long-term insurance statutory funds, for the purpose
of determining whether a company is in compliance with this section, policy
loans shall be excluded from the assets and deducted from the liabilities of
the company.
36.-(1) A local company shall not, after the commencement of this Act,
directly or indirectly-
(a) acquire or deal in its own shares or lend money or make
advances on the security of its own shares;
(b) lend any of its funds to a director or officer of the
Second
Schedule.
Local assets
ratio.
Prohibitions
relating to loans.
company or to the wife or a child of a director or
officer except on the security of the company’s own
policies or some other adequate security;
(c) lend any of its funds to a company if more than one-half
of the shares of such company are owned by a director
of the company or the wife or a child of a director or
officer, or by any combination of such persons;
(d) grant unsecured credit facilities to any person except for
temporary cover in the case of general insurance where
such cover does not exceed ninety days or except in the
case of advances to agents or to full time employees
against commissions or salaries to be earned;
(e) enter into any guarantee or provide any security in
connection with a loan by any other person to any such
person or company as is mentioned in paragraph (b) or
(c).
(2) After the commencement of this Act a foreign company shall not
directly or indirectly grant unsecured credit facilities to any person in Belize
except in the case of general insurance for temporary cover not exceeding
ninety days or of advances to agents or full-time employees against
commissions or salaries to be earned.
Administrative and Accounting Requirements for Insurance Companies
37.-(1) Every insurance company registered under this Act shall maintain a
principal office in Belize, and shall appoint some person resident in Belize to
be its principal representative in Belize.
(2) Every such company shall notify the Supervisor in writing of the
situation of its principal office and of the name of its principal representative.
Insurance
companies to
maintain principal
office and appoint
principal represen-
tative.
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(3) If any such company changes the situation of its principal office
or appoints a new principal representative, it shall, within twenty-one days of
the change or appointment, give written notice thereof to the Supervisor.
38.-(1) Subject to this Act, where an insurance company-
(a) carries on, together with other business, insurance
business of one only of the specified classes; or
(b) carries on, with or without other business, insurance
business of two or more of the specified classes,
the receipts of such class of insurance business, or of each of such classes of
insurance business, as the case may be, shall be entered in a separate
account and shall be carried to and form a separate insurance fund with an
appropriate name.
(2) Nothing in this section shall require the investments of any fund to
be kept separate from the investments of any other fund.
(3) Subject to this Act, a fund of any particular class-
(a) shall be as absolutely the security of the policy-holders
of that class as though it belonged to a company
carrying on no other business than insurance business of
that class; and
(b) shall not be liable for any contracts of the company for
which it would not have been liable had the business of
the company been only that of insurance of that class; and
(c) shall not be applied, directly or indirectly, for any
purposes other than those of the class of business to
Maintenance and
separation of
funds.
which the fund is applicable.
(4) For the purposes of subsection (1) the expression “specified
classes” means the following classes, namely, life insurance business,
industrial life insurance business, bond investment business, and employers’
liability insurance business.
39.-(1) Subject to subsections (4) and (11), every company registered
under this Act shall, at the end of each financial year, prepare in the
prescribed form and manner-
(a) a general balance sheet showing the financial position of
all the insurance business of the company at the close of
that year; and
(b) except in the case of a mutual company, a profit and
loss account in respect of all its insurance business in
that year, where the company carries on more than one
class of insurance business; and
(c) separate revenue accounts for-
(i) life insurance business;
(ii) industrial life insurance business;
(iii) bond investment business;
(iv) such other class or classes of insurance business
as may be prescribed; and
(d) an analysis of its long term policies in force at the end of
that year; and
Preparation of
annual accounts,
etc.
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(e) a certificate that the assets of its insurance business are
in the aggregate at least of the value shown in the
balance sheet; and
(f) (i) in relation to any life insurance business carried
on by the company, a certificate that the value of
the assets of the life insurance fund exceeds the
liabilities; and
(ii) where the company carries on general insurance
business but not life insurance business a
certificate that the value of its assets exceeds the
amount of its liabilities by whichever is the
greater of the amounts specified in section 53 (1)
(b) (i) and (ii); and
(iii) where the company carries on both life insurance
business and general insurance business, a
certificate that the value of its assets, including
the life insurance fund, exceeds its liabilities by
the amount specified in section 53 (2) (b) (ii);
and
(g) such other documents and information relating to the
accounts and balance sheets referred to in this sub-
section as may be prescribed.
(2) A company registered under this Act shall, together with the
documents referred to in subsection (1), furnish to the Supervisor a copy of
any report on the affairs of the company submitted to the policy-holders or
shareholders of the company in respect of the financial year to which those
documents relate.
(3) Every account, balance sheet, statement or other document
required by subsection (1) to be prepared shall be furnished to the
Supervisor within six months after the end of the period to which the
account, balance sheet, statement or other document relates.
(4) All the documents referred to in subsection (1) shall relate to the
world wide business of the company but the Supervisor may require in
addition a statement showing in respect of the company’s business in Belize
the amounts of premiums and considerations for annuities received, claims
paid and outstanding, surrenders, including surrenders of bonus, annuities
paid, bonuses paid, commission and expenses of management.
(5) Such of the documents required to be prepared by subsection (1)
as may be prescribed shall be certified by an independent auditor, by an
actuary or by officers of a body corporate.
(6) Where, in the opinion of the Supervisor, a document furnished by
a company under this section is incorrect, or incomplete in any respect or is
not prepared in accordance with this Act, he may, by notice in writing, call
upon the company to amend the document or to furnish a correct or com-
plete document or, as the case may be, a document prepared in accordance
with this Act.
(7) Where a company fails to comply with a notice referred to in sub-
section (6) to the satisfaction of the Supervisor, the Supervisor may himself
either amend the document in question, giving the company particulars of the
amendments, or reject the document.
(8) A document amended by the Supervisor or by a company under
this section shall be treated as having been submitted to the Supervisor in its
amended form.
(9) Where a document furnished by a company under this section has
been rejected by the Supervisor under subsection (7) the company shall be
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45
treated as having failed to comply with the provisions of this section in
relation to that document unless and until it has furnished another document
in accordance with the directions of the Supervisor.
(10) A company liable under a local life insurance policy shall, at the
request of the policy-holder, furnish him free of charge with a copy of the
relevant revenue account, profit and loss account and balance sheet
prepared by the company under subsection (1) in respect of its last
preceding financial year.
(11) The requirements of this section shall not apply in the case of a
company which carries on only insurance business of a class or classes
declared exempt for the time being under the provisions of section 158.
40. Where two or more insurance companies, which operate as separate
entities which can be wound up in accordance with the law under which they
are incorporated, are associated together in a group, then, in addition to the
separate accounts required by section 39, the Supervisor may require the
parent company of the group to prepare, at the end of its financial year and
in the prescribed form and manner-
(a) a consolidated balance sheet showing at the close of
that year the financial position as a group of the parent
company and all its subsidiary companies;
(b) a consolidated profit and loss account showing the profit
or loss as a group of the parent company and all its
subsidiary companies during that year; and
(c) such other documents as may be prescribed, and such
balance sheet and profit and loss account shall bear a
certificate by an auditor approved by the Supervisor as
to whether in his opinion it gives a true and fair view of
Group accounts.
the financial position as a group at the close of that
year, or, as the case may be, of the profit and loss as a
group during that year, of the parent company and all its
subsidiary companies.
41.-(1) The accounts of every insurance company shall be audited annually
by an independent auditor who shall not be an employee or an officer of the
company.
(2) The auditor of every insurance company shall satisfy himself that
the accounts of the company have been properly prepared in accordance
with the books and records of the company and shall certify whether-
(a) he has obtained adequate information from the books
and records of the company;
(b) the accounts of the company accord with the
information given to him by the company for the
purposes of his audit;
(c) in the case of an insurer other than a mutual company,
the balance sheet and profit and loss account
respectively of the insurer give a true and fair view of
the insurer’s financial position and profit and loss; and
(d) in the case of a mutual company, the balance sheet and
funds give a true and fair view of the insurer’s financial
position.
42. A foreign company shall keep within Belize and make available to
the Supervisor on request-
(a) a record of all local policies issued by the company
showing the company’s rights and obligations
Audit of accounts
of insurance
companies.
Keeping of
records by foreign
companies.
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47
thereunder; and
(b) a record of the aggregate amount of the premiums
received on all local policies issued by the company;
and
(c) documentary evidence of all of its assets in Belize; and
(d) such other records in relation to insurance business in
Belize as may be prescribed.
43.-(1) Every insurance company which carries on long-term business shall,
not less than once in every five years, cause an investigation into its financial
position, including a valuation of its liabilities, to be made by an actuary.
(2) Every such company shall, whenever its financial position is
investigated with a view to a distribution of surplus or in compliance with
subsection (1), prepare and furnish to the Supervisor in the prescribed form,
within six months of the date up to which its accounts are made for the
purposes of the investigation, an abstract of the report of the actuary by
whom the investigation was made and a statement of its long-term business
at that date.
(3) Section 39 (6) and (10) shall, with such modifications as may be
necessary, apply in relation to any such abstract or statement as they apply in
relation to a document required to be prepared by section 39.
(4) In the case of a mutual insurance company which carries on life
insurance business or industrial life insurance business and whose profits are
allocated to members wholly or mainly by annual abatements of premium,
the company shall, where the abstract required by this section is not made
annually, include with the copies of each such abstract furnished to the
Supervisor under this section particulars as to the rates of abatement of
premium applicable to different classes or series of insurance allowed in each
Periodical
investigations to
be made into
financial position
of companies
carrying on long
term business
year during the period which has elapsed since copies of such an abstract
were previously so furnished.
44.-(1) Subject to this Act no class of insurance business of any company
may either in whole or in part, be transferred to, or be amalgamated with
the insurance business of any other company unless the transfer or, as the
case may be, the amalgamation is sanctioned by the Supervisor.
(2) The Supervisor may sanction any such transfer or amalgamation
either unconditionally or subject to such conditions as he may specify in
writing.
(3) In the case of foreign companies this section shall apply only to
the transfer or amalgamation of insurance business relating to policies issued
in Belize.
45. Where any class of insurance business carried on by a company is
transferred to or amalgamated with the insurance business of another
company, the company to which the insurance business is transferred or the
company carrying on the amalgamated insurance business, as the case may
be, shall, within one month after the transfer or amalgamation, lodge with
the Supervisor-
(a) a certified copy of the agreement or deed under which
the transfer is effected; and
(b) a statutory declaration made by the chairman of the
board of directors or by the principal officer of the
com-pany, fully setting out every payment made or to
be made to any person whatever on account of the
transfer or amalgamation, and stating that to the best of
his belief no other payment beyond those so set out has
been or is to be made in money, policies, bonds,
Transfer or
amalgamation.
Returns to be
made in case of
transfers or
amalgamations.
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valuable secu-rities, property of any description or any
other valuable consideration, by or with the knowledge
of any parties to the transfer or amalgamation.
Investigations by the Supervisor
46. Without prejudice to any other provision of this Act, the Supervisor
may at any time require an insurance company to supply such information in
writing relating to business of the company as he may specify, being
information that is relevant to the question whether or not the Supervisor
should exercise in relation to that company any of the powers conferred on
him under this Act.
47.-(1) If it appears to the Supervisor that-
(a) a company is, or is likely to become, unable to meet its
obligations;
(b) a company has failed to comply with any of the
provisions of sections 38 to 43; or
(c) a company has not, within a period of one month as
from a date upon which the Supervisor demanded from
it in writing any information which the Supervisor was
entitled under this Act to demand from it, furnished that
information duly and satisfactorily;
(d) any information in the possession of the Supervisor calls
for an investigation into the whole or any part of any
class of the insurance business of the company,
the Supervisor may serve on the company a notice in writing calling upon it
to show cause, within such period not less than thirty days from the date of
Supervisor may
demand
information.
Power to make
investigations.
notice, as is specified in the notice, why he should not, on the grounds so
specified investigate the whole or any part of the business of the company
or appoint a person (in this Part referred to as the Inspector) to make such
an investigation and report to the Supervisor the results of his investigations.
(2) If the company fails, within the period specified in the notice, to
show cause to the satisfaction of the Supervisor, the Supervisor may make
the investigation or may cause it to be made by the Inspector.
48.-(1) In making an investigation under this Part, the Supervisor or the
Inspector-
(a) may require the company to produce any securities,
books, accounts, documents or statistics of the
company for his inspection and to allow him to make
such extracts from them as he considers fit;
(b) may examine on oath in relation to the company’s
business, any person who is or has at any time been, a
director, auditor, officer, agent, servant or shareholder
of the company or the holder of a policy issued by the
company or the personal representative of the holder;
and
(c) for the purpose of paragraph (b) may administer oaths.
(2) A person specified in subsection (1) (b) shall produce to the
Supervisor or the Inspector at his request any securities, books, accounts,
documents or statistics of the company which are available to him and shall
give to the Supervisor or the Inspector, at his request, any information in his
possession relating to the business of the company.
(3) A person so specified shall not refuse to be sworn or to give
information on his examination on oath, and shall not, in reply to a request
Power to obtain
information.
,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Insurance [CAP. 251
[ ]
51
made under subsection (2), give any false information.
49.-(1) A person shall not either directly or indirectly, except in the perfor-
mance of any duty under this Act, make a record of, or divulge or com-
municate to any person, any information acquired by him under this Part.
(2) A person performing any duty under this Part shall take an oath, in
the manner and form specified, to maintain secrecy in conformity with the
provisions of this section.
(3) Any person who contravenes any of the provisions of this section
commits an offence.
50.-(1) After an investigation under this Part in respect of any company has
been completed-
(a) the Supervisor shall transmit to the company a summary
of the conclusions arrived at by him as a result of the
investigation; and
(b) the Supervisor may, without affecting any other powers
conferred by this Part, issue such directions in writing to
the company, in respect of any or all classes of
insurance business, as he thinks necessary or proper to
deal with the situation disclosed in those conclusions
(including, without prejudice to the generality of the
foregoing, directions prohibiting or regulating the issue
of new policies, the renewal of existing policies or the
entering into any new contract); but in the case of a
foreign company no such directions shall apply to the
issue or renewal of policies or the entering of contracts
in the course of its business outside Belize.
