The provisions of this Part shall apply only to associations of underwriters licensed as insurers and their members.

39.     Registrar to determine conditions for licensing

            (1) The Registrar may determine the conditions of licensing of an association of underwriters.

            (2) Notwithstanding the generality of subsection (1), such powers shall include, inter alia, the determination of the necessity and amount of-

     (a)     classes of business underwritten;

     (b)     capital requirements;

     (c)     margins of solvency;

     (d)     retention of premiums;

     (e)     deposits and investments in Botswana; and

     (f)      any such additional requirements and conditions as considered necessary by the Registrar.

40.     Association of underwriters to deposit sums or securities

            The Registrar may request any association of underwriters to deposit a substantial sum or such securities as are satisfactory to the Registrar in trust with the Bank of Botswana and to keep that sum so deposited for so long as the association carries on business in Botswana.

41.     Premiums received to be held in trust

            A proportion, to be determined by the Registrar, of all premiums received by an association of underwriters from Botswana insurance business shall be held in trust in Botswana by a trustee approved by the Registrar for the payment of the underwriting expenses of the association's insurance business in Botswana.

42.     Audit of accounts of an association of underwriters

            (1) An association of underwriters shall furnish evidence to the satisfaction of the Registrar that the accounts of each member of the association are subject to an annual audit by an independent auditor.

            (2) The auditor of an association of underwriters shall certify to the committee of the association whether or not the underwriting assets held by the member at the close of each financial year are sufficient to cover the underwriting liabilities attached at that time to the underwriter's accounts.

            (3) An association of underwriters shall furnish annually to the Registrar-

     (a)     a certified copy of the returns of insurance business carried on by the association and furnished in each year to the appropriate authority in the country where the association is constituted;

     (b)     a certificate signed by the chairman of the association and the said appropriate authority that the members have in respect of the preceding year complied with the requirements of insurance law in the country where the association is constituted in so far as it relates to associations of underwriters; and

     (c)     such other information as the Registrar shall require.