INSURANCE I
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THE INSURANCE ACT
ARRANGEMENT OF SECTIONS
PART 1 Preliinimuy
1. Short title.
2. Intnterpretation.
3. Application of Act.
4. Commission rffponsible for administration ofAct.
5. Registers.
PART U. Repiation of Insurance Compwiar
Registration
6. Only bodies corporate to carry on insmce business.
7. Registratim of bodies corporate canying on insurance business.
8. Restrictions regarding registrStion.
9. Share capital and deposit required for registration.
10. Application for registratim
11. Conditions for registration.
12. Certificate of registration.
13. Notification ofchmge in particulars specifid in application.
14. Suspension ofregistration.
15. Grounds for cancellation ofregistration.
16. Implemmtation of pmposal to r e h e or cancel regkhtion.
17. Summary cancellation ofregistration.
IS. Effect of cancellation of registfatioa.
19. Display and surrrndu ofre@atim certificate.
2 Ih’SUMNCE
20. Contracts with non-registered companies.
21. Amountand fnm ofdeposit bycompanies
Invatment off& of Imurame companies
22. Investment of funds.
23. Prohibitiw relating to loans.
0 Adminislrative and Aceounring Requirements for Ins-e Companies
24. Maintenance of principal office and appointment of principal
25. Maimtmauce and separation of funds.
26. Reparation of annd accounts, etc.
representative.
27. Groupaccounts.
28. Audit of accounts of registaed msura.
29. Keeping of recards by insurers.
30. Annual investigations into h a n d pasition of i n s u ~ ~ ~ carryingon
long tam busmess.
3 1. Amalgamation and lrausk.
32. Regulatiw of waldling m m after traosfer OT amalgamtim.
33. Application by PRSOOS affected by scheme.
34. Effect of decisions ofCcmmission and appeals.
35. vesting by Mister.
Cwpome G o v e m e , Appointmet8 qf.4todirors ondAehrmy
36. Duty of care of direaas and seniar officers.
37. Appointment of auditca.
38. Resignation ofanditor.
39. Accesstoinformation.
40. Auditor’s report
41. Auditor’s right to attend, requisition meetings.
42. Report by Commission.
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43. Amendment of financial statements and repatS.
44. Appointment of actuary.
45. Resignation, etc., ofactuary.
1nves:igaiom by the Commission
46. Commission may demand information.
47. Power to make investigations.
48. Power to obtain information.
49. hby on premises.
50. Action on completion of investigatioa.
Winding Up
51. Windingup.
52. Petition fa winding up.
53. Margin of solvency.
54. Transfer of insurance business.
55. Local treatment in foreign winding up.
56. Supplemmtal provisioas as to winding up.
57. Ascatarmn ' ent of value of liabilities under policies.
58. Reduction of contracts as altmative to winding up.
59. Application of deposits.
60. Guarantd mmpanies.
PART 111. Associations of U d e ~ i t e r s
6 I . Associations of undesmiters to be registered.
62. Application for registration undu this Part.
63. Conditions fm registration.
64. Documents and information to be firnrished to Commission.
65. Suspension of regi-tion.
[Tlie inclusion ofthia p g e i s avihmired by L.N. I I?RW? 1
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66. Grounds for cancellation of registration.
67. Implementation of proposal to refuse to register or to cancel
68. Effect of cancellation of association’s regisbation on insclrance
69. Deposits by associations of undmwiters.
registration.
ContractS.
PART lV. Registratim of Inswame Intermediaries
70. Registration of insurance intermediaries
71. Application for registration.
72. General restrictim an registration.
73. Conditions for registration.
74. Certificate of registration.
75. Suspension of regisbxtion.
76. Grounds for cancellation ofremation
77. Impleme~tatim proposal to refuse to regista OT to cancel registration.
78. Summary cancellation of registration under this Part.
79. Information to be supplied to Commission.
80. Production of certificate ofregistration.
81. Display and surrmdaof regktratirm certificate.
Miscellmreous Provisions Relating to Inswame
Intermediarks
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82. Agents, etc.
83. Fraudulent representations.
84. Liability for unlawhl contracts.
85. Compcnsstim to lmaumorircd person for placing or negotiating
86. Rebating.
87. Bonaf& salaried employees.
88. Returns by insurers.
89. Returns by regidaed brokers and agents.
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PART V. Long-tern I n s u r m Business
Isnre OfPoIicies
90. Rates of premium.
9 1. Notice regarding proof of age.
92. Rocedure whae comprmy declines to aooept pf.
93. Mis-statanent of age and nan-avoidance ofpolicy.
94. Provisions relating to state of health of insurd.
95. Minors.
96. insurable interests.
Designation of beneficiaries or Legal Personal Represenfuive
97. Designation of beneficiaries generally.
98. Irrevocable designation of beneficiaries.
99. Alteratim or revocation of designation on d o n ofmarriage.
100. Insured person entitled to dividends
101. Cimunstances in which insurance promds not part of insured
person’s estate, etc.
102. Presumption ofbust negatived.
103. Appoinlment oftrustee.
104. Beneficiary -ing insued pason.
105. Right to enforce payment of pmceeds.
106. Power of group life insured to sue insura.
Pmteclion of Policies
107. Interest of insured protected in certain cases.
Paid-up Policies, Surrender Values und Non-Fmfeitzm
108. Paid-up policies.
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109. Sumadet ofpolicies.
110. Notice in respect of long tenn insurance policies by insurer.
1 1 I. Insured's right of cancellation.
1 12. Nm-forfeiture of ordinary policies in certain case3 of non-payments
I 13 Treahnent of debts on grant of paid-up policies.
of premiums.
Payment ofPoIicy Moneys
114. Death ofpolicyholder not being life insured.
11 5. Unclaimed moneys.
Muldisation
11 6. Conversion into mutual companies and vice versa.
PART VI. Reserves and D i v i k d
117. Resmes.
118. Dividend not to impair.
PART VII. Generailnsurame
119. Application ofthis Part.
120. Disclosure of pro rata condition of average.
121. Thirdpartyrights.
PART VI11. Mirce iheou
122. Insurance mnhibutcry fund.
123. Insudsduty ofcarereagents.
124. Register to be kept.
125. Replament of lost life policy.
126. E m of suicide or capital pmishntent on life policy.
127. Liability limitation for war void.
128. Offences by company not to invalidate policies.
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129. Local d i c i e s governed by Jamaican laws.
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130. Payment of moneys in specified currency.
131. PowatopaymoneyintoCollrt.
132. Payment without probate or administration in certain Cases.
133. Structured settlements.
134. Approval required for notice offering share for subscription.
135. Publication ofauthorized subscribed and paid-up capital.
136. Inspection of documents.
137. Documents to be admitted in evidence.
138. Authority to sign documents.
139. Printing of documents.
140. Appeal.
141. Gazetting ofregisb-ation, etc.
142. Restriction on use of insurance tams
143. Extmsion of time h i t s .
144. Regulations.
145. Exemptions.
146. Misleadingadvertimmt.
147. offences.
148. General pmalties.
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(U ) is a registered public accountant as defined in
(b) satisfies such requirements as may be
section 2 ofthe Public Accountancy Act; and
prescribed,
and includes a firm of such persons;
“bond investment business” means the business (not being
life insurance business) of issuing bonds or
endowment certiiicates by which the company, in
return for subscriptions payable at periodic intervals of
less than six months, contracts to pay the bond holder
a sum at some future date, and includes sinking fund
and capital redemption insurance bus ie s ;
“broker” means any person who-
(U) in any manner solicits, negotiates or procures
insurance or the renewal or continuance
thereof on behalf of insurers or on behalf of
agents; or
(b) arranges insurance business with such insurers
or agents on behalf of prospective policy
holders;
‘‘carrying on insurance business in Jamaica” includes,
(U) opening or maintainjng a place of business or
an office or appointing or using a
representative in Jamaica, whether or not such
business is being arranged in or s%om Jamaica;
(b) the use in Jamaica of any business description
or title in any language of the words
‘‘insurance”, “assurance”, “indemnity”,
“guarantee”, “under-writing”, “rereinsurance”,
“Surety”, or any of their
derivatives, or any expression which conmtes
or is intended to connote insurance business;
and
subject to subsection (2)-
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(c) the making in Jamaica of any representation
in any document or in any other manner
offering, directly or indirectly, to arrange
contracts of insurance;
“child” in relation to any person includes-
(a) a child adopted in pursuance of an order made
under the Children (Adoption o f ) Act;
(6) a step-child and any other child wholly or
mainly maintained by that person;
“class of insurance business” means any class of insurance
business specified in section 3 (1);
“collector” includes every person, however remunerated,
who calls on policy holders for the purpose of
receiving premium payable under industrial life
policies;
“Commission” means the Commission appointed under
section 3 of the Financial Services Commission Act;
“company” means a body corporate which carries on or
proposes to carry on insurance business in Jamaica;
“control” means the possession by a person of the power to
direct or influence the direction of, the management
and policies of a person, through the ownership of
voting shares or by contract (other than a commercial
contract for goods or non-management services) or
otherwise, but does not include any such power
derived fiom an official position with the person
concerned;
“Court” means Supreme Court;
“document” includes in addition to a document in writing-
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(b) any photograph;
map, P h graph or drawing;
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(c) any disc, tape, sound track or other device in
which sounds or other data are embodied so as
to be capable (with or without the aid of some
other equipment) of being reproduced
therefiom;
"eligible facultative placement insurer" means an
unregistered insurer with which a registered
facultative placement broker may place facultative
insurance placements;
"equity linked products" means life insurance or annuity
products which purport to offer investment benefits
that are linked to the performance of certain
identifiable investments, whether or not held in
separate or segregated funds;
"facultative placement broker" means a person registered
under this Act to place, with eligible unregistered
insurers, insurance on properties, risks or exposures
located or to be performed in Jamaica;
"foreign company" means a company incorporated outside
the area of the Caribbean Community and Common
Market;
"general insurance business" means insurmce business of
any class specified in section 3(1) other than ordinary
long term insurance business or industrial l i e
insurance business; .