Action after
completion of
investigation.
Divulging of
information.
(2) No direction issued to a company under this section shall remain
in force for more than twelve months, but nothing in this subsection shall
prevent the Supervisor from issuing any further directions to the company.
Judicial Management and Winding Up
51.-(1) The court may order the winding-up, in accordance with the
Companies Act, of a company and the provisions of that Act shall apply
accordingly, subject to the provisions of this section and sections 52 to 65
and to the modification that the company may be ordered to be wound up
on the petition of ten or more policy-holders owning policies of an
aggregate sum assured of not less than ten thousand dollars or on the
petition of the Supervisor. Such a petition shall not be presented except by
leave of the court, and leave shall not be granted until a prima facie case
has been established to the satisfaction of the court and until security for
costs for such amount as the court may think reasonable has been given.
(2) The Supervisor shall be a party to any proceedings under the
Companies Act relating to the winding-up of a company and the liquidator
in such a winding-up shall give him such information as he may from time to
time require about the affairs of the company.
(3) Reference in this section to a company shall extend also to a
company which has ceased to be registered but remains under any liability
in respect of local policies.
52.-(1) Where the Supervisor, by reason of the conclusion arrived at by
him as a result of an investigation under section 47 in respect of any
company, is of the opinion that it is necessary or proper to do so he may,
with the leave of the court, present a petition-
Winding-up.
CAP. 250.
CAP. 250.
Position for
judicial manage-
ment or winding-
up.
,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Insurance [CAP. 251
[ ]
53
(a) for the winding-up by the court, in accordance with the
Companies Act, of an insurance company on the
ground-
(i) that the company has contravened the provisions
of section 8; or
(ii) in the case of an insurance company which was
carrying on insurance business in Belize before
the commencement of this Act and whose regis-
tration under this Act has been refused, that it is
in the interests of the policy-holders that the
company be wound up; or
(iii) in the case of an insurance company whose
registration under this Act has been cancelled,
that it is in the interest of the policy-holders that
the company be wound up; or
(iv) that any officer of the company or its holding
company refuses to comply with any require-
ments made under section 48 (1) (a) or refuses
to answer any question put to him under para-
graph (b) of that subsection; or
(v) that the results of an investigation made under
section 47 in respect of the company are such
that it is in the interest of the policy-holders that
the company be wound up; or
(vi) that the company is insolvent; or
(b) for an order that the company or any part of the
insurance business of the company be placed under
CAP. 250.
judicial management on the ground -
(i) that the company is in financial difficulties; or
(ii) that the insurance business of the company is not
being conducted in accordance with sound
insurance principles and practice; or
(iii) that it is otherwise in the interests of the policy-
holders that such an order be made,
and the court may order accordingly.
(2) An insurance company may, in respect of itself, after giving the
Supervisor one month’s notice in writing of its intention to do so, petition the
court for any order specified in subsection (1).
(3) Both the company and the Supervisor shall be entitled to be
heard on any petition presented to the court under this section.
(4) Where a petition is presented under this section for an order in
Respect of any insurance company, all actions and the execution of all writs,
summonses and other processes against it shall, by virtue of this section, be
stayed and shall not be proceeded with without the leave of the court first
obtained or unless the court otherwise directs.
53.-(1) Subject to this section and section 65 an insurance company shall,
for the purposes of this Act and of section 130 of the Companies Act (which
authorises the court to wind up a company unable to pay its debts), be
deemed to be unable to pay its debts if it does not possess the margin of
solvency specified in subsection (2):
Provided that, except for the purposes of section 13 (1) (b), this
section shall not apply to an insurance company unless and until a period of
two years, or such longer period as the Supervisor may in any case allow,
Margin of
solvency.
CAP. 250.
,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Insurance [CAP. 251
[ ]
55
has expired from the date of its commencing to carry on insurance business.
(2) An insurance company shall possess the required margin of
solvency if-
(a) in the case of an insurance company carrying on long-
term business but no general business, if the amount of
its liabilities does not exceed the amount of its assets;
(b) in the case of an insurance company carrying on general
business but no long-term business, or carrying on
general insurance business and long-term insurance
business if the value of its assets exceeds the amount of
its liabilities by an amount in excess of one fifth of the
general premium income in its last preceding financial
year.
(3) For the purposes of this section-
(a) in computing the amount of the liabilities of an insurance
company, all contingent and prospective liabilities shall
be taken into account, but not liabilities in respect of
share capital; and
(b) the premium income of an insurance company in respect
of its general business in any financial year shall be taken
to be the net amount (after deduction of any premiums
paid by the company for reinsurance) of the premiums
received by that company in that year in respect of all
insurance business of a class specified in section 3(l)
other than long-term business.
(4) In the case of any insurance company failing to prepare in
the prescribed form and manner a certificate of its assets pursuant to section
39 (1) (f), the value of its assets shall, in any proceedings under this section
for the winding up of the company, be deemed until the contrary is proved,
not to exceed the amount of its liabilities by the amount required by
subsection (1).
(5) Nothing in this section shall be taken as affecting the manner in
which, on a winding up, any assets or liabilities are required to be dealt with,
whether by virtue of the provisions of this Act or otherwise.
(6) Where, on the application of any insurance company, the Minister
is satisfied-
(a) that it carries on business wholly or mainly for the
purpose of insuring a limited class of persons having a
financial or other interest in common; and
(b) that, having regard to the limited nature of its business,
the provisions of this section are inappropriate or
unduly onerous to the company,
the Minister may direct that, subject to such conditions as may be specified
in the order, this section shall not apply to the company, or shall apply so as
to require that the value of the company’s assets shall exceed the amount of
its liabilities by a lesser amount than the amount mentioned in this section.
(7) Any order made under subsection (6) may be revoked by the
Minister if-
(a) he ceases to be satisfied of the matter on the ground of
which the order was made; or
(b) he is satisfied that any condition specified in the order
has not been complied with.
,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Insurance [CAP. 251
[ ]
57
54.-(1) Where an order for the judicial management of an insurance
company or of part of the business of an insurance company is made after
the hearing of a petition under section 52, the provisions of this section and of
sections 55, 56, 57 and 58 shall apply.
(2) The court shall appoint a judicial manager who shall receive
such remuneration as the court directs, and the court may at any time cancel
the appointment and appoint some other person as judicial manager.
(3) The court may direct how and by whom the remuneration,
charges and expenses of the judicial manager shall be borne, and may, if it
thinks fit, charge that remuneration and those charges and expenses on the
property of the insurance company in such order of priority in relation to any
existing charges on that property as it thinks fit.
(4) The management of the insurance company, or of such part
of the business of the insurance company as the order of the court
directs shall, on a date specified in the order, vest in the judicial manager
appointed by the court to the exclusion of any person vested with any such
management immediately before that date, but, except with the leave of the
court, the judicial manager shall not issue any new policy or renew any
existing policy or enter into any new contract.
(5) The court shall issue such directions to the judicial manager as to
his powers and duties as it deems desirable in the circumstances of the case.
(6) The judicial manager shall act under the control of the court, and
may apply to the court at any time for instructions as to the manner in which
he shall conduct the judicial management or in relation to any matter arising in
the course of the judicial management.
(7) The judicial manager shall give the Supervisor such information as
the Supervisor requires from time to time, and shall report to the Supervisor
whenever he intends to apply to the court for instructions and shall, at the
Judicial
management.
same time, furnish to the Supervisor particulars of the application.
(8) The Supervisor shall be entitled to be heard on any such
application, and may himself make application to the court with reference to
the conduct of the judicial management.
55. If at any time, on the application of the judicial manager of or any
person appearing to the court to have an interest in the matter, it appears to
the court that the purpose of the order for the judicial management of the
company or of part of the business of the company has been fulfilled, or that
for any reason it is undesirable that the order should remain in force, the
court may cancel the order and thereupon the judicial manager shall be
divested of the management which shall again vest in the board of directors
or other governing body of the company.
56.-(1) The judicial manager shall conduct the management of the insurance
company with the greatest economy compatible with efficiency, and shall, as
soon as practicable, file with the court a report stating which of the following
courses is in the circumstances, in his opinion, most advantageous to the
general interests of the policy-holders of the company and seeking an order
accordingly-
(a) the transfer of all or any part of the insurance business
of the company to some other insurance company in
pursuance of a scheme prepared by the judicial
manager and annexed to such report;
(b) the carrying on of its business by the company either
unconditionally or subject to such conditions as the
judicial manager may suggest;
(c) the winding-up of the company; or
Cancellation of
judicial
management.
Report by judicial
manager.
,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Insurance [CAP. 251
[ ]
59
(d) such other course as he considers advisable.
(2) The judicial manager shall forthwith, after filing the report, furnish
a copy of the report to the Supervisor.
(3) The report or a copy of the report shall be open for inspection by
any person during official hours, at the General Registry or at such place as
the Supervisor determines.
57.-(1) The court shall on the hearing of an application made under section
56-
(a) after hearing the Supervisor, the judicial manager and
any other person who in the opinion of the court is
entitled to be heard; and
(b) after considering the report of the judicial manager,
make an order giving effect to the course (whether similar or not to any of
the courses mentioned in section 56 (1)) which it considers in the
circumstances to be most advantageous to the interests of the policy-holders
of the company.
(2) The order of the court shall be binding on all persons and shall
have effect notwithstanding anything in the instruments constituting the
company, or in the articles of association or other rules of the company, or in
any contract.
58. The judicial manager shall not be subject to any action, claim or
demand by, or liability to, any person in respect of anything done or omitted
to be done in good faith in the discharge, or in connection with the discharge,
of the functions conferred on the judicial manager under this Part.
59.-(1) Where the insurance business or any part of the insurance business
Decision of court
on report of
judicial manager.
Indemnity.
Subsidiary
companies.
conjunction with the principal company, and may by the same or any
subsequent order appoint the same person to be liquidator for the two
companies, and may make provision for such other matters as may seem to
the court necessary, with a view to the companies being wound up as if they
were one company.
(2) The commencement of the winding-up of the principal company
shall, except as otherwise ordered by the court, be the commencement of
the winding-up of the subsidiary company.
(3) In adjusting the rights and liabilities of the members of the several
companies between themselves, the court shall have regard to the
constitution of the companies, and to the arrangements entered into between
the com-panies, in the same manner as the court has regard to the rights and
liabilities of different classes of contributories in the case of the winding-up
of a single company, or as near thereto as circumstances admit.
(4) Where any company alleged to be subsidiary is not in process of
being wound up at the same time as the principal company to which it is
subsidiary the court shall not direct the subsidiary company to be wound up
unless, after hearing all objections (if any) that may be urged by or on behalf
of the company against its being wound up, the court is of opinion that the
company is subsidiary to the principal company and that the winding-up of
the company in conjunction with the principal company is just and equitable.
(5) An application may be made in relation to the winding-up of any
subsidiary company in conjunction with a principal company by any creditor
of, or person interested in, the principal or subsidiary company.
(6) Where an insurance company stands in the relation of a principal
company to one insurance company, and in the relation of a subsidiary
company to some other insurance company, or where there are several
insurance companies standing in the relation of subsidiary companies to one
,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Insurance [CAP. 251
[ ]
61
principal company, the court may deal with any number of such companies
together or in separate groups, as it thinks most expedient, upon the
principles laid down in this section.
60. In any proceedings upon a petition to wind up an insurance company
presented by the Supervisor under section 52, evidence that the company
was insolvent at any time before such proceedings shall be evidence that the
company continues to be unable to pay its debts, unless the contrary is
proved.
61.-(1) Where an insurance company is being wound up by or subject to the
supervision of the court, or voluntarily, the value of a policy of any class or of
a liability under such a policy requiring to be valued in the winding-up shall be
estimated in the manner applicable to policies and liabilities of that class
provided for by such rules as may be prescribed and the liquidator, in the
case of all persons appearing by the books of the company to be entitled to
or interested in policies granted by the company shall-
(a) ascertain the value of the liability of the company to each
such person in accordance with the said rules or in such
other manner or upon such other basis as the court may
approve; and
(b) give notice of that value to such persons in such manner
as the court may direct.
(2) Any person to whom notice is given pursuant to subsection (1) (b)
shall be bound by the value ascertained in accordance with that subsection
unless he gives notice of his intention to dispute the value in the manner and
within a time to be specified by an order of the court or by rules of court.
Supplemental
provisions as to
winding-up.
Ascertainment of
value of liability
under policies.
62. In the case of an insurance company which has been proved to be
unable to pay its debts, the court may, if it thinks fit, reduce the amount of
the contracts of the company upon such terms and subject to such
conditions as the court thinks just, in place of making a winding-up order.
63. Upon the winding-up of an insurance company, all moneys and
securities for the time being held as a deposit in respect of that company
under section 23 or 24 shall be delivered to the liquidator and shall be
applied by him, in the first instance, in the discharge of the liabilities of the
company in respect of local policies.
64. Rules may be made under section 218 of the Companies Act for the
purpose of carrying into effect the provisions of this Act relating to the
winding-up of insurance companies and to judicial managers.
65.-(1) Where, on the application of an insurance company carrying on
general business, the Supervisor is satisfied that it is guaranteed by another
insurance company satisfying the requirements of a guarantor set out in
subsection (2), the Supervisor may by order direct that, subject to such
conditions as may be specified in the order, section 53 shall not apply to the
first-mentioned insurance company.
(2) A guarantor shall be required for the purposes of this section to
be either-
(a) a body corporate which satisfies such of the require-
ments of section 10 as are applicable thereto and the
value of whose assets exceeds the amount of its
liabilities by the amount required by section 53; or
(b) a member of an association of underwriters to whom
this Part does not apply by virtue of section 3 (4); or
Reduction of
contracts as
alternative to
winding-up.
Application of
deposits.
Rules.
CAP. 250.
Guaranteed
companies.
,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Insurance [CAP. 251
[ ]
63
(c) an insurance company which, being itself guaranteed by
another insurance company, is the subject of an order
under this section,
and for the purposes of this section an insurance company shall be deemed
to be guaranteed by another insurance company if, but only if, all its liabilities
to policy-holders in respect of insurance business of any class specified in
section 3 (1) are reinsured with or guaranteed by the other insurance
company.
