Segregated Accounts Companies Amendment Act 2004
SEGREGATED ACCOUNTS COMPANIES AMENDMENT ACT
2004

1

BERMUDA

2004 : 30

SEGREGATED ACCOUNTS COMPANIES AMENDMENT ACT
2004

Date of Assent: 17 December 2004

Operative Date: 17 December 2004

ARRANGEMENT OF SECTIONS

1 Short title
2 Amendment of section 2
3 Amendment of section 3
4 Amendment of section 5

5 Amendment of section
17B

6 Amendment of section 18

WHEREAS it is expedient to amend the Segregated Accounts
Companies Act 2000:

Be it enacted by The Queen's Most Excellent Majesty, by and
with the advice and consent of the Senate and the House of Assembly of
Bermuda, and by the authority of the same, as follows:

Short title
1 This Act may be cited as the Segregated Accounts Companies
Amendment Act 2004.

SEGREGATED ACCOUNTS COMPANIES ACT 2000

2

Amendment of section 2
2 Section 2 of the Segregated Accounts Companies Act 2000 (in
this Act referred to as "the principal Act") is amended —

(a) in subsection (4), by deleting "Trust Companies Act
1991" and substituting "Trusts (Regulation of Trust
Business) Act 2001"; and

(b) by inserting the following subsection next after
subsection (4) —

"(5) Section 24 of the Insurance Act 1978 shall not
apply to an insurer who is registered as a segregated
accounts company under this Act.".

Amendment of section 3
3 Section 3 of the principal Act is amended by repealing
subsection (2) and substituting the following subsection —

"(2) From the date of registration under this Act, a segregated
accounts company shall be bound by this Act and from such
date it may establish one or more segregated accounts to which
this Act shall apply.".

Amendment of section 5
4 Section 5 of the principal Act is amended in subsection
(2)(a)(iv)(C) by deleting "vexations" and substituting "vexatious".

Amendment of section 17B
5 Section 17B of the principal Act is amended —

(a) in subsection (1) —

(i) by repealing paragraphs (a) and (b), and
substituting the following paragraphs —

"(a) that no party shall seek, whether in any
proceedings or by any other means
whatsoever or wheresoever, to establish any
interest in or recourse against any asset
linked to any segregated account to satisfy a
claim or liability not linked to that
segregated account;

(b) that if any party succeeds by any means
whatsoever or wheresoever in establishing
any interest in or recourse against any asset
linked to any segregated account of the

SEGREGATED ACCOUNTS COMPANIES ACT 2000

3

company in respect of a liability not linked
to that segregated account, that party shall
be liable to the company to pay a sum equal
to the value of the benefit thereby obtained
by him; and"; and

(ii) in paragraph (c), by deleting "attributable"
wherever it occurs and substituting "linked";
and

(b) in subsection (4), by deleting "attributable" wherever it
occurs and substituting "linked".

Amendment of section 18
6 Section 18 of the principal Act is amended —

(a) by repealing subsection (1) and substituting the
following subsection —

"(1) Notwithstanding any enactment or rule of law
to the contrary, any asset of a segregated accounts
company which is linked to a particular segregated
account is deemed to be owned by the company as a
separate fund which does not form part of the general
account."; and

(b) in subsection (13) by deleting "1973" and substituting
"1972".

SEGREGATED ACCOUNTS COMPANIES ACT 2000

i