0 "grandchild" means, in relation to any person, a child of
that person's child;
"holding company" has the meaning specified in
subsection (6);
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“industrial life insurance business” means the business of
effecting and carrying out 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 policyholder, or to his residence or place of
work;
“industrial life policy” means a policy in respect of which
the premiums are contracted to be received or are
usually received by means of collectors, and
include+
(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 life policy) granted in
lieu of an industrial life policy or of a policy
referred to in paragraph (a);
”insurance business’’ means the assumption of the
obligations of an insurer in any class of insurance
business and includes reinsurance business;
“insurance consultant” means a person providing insurance
services not falling within any other category, or
holding himself out as such;
“insurance intermediary“ means an agent (including a
managing general agent), broker (including facultative
placement broker and reinsurance broker), sales
representative, adjuster, insurance consultant, or such
other persons carrying on any business connected with
insurance as may be prescribed;
“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 8s an insurer;
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”liability insurance business“ means the business of
effecting and carrying out contracts of insurance
against risks of the persons insured incurring liabilities
to third parties, not being risks arising out of, or in
connection with the use of, motor vehicles or vessels
or aircraft or risks incidental to the construction, repair
or docking of vessels or aircraft;
”life insurance business“ means the undertaking of liability
under policies of insurance upon human life, but does
not include industrial life insurance business;
“life insurance fund” means the fund to which the receipts
of an insurer in respect of his life insurance business
are carried and fiom which payments in respect of that
business are made;
“life insurance policy” means any instrument by which the
payment of money is assured on death or the
happening of a contingency dependent on human life,
or any instrument evidencing a contract which is
subject to the payment of premiums for a term
dependent on human life, but does not include an
instrument by which the payment of money is assured
only on accidental death;
“life insurer” means a registered insurer carrying on l i e
insurance business;
“local company” means a company incorporated under the
Companies Act or under the relevant law of any
member state of the Caribbean Community and
Common Market;
“local policy” means a policy issued, whether in or outside
Jamaica, by or on behalf of an insurer, upon an
application made in Jamaica to an insurer, broker,
sales representative or agent; and-
16 INSURANCE
(a) includes a life insurance policy issued outside
Jamaica at the request of the policyholder,
which the policyholder has agreed in writing
shall be treated as a local policy for the
purposes of this Act; but
(b) does not include a life insurance policy made
payable, after the date of its issue, outside
Jamaica at the request of the policyholder,
which the policyholder has agreed in writing
shall not be treated as a local policy for the
purposes of this Act;
“long term business” means insurance business of all or
any of the following classes, namely, ordinary long
term insurance business and industrial life insurance
business and, in reIation to any company, insurance
business carried on by the company as incidental only
to any such class of business;
“managing general agent” means any person (other than an
employee of an insurer) who-
(U) manages all or part of the insurance business
(b) by whatever name called, acts as an agent
(i) produces, directly or indirectly, and
underwrites an amount of gross
direct written premium equal to
five per cent or more of the
policyholder surplus (as reported in
the insurer’s last annual statement)
in any one quarter or year;
adjusts or pays claims in excess of
an amount determined by the
Commission;
of a foreign insurer; and
for such insurer and-
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INSURANCE 17
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(iii) negotiates reinsurance on behalf of the
insurer;
but does not include a manager who, pursuant to a
contract, manages all or part of the insurer’s
insurance operations, is under common control with
the insurer and whose compensation is not based on
the volume of premiums written;
“marine, aviation and transport insurance business” means
the business of effecting and carrying out (otherwise
than incidentally to some other class of insurance
business) contracts of insuran-
(a) upon vessels or aircraft, or upon the
machinery, tackle, furniture or the equipment
of vessels or aircraft;
(b) upon goods, merchandise or property of any
description whatever on board vessels or
aircraff;
(c) upon the freight oc or any other interest in or
relating to, vessels or aircraft,
(dj against damage arising out of or in connection
with the use of vessels or aircraft, incIuding
third-party risks;
(e) against risks incidental to the construction,
repair or docking of vessels, including third-
party risks;
v) 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 h m 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
[lk iirlurion ofthir page I S uuthond by L.N. I 12,2002 1
18 INSURANCE
(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 policyholders of that company and
includes a company which has agreed to purchase
back or is in the process of purchasing back its sbare
capital at a fyred price and is recognized by the
Commission as a mutual company;
“ordinary life insurance business’’ means insurance
whereby an insurer assumes in return for the payment
of a sum or sums of money a contingent obligation
dependent on human life but does not include
industrial life insurance, personal accident, sinking
fund or cancellable group life insurance;
“ordinary long term insurance bwimess” means business
(excluding industrial life insurance business) of any of
the following kinds, namely, effecting and carrying
out contracts of insm-
(U) on human life or contracts to pay annuities on
human life;
injury or dying as a result of an accident, or of an
accident of a specified type;
(c) against loss resulting horn the illness or disability
of a person other than loss resulting h o r n death,
(d) whereby an insurer undertakes to pay a cettain
sum or sums of money in the event of the illness
or disability of a person;
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(b) against the risk of the persons insured sustauun g
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(e) against expenses incurred for vision or dental
care, laboratory or x-ray services,
hospitalization, or other medical or health-care
services;
v) whether effected by the issue of policies,
bonds or endowment certificates or otherwise
whereby, in return for one or more premiums
paid to the insurer, a sum or a Series of sums
is to become payable to the insured in the
future, not king contracts llling within
”pecuniary loss insurance busmess” means the business of
effecting and carrying out contracts of insurance
against any of the following risks-
(a) risks of loss to the persons insued-
Paragraphs ( 4 9 (4. (c), (4 or (d.
(i) arising h m the insolvency of their
debtors or h m the failure
(otherwise than through insolvency)
of those debtors to pay their debts
whendue;
(i) attributable to their incurring
unfbreseen expense;and
(b) risks not falling within paragraph (a) nor
being of such kind that the carrying on ofthe
business of effecting and carrying out
contracts of insurance against them constitutes
the carrying on of some other ckss of
insurance business;
”policy” means an insurance policy;
”policyholder” means the person who for the time being
has legal title to a policy and includes any person to
whom a policy is for the time being assigned;
‘’prescribed securitiis” meaos any securities or class of
securities prescribed by regulations made under this
Act;
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“principal office” means the place in Jamaica where the
insurance business of a company is controlled or
“principal representative” means the representative notified
to the Commission in accordance with section 24;
“property insurance business” means the issue of, or the
undertaking of liability under, policies of insurance
against loss of or damage to real or personal property
of every kind and interests therein, h m 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 transport insurance business;
“register” means the register of policies referred to in
section 124;
“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 i n s m ” means an insurer registered in
accordance with Part I1 or Part 111, as the case may
require;
“reinsurance broker” means any person, other than an
officer or employee of a ceding insurer, who solicits,
negotiates or places reinsurance or retrocessions on
behalf of a ceding insurer without the authority or
power to bind reinsurance on behalf of that insurer;
“reinsurer” means any registered insurer who is authorized
by this Act to assume reinsurance;
“sales representative” means an individual employed by an
insurer, agent or a broker, to solicit applications for
insurance or to negotiate insurance on behalf of that
insurer or agent or on behalf of the client or broker, as
the case may be, and includes a collector;
managed;
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“scheme” means, in relation to sections 33 and 34, a
proposal for the transfer, acquisition or amalgamation
of an insurance business;
“sickness and health insurance business” means business of
any of the following kinds, namely, effecting and
(U) against loss resulting from the illness or
disability of a person other than loss resulting
from death;
(b) whereby an insurer undertakes to pay a certain
sum or sums of money in the event of the
illness or disability of a person; or
(c) against expenses incurred for vision or dental
care, laboratory or x-ray services or
hospitalization, or other medical or health-care
services.
carrying out contracts of insurance
“spouse” includes-
(a) a single woman who has cohabited with a
single man as if she were in law his wife for a
period of not less than five years; or
(b) a single man who has cohabited with a single
woman as if he were in law her husband for a
period of not less than five years,
and tk terms “single woman” and ‘‘single man”
include widow or widower or a divorcee;
“underwriting liabilities” in relation to a member of an
association of underwriters, mans the liabilities of the
member’s insurance business calculated in accordance
with formulae fixed by the governing body of the
association and approved-
(U) in the case of an a.%wciation constituted in
Jamaica, by the Commission; and
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(b) in the case of an association constituted in a country
outside Jamaica, by the authority in that country in
whom is vested the administration of the law
relating to associations of underwriters.
( 2 ) For the purposes of this Act-
(U) a person shall not be treated as carrying on
insurance business in Jamaica if the only reason for
so treating the person is the fact that the risk
covered by a policy of insurance issued by that
person is situated in Jamaica;
(b) any of the following activities effected in any
manner by an unregistered insurer or any person
acting with the actual or apparent authority of the
insurer or on his behalf, shall be deemed to
constitute the carrying on of insurance business in
or f?om Jamaica-
( i ) makiig of or pmpsing to make, as an
insurer, an insurance contract;
(ii) making of or proposing to make, as
guarantor or surety, any contract of
guaranty or suretyship as a business and
not merely incidental to any other of the
guarantor’s or surety’s legitimate
business or activity;
(iii) taking or receiving an application for
insurance;
(iv) receiving or collection of any premium,
commission, membership fees,
mssments, dues or other consideration
for insurance or any part thereof;
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(v) issue or delivery in Jamaica of contracts
of insurance to persons resident in
Jamaica or authorized to do business in
Jamaica;
(vi) solicitation, negotiation, procurement or
effecting of insurance or renewals
thereof;
(vii) dissemination of information as to
coverage or rates;
(viii) forwarding of applications, delivery of
policies or contracts;
(ix) inspection of risks, fixing of rates or
investigation or adjustment of claims or
losses;
(x) transaction of matters subsequent to or
arising out of the effecting of the
contract;
(xi) representing or assisting a person or
insurer in the transaction of risks with
respect to properties, risks or exposures
located or to be performed in Jamaica;
(xii) transaction of any class of insurance
business specifically recognized as
transacting of insurance business within
the meaning of this Act;
(xiii) offering of insurance or transacting of
insurance business;
(xiv) offering an agreement or contract which
purports to alter, amend or void coverage
ofan insurance contract.
(3) In determining whether a person is a fit and proper
person for the purpose of this Act, the Commission shall
consider whether he is a perm+
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24 INSURANCE
(a) who. whether in Jamaica or elsewhere
(i) has not been convicted of an offence
involving dishonesty; or
(ii) is not an discharged bankrupt;
(6) whose employment record does not give the
Commission reasonable cause to believe that the
person carried out any act involving dishonesty or
any act involving impropriety in the handling of
insurance business; or
(c) who, in the Commission’s opinion is a person of
sound probty, is able to exercise competence,
diligence and sound judgment in fulfilling his
responsibilities in relation to insurance business and
whose relationship with an insurance company will
not threaten the interests of policy holders; and for
the purposes of this paragraph, the Commission
shall have regard to any evidence that he has-
(i) engaged in any business practices
appearing to the Commission to be
deceitful or oppressive or otherwise
improper which reflect discredit to his
method of conducting business;
(ii) contravened any provision of the Banking
Act, the Deposit Insurance Act, the
Financial Institutions Act or any other
Act being a relevant Act withiin the
meaning of the Financial Services
Commission Act.
(4) For the purposes of this Act, the following persons
shall be treated as being associated with a given person (“A”)
and he with them, and shall be so treated notwithstanding that a!
the relevant time any of the persons in question (not being
individuals) had not yet come into existence or had ceased to
exist-
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(2) A body corporate incorporated under the Companies
Act that carries on any class of insurance business in any other
country shall, for the purposes of this Act, be deemed to be a
company carrying on such business in Jamaica
(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 apply to such reinsurance except that a
company or an association of underwriters carrying on the
reinsurance shall not be required to make, in respect of such
reinsurance, any deposit as required by section 21 or 69.
(4) Part I1 does not apply to associations of
underwriters.
(5) This Act does not apply to any organization that is
registered under any enactment that relates to f?iendly societies,
co-operative societies, building societies, trade unions or to any
other similar organization.
4. The Commission shall be responsible for the general Comaussmn
mpawble fm
Imnml5aIlon
of Ad
administration of this Act.
5. The Commission shall cause to be maintained separate R e p m
registers of the followin-
(U) companies registered to carry on in Jamaica, the
various classes of insurance business specified in
section 3 (1);
(b) association of underwriters;
(c) insurance intermediaries,
and such other registers as may be required to be maintained
under this Act or as may be prescribed.
[The inclumn of Ihis page IS ucithanzed 4v L N 11212002 I
28 INSURANCE
Only bodies
wrplrate to
0” on
insurance
business.
Registration
of bodies
mrporare
camying on
insurmsc
bugines
Share capital
and deposit
required fm
regimtion.
PART 11. Regulation of Insurance Companies
Re@tration
6. Subject to this Act, no person other than a body corporate
shall carry on insurance business in Jamaica.
7.+1) A body corporate shall not cany on any class of
(a) it is registered by the Commission under this Act in
respect of that class of insurance business; .and
(h) it h a s
insurance business specified in section 3 (1) unless-
(i) made the deposit required by section 21;
and
(ii) filed with the Commission, the names and
addresses of persons resident in Jamaica
who are authorized to accept on behalf of
the body corporate, service of process in
legal proceedings.
(2) Subsection (1) shall not apply to persons carrying on
insurance business pursuant to section 20.
(3) Any person who contravenes section 6 or this
section shall be guilty of an offence and liable on summary
conviction in a Resident Magistrate’s Court to a fine not
exceeding three million dollars or to imprisonment for a term
not exceeding three years or to both such fme and
imprisonment.
8. An insurance company shall not be registered under this
Part to cany on both long term and general insurance business
unless such general insurance business consists exclusively of
accident insurance business.
9.+1) Subject to subsection (2), no company shall be
registered to cany on any class of insurance business, unless-
0
INSURANCE 29
0
0
(U) it has paid-up capital and surplus of the prescribed
amount; and
(b) it has deposited with the Commission, the prescribed
deposit referred to in section 21.