(3) Any order made under this section may be revoked by the
Supervisor-
(a) if he ceases to be satisfied of the matters on the ground
of which the order was made; or
(b) if he is satisfied that any condition in the order has not
been complied with.
PART III
Associations of Underwriters
66.-(1) Subject to subsection (3) no association of underwriters shall carry
on insurance business in Belize unless it is registered in accordance with this
Part.
(2) A member of an association of underwriters which has been
registered in accordance with this Part may, after the date of such regis-
tration, carry on in Belize insurance business other than long-term insurance
business.
(3) Subsection (1) shall not, for a period of six months after the
Associations of
underwriters to be
registered.
commencement of this Act or such further a period as the Minister may by
order direct, apply to an association of underwriters which was carrying on
insurance business in Belize immediately before such commencement.
67.-(1) An application by an association of underwriters for registration
under this Part shall be made to the Supervisor in the prescribed form and
shall be accompanied by evidence of the payment of the prescribed fee and
by the following documents and information-
(a) a copy of its statute or deed of association;
(b) the names and addresses of persons in Belize who as
brokers or agents place insurance business with the
association; and
(c) in the case of an association constituted outside Belize-
(i) a certificate signed by the appropriate public
authority in Belize in which it is constituted
stating that the association has been established
for at least five years, that the legislation of such
country provides for the regulation of associa-
tions of underwriters and that it is operating in
accordance with that legislation; and
(ii) the names and addresses of one or more
persons resident in Belize who are authorised to
accept, on behalf of the members of the
association, service of process in any legal
proceedings; and by such further information as
the Supervisor may require.
(2) Every association of underwriters carrying on insurance business
in Belize immediately before the commencement of this Act shall, within
Applications for
registration by
associations of
underwriters.
,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Insurance [CAP. 251
[ ]
65
three months of that date, and in accordance with subsection (1), apply for
registration to the Supervisor who shall, if satisfied that the application is in
accordance with this Act, register the association within three months after
the receipt of the application.
68.-(1) Where the Supervisor, after appropriate inquiry or by the production
of documentary evidence, or both, is satisfied in respect of the applicant
association of underwriters that-
(a) the relevant requirements of this Part have been
complied with; and
(b) the association is likely to be able to comply with such
of the provisions of this Act as would be applicable to it;
and
(c) being an association of underwriters constituted outside
the country-
(i) it has made or caused to be made with the
Supervisor the deposit required by section 74
(1); and
(ii) there are one or more persons resident in Belize
who are authorised to accept on behalf of the
members of the association service of process in
any legal proceedings, being persons authorised
for that purpose by the association,
the Supervisor shall, either unconditionally or subject to such conditions as he
may specify, register the association of underwriters and notify the applicant
accordingly.
Conditions for
registration.
(2) Where the Supervisor is not satisfied, in respect of the applicant
association of underwriters, as to one or more of the conditions set out in
subsection (1) he shall notify the association of underwriters in writing that
he proposes to refuse to register it, giving his reasons for so doing and shall
notify it of its right, under section 152, to request the Supervisor to refer his
proposal for review by the Minister.
69. An association of underwriters registered in accordance with this
Part (in this Part referred to as a registered association) shall within six
months of the end of each financial year furnish to the Supervisor-
(a) in the case of an association constituted outside Belize-
(i) a certified copy of such returns relating to the
insurance business of the members during the
preceding year as are required to be made to
the responsible Minister or other public
authority in the country in which the association
is constituted;
(ii) a certificate, signed by the chairman or other
presiding officer of the association and by or on
behalf of the responsible Minister or other
public authority, stating whether the association
has complied with the requirements of the
legislation for the regulation of associations of
underwriters in the country in which it is
constituted;
(iii) the latest annual list of members and the names
of its committee or other governing body; and
(iv) a statement of receipt and expenditure by its
members in Belize during the preceding year,
which statement shall include gross premiums,
Documents and
information relat-
ing to insurance
business to be
furnished to the
Supervisor.
10 of 1992.
,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Insurance [CAP. 251
[ ]
67
gross claims paid and commissions paid shown
separately for motor vehicle insurance business,
property insurance business, marine, aviation and
transit insurance business, and also shown
separately for direct and reinsurance business;
(b) in the case of an association constituted in Belize such
documents and information as the Supervisor may
require.
70.-(1) Subject to subsection (2) the Supervisor may notify in writing a
registered association that he proposes to cancel its registration, giving his
reasons for doing so (and notifying the registered association of its right under
section 152 to request the Supervisor to refer his proposal for review by the
Minister) if at any time-
(a) the Supervisor is satisfied that such registration was
procured as a result of any misleading or false
representation or in consequence of any incorrect
information (whether such representation was made or
information was supplied, wilfully or otherwise); or
(b) the Supervisor is not satisfied that the insurance business
of its members is being conducted in accordance with
sound insurance principles; or
(c) the Supervisor is satisfied that the association has
contravened any of the provisions of this Act or of any
regulations made thereunder or any condition, direction
or requirement imposed under this Act by the Minister
or by the Supervisor; or
(d) the Supervisor is satisfied that the association has been
Grounds for
cancellation of
registration.
guilty without reasonable cause of delay in the payment
or settlement of any claim arising under any policy issued
in Belize by it or on its behalf.
(2) Notwithstanding subsection (1), the Supervisor may at any
time cancel the registration under this Part of a registered association-
(a) if he is satisfied that the members of the association have
not commenced business within one year of registration
or have ceased to carry on business within Belize; or
(b) at the request of the association.
71. Where a registered association has been notified under section 68 (2)
or 70 (1) of its right to request the Supervisor to refer the proposal
concerned to the Minister for review and either-
(a) fails to make any such request; or
(b) having made such request, withdraws the request or the
result of the review is the confirmation, with or without
variation, of the Supervisor’s proposal,
then, subject to any such variation, the Supervisor shall give effect to his
proposal and notify the association accordingly.
72.-(1) The Supervisor may prohibit a registered association from writing
new policies in any class of insurance business if he is satisfied that it is in the
interests of the policy-holders or prospective policy-holders to do so.
(2) The Supervisor shall notify the registered association in writing of a
decision taken under subsection (1) and shall state the reasons for his
decision.
Implementation
of proposal to
refuse to register
or to cancel
registration.
Registered
association may
be prohibited
from writing new
business.
,
No. 1 Power Lane,
Belmopan, by the authority of
the Government of Belize.
Insurance [CAP. 251
[ ]
69
73. An association whose application for registration is rejected or
whose registration is cancelled in accordance with this Part shall continue to
carry on business relating to policies issued by it before the date on which it
was notified of such rejection or cancellation unless the Supervisor is satisfied
that it has made suitable arrangements for its obligations under these policies
to be met.
74.-(1) Subject to this section, an association of underwriters which is
constituted outside Belize may not be registered under this Act to carry on
and may not carry on any class of insurance business unless it has deposited
with the Supervisor in cash or in prescribed securities or partly in cash and
partly in prescribed securities an amount equal to ten per centum of the
premium income of the association earned from all insurance business carried
on in Belize during the financial year last preceding the date of deposit.
(2) The provisions contained in the First Schedule shall have effect
in relation to deposits made with the Supervisor pursuant to this section.
PART IV
Registration of Insurance Brokers, Salesmen, Agents and Sub-Agents
75.-(1) Subject to subsection (2) no person shall in Belize, in relation to
insurance of any class specified in section 3 (1), carry on or purport to carry
on business as, or act as-
(a) a broker or salesman, unless registered under this Part
to carry on such business as a broker or, as the case
may be, as a salesman; or
(b) the agent or sub-agent of any person unless registered
under this Part to carry on such business as that
person’s agent or, as the case may be, sub-agent.
Deposits by
associations of
underwriters.
First Schedule.
Registration of
insurance brokers,
salesmen, agents
and sub-agents.
Policies issued
before rejection of
application for, or
cancellation of,
registration.
(2) This section shall not, for a period of six months after the com-
mencement of this Act, or such further period as the Minister may by order
direct, apply to a person who was immediately before such commencement
carrying on in Belize business as a broker, salesman, agent or sub-agent.
76.-(1) An application for registration under this Part shall be made to the
Supervisor in the prescribed form and shall be accompanied by evidence of
payment of the prescribed fee and by such documents as may be prescribed.
(2) If a person wishes to be registered as an agent or sub-agent for
more than one person, a separate application shall be made in respect of
each agency or sub-agency, as the case may be and a separate fee shall be
payable in respect of each agency or sub-agency.
(3) The Supervisor may, upon receipt of the application request the
applicant to furnish such additional information as the Supervisor may con-
sider to be relevant in relation to the application, and the applicant shall
comply with any such request.
77.-(1) No person may be registered under this Part to carry on business as
a broker, salesman, agent or sub-agent if he is-
(a) under the age of eighteen years in the case of a
salesman; or
(b) under the age of twenty-one years in the case of a
broker, agent or sub-agent; or
(c) an undischarged bankrupt, unless he has been granted
leave to carry on such business by the court by which he
was adjudged bankrupt; or
(d) a person who has been found by a court of competent
Application for
registration.
10 of 1992.
General restric-
tions regarding
registration.
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jurisdiction to be of unsound mind.
(2) No person may be registered under this Part as an agent of an
insurance company unless that company is registered under Part II or
exempted from registration thereunder.
(3) No person may be registered under this Part as a sub-agent of
another person unless that other person is registered under this Part as an
agent or sub-agent or exempted from registration thereunder.
(4) No person may be registered under this Part as a salesman un-less
the insurance company, agent or sub-agent by whom he is so employed is
registered under Part II or, as the case may be, under this Part, or is
exempted from registration thereunder.
78.-(1) Where the Supervisor is satisfied in respect of the applicant-
(a) that the requirements of section 76 have been complied
with; and
(b) that the provisions of section 77 do not apply; and
(c) that the applicant is a person of good character and is
otherwise a fit and proper person to be a broker,
salesman, agent or sub-agent, as the case may be; and
(d) that the applicant is sufficiently competent and
knowledgeable to carry on business as a broker,
salesman, agent or sub-agent, as the case may be, in
respect of any class or classes of insurance; and
(e) in the case of a person who was, before the com-
mencement of this Act carrying on business in Belize as
Conditions for
registration.
a broker, salesman, agent or sub-agent, that he
conducted such business in a sound and proper manner;
and
(f) if the applicant is then required by regulations made
under this Act to pass any examination, that he has
passed such examination; and
(g) in the case of a person applying to carry on business as
a broker, that he has such professional indemnity cover
not exceeding one million dollars as may be prescribed
by the Supervisor,
he shall, either unconditionally or subject to such conditions as he may
specify, register the applicant as-
(i) a broker; or
(ii) a salesman; or
(iii) an agent or sub-agent of the insurance company
or person for whom the applicant has been
appointed as agent or sub-agent,
as the case may be, in respect of such class or classes of insurance as he shall
specify and shall notify the applicant accordingly.
(2) If the Supervisor is not satisfied, in relation to all or any of the
classes of insurance business in respect of which the application is made, as
to one or more of the conditions set out in subsection (1) he shall notify the
applicant in writing that he proposes to refuse to register the applicant or, as
the case may be, that he proposes to refuse to register the applicant in
respect of one or more of the classes of insurance applied for, giving his
reasons for doing so, and notifying him of his right under section 152 to
10 of 1992.
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Belmopan, by the authority of
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request the Supervisor to refer his proposal for review by the Minister.
79.-(1) The Supervisor shall furnish to every person registered under this
Part a certificate in the prescribed form that such person has been registered
as a broker, salesman, agent or sub-agent, as the case may be, and such
certificate shall-
(a) state the class or classes of insurance in respect of
which such person is so registered;
(b) state any conditions subject to which such person has
been so registered; and
(c) in the case of the registration of a person as an agent or
sub-agent, specify the insurance company or person for
whom such first-mentioned person has been registered
as an agent, or as the case may be, a sub-agent,
and the certificate shall be prima facie evidence that the person stated
therein as having been registered has been so registered.
80.-(1) The Supervisor may notify in writing a person registered under this
Part that he proposes to cancel such person’s registration, giving his reasons
for doing so, and notifying such person of his right under section 152 to
request the Supervisor to refer the proposal for review by the Minister if at
any time the Supervisor is satisfied-
(a) that such registration was procured as a result of any
misleading or false representation or in consequence of
any incorrect information (whether such representation
or information was made or supplied wilfully or
otherwise); or
Grounds for can-
cellation of regis-
tration subject to
right of appeal.
Certificate of
registration
for insurance
broker, etc.
(b) that such person has become disqualified for such
registration by virtue of any of the provisions of section
77; or
(c) that such person is carrying on business otherwise than
in accordance with sound insurance principles and
practice; or
(d) that such person has been guilty without reasonable
cause of delay in the payment or settlement of any claim
arising under any policy issued by or through him; or
(e) that such person has not, within a period of one month
from a date on which the Supervisor demanded from
him in writing any information which he was entitled
under this Act to demand from him, furnished that
information duly and satisfactorily; or
(f) that such person has been guilty of a fraudulent or
dishonest practice; or
(g) that such person has demonstrated that he is not
sufficiently competent and knowledgeable to carry on
business in the class or classes of insurance in respect of
which he was registered or that he is otherwise not a fit
and proper person to carry on such business; or
(h) that such person has contravened any of the provisions
of this Act or any condition, direction or requirement
imposed under this Act by the Minister or by the Super-
visor or has been an accessory to the contravention
thereof by any other person.
(2) Where the Supervisor has notified any person that he proposes to
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cancel that person’s registration, he may suspend that person’s registration
pending the outcome of any review under section 152 of that proposal and
shall notify that person of any such suspension.
81. Where any person has been notified under section 78 (2) or 80 (1)
of his right to request the Supervisor to refer the proposal concerned to the
Minister for review and-
(a) fails to make any such request, or having made such
request, withdraws the request; or
(b) the result of the review is the confirmation, with or
without variation, of the Supervisor’s proposal,
then, subject to any such variation, the Supervisor shall give effect to his
proposal and notify the person in writing accordingly.