(2) Subsection (1) (a) shall not apply to a mutual
company but no company shall be registered as a mutual
company unless it has, in relation to policyholders, an
uncommitted reserve of the prescribed amount.
10.-(1) An application for registration under this Part shall Awlication
be made to the Commission in the prescribed form and shall be ~ ~ i m , i o n
accompanied by evidence of payment of the prescribed fee and
by such documents as may be prescribed.
(2) The Commission may, upon receipt of an
application under this section, request the applicant to furnish
such additional information as it may consider relevant to the
application.
11.41) The Commission shall act in accordance with Conditionsfor
re ismion. subsection (2) in relation to an applicant if, after appropriate
enquiry or by the production of documentary evidence or both,
the Commission is satisfied in respect of the applicant tha-
(U ) the requirements of sections 6, 9 and 10 have been
complied with;
(b) the company is solvent under the provisions of
section 53;
(c) the company is liiely to be able to comply with such
of the provisions of this Act as would be applicable to
it;
(6) the company has made adequate arrangements for
reinsurance of that class of insurance business or that
there is no justification for makiig such
arrangements;
30 INSURANCE
(e) each of the persons managing or controlling the
company is a fit and proper person to manage or
control such a company;
v) the company is able to implement a policy for
settlement of claims without undue delay;
(g) 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;
(h) in the case of 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 five years
before the date of the application; and
(ii) has appointed some person resident in
Jamaica to be its principal representative in
Jamaica and has informed the Commission
in writing of the name and address of that
person; and
(i) the company has satisfied such other requirements as
may be prescribed.
(2) The Commission may, either unconditionally or
subject to such conditions as it may specify, register the
insurance company in respect of the class or classes of insurance
business specified in the application and shall notify the
applicant accordingly.
(3) Where, in relation to all or any of the classes of
insurance business specified in the application, the Commission
is not satisfied as to one or more of the conditions set out in
subsection (l), it shall-
0
0
INSURANCE 31
0
0
(a) notify the applicant in writing that it intends to refuse
to register it in respect of one or more of such classes
of insurance business, giving reasons therefor; and
(b) notify it of its r g h t under section 140 to appeal to the
Appeal Tribunal.
12. The Commission shall furnish to every company ~enififateof
registered under this Act a certificate of registration in the repstrahon
prescribed form which shall-
(a) contain a statement of the class or classes of
insurance business for which the company is
registered; and
(b) be prim facie evidence of such registration
13. Where, after the registration of a company under this Act, Nmficatmn
any change takes place in the particulars specified in the 2:;
application for registration or in the particulars of the q m f i d ~ n
information or documents required to accompany the lppllcatlon
application, the company shall, within thirty days of such
change, notify the Commission in writing of the change.
suspend the registration of an insurance company in respect of
all or any of the classes of business in relation to which it is
registered, if-
(U) it is satisfied that the company is in breach of any
provision of this Act, where that breach would
constitute a p u n d for cancellation as specified in
section 15; or
14.--(1) Subject to subsection (2), the Commission may Suapcnrlonof
leglmllon
(b) proceedings for its winding-up have commenced.
(2) Before taking action under subsection (I), the
Commission shall give written notice to the company
concemed-
32 mSURANCE
(U ) stating its intention to suspend the company‘s
registration, giving reasons therefor and specifying
the rght of appeal under section 140;
(b) indicating a period within which the company may
make written and oral representations on the intended
action; and
(c) requirii the company to take such action as is
specified in the notice to remedy the breach within
the period so specified.
(3) Where a company fails to comply with a notice
under subsection (2), the Commission may, subject to section
0
16 -
(a) immediately suspend the company’s registration; or
(b) extend the period specified in the notice; and if the
breach is not remedied within that extended period,
suspend the company’s registration.
*undsfor 15.-(1) Where any of the matters specitid in subsection (3)
afrrgimatlon. (U) or (b) applies in relation to an insurance company, the
Commission may cancel the registration of the company.
(2) Before taking action under subsection (l), the
Commission shall give written notice to the insurance
company-
(a) stating that it proposes to cancel its registration in
respect of all or any ofthe classes in relation to which
it is registered, giving the reasons therefor and
specifying the right of appeal under section 140; and
(b) indicating a period (not b e i i less than thirty days
after the service of the notice) within which the
company may make written or oral representations on
the proposed action.
oacellat,on
0
(3) The Commission may take action under subsection
(1)wherea tanyt ime
[The I~CIUPIOII o f h page 13 authorized by L N I Iu2002 I
NSUMNCE 35
0
0
(2) The Commission shall not cancel the registration of
FZI insurer under subsection (1) unless the Commission is
satisfied that-
(a) the insurer has no unpaid claims in respect of the
insurer’s contracts of insurance made in Jamaica;
(b) all of the insurer’s contracts of insurance made in
Jamaica are discharged or expired, or have been
transferred or assigned to another registered insurer;
and
(c) the insurer has no outstanding fees or taxes payable to
the Government.
18.-(1) Notwithstanding section 7, upon the cancellation of Effectof
rancdlslion
of regi4tra-
lion.
an insurance company’s registration-
(a) the company shall-
(i) to such extent and in such manner as the
Commission may determine; and
(ii) for such period not exceeding one year or
such period as the Commission may by
order prescribe,
carry on business in respect of obligations under
contracts of insurance entered into before such
cancellation, with a view to meeting those obligations
and without undue inconvenience to policyholders,
until the Commission is satisfied that it has made
suitable arrangements for the discharge of those
obligations;
(b) the company may not, after the date of notification of
cancellation, issue any new policy or enter into any
new contract in relation to which registration is
required.
36 NSURANCE
(2) Nothing in subsection (1) (a) shall be construed as
authorizing the renewal, &er the notification date, 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 subsection (1) (b), unless the
Commission, in a case of hardship, otherwise permits.
0 (3) Any person who contravenes subsection (1) shall be guilty of an offence and is liable on summary conviction-
(U ) in the case of a failure to comply with subsection (1)
(a), to the penalties specified in section 148; and
(b) in the case of a contravention of subsection (1 ) (b), to
the penalties specified in section 7 (3).
Dwlayand
re~maban
m f i m e
19.41) Every company registered under this Part shall
prominently display its registration certificate at its principal
ofice, in a part thereof to which the public have access, and a
copy thereof shall be similarly displayed at each of its branches
in Jamaica.
(2) A company whose registration is cancelled shall, on
receipt of the notice of such cancellation, forthwith surrender the
registration certificate and every copy thereof to the
Commission.
surrender of
(3) Every person who, without lawfd e x c u s e
(a) fails to comply with subsection (1) or (2); or
(b) displays a registration certificate or any copy thereof
which is no longer valid,
shall be guilty of an.offence and liable on summary conviction
in a Resident Magistrate’s Court-
(c) in the case of an offence specified in paragraph (U), to
a fme not exceeding five hundred thousand dollars; or
(6, in the case of an offence specified in paragraph (b) to
a fine not exceeding three million dollars.
0
INSURANCE 31
20.-(1) From and afler the appointed day, a registered comm
insurer or insurance intermediary shall not, except in the case of reg,nerd
reinsurance and such classes of insurance as may be prescribed, wmpanles
place or cause to be placed with an insurer not registered under
this Act, insurance in respect of property situate or liabilities
arising in Jamaica, or goods being imported into Jamaica.
WUI nan-
(2) Any registered insurer or insurance intermediary
who desires to enter into an insurance contract with an
unregistered insurer (other than a contract relating to
reinsurance) or to cause to be placed such a contract, shall apply
to the Commission for permission to do so and the Commission
may grant such permission if it is satisfied that-
0
(a) it is not possible to obtain similar protection from an
insurer registered under this Act; and
(6) the applicant meets the prescribed requirements.
(3) For the avoidance of doubt it is hereby declared that,
the Commission, by granting permission under subsection (2),
does not assume any liability towards the applicant in relation to
the insurance contract concerned or its placement.
21. A company shall not be registered under this Act to C q Amount and
on, and shall not carry on, any class of insurance business unless
it had deposited with the Commission the prescribed deposit. companicr
Investment of Funds of Insurance Companies
business in Jamaica shall be invested in accordance with
regulations made under this Act.
2 2 4 1 ) The funds of every insurer canyhg on insurance ~nvesiments
of funds
0
(2) An insurance company which contravenes
subsection (1 ) shall be guilty of an offence.
(3) Every insurer shall inform the Commission of-
38 EVSURMCE
(U) the names of persons having control of any certificate
or other document of title to investments referred to
in subsection (1); and
(b) the place wkre that document oftitle is kept.
(4) The Commission may, where it considers necessary,
(a) lodge any such certificate or any related document
with a trust company, bank or other financial
institution approved by the Commission; or
direct an insurer to-
0
(b) keep it at the insurer’s principal office.
(5) A document lodged or kept in accordance with the
Commission’s directions may be dealt with or released in the
prescribed manner.
(6) No insurer shall itlM.ease its holding in securities or
assets prescribed under subsection (1) to an amount more than
the prescribed amounts without the approval of the Commission
~ o m i ~ ~ o n 23.-(1) A registered insurer shall not, directly or
rclmngto
1- induectly-
(U ) acquire or deal in its own shares or lend money or
make advances on the security of is own shares;
(b) lend any of its fiuds to a ditector or an officer of the
insurer or to the spouse or a child of a director or an
officer except on the security of the insured’s own
policies;
(c) pant unsecured credit facilities to any person except
hr-
(i) temporary cover, not e x d i g thirty
days, in the case of general insurance; or
(ii) advances to agents, sales representatives
or to M - t i m e employees against
commissions or salaries to be earned,
[ T k inclusion of this w i s aulhorilcd by L.N. I12ROo2 1
INSURANCE 39
(d) enter into any guarantee or provide any security in
connection with a loan by any other person to any
person referred to in paragraph (6).
(2) Every director of a registered insurer who knowingly
contravenes subsection (1) (b) shall be guiltpof an offence.
Adminisfrative and Accounting Requirements for Imrance
Companies
24.-(1) Every registered insurer shall maintain a principal ~~~~~
office and
appo,alment
0
ofice in Jamaica and shall-
(a) appoint some fit and proper person resident in of principal
Jamaica to he its principal representative in Jamaica; represema-
and
(6) notify the Commission in writing of the situation of
its principal ofice and of the name and address of its
principal representative.
llW
(2) A registered insurer shall, prior to or not later than
seven days after any change in the particulars specified in
subsection (1) (b), give written notice thereof to the
Commission
25.+1) Subject to this Act, where a registered insurer b m b m n c e
and reprslian
carries on- offundr
(a) only one of the specified classes of insurance
(6) two or more of the specified classes of insurance
referred to in subsection (3), the receipts and expenditure 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 from a separate
insurance fund, as may be prescribed.
(2) Subject to this Act, a fund of any particular class-
business; or
business,
0
40 Ih'SURANCE
(U) shall be as absolutely the security of the policyholders
of that class as though it belonged to an insurer
carrying on no other business than insurance
business of that class;
(b) shall not be used to satisfy liability for any of the
insurer's contracts that it would not have been used
to satisfy had the insurer's business been only that
class of insurance; and
(c) shall not be applied, directly or indirectly, for any
purposes other than those of the class of business to
which the fund is applicable.
(3) For the purposes of subsection (l), "specified
classes" means the following classes, namely, ordinary long
term insurance business, industrial insurance business, sickness
and health and such other classes as may be prescribed.
Prep,auon
o f a ~ u a l insurer shall-
26.-(1) Subject to subsections (2) and (8), every registered
Brn""tE. etc.
(a) within ninety days after the end of each financial
year, submit to the Commission, an annual statement
and related documents in the prescribed form and
containing the prescribed information;
(b) within fourteen days after the date on which
documents are submitted pursuant to paragraph (a),
cause a copy of the audited financial statement to be
published in a daily newspaper printed and circulated
throughout Jamaica;
(c) exhibit throughout each year a copy of the latest
audited financial statement in a conspicuous position
in each place of business of the insurer in Jamaica.
Q
IN.SURANCE 41
0
0
(2) The annual statement referred to in subsection (1)
shall be certified by the company’s independent auditor and, in
the case of long term business, by an sctuary and shall r e l a t e
(a) in the case of a local company incorporated under the
Companies Act, to its business in and outside
Jamaica;
(b) in the case of a local company incorporated under the
relevant law of another member state of the
Caribbean Community and Common Market, to its
business in Jamaica; and
(c) in the case of a foreign company, to its business in
Jamaica
(3) Where, in the opinion of the Commission, a
document h i s h e d by a registered insurer under this section is
incorrect or incomplete in any respect or is not prepared in
accordance with this Act, the Commission may, by notice in
writiig, require the company to amend the document or to
furnish a correct or complete document or, as the case may be, a
document prepared in the prescribed manner.
(4) Where an insurer fails to comply with a notice
referred to in subsection (3) to the satisfaction of the
Commission, the Commission may amend the document in
question and notify the insurer of particulars of the amendments
or may reject the document.
(5) A document amended by the Commission or by a
registered insurer under thii section shall be treated as having
been submitted to the Commission in its amended form
(6) Where a document is rejected by the Commission
under subsection (4), the insurer concerned shall be treated as
having failed to comply with this section in relation to that
document unless and until it has fiunished another document in
accordance with the Commission’s directions.
42 INSURANCE
(7) An insurer which is liable under a local policy shall.
at the request of the policyholder, permit him to inspect the
audited financial statement in respect of its last preceding
fmancial ! sar and if he so requests, furnish him with a copy free
of charge.
(8) This section shall not apply in the case of an insurer
that carries on only a class of insurance business declared
exempt for the time being by virtue of section 145.
(9) Every person who, without l a h l excuse, fails to
comply with any requirement of this section commits an offence
and is liable on summary conviction in a Resident Magistrate's
Court to a fme not exceeding one million dollars.
Grwp 27.+1) This section applies where a registered insurer is
associated with another registered insurer or with other
companies in a group.
(2) In addition to the returns required by section 26, the
parent company of the group shall prepare in the prescribed
form and manner and submit to the Commission, within ninety
days after the end of its financial year-
(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 subsidiaries;
(b) a consolidated profit and loss account showing the
profit or loss as a group of the parent company and all
its subsidiaries during that year; and
(c) such other documents as may be pmribed
(3) The balance sheet and p r o f ~ and loss account shall
bear a certificate by an independent auditor approved by the
Commission as to whether in his opinion it gives a true and fair
view of the financial position r e f e d to in subsection (2) (U) or,
as the case may be, of the profit and loss referred to in
subsection (2) (6).
aCC""ntE
[The i i i c l u m ~ ~ 01 i l n s page I S u i i t l i~nlrd by L N I12/2W? ]
0
0
INSURANCE 43
0
(4) Each subsidiary or other associated company in the
group shall, within ninety days of the end of its fmancial year,
submit to the Commission an audited balance sheet and profit
and loss account in respect of all business transacted by it in that
year, and signed by not less than two of its directors.
(5) If in the opinion of the Commission the information
contained in the consolidated accounts furnished by a registered
insurer or individual accounts furnished by a registered insurer’s
subsidiary, parent or holding company, as the case may be,
indicate the liieliiood of insolvency on the part of the registered
insurer, its parent or holding company or any part of its
subsidiaries, the Commission may after consultation with the
registered insurer, issue to the registered insurer such directions
as the Commission thinks fit and without prejudice to the
generality of the forgoing, the directions may requir-
(a) the increase of the paid-up capital of the registered
insurer or as the case may be, the paid-up capital of
the subsidiary;
(b) the sale, transfer or other disposition of the subsidiary
or of part of its business;
(c) the winding up ofthe subsidiary.
28.--(1) The account of every registered insurer shall be Audiiof
accounts of
insmr
audited annually by an independent auditor who shall not be an reptaed
employee or an officer of the insurer.
(2) The auditor of every registered insurer 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 h m the books
and records of the insurer;
(b) the insurer’s accounts accord with the information
given to him by the insurer for the purposes of the
audit;
0
i n < I I L I ~ , ~ ~ ~ ~ ~ ~ ar this 1pngr Is l L 8 ~ ~ l ~ ~ n l n d I,\ I N I I x x w 1
44 IhWJRANCE
(c) in the case of an insurer other than a mutual
company, the insurer’s balance sheet and profit and
loss account respectively give a true and fair view of
the insurer’s fmancial position and profit and loss;
and
(4 in the case of a mutual company, the balance sheet,
statement of income and expenditure and funds give a
true and fair view of the insurer’s financial position. 0
or 29. Every registered insurer shall keep in Jamaica, and shall
make available to the Commission on request, all records
including-
record5 b,
I”S”rerq
(a) a record of all local policies issued by the insurer
showing the insurer’s rights and obligations
thereunder;
(b) a record of the aggregate amount of the premiums
received on all local policies issued by the insurer;
and
(c) a record of all premiums paid in reinsurance.
A n n U S l 30.-(1) Every registered insurer that carries on long term
mveSt,pt,ons
p o s n m of
mslrers (U) each year, cause an investigation to be made by an
canyng on actuary into its financial position, including a
long term
buElnClS fmancial valuation of its liabilities; and
(b) prepare and k n i s h to the Commission, within ninety
days h m the date of the investigation, an abstract of
the report of the actuary and a statement of its long
term business at that time.
(2) Section 26 (3), (4), ( 5 ) and (6) shall apply, with such
modification as may be necessary, in relation to an abstract or
statement referred to in subsection (1).
financ,al business shall-
0
INSURANCE 45
0
0
(3) Notwithstanding subsection (I) , every registered
insurer that carries on long term business shall submit to the
Commission an annual report prepared in the prescribed form by
an independent actuary indicating the value of its assets and the
value of its liabilities.
31.--(1) Subject to section 32, an insurance company Amalgam-
ation and whether or not it has ceased to issue new policies of insurance wnsfn,
or to assume fresh liabilities in Jamaica may, with the approval
of the Commission in writing, enter into an agreement or
arrangement-
(U ) to amalgamate its property and insurance business
(whether in whole or in part) with the property and
insurance business of any other insurance company;
(b) to transfer its insurance business (in whole or in part)
to or have it acquired by another insurance company.
(2) An application to the Commission for approval
pursuant to subsection (1) shall be presented in the form of a
scheme and shall be regulated in accordance with such
provisions as may be prescribed.
(3) The Commission may approve any tmnsfer,
acquisition or amalgamation either unconditionally or subject to
such conditions as it may specify in Writhg:.
(4) This section applies in respect of the transfer,
acquisition or amalgamation of insurance business of companies
if-
(U) the benefits accruing are kom policies issued and
payable in Jamaica; or
(6) the policies are subject to the jurisdiction of the
courts in Jamaica.
( 5 ) Where an amalgamation or transfer takes place, the
insurance company as amalgamated or to which business is
transferred shall, within thirty days from the date of completion
of the amalgamation or transfer or such longer period as the
Commission may allow, deposit with the Commiss ioe
-
ITlie iiicliision o l ~ h v p g t IS n#irlimized br L.N I 12iIWI i
46 INSUM NCE
(a) certified copies of statements of the assets and
liabilities of the companies concerned in the
amalgamation or transfer, together with a statement
of the nature and t e r n thereof;
(6) a certified copy ofthe agreement or deed under which
the amalgamation or transfer is effected;
(c) a declaration signed by the secretary or manager, if
any, and at least two directors of the company that to
the best oftheir belief-
(i) every payment made or to be made to any
person on account of the amalgamation or
transfer is therein fully set out; and
(ii) no payments other than those set out have
been made or are to be made by or with the
knowledge of any parties to the
amalgamation or transfer.
0
(6) For the purposes of this section and sections 32, 33
(a) the assumption of the obligations of any insurer in
any class of business;
(b) the assumption of the business of insuring risks or
liabilities;
(c) the renewal and issuing of documents of renewal of
existing insurance and liabilities; or
and 34 “insurance business” m e a n s
(d) the receiving of first, subsequent or renewal
premiums,
and includes reinsurance.
(7) A person who in any statement, agreement, deed or
declaration referred to in subsection ( 5 ) causes or permits the
inclusion of any information which he knows to be false in a
material particular or recklessly includes any information which
is false in a material particular shall be guilty of an offence.
0
INSURANCE 47
0
0
32. Where an application is made to the Commission for the Regulation of
c0"molll"g
approval of any transaction arrangement or agreement under interest after
section 3 1, after transfer or by virtue of which effective control mansfa or
amalgam- of the applicant company would be acquired by another person allon
or company, the Commission shall not give approval unless it is
satisfied that such person or each of the persons managing or
controlling such other company is a fit and proper person to
manage or control the insurance company as amalgamated or to
which the whole or part of its business is transferred or
acquired.
33.+1) Any person who is likely to be affected by a *ppllratlon
by persons proposed scheme may, within thirty days of publication of the aredd by
prescribed notice or, as the case may be, service upon him of scheme
such notice, make an application to the Commission in respect
of any matter related to the scheme.
(2) The Commission shall, upon receipt of an
application under subsection (I) , fix a date for the hearing by it
of the application and shall- '
(a) in writing inform the applicant of the date of the
hearing; and
(b) not less than fourteen days before the hearing, publish
a notice of the application and the date of the hearing
in the Gazette and at least three times in a daily
newspaper published in Jamaica.
(3) The following persons are entitled, either in person
or by their legal representatives, to be heard at the hearing-
(a) the applicant;
(b) every company that is interested in the application;
and
(c ) any person who, in the opinion of the Commission, is
likely to be affected,
and the Commission may, in dealing with the application, hear
such evidence as it deems necessary.
48 INSURANCE
(4) The Commission shall not approve a scheme
unles-
(a) the provisions of section 32 are complied with;
(b) subject to paragraph (c), a number of policyholders
representing not less than one-tenth of the total
amount assured in any one portfolio involved in the
scheme do not dissent therefkom; or
(c) in the case of a group policy, a number of
policyholders representing not less than one-quarter
of the total group in any one portfolio to which the
scheme relates, do not dissent therefiom; or
(4 it is satisfied that-
(i) the continuing insurer is incorporated in
(ii) the acquisition, amalgamation or transfer is
Jamaica; or
not detrimental to the policyholders.
( 5 ) Notwithstadhg subsection (4), the Commission
may refuse to approve a scheme where a number less than that
indicated in subsection (4) dissents therefiom, if-
(a) in its opinion, the circumstances of the case so
(b) it is satisfied that a proposed amalgamation will be
require; or
detrimental to the policyholders.
(6) All expenses incurred by the Commission in
obtaining any report on the scheme, including the report of any
actuary, shall be defiayed by the companies concerned and any
moneys due as a result of those expenses may be recovered fiom
those companies by the Commission in a Resident Magistrate’s
Court as a civil debt due to the Crown notwithstanding any
limitation as to amounts recoverable under the Judicature
(Resident Magistrates) Act.
0
0
INSUMNCE 49
(7) For the purposes of subsection (4j, “group policy”
means a policy of insurance, not being a policy that operates in
favour of a fainily, whereby the lives of a number of persons are
insured severally under a single contract between an insurer and
an employer or other person.
3 4 . 4 1 j Subject to subsection (2), a scheme approved by the Effect of
decisions of Commission is binding on the companies affected by it, and on commission
all shareholders, members and policyholders and has effect andappeals
notwithstanding anythg contained in-
0
(a) any policy or any instrument constituting the
(6) any rules or by-laws of the companies,
companies; or
and the directors of those companies shall cause a copy of the
scheme as approved to be filed with the Registrar of Companies.
(2) An appeal from a decision of the Commission
approving or disapproving a scheme may be made to the Appeal
Tribunal within fifteen days of the decision.