82. The Supervisor may at any time cancel the registration of a person
under this Part-
(a) if he is satisfied that such person has not carried on
business in Belize as a broker, salesman, agent or sub-
agent, as the case may be, within a year of registration
or has not carried on business in Belize as such for a
period of more than a year; or
(b) in the case of a person registered as an agent or sub-
agent, that the registration under this Act of the
insurance company or person for whom such first-
mentioned person was registered as an agent or sub-
agent has been cancelled, or that the agency or sub-
agency has been terminated; or
Summary
cancellation of
registration.
Implementation
of proposal to
refuse to register
or to cancel
registration.
(c) if such person so requests.
83.-(1) Where an agency or sub-agency in respect of which a person has
been registered under this Part as an agent or, as the case may be, as a sub-
agent is terminated, notice in writing in the prescribed form shall immediately
be given to the Supervisor both by such person and by the person for whom
he was appointed such an agent or sub-agent.
(2) Where the employment of a salesman registered under this
Part is terminated, notice in writing in the prescribed form shall immediately
be given to the Supervisor both by the salesman and his employer in that
employment, and upon the salesman entering any new employment, notice in
writing in the prescribed form shall forthwith be given to the Supervisor both
by the salesman and his new employer.
(3) The Supervisor may demand in writing from any person registered
under this Part or from his employer or principal any information relating to
any matter in connection with that person’s business as a broker, salesman,
agent or sub-agent, as the case may be.
(4) Any person who contravenes any of the provisions of this section
commits an offence.
84.-(1) Every person registered under this Part shall if requested to do so by
the Supervisor or by any person authorised by the Supervisor or by any
person with whom such first-mentioned person is dealing in the course of his
business as a broker, salesman, agent or sub-agent as the case may be,
produce his certificate of registration for inspection.
(2) Every person who fails to comply with subsection (1) commits an
offence.
Miscellaneous Provisions Relating to Agents, Brokers and Salesmen
85. An agent, broker or salesman shall, for the purpose of receiving any
Production of
certificate of
registration.
Agency.
Information to
be supplied to
Supervisor.
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premium for a contract of insurance, be deemed to be the agent of the
insurer notwithstanding any conditions or stipulations to the contrary.
86.-(1) An agent, broker or salesman who knowingly procures by fraudulent
representation payment or the obligation for payment of any premium on an
insurance policy commits an offence.
(2) No person shall cause an insured to discontinue any policy of
insurance without being satisfied on reasonable grounds that such
discontinuance is to be for the benefit of the insured under this Act.
87. An agent, broker or salesman is personally liable to the insured on all
contracts of insurance unlawfully made by or through him directly with any
insurer not registered to carry on insurance business in Belize in the same
manner as if such agent, broker or salesman were the insurer.
88. No agent, salesman or broker shall orally make any statement, or
issue, or permit to be issued any advertisement, statement, circular,
descriptive booklet or other document, or make or permit to be made a
statement by means of any broadcasting or other medium which misleads or
is calculated to mislead the public.
89. Where an agent, broker or salesman acts in negotiating, or renewing or
continuing a contract of insurance with an insurer, and receives any money or
substitute for money as a premium for such a contract from the insured, and
fails to pay the premium over to the insurer within fifteen days of the receipt by
him of the premium, or such shorter or longer period as may be agreed in
advance by the insurer, less his commission and any other deductions to which,
by written consent of the insurer, he is entitled, he commits an offence.
90. No insurer, and no officer, employee or agent thereof, and no broker
or salesman shall directly or indirectly pay or allow, or agree to pay or allow
compensation or anything of value to any person for placing or negotiating
insurance on lives, property or interests in Belize, or negotiating the continuance
Liability for
unlawful
contracts.
Advertisement.
Paying over of
premiums to
insurer.
Compensation for
placing or nego-
tiating insurance.
Fraudulent
representation.
or renewal thereof, or for attempting to do so, who, at the date thereof, is not
an insurer or agent, broker or salesman and whoever knowingly contravenes
this section commits an offence.
91. No insurer, and no officer, employee or agent thereof, and no broker
or salesman shall directly or indirectly make or attempt to make an agreement
as to the premium to be paid for a policy other than as set forth in the policy, or
pay, allow or give, or offer or agree to pay, allow or give, a rebate of the whole
or part of the premium stipulated by the policy, or any other consideration or
thing of value intended to be in the nature of a rebate of premium, to any person
insured or applying for insurance in respect of life, person or property in Belize,
and an insurer or other person who contravenes this section commits an offence.
92. Nothing in sections 90 and 91 shall affect any payment by way of
dividend, bonus, profit or savings that is provided for by the policy, or be
construed so as to prevent an insurer compensating a bona fide salaried
employee of its head or branch office or a spouse or child thereof, in respect
of insurance issued by the employing insurer upon the life or property of such
person or so as to require that such person shall be licensed as an agent
under this Part to effect such insurance.
93. Every insurer shall make a return to the Supervisor in such form and
at such time as the Supervisor requires, showing all persons, partnerships and
companies duly authorised as its agents, brokers or salesmen in Belize, and
of persons, partnerships or companies to whom it has, within such period as
the form of return requires, paid or allowed or agreed to pay or allow, direct-
ly or indirectly, compensation for placing or negotiating insurance on lives,
property or interests in Belize, or negotiating the continuance or renewal
thereof, or for attempting to do so.
94. Every broker registered in accordance with this Part shall keep within
Belize and shall make available to the Supervisor on request-
(a) a record of all local policies issued by him on behalf of
Bona fide
salaried
employees.
Returns of
insurer.
Keeping of
records by
registered
brokers.
Rebating.
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members of a registered association; and
(b) a record of the aggregate amount of the premiums
received on such policies.
PART V
Long- Term Insurance Business
Issue of Policies
95.-(1) A company shall not issue any policy unless the rate of premium
chargeable under the policy is a rate which has been approved by an
actuary as suitable for the class of policy to which that policy belongs.
(2) The Supervisor may at any time require the company to obtain
and to furnish him with a report by an actuary as to the suitability of the rate
of premium chargeable under any class of policy issued by the company
and, if the actuary considers that the rate is not suitable, a report as to the
rate of premium which the actuary approves as suitable in respect of that
class of policy.
(3) Where any requirement is made under subsection (2) in respect
of the rate of premium chargeable under any class of policy, the company
shall not issue any policy of that class until the company has, in accordance
with the requirement, obtained the approval of the actuary for the rate of
premium.
(4) An actuary in approving a rate of premium in respect of any class
of policy under this section shall have regard to-
(a) the maximum rate of commission proposed to be paid
to any person in respect of that class of policy; and
(b) the maximum rate of reduction of premium to be
allowed to any person in respect of that class of policy.
Rates of premium.
96. Where a rate of premium is approved by an actuary in respect
of any class of policy the company shall not, except with the approval of an
actuary, pay or allow in respect of any policy of that class a commission or
reduction of premium at a rate greater than-
(a) the maximum rate of commission or reduction of pre-
mium to which the first-mentioned actuary had regard
when approving the rate of premium; or
(b) the maximum rate of commission or reduction of
premium payable by the company, immediately before
the commencement of this Act, in respect of policies of
that class (if any) issued at the rate of premium so
approved, whichever is the greater.
97.-(1) A company shall not issue or accept any form of proposal or policy
after six months from the commencement of this Act unless the standard form
has been approved by the Supervisor, and the Supervisor shall not approve
any such form if it is not in compliance with this Act or if it is likely to mislead
a proponent or policy-holder.
(2) A form of proposal shall be framed so as to require a person
making a proposal for a life policy to specify the place and date of
birth of the person whose life is proposed to be insured, and it shall be the
duty of the person making the proposal to supply those particulars to the best
of his knowledge and belief
98. Where a company issues a life policy which provides that proof of
age of the person whose life is insured is a condition precedent to the
payment of the sum, the company shall, unless the age of the person whose
life is insured has already been admitted by it, issue on or with the policy a
printed notice stating that proof of age of the person whose life is insured
may be required before the payment of the sum insured.
Form of
proposal.
Notice regarding
proof of age.
Commissions
and reductions
of premium.
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Belmopan, by the authority of
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99.-(1) If a company declines to accept the proof of age tendered in
respect of a policy, whether issued before or after the commencement of
this Act, the policy-holder may apply to a judge in chambers, by summons
for an order directing the company to accept the proof tendered.
(2) On any such application, the judge in chambers may make such
order in relation to the application as he thinks just.
(3) Every order under this section shall be binding on the company
and shall be complied with on its part.
100.-(1) (a) A policy is not avoided by reason only of a mis-statement of
the age of the person whose life is insured.
(b) Where the true age as shown by the proof is greater than that
on which the policy is based, the company may vary the sum
insured by, and the bonuses (if any) allotted to, the policy so
that, as varied, they bear the same proportion to the sum
insured by, and the bonuses (if any) allotted to, the policy
before variation as the amount of the premiums that have
become payable under the policy as issued bears to the
amount of the premiums that would have become payable if
the policy had been based on the true age.
(c) Where the true age as shown by the proof is less than that on
which the policy was based, the company shall either-
(i) vary the sum insured by, and the bonuses (if
any) allotted to, the policy so that, as varied,
they bear the same proportion to the sum
insured by, and the bonuses (if any) allotted to,
the policy before variation as the amount of the
premiums that have become payable under the
Mis-statement of
age and non-
avoidance of
policy.
Procedure where
company de-
clines to accept
proof.
policy as issued bears to the amount of the
premiums that would have become payable if the
policy had been based on the true age; or
(ii) reduce, as from the date of issue of the policy,
the premium payable to the amount that would
have been payable if the policy had been based
on the true age and repay the policy-holder the
amount of overpayments of premium less any
amount that has been paid as the cash value of
bonuses in excess of the cash value that would
have been paid if the policy had been based on
the true age.
(2) A policy issued after the commencement of this Act shall not be
avoided by reason only of any incorrect statement (other than a statement as
to the age of the person whose life is insured) made in any proposal or other
document on the faith of which the policy was issued or reinstated by the
company unless the statement-
(a) was fraudulently untrue; or
(b) being a statement material in relation to the risk of the
company under the policy, was made within the period
of three years immediately preceding the date on which
the policy is sought to be avoided or the date of the
death of the person whose life is insured, whichever is
the earlier.
101. Nothing in any term or condition of a life policy issued after the
commencement of this Act or in the law relating to insurance shall operate to
except an insurance company from liability under the policy or to reduce the
liability of the company under the policy on the ground of any matter relating
to the state of health of the person whose life is insured, other than the ground
Provisions
relating to state
of health of
insured.
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of the proposer’s having, when making the proposal or thereafter and
before the making of the contract, either-
(a) made an untrue statement of his knowledge and belief
as regards the matter; or
(b) failed to disclose to the company something known or
believed by him as regards that matter.
102.-(1) A minor who has attained the age of ten years but has not attained
the age of sixteen years may, with the written consent of his parent or of a
person standing in loco parentis to the minor-
(a) effect a policy upon his own life or upon another life in
which he has an insurable interest; or
(b) take an assignment of a policy.
(2) A minor who has attained the age of sixteen years may-
(a) effect a policy upon his own life or upon another life in
which he has an insurable interest; or
(b) take an assignment of a policy,
and, subject to subsection (3), is as competent in all respects to have and
exercise the powers and privileges of a policy-holder in relation to a policy
of which he is the holder as he would be if he were of full age.
(3) A minor who has attained the age of sixteen years may assign or
mortgage a policy with the prior consent in writing of his parent or of a
person standing in loco parentis to the minor.
103.-(1) For the purposes of this Act, but without restricting the meaning of
Minors.
Insurable interest.
the expression “insurable interest”, an insurable interest shall be deemed to
be had by-
(a) a parent of a child under twenty-one years of age, or a
person in loco parentis to such a child-in the life of the
child;
(b) a husband-in the life of his wife;
(c) a wife-in the life of her husband;
(d) any person-in the life of another upon whom he is wholly
or in part dependent for support or education;
(e) a company or other person-in the life of an officer or
employee thereof; and
(f) a person who has a pecuniary interest in the duration of
the life of another person-in the life of that person.
(2) This section shall apply to policies whether effected before or
after the commencement of this Act.
(3) For the purposes of this section the expression “child”, in relation
to any person, includes-
(a) an adopted child;
(b) a step-child; and
(c) any other child, living with that person and wholly or
mainly maintained by that person.
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Protection of Policies
104.-(1) The property and interest of any person in a policy effected
(whether before or after the commencement of this Act) upon his own life
shall not be liable to be applied or made available in payment of his debts by
any judgment, order or process of any court.
(2) In the event of a person who has effected a policy on his own life
dying after the commencement of this Act, the moneys payable upon his
death under or in respect of such policy shall not be liable to be applied or
made available in payment of his debts by any judgment, order or process
of any court, or by retainer by an executor or administrator, or in any other
manner whatever, except by virtue of a contract or charge made by the
person whose life is insured, or by virtue of an express direction contained
in his will or other testamentary instrument executed by him that the moneys
arising from the policy shall be so applied.
(3) A direction to pay debts, or a charge of debts upon the whole or
any part of the testator’s estate, or a trust for the payment of debts, shall not
be deemed to be such an express direction.
(4) Nothing in this section shall affect the Married Women’s Property
Act or the Bankruptcy Act.
Paid- Up Policies, Surrender Values and Non-Forfeiture
105.-(1) A policy-holder who desires to discontinue further premium
payments on a policy on which not less than three years’ premiums have
been paid shall, if the policy has a cash surrender value, on application to
the company be entitled to receive, instead of that policy, a paid-up policy.
(2) The paid-up policy shall be payable upon the happening of the
contingency upon the happening of which the amount insured under the
CAP. 176
CAP. 244.
Paid up-policies.
Interest of in-
sured
protected in
certain cases.
original policy would have been payable.
106. The owner of a policy which has been in force for at least three
years, shall, on the application to the company, be entitled to surrender the
policy and to receive not less than the cash surrender value of the policy less
the amount of any debt owing to the company under, or secured by, the
policy.
107. The Supervisor may, on application by a company, if in his opinion,
the payment in cash of surrender values as required by section 106 would be
prejudicial to the financial stability of the company or to the interests of the
policy-holders of that company, suspend or vary, for such period and subject
to such conditions as the Supervisor thinks fit, the obligation of the company
to pay those surrender values.