35.41) Where the Commission has approved an agreement Vesfingby
Minister or arrangement referred to in section 31, the Minister upon
application by the insurance company to which the property or
business is transferred (hereinafter referred to as “the transferee
insurance company”) may, if he thinks fit, make an order
transferring to and vesting in the transferee insurance company,
in accordance with the agreement or arrangement approved by
the Commission, the property or business of the other insurance
company (hereinafter referred to as “the transferor insurance
company”) which is the subject of the agreement or
(U) the property or business which is the subject of the
agreement or arrangement shall vest in the transferee
insurance company without kther conveyance,
assignment and assurance; and
0 arrangement, and thereup-
50 NSURANCE
!.:;
(b) without prejudice to paragraph (U), the transferor
insurance company shall, if requested by the
transferee insurance company, execute such formal
and separate conveyances, assignments and
assurances as are reasonably required by the
transferee insurance company in conformity with the
agreement or arrangement. -
(2) A transfer or vesting effected by an order under 0
subsection (1) shall not-
(U) operate as a breach of covenant or condition against
ahenation;
(6) give rise to any forfeiture;
(c) invalidate or discharge any contract or security; or
(4 except as provided in subsection (l), affect any
interest in or relating to the property transferred.
(3) The transfer to and vesting in the transferee
insurance company of any property or business pursuant to this
section shall, if the Minister so states in the order, not be subject
to the provisions ofthe Stamp Duty Act or the Transfer Tax Act.
Corporate Governance, Appointment of Auditor and Actuary
36. For the purpose of discharging his duty to act honestly
and in good faith with a view to the best interests of an
insurance company, a director or senior officer thereof shall take
into account the interests of the c~mpany’s policyholders.
outyofcarc
~ f f i ~ e r ~
of directm
and Senlrn
Appoimmcnt 3 7 . 4 1 ) Every registered insurer, agent and broker shall
appoint an auditor and shall forthwith notify the Commission
of-
of auhtor.
0
INSURANCE
(a) the auditor’s appointment or the auditor’s resignation;
(b) the removal of the auditor and the reasons therefor;
(c) any other occurrence that causes a vacancy in the
(2) Where, to the knowledge of the. Commission, there
is a vacancy in the office of auditor under subsection (l), the
Commission shall by notice in writing to the registered insurer,
agent or broker, require the insurer, agent or broker to appoint
an auditor by the date specified in the notice.
(3) Where a registered insurer, agent or broker fails to
appoint an auditor by the date specified in the notice under
subsection (2 j
(a) the Commission shall appoint an auditor to hold
office until the close of the next annual general
meeting and the insurer, agent or broker shall pay the
auditor so appointed, remuneration at such rate as the
Commission shall direct; and
(b) the insurer, agent or broker shall not m v e the
auditor before the expiration of his term of office.
and
office of auditor.
0
(4) A registered insurer, agent or broker shall-
(a) ensure that its auditors or one of its auditors is also
the auditor of any of its subsidiaries;
(b) where it is unable to ensure that result, deliver to the
Commission, a written explanation to the satisfaction
of the Commission, of the reasons therefor.
( 5 ) The Commission may require an insurance company
to appoint, in such circumstances as may be prescribed, an
additional auditor to hold office for a term specified by the
Commission.
(6) The insurance company shall pay to the additional
auditor so appointed, remuneration at a rate specified by the
Commission.
0
51
52 NSURANCE
Reslgnatllmof
auditur
38.--(1) Where an auditor appointed by a registered insurer
or a registered insurance intermediary resigns at any time during
the currency of his appointment, he shall notify the insurer or
intermediary in writing of the reasons for his resignation.
(2) The registered insurer or registered insurance
intermediary shall deliver a copy of the notice referred to in
subsection (1)-
(a) to the Commission; and
(b) to the new auditor appointed by it.
0
Access to 39. Every director or former director, officer, employee or
agent or former officer, employee or agent, of a registered
insurer or its subsidiary or holding company or a registered
insurance intermediary shall, on the request of the auditor-
information.
(a) furnish to the auditor, all information and
explanations specified in the request; and
(b) grant the auditor access to and copies of, records,
documents, books, accounts and vouchers of the
insurer and its subsidiaries (if any) or its holding
company (if any) or the insurance intermediary, as
the auditor considers necessary for the purpose of any
examination or report, being information that the
auditor is permitted to require under this Act or the
Companies Act.
Auditor’s 40.-(1) It is the duty of the auditors of a registered insurer
or registered insurance intermediary, to report in writing to the
chief executive officer of the insurer or intermediary, each
director thereof and the Commission, any material transactions
or conditions that have come to the auditors’ attention in the
ordinary course of the audit, which, in the auditors’ opinion
meet one or more of the following criteria-
0
report
INSURANCE 53
0
0
(U) any change in accounting policy or any presentation
of or any failure to present, facts or figures which, in
the opinion of the auditors, has the effect of
misrepresenting the financial position of the insurer
or intermediary;
( 6 ) transactions or conditions giving rise to significant
risks or exposures that have the potential to
jeopardize the insurer’s or intermediary’s financial
viability;
(c) transactions or conditions indicating that the insurer
or intermediary has significant weaknesses in internal
control which render it vulnerable to significant risks
or exposures that have the potential to jeopardize the
insurer’s or intermediary’s financial viability;
(4 transactions of an irregular nature that have a
significant or material impact on the insurer’s or
intermediary’s financial position;
(e) transactions or conditions that contravene the
provisions of the Companies Act, the Financial
Services Commission Act or this Act or any
regulations made thereunder relating to capital
adequacy or liquidity requirements or any other
provisions of this Act;
v) any other transactions or conditions which in the
opinion of the auditors, should be included in a report
under this section.
(2) An auditor who refuses to comply with the
provisions of this section shall be guilty of an offence.
(3) Where a report is made under subsection ( l ) , it shall
be presented at the first meeting of the insurer’s or
intermediary’s directors following the date of its receipt by the
insurer’s or intermediary’s chief executive officer and shall be
incorporated in the minutes of the meeting
(4) The report required under subsection ( I ) shall be
made within thirty days after the date on which the relevant
transactions or conditions came to the attention of the auditors.
I I I ~ L I I ~ ~ ~ \ ~ ~ ~ ~ ~ ,,I 11,m* l> ,#yt I< ,mt1uw, c1 Iiv I N I l? ’XiU I
54 LVSURANCE
(5) The Commission may require the auditor of a
registered insurer or registered insurance intermediary t e
(a) report to the Commission on the adequacy of the
accounting procedures used by that insurer or
intermediary;
(b) enlarge or extend the scope of an audit;
(c) examine and report on information prepared by the
insurer or intenmdiary;
(d) supply to the Commission additional information
relevant to an audit; and
(e) apply standards specified by the Commission in
addition to generally accepted auditing standards.
(6) The auditor shall furnish to the insurer or
intermediary a copy of the report referred to in subsection ( 5 )
(a) or (c), addressed to the directors.
(7) The auditors or former auditors of a registered
insurer or registered insurance intermediary shall not be
regarded as being in breach of their duty of confidentiality to the
insurer or intermediary in consequence of any report made in
compliance with subsection (1) or (5).
Auditor's 4L-1) An auditor of a registered insurer or registered
r'*toauend, Iequls,non insurance intermediary SIAL in relation to matters concerning
-P the auditor's functions or on which the auditor has made a
report, be entitle&
(a) to be given notice of and attend every meeting of the
directors or audit committee of the insurer or
intermediary, the business of which as notified
includes such matters;
0
0 (b) to requisition the convening of any such meeting.
( 2 ) A notice referred to in subsection (1) shall be served
in like manner as any other notice that is required for a meeting
of the directors or audit committee.
LVSURANCE 55
0
0
42. Where the Commission has reasonable grounds to believe R W ~ b
that the auditor of a registered insurer or registered insurance Comm'ss'on
intermediaq-
(a) has failed to perform his duties or to comply with the
relevant provisions of this Act;
(b) has been a party to the preparation of or has approved
a financial statement that does not fairly present the
fmancial position ofthe company;
(c) is incompetent or is guilty of professional
misconduct,
the Commission shall forthwith deliver a written report to the
company, the Public Accountancy Board and the Institute of
Chartered Accountants of Jamaica.
43.+1) The oficers or directors of a registered insurer or Amendment
of finurc,al
registered insurance intermediary shail- aatemmts
(a) n o t e the auditor in writing of any facts that come to and reports
(i) could reasonably have been determined
before the date of the last annual general
meeting; and
(ii) if known before that date, would have
required a material adjustment to the
financial statement presented to that
meeting; and
(b) forthwith amend the fmancial statement and deliver it
to the auditor and the Commission.
their attention, which-
(2) Where the auditor-
(a) becomes aware of the facts referred to in subsection
(1) (a), whether by way of the notice referred to in
that subsection or otherwise; and
(b) considers it necessary to amend the report in respect
of the financial statement presented to the last annual
general meeting,
56 INSURANCE
the auditor shall notify the Commission in writing and amend
the report so that it complies with the Companies Act.
(3) Where the auditor amends the report, the directors
shall send a copy thereof to the members with a statement
explaining the effect of the amendment on the financial position
and results of the operations of the company or intermediary.
bpointment 4 4 . 4 1) Every registered insurer shall appoint an actuary and 0
shall notify the Commission in witing of such appointment. ofactuary.
(2) Subject to subsection (3), the actuary shall v a l u e
(a) the actuarial reserves and other policy liabilities of
the insurer as at the end of each financial year; and
(b) any other matter specified in any direction given by
the Commission
(3) In relation to a registered insurer carrying on general
insurance business, the fiequency of the actuarial valuation
under subsection (2) shall Ix as determined by the Commission.
(4) The actuarial valuation shall be conducted in
accordance with generally accepted actuarial practice and with
such directions as may be given by the Commission.
( 5 ) The Commission may, if it thinks necessary, appoint
an actuary (other than the company’s actuary) to conduct a
valuation of the matters referred to in subsection (3) and the
expenses of such a valuation, as approved in writing by the
Commission, shall be paid by the company. 0
(6) On the request of the actuary, the directors or
former directors or officers, employees or representatives of the
c o q a n y shall to such extent as is reasonably possible-
INSURANCE 57
(a) grant to the actuary, access to the company’s records;
and
( b ) provide such information and explanations as are, in
the actuary’s opinion, necessary to enable him to
perform his duties in that capacity.
(7) The actuary shall, not less than twenty-one days
before the date of the annual general meeting of the Company’s
shareholders and policyholders, submit to them a report in the
prescribed form on the valuation conducted under this section
and on such other matters as may be prescribed.
(8 ) The report referred to in subsection (7) shall state
whether, in the actuary’s opinion, the annual financial statement
presents fairly the results of the valuation.
(9) The actuary shall, at least once in every financial
year, meet with the company’s directors or, where the directors
so require, with the company’s audit committee, in order to
report on the company’s financial position and, if so directed by
the Commission, on the company’s expected future financial
condition
0
(10) The actuary shall-
(a) report in writing to the company’s chief executive
officer and chief financial officer on any matters that
have come to the actuary’s attention in the course of
carrying out his duties, being matters that, in his
opinion, have materially adverse effects on the
company’s financial condition and require
rectification; and
(b) forthwith send a copy of that report to the company’s
directors and to the Commission.
(1 1) Where, in the actuary’s opinion, suitable action is
not being taken by the company to rectify the matters referred to
in the report under subsection (lO), he shall notify the
company’s directors and the Commission accordingly.
0
58 LVSURANCE
( 12) The actuary shall-
(a) make a report in the prescribed form on the value of
the company's actuarial reserves and other policy
liabilities and on the company's future financial
condition; and
(b) confm that the instructions pertaining to the capital
requirements have been followed. 0
(13) The company shall submit the report required
under subsection (1 1) to the Commission.
(14) Any oral or written statement made by an actuary
or former actuary of a registered insurer pursuant to this section
shall be protected by qualified privilege.
(15) Any actuary or former actuary of a company who
in good faith makes an oral or written statement pursuant to
subsection (9), (10) or (12) or section 45 shall not be liable to
any civil action as a consequence of making such statement.
Resignation. 45.+ 1) %?E?-
etc.. of
actuary.
(a) an actuary appointed by a registered insurer resigns;
or
insurer,
(b) the actuary's appointment is terminated by the
he shall notify in writing the Commission, the directors of the
insurer and the newly appointed actuary thereof of the reasons
therefor or, where paragraph (b) applies, the reasons therefor to
the best of his knowledge.
(2) The registered insurer shall notify the Commission
of the resignation or termination referred to in subsection (1).
Investigatiom by the Commission
Commission 46. The Commission may demand fio-
my demand
l"f0rntlon
(Tlir iiicluson d t l m pay 15 aulhonzcd by I N 1 1 2 ~ 2 0 2 I
INSURANCE 59
0
0
(a) any local company, information relating to any matter
in connection with its insurance business;
(6) a foreign company, information relating to any matter
in connection with the insurance business carried on
by it in Jamaica
4 7 . 4 1 ) The Commission may investigate the activities ofan p o w m
insurance company where it appears to the Commission that- Efiganon,
(a) the company is, or is likely to become, unable to meet
its obligations;
(b) the company has faded to comply with any of the
provisions of sections 25 to 30;
(c) the company has not, within a period of one month
fiom a date on which the Commission made a written
demand for information fiom it, furnished that
information to the satisfaction of the Commission; or
(d) based on information in the possession of the
Commission, an investigation should be carried out
into the whole or any part of any class of the
company's insurance business.
(2) The Commission may authorize such person as it
thinks fit to cany out an investigation on its behalf and any
person so authorized is hereinafter referred to as the
Investigator.
(3) Where, upon an investigation, it is found that a
breach of this Act has been committed, the cost of the
investigation shall be recoverable against the company that
committed the breach in a Resident Magistrate's Court as a civil
debt due to the Crown, notwithstanding any limitation as to
Bmounts recoverable under the Judicature (Resident
Magistrates) Act.
48.-(1) In making an investigation under this Part, the Powerto
ohsm
Commission or the Investigator- lnfrmtatlOn
[The incIti6im o i l h i s page i s authorized by L.N. I 1212001 ]
60 NSURANCE
(a) may require the company to produce any of its
securities, books, accounts, documents or statistics
for inspection and to permit the making of such
extracts therefrom as are considered necessary;
(b) may examine on oath or affiimation in relation to the
company's business, any person who is, or has at any
time been, a director, servant or shareholder or an
auditor, actuary, officer or agent, of the company, or
the holder of a policy issued by the company, or the
personal representative of that policyholder or an
associated person; and
(c) may administer oaths for the purpose of paragraph
0
(b) .
(2) A person specified in subsection ( l ) ( b ) shall
produce to the Commission or the Investigator on request, any
securities, books, accounts, documents or statistics of the
company, including, in the case of an auditor, his working
papers (hereinafter referred to as specified information) that are
available to him and shall, on request, furnish any information
in his possession relating to the company's business.
(3) A person so specified who refuses to give
information pursuant to a request or knowingly gives any false
information in reply to a request made under subsection (2),
shall be guilty of an offence and liable on summary conviction
before a Resident Magistrate to a fine not exceeding one million
dollars or to imprisonment for a term not exceeding one year or
to both such fine and imprisonment.
Emry on 49.41) If a Resident Magistrate is satisfied on information
on oath by the Commission or any person authorized in that
behalf by the Commission that there are reasonable grounds for
suspecting that there are on any premises any specified
information the production of which has been required under
section 48 and which has not been produced in compliance with
that requirement, the Resident Magistrate may act in accordance
with subsection (2).
pcm1ses
0
INSUM NCE 61
0
0
(2) The Resident Magistrate m a y issue a warrant
authorizing any member of the Constabulary Force, not below
the rank of Inspector together with any other persons named in
the warrant to-
(a) enter and search the premises specified in the
information (using such force as is reasonably
necessary for the purpose); and
(b) seize and remove any securities, books, accounts,
documents or statistics appearing to be such specified
information as aforesaid, or to take, in relation
thereto, any other steps that may appear necessary for
preserving them and preventing interference with
them.
(3) Every warrant issued under subsection (2) shall
continue in force until the expiration of the period of one month
after the date on which it is issued.
(4) Any specified information seized under this section
shall be returned to the person kom whose possession it was
seized, as soon as practicable and in any case shall not be
retained for a period longer than two months or, if within that
period crimiil proceedings have been brought in respect ofthe
seizure, longer than the conclusion of those proceedings.
( 5 ) A constable who executes a warrant issued under
this section shall upon the execution of the warrant, prepare a
list of the property seized and give a copy thereof to the owner
or occupier of the premises who is present at the time of seizure.
(6) A person who obstructs any other person in the
exercise of a right of entry, search or seizure conferred by virtue
of a warrant issued under this section shall be guilty of an
offence.
%-(I) Upon completion of an investigation under this Part Amon on
campletlon of in respect of any company, the Commissiow lnYeEtleaIlwl
63 INSURANCE
(a) shall transmit to the company a summary of the
conclusions arrived at as a result of the investigation;
and
(h) may. without prejudice to any other powers conferred
by this Part. issue to the company, directions in
writing in accordance with subsection (2).
(2) Directions may be issued in respect of any or all
classes of insurahce business as the Commission thinks
necessary or proper to deal with the situation disclosed in the
conclusions referred to in subsection (1) (a) (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 ofany new contract).
(3) No direction issued to a company under this section
shall remain in force for more than twelve months, but nothing
in this subsection shall be construed as preventing the
Commission &om issuing any further directions to the company.
Winding Up
51.+ 1) The Court may order the winding up of a company
in accordance with the relevant provisions of the Companies
Act.
i y i n d w UP.
(2) A company may be wound up on a petition of-
(a) ten or more policyholders owning policies of an
aggregate sum assured that is equivalent to at least
twenty per cent of the total sum assured by the
company; or
( b ) the Commission.
(3) A petition referred to in subsection (2) shall not be
presented except by leave of the Court, and such leave shall not
be granted until a prirnafncie case has been established to the
satisfaction of the Court and until security for costs has been
given for such amount as the Court may think reasonable.
I I Ihc ~ ~ ~ c t c ~ w n (11 t1w puge is aulhorired by L.N. I12:2W2 ]
0
0
INSURANCE 63
(4) Where a company proposes to present a petition
specified in this section it shall give the Commission one
month's notice of its intention to do so and shall forthwith
serve on the Commission a copy of any petition presented.
(5) The Commission shall be a party to any
proceedings for the winding up of a company and the
liquidator in such a winding up shall give the Commission
such information about the affairs of the company as it may
require from time to time.
0
(6) References in this section to a company shall
include references to a company that has ceased to be
registered but remains under any liability in respect of local
policies.
52 .41 ) Where the Commission is satisfied, &er an Petitionfor
winding up investigation under section 49 in respect of an insurance
company, or an examination of that company that it is necessary
or proper for the company to be wound up, the Commission
may, with the leave of the Court, present a petition for the
winding up of the company by the Court, on any of the grounds
specified in subsection (2) and the Court may order accordingly.
(2) The grounds referred to in subsection (1) are that-
(U) the company has contravened section 7;
(6) in the case of an insurance company-
0
(i) that was carrying on insurance business in
Jamaica before the appointed day and
registration of which has been refused under
this Act; or
(ii) whose registration has been cancelled under
this Act,
it is in the interest of the policyholders that the
company be wound up;
64 INSURANCE
(c) an officer of the company or its holding company
refuses to comply with any requirements made or
questions asked under section 48 ( I ) (0) and (h),
respectively;
(d) the results of an investigation made under section 47
in respect of the company are such that it is in the
interest of the policyholders that the company be
wound up; or
(e) the company is insolvent.
(3) The company and the Commission are 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 prior leave of the Court or unless the
Court otherwise directs,
53. Subject to the provisions of this Act, a registered insurer
shall be deemed to be insolvent if at any time the value of its
assets does not exceed its liabilities by such amount as the
Commission may prescribe, having regard to the types of risks
to which the company may be subjected, including insurance,
credit or investment risks.
Margin of
solvency
Transfu of
insurance
bushes.
54.--(1) Where the insurance business or any part thereof of
an insurance company (in this section referred to as the
transferor company) has been transferred to another insurance
company (in this section referred to as the transferee company)
under an arrangement in pursuance of which the transferor
company or the creditors thereof has or have claims against the
transferee company, then, if the transferee company is being
wound up by or under the supervision of the Court, the Court
shall act in accordance with subsection (2).
(2) Subject to this section, the Court-
0
INSURANCE 65
0
0
(a) shall order the transferor company to be wound up in
conjunction with the transferee company; and
(b) may by the same or any subsequent order, appoint the
same person to be liquidator for the two companies;
and
(c) may n&e provision for such other matters as the
Court may consider necessary, with a view to the
companies being wound up as if they were one
company.
(3) The commencement of the winding up of the
transferee company shall, save as otherwise ordered by the
Court, be the commencement of the winding up of the transferor
company.
(4) 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 companies, 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.
(5) Where any company alleged to be a transferor
company is not in the process of being wound up at the same
time as the transferee company, the Court shall not direct the
transferor company to be wound up unless, after hearing all
objections (if any) that may be made by or on behalf of the
company against its being wound up, the Court is of the opinion
that the company is the transferor company as alleged and that
the winding up of the company in conjunction with the
transferee company is just and equitable.
(6) An application may be made in relation to the
winding up of any transferor company in conjunction with a
transferee company by any creditor of, or person interested in
either.
66 INSURANCE
(7) Wher-
(a) an insurance company is a transferee company to one
insurance company and a transferor company to some
other insurance company; or
(b) several insurance companies are each a transferor
company to one transferee 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.
5 5 - 4 1 ) Notwithstanding anything contained in this Act,
where a company that is registered in a jurisdiction outside
Jamaica has a subsidiary in Jamaica and is being wound up in
that jurisdiction, the Commission, upon learning of the winding
UP-
(a) shall investigate whether any policyholders of the
subsidiary are likely to suffer loss as a result of the
winding up; and
(b) may institute proceedws for the protection of those
policyholders,
and the Court may grant such relief to the policyholders as it
thinks fit.
h C a l
watrnent m
fwe,gn
uindingup
(2) Costs awarded to the Commission under subsection
(1) may be recovered at the discretion of the Commissioq
against the subsidiary or the company that is being wound up.
supplemental 56. In any proceedings upon a petition to wind up an
to winding up insurance company presented by the Commission under section
52, unless the contrary is proved, evidence that the company
was insolvent thirty days before the date of presentation of the
petition is evidence that the company continues to be insolvent.
57.-(1) Where an insurance company is being wound up by
prorlsloos as '
~ ~ c r t a t - n t
Of Ilab~hnes yl'ue Of or subject to the supervision of the Court or voluntarily-
d n
policies
l l l ie ~nclurlou of this page 0% wiihurizrd by L N I I E O O ? ]
0
0
LVSURANCE 67
0
0
(a) the value of a policy of any class or of a liability
under a policy required to be valued in the Winding
up shall be determined by an actuary approved by the
Court; and
(6) 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
give notice of that value to such pawns and in such a
manner as the Court directs.
(2) Any person to whom notice is given under
subsection (1) shall be bound by the value ascertained in
accordance with that subsection unless, within thirty days of
receipt of the notice, he gives notice of his intention to dispute
the value.
58. In the case of an insurance company that has been proved Redwtion of
MlltlDCtS as
to be insolvent, the Court may, if it thinks tit, in place of d i g ehcrnsnve to
a wind i i up order, reduce the amount of the contracts of the ~ n d i n g u p
company upon such terms and subject to such condtions as the
Court thinks just.
upon the winding up of an insurance company, all moneys and dew'ts
securities for the time being held as a deposit in respect of that
company, under section 21 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.
carrying on general insurance business, the Commission is
satisfied that the company is guaranteed by another insurance
company satisfying the requirements of a guarantor specified in
subsection (2), the Commission may by order direct that, subject
to such conditions as may be specified in the order, the
provisions of section 53 shall not apply to the first-mentioned
insurance company.