108.-(1) An ordinary policy shall not be forfeited by reason only of the non-
payment of any premium (in this section referred to as the overdue premium)
if-
(a) not less than three years’ premiums have been paid on
the policy; and
(b) the surrender value of the policy (calculated as at the
day immediately preceding that on which the overdue
premium falls due) exceeds the sum of the amount of the
debts owing to the company under, or secured by, the
policy, and the amount of the overdue premium.
(2) The company may, until payment of the overdue premium, charge
compound interest on it, on terms not less favourable to the policy-holder
than such terms (if any) as may be prescribed.
(3) The overdue premium and any interest charged on it under this
section and unpaid shall for the purposes of this Act be deemed to be a debt
Relaxation of
obligations as to
surrender values.
Non-forfeiture of
ordinary policies
in certain cases
of non-payment
of premiums.
Surrender of
policies.
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owing to the company under the policy.
(4) Without affecting the generality of the foregoing provisions of this
section, an ordinary policy on which not less than three years’ premiums
have been paid shall not be forfeited by reason only of the non-payment of a
premium unless, on or after the day on which the premium fell due-
(a) the company liable under the policy serves a notice on
the policy-holder stating-
(i) the amount due or payable to the company at
the date of the notice in respect of the policy;
(ii) that the policy will be forfeited at the end of
twenty-eight days after the date of the notice if
a sufficient sum is not paid to the company in
the meantime; and
(b) a period of at least thirty days has passed after the
service of the notice.
(5) For the purposes of subsection (4) a notice posted to the last
known address of the policy-holder shall be deemed to be a notice
on the policy-holder.
109.-(1) An industrial policy on which less than one year’s premiums have
been paid shall not be forfeited by reason only of the non-payment of any
premium, unless the premium has remained unpaid for not less than four
weeks after it became due.
(2) An industrial policy on which not less than one year’s but less
than two years’ premiums have been paid shall not be forfeited by reason
only of the non-payment of any premium, unless the premium has remained
unpaid for not less than eight weeks after it became due.
Non-forfeiture of
industrial policies
in certain cases of
non-payment of
premiums.
(3) An industrial policy on which not less than two years’ premiums have
been paid shall not be forfeited by reason only of the non-payment of any
premium, unless the premium has remained unpaid for not less than twelve
weeks after it became due.
(4) In the event of an industrial policy on which not less than three years’
premiums have been paid being forfeited by reason of the non-payment of any
premium, the company shall, without requiring any application from the policy-
holder, grant a paid-up policy for an amount not less than that specified in the
table included in the policy.
(5) The paid-up policy shall be payable upon the happening of the
contingency upon the happening of which the amount insured under the original
policy would have been payable.
(6) The company shall notify the policy-holder in writing of the fact that
the paid-up policy has been granted and shall specify the amount of the policy
and the contingency upon which the policy is payable.
(7) An industrial policy shall not be forfeited by reason only of the non-
payment of any premium where such non-payment is due to non-collection by
the company.
110. Where under any provision of this Part a policy-holder is entitled to
receive, or a company is required to grant, a paid-up policy and there is any
debt owing to the company under or secured by the policy, the company may
elect-
(a) to treat the debt so owing as a debt secured by the paid-
up policy, and thereupon the paid-up policy shall be a
security for the debt so owing; or
(b) in the ascertainment of the amount of the paid-up policy,
to reduce the amount by taking into account, upon a basis
Treatment of
debts on grant of
paid-up policies.
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Belmopan, by the authority of
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Insurance [CAP. 251
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approved by the Supervisor, the debt so owing to the
company, and thereupon the debt shall cease to be owing
to the company.
Payment of Policy Moneys
111.-(1) An insurer by whom any moneys are payable under one or more
policies to the personal representative of a deceased person may, without
requiring the production of probate or letters of administration, pay out of
such moneys any amount (including any bonuses added to the policy or policies)
not exceeding five hundred dollars to any person who satisfies the insurer that
he is entitled to the property of the deceased person or that he is entitled to
obtain probate of the will of the deceased person or to take out letters of
administration to his estate.
(2) An insurer who, pursuant to subsection (1), proposes to make
payment of any moneys due under the policy or policies shall retain an amount
equal to ten per cent of the total moneys due under the policy or policies and
shall pay that amount to the Registrar General as an instalment on any duties
which were due on the estate of the deceased person under the Estate Duty
Act before the repeal of that Act1.
(3) Where any moneys are paid by an insurer to the Registrar General
under subsection (2), then, if the Registrar General is satisfied that-
(a) no duty was payable under the Estate Duty Act before its
repeal1, in respect of the estate of the deceased person;
or
(b) moneys paid under subsection (2) were in excess of the
amount of duty which was payable under the Estate Duty
Act before its repeal1, in respect of the deceased person’s
estate, 1. The Estate Duty Act was repealed by the Estate Duty (Repeal) Act, 1991, which
Payment without
probate or
administration in
certain cases.
CAP. 42,
R.E. 1980-1990.
CAP. 42.
R.E. 1980-1990.
CAP. 42.
R.E. 1980-1990.
commenced on the 1st day of April 991.
The moneys or the excess of duty so paid shall be refunded to the insurer.
(4) The insurer making any such payment shall be thereby discharged
from all further liability in respect of the moneys so paid.
(5) All persons to whom any such moneys are paid shall apply those
moneys in due course of administration and, if the insurer thinks fit, it may
require those persons to give sufficient security by bond or otherwise that the
moneys so paid will be so applied.
(6) Nothing in this section shall affect the provisions of the Married
Women’s Property Act.
112.-(1) Subject to this section, where a policy-holder, not being the person
whose life is insured by the policy, pre-deceases the person whose life is so
insured, and a person satisfies the company which issued the policy-
(a) that he is entitled under the will or on the intestacy of the
deceased policy-holder, to the benefit of the policy; or
(b) that he is entitled to obtain probate of the will, or to take
out letters of administration of the estate, of the deceased
policy-holder,
the company may, without requiring the production of any probate or letters of
administration, endorse on the policy a declaration that the person has so satisfied
the company and is the holder of the policy, and thereupon that person becomes,
subject to subsection (2), the holder of the policy.
(2) Subsection (1) does not confer on a person declared to be the
holder of a policy any beneficial interest in the policy which he would not
otherwise have had.
Death of holder
of policy not
being life
insured.
CAP. 176.
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Belmopan, by the authority of
the Government of Belize.
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(3) This section applies in relation to a policy referred to in subsection
(1) whether the deceased holder dies before or after the commencement of
this section.
(4) This section does not apply in relation to-
(a) a policy the surrender value of which, at the date of the
death of the deceased holder, exceeds or exceeded five
hundred dollars; or
(b) a policy which is one of two or more policies held by
the deceased holder and issued by the same company if
the aggregate of the surrender values of those policies
at the date of death of the deceased holder, exceeds or
exceeded five hundred dollars.
(5) For the purposes of subsection (4), the surrender value of a policy
is the amount (including any amount in respect of bonus additions) that would
be paid by the company issuing the policy upon its surrender.
(6) Nothing in this section shall affect the provisions of the Married
Women’s Property Act.
113. Nothing contained in this Part shall be construed as requiring a
company to see to the application of any moneys paid under sections 111 and
112 by the company in respect of any policy.
114.-(1) A company shall, not later than sixty days after the end of its financial
year, deliver to the Supervisor a statement of all unclaimed moneys as at that
date.
(2) The statement shall set forth, in respect of each policy to which it
refers, the name of the person whose life is insured, the name of the policy
owner (if known), their last known addresses, the amount due, and the date
Company not
bound to see to
application of
moneys paid by it.
CAP. 176.
Unclaimed
moneys.
on which it became due.
(3) The company shall pay to the Supervisor, at the time of the
delivery of the statement, the total amount of unclaimed moneys shown in the
statement, less such amounts, if any, of these moneys as the company has
paid, between the financial year and the date on which the statement is
delivered, to the person to whom those amounts were due, and the company
shall furnish particulars of the amounts in writing with the statement.
115.-(1) Where unclaimed moneys have been paid to the Supervisor under
section 114 and the Supervisor is satisfied that, but for that section, a person
would be paid those unclaimed moneys by the company by which they were
paid to the Supervisor or, if that company is no longer carrying on that class
of insurance business, by a company to which that class of insurance business
of the first mentioned company has been sold or disposed of, the Supervisor
shall pay those unclaimed moneys to that company and specify the person to
whom the company is to pay those moneys and the company shall thereupon
pay those moneys to that person.
(2) If a company, after paying to the Supervisor an amount in respect of
a policy pursuant to section 114 satisfies the Supervisor that the amount so paid
exceeds the amount that would have been payable under the policy to the policy
owner, the Supervisor shall refund to the company the amount of the excess.
(3) Subject to subsection (1) the company is, upon payment to the
Supervisor of an amount as required by this section, discharged from further
liability in respect of that amount.
(4) All unclaimed moneys paid to the Supervisor under section 1 14 shall
be paid by him into the Consolidated Revenue Fund to the credit of a special
account and on the written authorisation of the Supervisor there shall be paid
from the Consolidated Revenue Fund and charged to that account such sums
as are necessary to give effect to this section.
(5) A company which fails to comply with any provision of section 114
Further provi-
sions relating to
unclaimed
moneys.
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Belmopan, by the authority of
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or of this section that applies to it commits an offence.
(6) For the purposes of section 114 and of this section “unclaimed
moneys” means all sums of money which, after the commencement of this
Act, became or become legally payable by a company in respect of policies
but in respect of which the time within which proceedings may be taken for
their recovery has expired, and includes sums of money payable on the
maturity, after the commencement of this Act, of an endowment policy or
endowment insurance policy which are not claimed within seven years after
the maturity date of the policy.
Provisions Relating to Industrial Life Insurance Business
116.-(1) If, within twenty-eight days after a company delivers an industrial
policy-
(a) to the policy-holder; or
(b) at the residence of the policy-holder to some other
person who resides there and is apparently not less
than 16 years of age and by whom any premium in
respect of the policy is paid on behalf of the policy-
holder,
the policy-holder returns the policy to the company with an objection in
writing to any term or condition of the policy, the company shall immediately
refund any premium which has been paid in respect of the policy which shall
thereupon be cancelled.
(2) Where an industrial policy is sent by post by a company to the
person to whom it is issued, it shall, unless the contrary is proved, be
deemed to have been delivered to him at the time at which it would reach
him in the ordinary course of post.
(3) For the purposes of this section, a policy shall be deemed to
Objection to
policies.
have been returned to a company with an objection if the policy and the
writing specifying the objection are posted for transmission to the company
by registered letter.
117. If at any time a company which carries on industrial life insurance
business, or any person authorised by such a company takes possession of
an industrial policy or premium-receipt book or other document issued in
connection with the policy, a receipt for the policy, book or document shall
be given to the person from whom it was received, and the policy, book or
document shall be returned to that person on demand at any time after the
expiration of twenty-eight days, unless-
(a) it is required for the purposes of evidence in legal
proceedings;
(b) the policy has been terminated by reason of the
satisfaction of all claims capable of arising under it; or
(c) in the case of a policy, the company is entitled to retain
the policy as security for money owing to the company
by the policy-holder.
118. If any person wilfully makes, or orders or allows to be made,
any entry or erasure in, or omits any entry, or orders or allows any entry to
be omitted from, a collecting book or premium-receipt book, with intent to
falsify the book, or to evade any of the provisions of this Act, he commits an
offence.
119.-(1) Where any agent or servant of a company writes or falls in or has
before the commencement of this Act written or filled in any particulars in a
proposal for an industrial policy with the company, then, notwithstanding any
agreement to the contrary between the proponent and the company, any
policy issued in pursuance of the proposal shall not be avoided by reason
only of any incorrect or untrue statement contained in any such particulars so
Return of indus-
trial policies and
premium-receipt
books after
inspection.
Falsification.
Avoidance of
policy by
reasons of
particulars in
proposal filled in
by agent or
servant of
company.
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Belmopan, by the authority of
the Government of Belize.
Insurance [CAP. 251
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written or filled in unless the incorrect or untrue statement was in fact made
by the proponent to the agent or servant for the purposes of the proposal.
(2) The burden of proving that any such statement was so made shall
lie upon the company.
(3) Nothing in this section shall be deemed to allow the avoidance of
any policy for any reason or in any circumstances for or in which the policy
could not have been avoided apart from the provisions of this section.
120.-(1) Every industrial policy issued by a company after the appointed
day shall contain an endorsement in distinctive type setting out-
(a) whether the policy is or is not a participating policy;
and
(b) a short statement in a form approved by the Supervisor
as to-
(i) the right of the policy-holder to be granted a
paid-up policy;
(ii) the right of the policy-holder to surrender his
policy and to receive in cash the surrender value
of the policy; and
(iii) the forfeiture of the policy.
(2) For the purposes of this section the “appointed day” means such
day (being not less than six months nor more than twelve months after the
commencement of this Act) as the Minister may by order appoint.
121.-(1) A company shall, in respect of each industrial policy issued by the
company, issue to the policy-holder a premium-receipt book in compliance
Particulars to be
set out in policies.
Issue of premium-
receipt books.
with this section-
(a) where the policy was issued before or is issued within
the period of twelve months immediately following the
commencement of this Act-before the end of that period
of twelve months; or
(b) where the policy is issued after the end of that period of
twelve months-at the time of the issue of the policy.
(2) Notwithstanding subsection (1), if the policy-holders concerned
do not object, the company may-
(i) issue one premium-receipt book in respect of
two or more policies if held by the same policy-
holder or by two or more policy-holders who
are members of the same household; or
(ii) add the endorsements and entries required by
this section in respect of any policy to the
premium-receipt book issued in respect of any
earlier policy held by the same policy-holder or
by a member of the same household.
(3) After the end of the period of twelve months immediately follow-
ing the commencement of this Act a company shall not issue or permit to be
used one premium-receipt book in respect of two or more policies held by
different policy-holders not being members of the same household.
(4) Any premium-receipt book issued to a policy-holder by a
company, whether before or after the commencement of this Act, shall, if it
complies with the provisions of this section or if it is amended to comply with
those provisions and returned to the policy-holder within the period of twelve
months immediately following the commencement of this Act, be deemed to
be a premium-receipt book issued in accordance with the provisions of this
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Belmopan, by the authority of
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section.