59. Notwithstanding anythmg in this Act to the contrary, Applicationof
60.-(1) Where, on the application of an insurance company G u m w ~
wrnpanicr
68 NSURANCE
(2) For the purposes of this section a guarantor shall
be-
(a) a body corporate which satisfies the requirements of
section 9 as to share capital and deposit and the value
of whose assets exceeds the amount of its liabilities
by the amount required by section 53;
(b) a member of an association of underwriters whose
assets exceed the amount of its liabilities by the
amount required by section 53; or
(c) an insurance company which, being guaranteed by
another insurance company, is the subject of an order
under this section.
0
(3) 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 policyholders in
respect of insurance business of any class specified in section
3(1) are reinsured with or guaranteed by the other insurance
company.
(4) Any order made under this section may be revoked
by the Commission-
(a) if it ceases to be satisfied of the matters on the basis
of which the order was made; or
(b) if it is satisfied that any condition in the order has not
been complied with.
PART 111. Associations of Underuliters 0
~ssoeiationr 61.-(1) Subject to section 150, no association of
underwriters may carry on insurance business in Jamaica unless of under- witersto be
,ed*terrd. it is registered in accordance with this Part.
INSURANCE 69
(2) An association of undenvriters shall not be
registered under this Part to carry on both long term business
and general insurance business, unless such general insurance
business consists exclusively of accident insurance business.
62. An application by an association of undenvriters for Awlication
registration under this Part shall be made to the Commission in ~ ~ ~ $ ~ &
such form as it may prescribe and shall be accompanied by part.
evidence of payment of the prescribed k e and the following
documents and information- 0
(a) a copy of its statute or deed of association;
0
(b) the names and addresses of persons in Jamaica who,
as brokers or agents, will place insurance business
with the association;
(c) in the case of an association constituted outside
Jamaica-
(i) a certificate signed by the appropriate public
authority in the country in which it is
constituted stating that the association has
been established for at least five years, the
legislation of that country provides for the
regulation of associations of underwriters
and it is operating in accordance with that
legislation; and
the names and addresses of one or more
persons resident in Jamaica who are
authorized to accept, on behalf of the
members of the association, service of
process in any legal proceedings; and
(ii)
(4 such other information as the Commission may
require.
70 INSURANCE
Codlhons for
regisbshon
63.-(1) Where the Commission, after appropriate enquiry or
after the production of documentary evidence, or both, is
satisfied that an applicant association of underwriters meets the
requirements of subsection (2), the Commission shall either
unconditionally or subject to such conditions as it may spec*,
register the association of underwriters in respect of the class or
classes of insurance business specified in the application, and
within the prescribed period and notify the applicant
accordingly. 0
(2) The requirements referred to in subsection (1) are
that-
(U) the requirements of sections 61,62 and 69 have been
complied with,
(b) the association and its members are solvent under the
provisions of section 53;
(c) the association is likely to be able to comply with
such provisions of this Act as would be applicable to
it;
(d) in the case of an association of underwriters
constituted outside Jamaica, there are one or more
persons resident in Jamaica who are authorized by the
association to accept on behalf of the members of the
association, service of process in any legal
proceedings;
(e) the persons who manage the association are fa and
proper persons to manage the association;
v) the staff employed by the applicant is, in relation to
any class of insurance business to which the
application relates, capable of carrying on that
business in an efficient manner; and
(g) the association has satisfied such other requirements
as may be prescribed.
NSURANCE 71
(3) Where the Commission is not satisfied, in respect of
the applicant as to one or more of the conditions set out in
subsection (2), it shall notify the association of underwriters in
writing that it proposes to refuse to register it, giving reasons
therefor and shall notify it of its right of appeal under section
140.
64. An association of underwriters registered in accordance Documents
with this Part (in this Part referred to as a registered association) non to bc
shall, within three months after the end of each fmancial year, firnishedto
furnish to the Commission-
(a) in the case of an association constituted outside
Jamaica-
(i)
and informa- 0
Cammission.
a certified copy of such returns relating to
the insurance business of the members
during the preceding financial year as are
required to be made to the responsible
Minister or other public authority in the
country in which the association is
constituted;
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
that country;
(ii)
0
(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 Jamaica during the preceding
Year;
72 LVSURANCE
(b) in the case of an association constituted in Jamaica,
such documents and information as the Commission
may require.
surpension
of re!gyra-
65.-(1) Subject to subsection (2), the Commission may
suspend the registration of a registered association in respect of
all or any of the classes of business in relation to which it is
registered, if it is satisfied that the registered association is in
breach of any provision of this Act in circumstances where the
breach would constitute a ground for cancellation as specified
in section 66.
(2) Before taking any action under subsection (1) the
Commission shall give written notice to the registered
association concerned-
tmn
0
(a) stating its intention to suspend the registered
association's registration, giving reasons therefor;
(b) stating the right of appeal under section 140; and
(c) requiring the registered association to take such
action as is specified in the notice to remedy the
breach within the time specified; and
(4 indicating a period within which the association may
make written and oral representations on the intended
action.
(3) Where a registered association fails to comply with
the notice under subsection (2) the Commission may-
(a) extend the period specified in that notice and if the
breach is not remedied within the extended period,
suspend the company's registration; or 0 (6) immediately suspend the registration,
Grounds for 66.-( 1) Subject to subsection (2), the Commission may, if at
any time it is satisfied that the circumstances specified in that
subsection so warrant, give written notice to a registered
association stating-
canaellatlon
of r e g i m w n
lnW lllClUI lDn Ot illli page 15 sulhonzed by L N I12nOO2 I
IiKSlJKANCE 73
(a) that it proposes to cancel its registration in respect
of all or any of the classes of business in relation to
which it is registered;
(b) its intention to cancel the registered association's
registration, giving reasons therefor;
(c) the right of appeal under section 140,
and shall afford the association an opportunity to show cause
why the proposed action should not be taken.
( 2 ) The circumstances referred to in subsection (1) are
that the Commission is satisfied h t -
0
(a) the 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);
(6) the association or any of its members is insolvent;
(c) the insurance business of any of the association's
members is not being conducted in accordance with
sound insurance principles;
(d) the association has contravened any of the
provisions of this Act or of any regulations made
hereunder or any condition, direction or requirement
imposed under this Act;
0
(e) the association has been guilty of unreasonable
delay in the payment or settlement of any claim
arising under any policy issued in Janiaica by it or
on its behalf;
v) the persons who manage the association are not fit
and proper persons to manage the association; or
Cg) the employees of the association are incapable of
canying on the relevant class of insurance business
in an efficient manner.
74 LVSUMNCE
(3) Notwithstanding subsection ( I ) , the Commission
may at any time cancel the registration under this Part of a
registered association if requested to do so by the association or
if it is satisfied that the members of the association have not
commenced business within one year of registration or have
ceased to canyon business in Jamaica.
[rnplerncnta-
non afpro-
p o d 10 refurP
10 r e g m r or
1" cancel
registration. appeal; or
67. Where a registered association which has been notified 0
under section 63 (3), 65 (2) or 65 (1) of its right of appeal-
(a) fails to lodge any such appeal or withdraw any such
(b) the result of the appeal is the conf i i t ion , with or
without variation, of the Commission's proposal,
then, subject to any such variation, the Commission shall give
effect to its proposal and notify the association accordingly.
68.-(1) An association whose application for registration is
refused or whose registration is cancelIed in accordance with
F t k l of
lion's rcg im- this Part shall, in respect of long term business only-
contracts
cancellation
"farrocla-
lion on I ~ B U T -
B"C< (a) to such extent and in such manner as the Commission
may determine; and
(h) for such period not exceeding one year or such period
as the Commission may by order prescribe,
carry on business in respect of obligations under contracts of
insurance entered into before such cancellation, with a view to
meeting those obligations and without undue inconvenience to
policyholders, until the Commission is satisfied that it has made
suitable arrangements for the discharge of those obligations. 0
(2) The association may not, after the date of
notification of cancellation, issue any new policy or enter into
any new contract in relation to which registration is required.
INSURANCE 75
0
0
69.-(1) Subject to this section, an association of Depowtsb
underwriters shall not be. registered under this Act to carry on,
and shall not cany on, any class of insurance business unless it witer-.
has deposited the prescribed amount with the Commission.
(2) The Commission may authorize the investment of
any deposits made under this section, and the payment of
income on cash deposits invested.
PART IV. Registra fion of Insurance Intermediaries
70.-(1) No person shall, in relation to insurance business of Regimtmn
of inmrsnce any class specified in section 3 (1) carry on or purport to cany mtamdiar-
on, business as, or act in the capacity of, an insurance ies.
intermediary, unless he is registered under this Part to do so.
(2) Any person who contravenes this section shall be
guilty of an offence and liable on summary conviction before a
Resident Magistrate to a fine not exceeding three million dollars
or to imprisonment for a term not exceeding three years or to
both such fine and imprisonment.
71.-(1) An application for registration under this Part shall A W I I ~ I ~
be made to the Commission in the prescribed form and shall be
accompanied by evidence of payment of the prescribed fee and
such documents as may be prescribed.
(2) The Commission may, upon receipt of the
application, request the applicant to &sh such additional
information as the Commission may consider relevant to the
application.
72.-(1) No person shall be registered under this Part as an G ~ M ~ I
agent or sales representative of an insurance company unless
that company is registered under Part 11 or exempted ffom
registration thereunder.
76 INSIJRANCE
(2) No individual shall be registered under this Part as a
sales representative of an agent or broker unless the agent or
broker by whom he is so employed, being a body corporate, is
registered under this Part or, is exempted from registration
thereunder.
(3) No insurance company and no person carrying on
business as an insurer, a sales representative or an agent shall be
registered as a broker and no person carrying on business as a
oroker shall be registered as a SaleSrepresentative or an agent.
(4) No person carrying on business as an adjuster or
insurance consultant shall be registered as an agent, a sales
representative or a broker.
(5) No person, being a body corporate, shall be
registered as an agent or a broker unless there exists in respect
of that person such minimum capital and bond insurance
coverage as the Commission may prescribe.
Conditions for
registration
73.41) The Commksion shall, if it is satisfied in respect of
an applicant that the requirements of subsection (2) are met,
register that applicant, either unconditionally or subject to such
conditions as it may specify as an insurance intermediary, in
respect of such class or classes of insurance business as it shall
specify and shall notify the applicant accordingly.
(2) The requirements referred to in subsection (1) are as
follows-
(a) the applicant possesses the prescribed qualifications;
(b) the provisions of section 71 have been complied with;
(c) section 72 does not apply;
(dj the applicant is a fit and proper person to perform his
functions under this Act in the capacity specified in
the application;
111c1umn of 11181 page 15 iluilioiized by L N I I12001 I
0
0
INSURANCE 77
0
0
(e) where the application is for registration of a body of
persons (whether incorporated or not) each of the
persons managing or controlling the body, as the case
may be, or the partners, is a M and proper person;
v) where the application is for registration as a broker,
that no such agreement relating to the preferential
offer of insurance business has been made between
the applicant and any person carrying on insurance
business as might impair the applicant's impartiality
in placing insurance business;
(8) the applicant has satisfied such other requirements as
may be prescribed.
(3) Where the Commission is not satisfied, in relation to
all or any of the classes of insurance business specified in the
application, as to one or more of the conditions set out in
subsection (2), it shall notify the applicant in writing, within
such time as may be prescribed that it proposes to refuse to
register the applicant either absolutely or in respect of one or
more of the classes of insurance business so specified, giving
the reasons therefor and of his right of appeal under section 140.
74. The Commission shall furnish to every person registered Certificate of
under this Part, a certificate of registration in the prescribed w'mt'on
form stating-
(a) the class or classes of insurance business in respect of
(b) any conditions subject to which the person is so
which the person is so registered,
registered, and
(c) in the case of registration of a person as an agent, the
insurance company or companies concerned,
and the certificate is prima fucie evidence of such registration.
surpenslon or
regimatian
75.+1) Subject to subsection (2), the Commission may
suspend the registration of a person under this Part in respect
of all or any of the classes of business in relation to which it is
registered, if it is satisfied that the person is in breach of any
provision of this Act in circumstances where the breach would
constitute a ground for cancellation specified in section 76.