(5) Every premium-receipt book issued by a company shall contain
in respect of each policy to which it relates-
(a) an endorsement in distinctive type of the particulars
referred to in section 120 (1) (a) and (b);
(b) an entry made by the company of the following
matters-
(i) the surname and initials of the policy-holder
and, where the policy is issued in respect of the
life of a person other than the policy-holder, the
surname and initials of that person;
(ii) the date and number of the policy;
(iii) the amount of the weekly or other periodical
premium; and
(c) a notice stating that proof of age may be required
before payment of the sum insured.
122.-(1) Every payment in respect of premiums under an industrial policy
made to an agent or servant of the company shall be recorded by the agent
or servant in the premium-receipt book so as clearly to indicate the date to
which premiums have been paid in respect of the policy or policies to which
the premium-receipt book relates, and the record shall-
(a) if it is the first entry on a page of the premium-receipt
book be signed by the agent or servant with his usual
signature; and
(b) if it is not such an entry, be signed by the agent or
Premium-receipt
books to show
date to which
premiums paid,
etc.
servant with his usual signature or be initialled by him.
(2) Where a premium-receipt book relates to more than one
policy and any payment for premiums on the policies is made which is less
than the aggregate of the weekly or other periodical premiums in respect of
all those policies, the person making the payment shall be required by the
agent or servant of the company to whom the payment is made to state the
policy or policies in respect of which no payment or an insufficient payment is
made, and the agent or servant shall clearly record in the premium-receipt
book the fact stated.
(3) Unless the amount of the deficiency is paid before any further
premiums are paid, the company shall cause a separate premium-receipt
book in compliance with the provisions of section 121 to be issued in respect
of any policy in relation to which the deficiency exists and shall cause the
particulars and entry in the first mentioned premium-receipt book relating to
any such policy to be cancelled.
Mutualisation
123. Notwithstanding anything in its memorandum or other instruments of
incorporation or in its articles or other rules, or in this Act, a company
incorporated in Belize that has a share capital and that is registered under this
Act to transact long-term insurance business, whether alone or in combination
with any other class of insurance business, may, with the permission of the
Supervisor, establish and implement a plan for the conversion of the company
into a mutual company by the purchase of shares of the company or the
conversion of the shares into debentures in accordance with such conditions as
may be prescribed by regulations made under this Act.
PART VI
Miscellaneous
124.-(1) A company shall in accordance with section 125 keep a register of
Conversion into
mutual
companies.
10 of 1992.
Registers to be
kept.
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Belmopan, by the authority of
the Government of Belize.
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policies at its principal office in Belize. Every such register shall, at all times
during the normal business hours of the company, be available for inspection
by the Commissioner of Police and the Commissioner of Income Tax or by
some person authorised in writing by any of those public officers.
(2) A company shall have a representative in charge of the registry.
(3) Notice in writing of the situation of the registry and of the name of
the representative in charge of the registry shall be lodged with the Super-
visor.
(4) Whenever any change takes place in the situation of the registry
or in the identity of the representative in charge of the registry, notice in
writing of the change shall be lodged with the Supervisor.
125.-(1) Every policy in Belize existing at the commencement of this Act
shall as at that commencement be registered by the company in the register
kept at its registry in Belize.
(2) Every policy in Belize issued by a company after the commence-
ment of this Act shall immediately after issue be registered by the company
in the register kept at its registry in Belize.
(3) Unless otherwise agreed by the company and the policy-holder,
all moneys payable in respect of a policy shall be payable at the registry at
which it is for the time being registered.
(4) Any policy may, at the request in writing of the policy-holder, and
with the consent of the company, be transferred from a register outside
Belize to a register in Belize or from a register in Belize to a register outside
Belize.
(5) All expenses incurred in connection with any transfer of a policy
in pursuance of either subsection (3) or (4) shall be borne by the policy-
Registration of
policies.
holder.
126.-(1) Where-
(a) the holder of a policy; or
(b) a person claiming the benefit of the provisions of section
111 or 112 in respect of a policy,
claims that the policy (in this section referred to as the original policy) is lost
or has been destroyed, the company liable under the original policy may,
subject to this section, upon application by the holder or that person and
upon such evidence as to the loss or destruction of the original policy as the
company thinks sufficient, issue to the applicant a special policy in
substitution for the original policy.
(2) Where an application under subsection (1) is made by a person
referred to in paragraph (b) of that subsection, the company shall not issue a
special policy unless the company is satisfied that section 111 or 112 should
be applied in favour of the applicant in relation to the policy.
(3) A special policy shall-
(a) be a copy, as nearly as can be ascertained, of the
original policy in substitution for which it has been
issued;
(b) contain copies of every endorsement on the original
policy registered by the company; and
(c) state the reason for the issue of the special policy.
(4) Before issuing a special policy the company shall if the amount
insured, exclusive of bonus additions, exceeds four thousand dollars, give at
least one month’s notice of its intention to do so in the Gazette and in a
Lost policy.
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Belmopan, by the authority of
the Government of Belize.
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newspaper published in Belize.
(5) The expenses of the advertisement and all other costs of the issue
of a special policy shall be paid by the applicant at the time of application.
(6) The fact of the issue of a special policy and the reason for its
issue shall be recorded by the company in the appropriate register of
policies.
(7) A special policy is valid and available for all purposes for which
the original policy in substitution for which it has been issued would have
been valid and available and, after the issue of the special policy, the original
policy in substitution for which it has been issued is void.
(8) If the company fails to issue a special policy within six months
after receipt of an application in writing from the policy-holder, the court
may, upon application by summons, and upon such evidence as to the loss
or destruction of the original policy as the court thinks sufficient, order the
company, upon such terms and within such time as the court thinks fit, to
issue a special policy.
(9) If the holder of a special policy or a person claiming the benefit of
the provisions of section 111 or 112 in respect of a special policy, claims
that the special policy is lost or has been destroyed, this section shall apply
as if the special policy were an original policy issued by the company.
127. A policy shall not be avoided merely on the ground that the person
whose life is insured died by his own hand or act, sane or insane, or suffered
capital punishment, if, upon the true construction of the policy, the company
thereby agreed to pay the sum insured in the events that have happened.
128. Any term or condition of a policy issued after the commence-
ment of this Act which limits, to an amount less than the sum insured, the
amount payable under the policy in the event of the death of the life insured
occurring as a result of war, shall not have any force or effect, unless the
Effect of suicide
or capital
punishment on
policy.
Condition as to
war risk void.
person who effected the policy agreed in writing to the insertion in the policy
of that term or condition.
129. Failure on the part of a company to comply with any provision of this
Act shall not in any way invalidate any policy issued by the company.
130. A company may, subject to any regulations made under this Act,
establish or operate a pension fund plan or scheme.
PART VII
General Insurance
Conditions
131. This section and sections 131 to 135 apply to all companies regis-
tered under this Act to transact insurance business in respect of any class of
such business other than long-term insurance business.
132. Every company shall, in respect of its outstanding unexpired policies,
include in the liabilities in its annual statement deposited with the Supervisor
reserves, not less than eighty per cent, of the unearned premiums computed
pro rata per mensem as at the date of the statement.
133. No dividend shall be paid by any local company while its assets are
less than the amount required for solvency by section 53 nor shall any
dividend be paid that would reduce its assets below the same amount or
impair its capital.
134. Where it appears to the Supervisor that the assets of any company
fall below the requirements for solvency of section 53 and after a reasonable
time has been given to the company to be heard by him, the Supervisor shall-
Offences by
company not to
invalidate
policies.
Application of
this Part.
Computation of
reserves liability.
Dividend not to
impair capital.
Contravention.
Pension fund
plan or
scheme.
10 of 1992.
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(a) cancel the registration of the company; or
(b) upon such terms and conditions as the Supervisor
thinks proper, limit a time within which the company
shall make good the deficiency (the company’s
registration being continued in the meantime) and upon
the company’s failure to make good such deficiency
within the time so limited, the registration of the
company shall be cancelled,
but if the company’s assets are less than the liabilities including the unearned
premiums calculated as provided in section 132, or if the company has
contravened the requirements of section 126, its certificate of registration
shall be withdrawn.
135.-(1) Until the surplus of a local company equates or exceeds the liability
of the company in respect of outstanding unmatured policies required to be
included in the annual statement in accordance with section 132, the
company shall at the end of each year appropriate towards surplus at least
twenty-five per cent of the profits of the company for the year last past.
(2) For the purposes of this section the expression “surplus” means
the excess of assets over the paid-up capital of the company and all the
liabilities of the company including the liability in respect of outstanding
unmatured policies required to be included in the annual statement in
accordance with section 132.
136.-(1) In addition to the reserves required by section 132, every
company transacting motor vehicle insurance business shall provide reserves
for meeting outstanding claims arising from accidents which have occurred.
(2) Every company shall furnish to the Supervisor details of the
method used in calculating such reserves.
(3) The Supervisor may disallow any method used for the calculation
Appropriation of
profits towards
surplus.
Additional
reserves-motor
vehicle insurance.
of such reserve if he is satisfied that such a method does not result in the
provision of adequate reserves.
137.-(1) A motor vehicle insurance company shall notify the Licensing
Authority of any cover note or policy issued by the company which has
expired or is cancelled or ceases to be effective within thirty days of such
expiration, cancellation or ceasing to be effective.
(2) For the purposes of this section the expression “Licensing
Authority” means the person or authority to whom applications are required
to be made under the Motor Vehicles and Road Traffic Act for the grant or
renewal of licences in respect of motor vehicles.
138. A company carrying on motor vehicle insurance business shall issue a
certificate of insurance as required by the Motor Vehicles Insurance (Third
Party Risks) Act on or before the expiration of the cover note or where no
cover note has been issued within seven days of receipt of the first premium
or part premium paid on behalf of the policy in respect of which that
certificate is so required.
139. Whenever a company carrying on motor vehicle insurance business
has accepted a vehicle involved in an accident as a total loss or agreed to pay
the insured for loss of the vehicle, the company shall within seven days of
such acceptance or agreement notify the Licensing Authority accordingly
giving full details of the damage to the vehicle.
140. Every policy issued in Belize or to a person resident in Belize through
a person or office in Belize shall be governed by the laws of Belize and shall
be subject to the jurisdiction of the courts of Belize, notwithstanding any
provision to the contrary in the policy or in any agreement relating to the
policy.
141.-(1) Where any policy is issued after the commencement of this Act in
respect of which the premiums are payable or paid in Belize such premiums
Notice of expira-
tion, etc., of
cover notes and
policies.
CAP. 230.
Issue of policies.
CAP. 231.
Notice of total
loss.
Jurisdiction of
local courts.
Payment of
moneys in local
currency.
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shall be payable or paid, as the case may be, and any sums payable or paid
upon the maturity of such policy shall be payable or paid, as the case may
be, in the currency of Belize unless the parties have, at or subsequent to the
issue of the policy, expressly otherwise agreed.
(2) If the parties to a policy have agreed that the premiums shall be
payable or paid, as the case may be, or that any sums payable or paid upon
the maturity of such policy shall be payable or paid, as the case may be, in
some currency other than the currency of Belize, that fact and the currency
adopted shall be stated in or endorsed on the policy in distinct terms and in
printed or typed letters no smaller than, and as legible as, the letters of the
other provisions of the policy.
142.-(1) Subject to rules of court, any insurance company carrying on life
insurance business may, after giving notice in writing to the Supervisor pay
into the court any moneys payable by the company under a contract of life
insurance in respect of which in the opinion of the directors no sufficient
discharge can otherwise be obtained.
(2) The receipt or certificate of the Registrar or Deputy Registrar of
the court shall be a sufficient discharge to the company for the moneys so
paid into court and such moneys shall, subject to rules of court and any
regulations made under this Act, be dealt with according to the orders of the
court.
143.-(1) A person shall not publish in respect of any insurance company, or
in respect of an insurance company proposed to be formed after the
commencement of this Act, a prospectus, notice, circular, advertisement or
other invitation offering to the public for subscription any shares in the
company or proposed company, unless the prospectus, notice, circular,
advertisement or other invitation is first submitted to and approved by the
Supervisor.
(2) A person acting as promoter of any such proposed company
Power to pay
money into court.
Issue of capital by
companies.
shall not accept any office of profit in the company or any payment or
pecuniary advantage other than as provided in any such prospectus, notice,
circular, advertisement or other invitation.
144. Where any notice, advertisement or other official publication of an
insurance company contains a statement of the amount of the authorised
capital of the company, the publication shall also contain a statement of the
amount of the capital which has been subscribed and the amount paid-up.
145.-(1) Notwithstanding anything contained in the instruments constituting,
or in the articles of association or other rules of any insurance company not
having shareholders, the company shall, within one year after it is registered
under this Act, make arrangements for-
(a) the establishment of a postal voters’ roll relating to
voting in contested elections of directors of the company
or on questions as to the alterations of the instruments
constituting the company or of the articles of association
or other rules of the company;
(b) the enrolment on the postal voters’ roll of any member of
the company entitled to vote in such elections or on such
questions who applies to be so enrolled;
(c) the voting by post in any such election or on any such
question by every member so enrolled; and
(d) the making of inspections of the postal voters’ roll and
the taking of copies of, or extracts from, the roll, on and
after the close of nominations and before the close of the
voting in any such election, by any person nominated for
election as a director of the company,
and all regular votes of members given in pursuance of any such arrange-
Publication of
authorised,
subscribed and
paid-up capital.
Voting by post.
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Insurance [CAP. 251
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ments shall be valid and effectual for all purposes.
(2) Where a member of an insurance company enrolled on the postal
voters’ roll of the company fails to exercise his right to vote by post on three
consecutive occasions on which he is entitled so to vote, the company may
remove his name from the roll, but the member shall be eligible for re-
enrolment.
(3) This section does not apply to a company which is incorporated
outside Belize.
146. Any person may, upon payment of such fee as is prescribed, inspect
at the office of the Supervisor any document furnished to the Supervisor
under section 39 and make a copy of, or extract from, the document.
147. Every document purporting to be certified by the Supervisor to be a
document lodged with him under this Act, and every document purporting to
be similarly certified to be a copy of such a document, shall be deemed to
be such a document or copy, as the case may be, and shall be received in
evidence as if it were the original document, unless some variation between
it and the original document is proved.
148. Any document required by or under this Act to be signed by a
director or the principal officer of a company may be signed by any other
officer of the company if that officer is thereto authorised by the board of
directors and the board of directors has notified the Supervisor in writing of
the authorisation.
149. Where a document is, by this Act, required to be printed, the
Supervisor may, in his discretion, permit it to be typewritten or lithographed
or to be reproduced by mechanical means approved by the Supervisor.
150.-(1) Where a notice is required or permitted by this Act to be given to
or served upon a person, the notice shall be in writing and may be given or
served-
Inspection of
documents.
Documents to be
received in
evidence.
Authority to sign
documents.
Printing of
documents.
Service of notices.
(a) in the case of a notice addressed to a person other than
a company-by serving it upon him personally or by
sending it by registered post addressed to him at his
usual or last known place of abode or business; and
(b) in the case of a notice addressed to a company-by
serving it personally upon the person last known to the
Supervisor as being a director or the principal represen-
tative or officer of the company or by sending it by
registered post addressed to him at his address last
known to the Supervisor or to the address filed with the
Supervisor under section 8 (1),
and if it is so sent by post, shall be deemed to have been given or served on
the date on which it would have been delivered in the ordinary course of
post.
(2) In this section “company” includes a body corporate which has
ceased to carry on insurance business in Belize.
151.-(1) The Supervisor shall collect at such times as are prescribed such
statistics in relation to insurance business as are prescribed.
(2) For the purpose of enabling the Supervisor to collect statistics
under this section, every company shall furnish to the Supervisor in accor-
dance with the prescribed form and at such times as are prescribed such
particulars as are specified in that form.
(3) A person shall not publish, in such form as to disclose the parti-
culars furnished by any company, any particulars furnished to the Supervisor
under this section, and a person shall not publish the number of returns
received if such number is less than five.
Power to collect
statistics.
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Belmopan, by the authority of
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152.-(1) Any person who, pursuant to any provision of this Act or of any
statutory instrument made thereunder, is notified of any action, decision,
ruling, direction, order or proposal of the Supervisor in any case may within
thirty days of such notification, request the Supervisor by memorandum in
writing, setting out the grounds for his request, to refer the case for review
by the Minister.
(2) Where the Supervisor is requested to refer a case for review
by the Minister he shall do so with all reasonable dispatch.
(3) Where a case is referred to the Minister for review under this
section, the Minister shall, after considering the memorandum, give his deci-
sion in writing and may, subject to the following provisions of this section
confirm, vary, cancel or reverse the Supervisor’s action, decision, ruling,
direction, order, proposal or any part thereof as the case may be, whether
or not the request for review relates to that part.
(4) Before reviewing any case referred to him under this section, the
Minister shall, if either the person making the request (hereinafter referred to
as the applicant) or the Supervisor so desire, give each of them an
opportunity of appearing before and being heard by a person or persons
appointed by the Minister for the purpose.
(5) The decision of the Minister on review of any case referred to
him under this section shall be final.
(6) On the review of any case referred to him under this section the
Minister shall forward a copy of his decision to the Supervisor and a copy
to the applicant, together with a written statement of the reasons for his
decision, if requested by the applicant.
153.-(1) Where-
Decisions, etc., of
Supervisor subject
to review by
Minister.
Gazetting of
registration, etc.
(a) the application for registration of an insurance company
under Part II, an association of underwriters under Part
III or of any person under Part IV is refused; or
(b) an insurance company, an association of underwriters or
a person is registered under Part II, Part III, or Part IV,
as the case may be; or
(c) the registration of an insurance company, association of
underwriters or of any person under Part II, Part III or
Part IV, as the case may be is cancelled,
the Supervisor shall cause notice of the refusal, registration or cancellation to
be published at least once in the Gazette and in a newspaper published in
Belize.
(2) The Supervisor shall, from time to time cause to be published in
the Gazette and in a newspaper published in Belize up to date lists of
companies, associations of underwriters and persons registered under Part II,
Part III or Part IV, as the case may be.
154. Subject to the provisions of this section, after twelve months from the
commencement of this Act -
(a) no person carrying on any class of insurance business
specified in section 3 (1) may have or use, or continue to
have or use, the word “Insurance” or “Assurance”, or
any derivative thereof, in the name under which such
person is carrying on business, unless such person is
registered under this Act or exempted from registration
thereunder; and
(b) no person carrying on any class of insurance business
specified in section 3 (1) may have or use, or continue to
Restriction on
use of insurance
terms.
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have or use, in the name under which such person is
carrying on business any words indicating that such
person is a principal insurer unless that person is
registered under Part II or exempted from registration
thereunder;
(c) no person registered under Part II may, without the
written consent of the Supervisor, carry on any
insurance business unless such person has and uses as
part of the business name of such person the word
“Insurance” or “Assurance” or a derivative thereof;
(d) no person registered under Part IV as a broker may,
without the written consent of the Supervisor, carry on
business as such unless such person has and uses as
part of the business name of such person the words
“Insurance Broker” or “Assurance Broker”;
(e) no person registered under Part IV as an agent or sub-
agent (and not also registered under Part II) may,
without the written consent of the Supervisor, carry on
business as such unless such person has and uses as
part of the business name of such person the words
“Insurance Agent” or “Assurance Agent”.
155. Where any provision of this Act requires anything to be done within
a specified period of time and no provision is made for the extension there-
of, that period may in any particular case be extended by the Supervisor.
156.-(1) The Supervisor shall, as soon as practicable after 31st December
in each year, furnish to the Minister for presentation to the National
Assembly a report on the working of this Act during that year, which shall
contain such information as the Supervisor considers to be relevant.
Extension of time
limits.
Annual report.
(2) The Minister shall, as soon as practicable after the receipt of the
Supervisor’s report, cause a copy of the report to be laid before the National
Assembly.
157.-(1) The Minister may make regulations for giving effect to this Act and,
in particular, but without limiting whatever the generality of the foregoing,
such regulations may make provision in relation to all or any of the following-
(a) the prescribing of anything required or permitted by this
Act to be prescribed;
(b) the forms to be used in connection with any of the
provisions of this Act;
(c) the fees to be paid for registration of a company, an
association of underwriters, an agent, a sub-agent, a
broker, a salesman for the purpose of carrying on
insurance business, and the fees to be paid annually by
the company, the association of underwriters, the agent,
the sub-agent, the broker, the salesman registered to
carry on insurance business; and the time for payment of
such fees;
(d) submission of the statement in connection with or for the
purpose of assessment of fee for initial registration and
annual registration;
(e) the matters in respect of which other fees shall be
payable and the amount of such fees;
(f) deposits by insurance companies;
(g) the recovery of the expenses of any investigation under
this Act;
Regulations.
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(h) the assignment of policies generally or by way of
mortgage or upon trust;
(i) the disposal and vesting of policy moneys which have
remained unclaimed for the prescribed period;
(j) the holding of examinations for brokers, salesmen,
agents and sub-agents;
(k) amalgamations and transfers falling within section 44;
(l) the registers to be kept for the purposes of this Act;
(m) providing, where there is no provision or not sufficient
provision in this Act in respect of any matter or thing
necessary to give effect to this Act, the manner or form
in which the deficiency is to be supplied.
(2) Any regulations made under this Act may provide for the imposi-
tion of a fine not exceeding five hundred dollars or imprisonment for a term
not exceeding six months for any contravention of any of the provisions of
such regulations.
(3) Regulations under this Act may contain such incidental or supple-
mentary provisions as appear to the Minister to be expedient for the pur-
poses of the regulations.
158. Without prejudice to any special power of exemption (however
expressed) conferred by any other provision of this Act, the Minister may
by order-
(a) declare that, with effect from a date specified in the
order, such of the provisions of this Act as may be so
Exemptions.
specified shall not apply in relation to such class or
division of insurance business as may be so specified;
(b) in the case of any insurance company or class of insu-
rance company or any other person or class of person
direct that, subject to such conditions (if any) as he
thinks fit, insurance business of a class specified in sec-
tion 3 (1) shall be treated as if it were insurance business
of another class so specified or as if it were insurance
business of a class not so specified;
(c) exempt, subject to such conditions (if any) as he thinks
fit, any insurance company or class of insurance
company or any other person or class of person from all
or any of the provisions of this Act,
and may at any time revoke, amend or suspend any such order or vary any
such condition.
159.-(1) Until such time as regulations are made under section 157 (1)(c)
prescribing fees to be paid, there shall be paid to the Financial Secretary by
every company or association of underwriters carrying on insurance business
in Belize or acting in Belize as an agent of an insurance company or an
association of underwriters a fee for the year 1974 and for each subsequent
year, which shall be a sum equal to twenty-five dollars or two and one half
per cent of the gross amount of premiums received by the company or an
association of underwriters in respect of the business transacted in Belize
during the year immediately preceding the year in respect of which the fee is
payable under this section, whichever is the greater.
(2) Within three months of the close of its financial year, every
company, association of underwriters, or agent liable to pay a fee under this
section shall submit to the Financial Secretary a true and full statement of the
gross premiums received in respect of the business transacted in Belize during
Fees for registra-
tion, transitional
provisions, etc.
10 of 1992.
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the previous year. The party submitting the statement shall furnish such
other relevant particulars or information as the Financial Secretary may in
writing call for and shall permit the Financial Secretary or his representative
to inspect the books, accounts or any document for the purpose of verifying
the statement submitted if so required.
(3) At the time of submitting the statement, the company, the associa-
tion of underwriters or the agent submitting the statement shall pay to the
Financial Secretary the sum payable on the basis of the statement and
according to the provisions of subsection (1). The payment so made shall
be provisional only and shall be received by the Financial Secretary as such.
(4) The Financial Secretary may after examining the statement refuse
to accept it as being a full and true statement of the gross premiums received
in respect of the business transacted during the previous year and require
the party concerned to offer such explanations as he may require.
(5) If the Financial Secretary accepts the statement as accurate he
shall in writing notify the party concerned.
(6) Any company, association of underwriters or agent who fails to
submit a statement and make payment as required by subsections (2) and
(3), shall be liable to pay to the Financial Secretary in addition to the appro-
priate fee payable under this section a sum equal to such fee:
Provided that the Financial Secretary may remit the whole or part of
the additional sum which has become payable.
(7) Any company, association of underwriters, or agent who carries
on insurance business without having submitted a statement and made pay-
ment as required by subsections (2) and (3) commits an offence and is liable
on summary conviction to a fine of one hundred dollars for every day on
which the business is carried on.
160. The fee payable under section 159 together with an additional sum, if
any, payable thereunder, and the fee payable under any regulations made
under section 157 (1)(c) shall be recovered as a debt in civil proceedings.
Offences
161.(1) Any company or person who-
(a) contravenes or fails to comply with any provision of this
Act, or any provision of any order or regulation made
under this Act, or any direction or requirement given or
made by the Supervisor (or person authorised by him)
under section 4 (2); or
(b) causes any person to enter into, or make an application
for entering into, a contract of insurance in contraven-
tion of this Act,
commits an offence unless he can prove that he did not knowingly commit or
cause such contravention or omission. Where the offence consists of a
default in complying with any provision, direction or requirement, it shall be
deemed to be a continuing offence so long as the default continues.
(2) Where an offence under this Act or any regulations made
thereunder is committed by a body corporate, every person who at the time
of the commission of the offence was a director, manager, secretary, principal
representative or other similar officer of the body corporate, or was
purporting to act in any such capacity, shall be deemed to have committed
that offence unless he proves that the offence was committed without his
consent or connivance and that he exercised all such diligence to prevent the
commission of the offence as he ought to have exercised, having regard to
the nature of his functions in that capacity and to all the circumstances.
Fees recoverable
as civil debt.
Offences.
10 of 1992.
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Belmopan, by the authority of
the Government of Belize.
Insurance [CAP. 251
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(3) If any document required by or under this Act to be signed by
any person is false in any particular to the knowledge of any such person
who signs it, that person commits an offence.
(4) Notwithstanding any limitation on the time for the taking of
proceedings which is contained in any Act, summary proceedings for
offences against this Act may be commenced at any time within one year
from the date on which there comes to the knowledge of the Supervisor
evidence sufficient in his opinion to justify a prosecution for the offence.
(5) No such proceedings shall be commenced after the expiration of
three years from the commission of the offence.
(6) For the purposes of this section, a certificate purporting to be
signed by the Supervisor as to the date on which that evidence came to his
knowledge shall, in any such summary proceedings, be evidence of that
date.
(7) Any proceedings against a company for an offence against this
Act shall be without prejudice to any proceedings for the judicial manage-
ment, or the winding-up, of the company or of any part of the business of
the company which may be taken in respect of the matter constituting the
offence.
161.-(1) All offences against this Act for which no other penalty is
prescribed shall be punishable on summary conviction, in the case of a body
corporate, by a fine of five thousand dollars and in the case of an individual,
by a fine of one thousand dollars, or to imprisonment for a period of six
months.
(2) In the case of a continuing offence, the offender shall, in addition
to the penalty prescribed in subsection (1), be liable to a fine of five hundred
dollars for every day during which the offence continues.
Penalties.
10 of 1992.
FIRST SCHEDULE
[Sections 24 and 74 (2)]
Provisions Relating to Deposits Under Sections 23 and 74
1.-(1) All deposits made by or on behalf of a registered insurer pursuant to
section 23 or 74 shall be deemed to form part of the assets of the insurer.
(2) All interest and dividends accruing due on any securities deposited
pursuant to section 23 or 74 shall be paid to the registered insurer.
2. The Supervisor shall, on demand by a registered insurer, furnish to
the insurer a certificate in writing setting out the nature and extent of any
deposit held by the Supervisor under section 23 or 74 in respect of that
insurer together with the particulars of the securities (if any) forming the whole
or part of the deposit.
3.-(1) If the Supervisor is satisfied that by reason of depreciation in the value
of securities or other cause the value of money and prescribed securities
deposited by or on behalf of a registered insurer with him falls short of the
value required by Part II or Part III he shall, by notice in writing, require the
registered insurer to deposit with him money or prescribed securities or both
to a value deemed by him to be sufficient to bring the amount of the deposit
to the value required by Part II or Part III, as the case may be.
(2) A notice under this paragraph shall not be issued until the Super-
visor has given an opportunity to the registered insurer to be heard in con-
nection with the matter.
(3) Any registered insurer who fails to deposit with the Supervisor
money or prescribed securities or both as required by him under this
paragraph commits an offence and the Supervisor may, if he considers it
necessary in the interest of the policy-holders, cancel the registration of the
Certificate of
deposit.
Increase of
deposit where
securities have
depreciated.
Interest on
securities
deposited with
Supervisor.
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Belmopan, by the authority of
the Government of Belize.
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registered insurer.
4. If any moneys or securities held by the Supervisor as, or as part of,
the deposit required to be made by the registered insurer under section 23
or 74 are lost, stolen, destroyed or damaged while so deposited, the injury
occasioned to all persons interested in the moneys or securities shall be
made good out of moneys to be provided for the purpose by the National
Assembly.
5.-(1) A registered insurer may at any time substitute for any security or
cash held by the Supervisor as, or as part of, the deposit required to be
made under section 23 or 74, any prescribed security, but so that the total
amount then deposited is not less than the amount required by Part II or
Part III and any security so substituted shall be subject to the same charge
or liability as the security or cash withdrawn.
(2) (a) When a registered insurer has ceased to transact business and
has given written notice to that effect to the Supervisor or
when the registration of a registered insurer has been cancel-
led the securities and cash of the insurer in the hands of the
Supervisor shall not be delivered to the insurer until all his
outstanding risks are insured or until surrenders thereof are
obtained to the satisfaction of the Supervisor.
(b) Upon making application for its securities or cash a registered
insurer shall file with the Supervisor, in respect of all policies
issued locally, a list of all policy-holders who have not been
so reinsured, or who have not surrendered their policies; and
the registered insurer shall at the same time publish, and
continue the publication at least once a week for twelve
consecutive weeks, in the Gazette and in at least one
newspaper published in Belize, a notice that he will apply to
the Supervisor for the release of his securities and cash on a
certain day not less than three months after the date on which
the notice is first published in the Gazette and calling upon
Substitution and
withdrawal of
deposits.
Responsibility
for lost
securities.
the policy holders opposing such release to file notice of their
opposition with the Supervisor on or before the day so
named.
(c) After the day so named in the said notice, if the Supervisor is
satisfied that the deposit of the registered insurer with him is
substantially in excess of the requirements of Part II or Part
III as the case may be, in respect of the continuing policy
holders, he may with the concurrence of the Minister from
time to time release to the insurer such portion of the excess as
he thinks proper in the circumstances, and shall continue to
hold the remainder of the deposit for the protection of the
continuing policy-holders as provided for in Parts II and III.
(d) Thereafter from time to time as such policies lapse, or proof is
adduced that they have been satisfied, further amounts may be
released on the authority aforesaid.
(e) Notwithstanding this paragraph where the registered insurer is
a body corporate, then if it is in liquidation the securities of
such insurer may, on the order of any court having jurisdiction
under this Act or the Companies Act be released by the
Supervisor to the liquidator.
(3) Where the registration of a registered insurer who has not com-
menced to carry on insurance business in Belize is cancelled pursuant to Part
II or Part III, the Supervisor shall refund to such insurer any moneys, and
deliver to him any securities, deposited by him pursuant to section 23 or 74.
SECOND SCHEDULE
[Section 34]
Investment of Statutory Funds
CAP. 250.
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Belmopan, by the authority of
the Government of Belize.
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1. A company may invest its statutory funds in assets of the following
classes-
I (a) the bonds, debentures, stocks, or other evidences of
indebtedness of or guaranteed by the Government of-
(i) any Commonwealth country or dependency or
the Republic of Ireland; or
(ii) the United States of America or a state thereof;
or
(iii) any country approved by the Minister in which
the company carries on insurance business; and
(iv) the country in which the head office of the
company is situated or a province or state
thereof;
(b) the bonds or debentures of a corporation that are
secured by the assignment to a trust corporation in
Belize or the country in which the head office of the
company is situated or a province or state thereof of an
annual payment that the Government of Belize or of the
country in which the head office of the company is
situated or a province or state thereof has agreed to
make, where such annual payment is sufficient to meet
the interest falling due on the bonds or debentures
outstanding and the principal amount of the bonds or
debentures maturing for payment in the year in which
the annual payment is made;
(c) the bonds or debentures issued by a charitable, educa-
tional or philanthropic corporation where annual subsi-
dies sufficient to meet the interest as it falls due on the
bonds or debentures and to meet the principal amount of
the bonds or debentures on maturity, are, by virtue of a
general or private Act of Belize or the country in which
the head office of the company is situated or a province
or state thereof payable by or under the authority of
such country, state or province to a trust corporation as
trustee for the holders of the bonds or debentures;
(d) the bonds, debentures or other evidences of indebted-
ness of a corporation incorporated in Belize or the
country in which the head office of the company is
situated or a province or state thereof that are fully
secured by statutory charge upon real estate or upon the
plant or equipment of the corporation used in the
transaction of its business, if interest in full has been paid
regularly for a period of at least ten years immediately
preceding the vesting thereof in trust upon the securities
of that class of the corporation then outstanding;
(e) the bonds, debentures or other evidences of indebted-
ness issued by an authority or other body without share
capital established and empowered pursuant to a statute
of Belize or the country in which the head office of the
company is situated or a province or state thereof to
administer, regulate the administration of, provide or
operate port, harbour, airport, bridge, highway, tunnel,
transportation, communication, sanitation, water, elec-
tricity or gas services or facilities and for any of these
purposes to levy, impose or make taxes, rates, fees or
other charges that may be used only in carrying out the
objects of this authority or other body and are sufficient
to meet its operating, maintenance and debt service
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charges;
(f) the bonds, debentures and other securities of or
guaran-teed by the International Bank for
Reconstruction and Development established by the
Agreement for an Inter-national Bank for
Reconstruction and Development;
(g) the bonds, debentures or other evidences of
indebtedness-
(i) of a corporation incorporated in any country
listed in (a) that has paid-
(A) a dividend in each of the five years
immediately preceding the vesting thereof in
trust at least equal to the specified annual rate
upon all of its preferred shares; or
(B) a dividend in each year of a period of
five years ended less than one year before the
date of vesting thereof in trust upon its common
shares of at least four per cent of the average
value at which the shares were carried in the
capital stock account of the corporation during
the year in which the dividend was paid; or
(ii) of or guaranteed by a corporation incorporated
in any country listed in (a) where the earnings of
the corporation in a period of five years ended
less than one year before the date of the vesting
thereof in trust have been equal in sum total to
at least ten times and in each of any four of the
five years have been equal to at least one and
one-half times the annual interest requirements at
the date of vesting in trust on all indebtedness of
or guaranteed by it other than indebtedness
classified as a current liability in the balance
sheet of the corporation; and if the corporation
owns directly or indirectly more than fifty per
cent of the common shares of another
corporation, the earnings of the cor-poration
during the said period of five years may be
consolidated with due allowance for minority
interests, if any, and in that event the interest
requirements of the corporation shall be
consolidated and such consolidated earnings and
consolidated interest requirements shall be taken
as the earnings and interest requirements of the
corporation; and for the purpose of this sub-
paragraph “earnings” shall mean earnings
available to meet interest charges on indebted-
ness classified as a current liability;
(h) guaranteed investment certificates issued by a trust
company incorporated in any country listed in (a) that,
at the date of vesting thereof in trust, complied with the
requirements described in subparagraph (i) of paragraph
(g) in respect of the payment of dividends;
(i) the preferred shares of a corporation in any country
listed in (a) that has paid-
(A) a dividend in each of the five years immediately
preceding the date of vesting of such preferred shares in
trust at least equal to the specified annual rate upon all
of its preferred shares; or
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(B) a dividend in each year of a period of five years
ended less than one year before the date of the said
vesting upon its common shares of at least four per cent
of the average value at which the shares were carried in
the capital stock account of the corporation during the
year in which the dividend was paid;
(j) the fully paid common shares of a company incor-
porated in any country listed in (a) above that during a
period of five years that ended less than one year
before the date of purchase of the common shares has
either—
(A) paid a dividend in each such year upon its
common shares; or
(B) had earnings in each such year available for the
payment of a dividend upon its common shares, of at
least four per cent of the average value at which the
shares were carried in the capital stock account of the
corporation during the year in which the dividend was
paid or in which the corporation had earnings available
for the payment of dividends, as the case may be, but a
company shall not purchase more than thirty per cent of
the common shares of any corporation; and a company
shall not purchase its own shares and a company
registered to transact the business of life insurance shall
not, in respect of its life insurance business, purchase
the shares of a company transacting the business of life
insurance.
II Mortgages and other titles for repayment of loans secured by-
(a) any of the bonds, debentures or other evidences of
indebtedness, shares or other securities which the
company may invest in under paragraph 1, but the
amount at which the mortgage or other title is so secured
shall not exceed the amount at which the bonds,
debentures, or other evidences of indebtedness, shares
or other securities might be vested in under paragraph 1;
(b) real estate or leaseholds for a term of years or other
estate or interest in real estate in Belize or the country in
which the head office of the company is situated, where
the amount of the loan together with the amount of
indebtedness under any mortgage or other charge on the
real estate or interest therein ranking equally with or
superior to the loan does not exceed three-quarters of
the value of the real estate of interest therein, subject to
the exception that a company that has real estate
invested in its funds, may upon sale thereof, invest a
mortgage or other title accepted as part payment and
secured thereon for more than three-quarters of the sale
price of the real estate;
(c) real estate or leaseholds in Belize or in the country in
which the head office of the company is situated or in a
province or state thereof, notwithstanding that the loan
exceeds the amount that the company may otherwise
invest in, if the excess is guaranteed or insured by the
Government of Belize or through an agency of the
Government of Belize or of the country in which the
head office of the company is situated or of a province
or state thereof;
(d) ground rents, mortgages or hypothecation on real estate
or leaseholds in Belize or in the country in which the
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head office of the company is situated, where the
amount of the mortgage or hypothecation together with
the amount of indebtedness under any mortgage or
hypothecation on the real estate or leasehold ranking
equally with or superior to the mortgage or hypo-
thecation that is invested in does not exceed three-
quarters of the value of the real estate or leasehold
covered thereby.
III Real estate or leaseholds-
(a) Real estate or leaseholds for the production of income
in Belize or in the country in which the head office is
situated, either alone or jointly with any other company
transacting the business of insurance in Belize or in the
country in which the head office of the company is
situated or with any loan company or trust company
incorporated in Belize or in the country in which the
head office of the company is situated if-
(i) a lease of the real estate or leasehold is made
to, or guaranteed by the Government of Belize
or in the country in which the head office of the
company is situated or an agency of any such
government or a municipality in Belize or in the
country in which the head office of the company
is situated or any agency thereof;
(ii) the lease provides for a net revenue sufficient to
yield a reasonable interest return during the
period of the lease and to repay at least eighty-
five per cent of the amount invested in the real
estate or leasehold within the period of the
lease but not exceeding thirty years from the
date of investment,
but a parcel of real estate or a leasehold may not be
included in the assets if the total investment by the
company therein exceeds two per cent of the accepted
value of the total assets in Belize or in the country in
which the head office of the company is situated.
(b) Real estate or leaseholds for the production of income in
Belize or in the country in which the head office of the
company is situated, either alone or jointly with any
other company transacting the business of insurance in
Belize or in the country in which the head office of the
company is situated, or with any loan company or trust
company incorporated in Belize or in the country in
which the head office of the company is situated, if the
real estate or leasehold has produced in each of the
three years immediately preceding the date of investing
thereof net revenue in an amount that, if received in each
year following the date of investment, would be sufficient
to yield a reasonable interest return on the amount
invested in the real estate or leasehold and to repay at
least eighty-five per cent of that amount within the
portion of the economic lifetime of the improvements to
the real estate or leasehold that remained at the date of
investment but not exceeding forty years from that date;
but a parcel of real estate or a leasehold may not be
included in the assets if the total investment by the
company therein exceeds two per cent of the accepted
value of the total assets in Belize or in the country in
which the head office of the company is situated.
(c) Real estate in Belize or in the country in which the head
office of company is situated required by the company
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Insurance [CAP. 251
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for its actual use or occupation or reasonably required
by it for the natural expansion of its business or
acquired by foreclosure of a mortgage on real estate
where the mortgage is an investment under this Act.
IV Cash balances in Belize or in the country in which the head office of
the company is situated, funds in the hands of the trustee or in a trust
account maintained by the trustee in a licensed bank in Belize or in the
country in which the head office of the company is situated.
2. The total accepted value of the assets of any company invested in
common shares shall not at any time exceed twenty-five per cent of the
accepted value of the total assets in the country of the company.
3. The total accepted value of the real estate or leaseholds for the
production of income invested under this Schedule, shall not at any time
exceed ten percent of the accepted value of the total assets in the country of
the company.
4. A company shall not invest in trust bonds, debentures or other
evidences of indebtedness on which payment of principal or interest is in
default.
THIRD SCHEDULE
[Section 23]
Form of Bank Guarantee
The Minister of Finance and Economic Development, Government of
Dear Sir/Madam,
In consideration of your registering the...............................................
as an approved Insurer under the ..............................................................
Act, and in respect of any liabilities which the said Company has incurred or
may incur as such an approved Insurer, we, the undersigned ...............
......................................Bank, hereby undertake to pay to you on your first
simple demand notwithstanding any contestation from the above named
Insurance Company any sums which you may so demand from time to time
subject to the total amount payable under this undertaking being
limited to $.................................. in all.
Our total liability under this undertaking is limited to
$................................
and is given for an unlimited period, subject to one year’s notice of cancel-
lation on our part. Should, however, such notice of cancellation be exercised
we undertake, at the expiration of such notice, and if called upon prior to its
expiration to do so, to pay to you any balance outstanding on the above-
mentioned undertaking for the purpose set out above and our liability
hereunder shall continue until such payment is made.
...................................................................
(Signature on behalf of Bank over Stamp)