(2) Before taking any action under subsection (1) the 0
Commission shall give written notice to the person concerned-
( U ) stating its intention to suspend its registration, giving
reasons therefor; and
(b) stating the right of appeal under section 140;
(c) requiring the person to take such action as is specified
in the notice to remedy the breach within the time
specified; and
(4 indicating a period within which the person may
make written and oral representations on the intended
action.
(3) Where the person concerned fails to comply with the
notice under subsection (2) the Commission may-
(a) extend the period specified in the notice under
subsection (2), and if the breach is not remedied
within the extended period, suspend the person’s
registration; or
(b) immediately suspend the registration.
Grounds fM
cancdlarlo”
76.-( 1) The Commission Illay-
ofrcgimion. (a) cancel a person’s registration under this Part, at the
request of that person; or
0
INSURANCE 79
0
0
(b) if satisfied that the provisions of subsection (2) apply
to a person registered under this Part, notify that
person in writing that it proposes to cancel his
registration, giving the reasons therefor and of his
right of appeal under section 140.
(2) The Commission may take action under subsection
(U) the registration was procured as a result of any
misleading or false representation or in consequence
of any incorrect information (whether the
representation or infbrmation w a s made or supplied
wilfully or otherwise);
(b) the person has become disqudied for such
registration by virtue of any of the provisions of
section 72;
(c) the person is carrying on business otherwise than in
accordance with sound insurance principles and
practice;
(d) the person has been guilty of unreasonable delay in
the payment or settlement of any clam arising under
any policy issued by or through him,
(e) tlllrty days have elapsed since the date before which
the person was required under any provision of this
Act to furnish information to the Commission, and
the person has, without reasonable excuse, failed to
furnish that information duly and satisfactorily;
U, the person has been guilty of hudulent or dishonest
practice;
(g) in the case of-
(1) (6) if it is satisfied that-
(i) an individual, he has demonstrated that he is
not a fit and proper person; or
80 INSURANCE
Implemcnm-
tion proposal
ID refuse to
register IW to
cancel
regimatian.
Summary
cancellation
ofregistration
under this
PWL
(ii) a body, not all the persons managing or
controlling the body or not all the partners
are fit and proper persons; or
(h) the person has contravened any of the provisions of
this Act or any condition, direction or requirement
imposed under this Act by the Commission or, as the
case may be, has been an accessory to any such
contravention by any other person.
77. Where any person who has been notified under section 73
(3) of the Commission’s proposal to refuse to register him or
under section 75 of a proposal to suspend his registration, or
under section 76 of a proposal to cancel his registration and of
his right of appeal-
(a) fails to lodge any appeal, or withdraws any such
(b) the result of the appeal is the c o n f i t i o n , with or
without variation, of the Commission’s proposal,
then, subject to any such variation, the Commission shall give
effect to its proposal and notify the person in writing
accordingly.
78. The Commission may, at any time, cancel the registration
of a person under this Part-
(a) if it is satisfied that the person has not carried on
business in Jamaica in the capacity for which he is
registered-
(i) within a year of such registration; or
(ii) for a period of more than a year;
(b) if, in the case of a person registered as an agent, it is
satisfied that the registration under this Act of the
insurance company or companies for which that
person was registered in that capacity, has been
cancelled or that all agency agreements concerned
have been terminated; or
(c) if the person so requests.
0
appeal; or
0
I l k mclu~ioii of this page IS u u t h o n d by L N 11212002 I
INSURANCE 8 1
0
0
79.-( 1) Where an agency agreement is terminated, notice in lnfarmationta
be supplied to
writing in the prescribed form shall forthwith be given to the CO-lVlOn
Commission by the agent and the company concerned.
registered under this Part is terminated-
(2) Where the employment of a sales representative
(U) notice in writing in the prescribed form shall
forthwith be given to the Commission by the sales
representative and his employer; and
(b) if the sales representative enters any new employment
in that capacity, notice in writing in the prescribed
form shall forthwith be given to the Commission by
the sales representative and his new employer.
(3) The Commission may demand in writing i?om any
person registered under this Part or h m his employer or
principal, any information relating to any matter in connection
with that person's business as an agent or a broker or sales
representative, as the ease may be.
(4) Any person who contravenes any of the provisions
of this section shall be guilty of an offence.
80.-(1) Every individual registered under this Part shall Roduchonof
Femficate of
produce his certificate of registration for inspection, ifrequested n g l S h 8 l l O "
to do 90 by the Commission or by any person authorized by the
Commission or any person with whom the registered person is
deahg in the course of the business for which he is registered.
(2) Every person who fails to comply with subsection
(1) shall be guilty of an offence.
81.-(1) E y q bodv coqorakregktered under this Part shall Display and
rurrenda of
prominently display its registration certificate at its principal regisuation
place of business in Jamaica, in a part thereof to which the eatifmte.
public has access, and a copy thereof shall be similarly
displayed at each of its branches in Jamaica.
82 INSURANCE
(2) A body corporate whose registration is cancelled
shall, on receipt of the notice of such cancellation, forthwith
surrender the registration certificate and every copy thereof to
the Commission.
(3) Every person who, without lawful excuse-
(a) fails to comply with subsection (1) or (2); or
(b) displays a registration certificate or any copy thereof
which is no longer valid,
shall be guilty of an offence and liable on summary conviction
in a Resident Magistrate's Court-
(c) in the case of an offence specified in paragraph (a), to
a fine not exceeding five hundred thousand dollars; or
(6) in the case of an offence specified in paragraph (b), to
a fine not exceeding three million dollars.
Miscellaneous Provisions relating to Insurance
Intermediaries
a.-( 1) An agent, a broker or sales representative shall, for
the purpose of receiving any premium for a contract of
insurance, be deemed to be the insurer's agent and,
notwithstanding any conditions or stipulations to the contrary,
the registered insurer shall be deemed to have received any
premium received by the agent, broker or sales representative.
(2) An insurer on whose behalf a broker, agent or sales
representative has receive a premium or part thereoc shall
accept liability arising under the policy, notwithstanding that the
insurer has not received the premium
~ m ~ d ~ l c n t 83.-(1) Any agent, broker or sales representative who
tI0"b re-n8- knowingly procures by kaudulent representation, payment or
the obligation for payment of any premium on an insurance
policy shall be guilty of an offence.
Agents. etc
0
0
[The inelusion of i b i s page is nothonzsd by L.N. 11uZ002 I
INSURANCE 83
(2) Any agent, broker or sales representative who causes
an insured person to discontinue any policy of insurance without
being satisfied on reasonable grounds that such discontinuance
is for the benefit of the insured person, shall be guilty of an
offence.
84. An agent, a broker or sales representative is personally ~lahrifor
"dlwfvl 0 liable to the insured person in respect of all contracts of mwcls insurance unlawfully made by or through him directly with an
insurer who is not registered to carry on insurance business in
Jamaica to the same extent as if that agent, broker or sales
representative were the insurer.
85.41) An insurer or an officer, employee or agent thereof, :utyfiy
or a broker or sales representative shall not directly or indirectly nrcdpemn
pay or allow, or agree to pay or allow, compensation or anything faflaclwor
aegoiiatm~
of value to any person for placing or negotiating insurance on ,,-cc
lives, property or interests in Jamaica, or negotiating the
continuance or renewal thereof, or for attempting so to do, if at
the date thereof, such person is not registered under this Act.
(2) A person who knowingly contravenes subsection (1)
shall be guilty of an offence.
86. The rate of premium chargeable under a policy shall be Rcbahng
the amount agreed between the proposer and the inSurer or an
officer, employee or agent thereof or a broker or sales
representative, at the time of the making of the insurance
contract, and any rate to the contrary stated in the policy shall be
ofno effect.
87. N o t h g in sections 85 and 86 shall be construed as- kmulkle
(U) affecting any payment by way of dividend, bonus, elrploym
profit or savings that is provided for by the policy;
dar icd
84 NSURANCE
(6) preventing an insurer compensating a bona j d e
salaried employee of its head or branch office or a
spouse or child of that employee, in respect of
insurance issued by that insurer upon the life or
property of the employee; or
(c) requirii that the employee be registered as an agent
or sales representative under this Part to effect such
insurance. 0
~ e t u r n s b y 88. Every insurer shall make an annual return to the
Commission in such form and at such time as the Commission
may require, showing-
insurers.
(0) all persons, partnerships and companies duly
authorized as its agents, brokers or sales
representatives in Jamaica; and
(b) persons, partnerships or companies to whom it has,
within such period as the form or return requires, paid
or allowed or agreed to pay or allow, directly or
indirectly, compensation for placing or negotiating
insurance on lives, property or interests in Jamaica, or
negotiating the continuance or renewal thereof, or for
attempting to do so.
Refurnsb 89.--(1) Every broker or corporate agent registered in
accordance with this Part shall keep in Jamaica and shall make reg,stmd
agems available to the Commission on request-
bmkers and
(a) a record of all local policies issued by the broker or
agent on behalf of any insurer;
(b) a record'of the aggregate amount of the premiums
received on such policies; and
(c) if the broker or agent is a company, a copy of the
audited financial statements.
0
l l l lc m c l ~ o n of 11111 PIFS is atitlienred by L N I12nO02 I
INSURANCE 85
0
(2) Every broker or corporate agent shall, whenever
required by the Commission, submit returns to the Commission
containing such information as may be prescribed, to enable it to
determine the financial position of such broker or agent and to
take appropriate action where necessary.
PART V. Long Term Insurance Business
Issue of Policies
90.+1) A company shall not issue any policy unless it has Ratcrof
premium, etc. been approved by the Commission.
(2) The Commission may at any time require the
company to obtain, and to fUrnish it 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 considers suitable in respect of that
class of policy.
91. Subject to section 93, where a company issues a life N O ~ I C ~
regarding insurance policy that provides that proof of age of the person proof of age
whose life is insured is a condition precedent to the payment of
the sum insured, 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.
92.+1) Where a company declines to accept the proof of
where age tendered in respect of a policy, whether issued before or comploy
after the 21 st December, 2001, the policyholder may apply to a h i m - to
Judge in Chambers, by summons for an order directing the accempoof
company to accept the proof tendered.
86 INSURANCE
(2) The Judge in Chambers may, upon an application
made to him under subsection (I), make such order in relation to
the application as he thinks just.
(3) Every order under this section shall be binding on
the company.
0 Mis-statcrnmt 9 3 . 4 1 ) Subject to the provisions of subsection (2), a life insurance policy is not avoided by reason only of a mis- ofage, and
avoidance of statement of the age of the person whose life is insured, and in a
policy. case of such mis-statement-
mlb
(U) the moneys provided by the policy shall be increased
or decreased to the amount that would have been
provided for the same premium at the true age; and
(b ) where the true age as shown by the proof is different
than that on which the policy is based, the company
may vary the sum insured by, and the bonuses (if
any) allotred to, the policy so that as varied, they bear
the same proportion to the s u m 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 bsed on the true age;
(2) A policy issued after the appointed day 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-
0
(U ) was W u l e n t l y untrue; or
INSURANCE 87
(6) being a statement that is 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 death of the insured person,
whichever is the earlier.
94.-(1) Nothing in any term or condition of a life insurance Provlslons
relating 10
mtc ofhcahh policy issued after the appointed day or in this Act shall operate
to exempt an insurance company fiom liability under the policy ofinsurd
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 specified in
subsection (2).
(2) The ground referred to in subsection (1) is that the
proposer when making the proposal or thereafier and before the
making of the contract-
0
(a) made an untrue statement of his knowledge and belief
as regards the matter; or
(6) failed to disclose to the company something known
by him as regards that matter.
95.--(1) A minor who has attained the age of sixteen years Minors
may-
(a) effect a policy upon his own life or upon another life
in which he has an insurable interest; or
(6) take an assignment of a policy,
and is as competent in all respects to have and exercise the
powers and privileges of a policyholder in relation to a policy of
which he is the holder ris if he were of full age.
(2) 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 guardian.
0
88 INSURANCE
Insurable
mterest5
96.-(1) For the purposes of this Act, but without restricting
the meaning of the expression "insurable interest", the following
persons shall be deemed to have an insurable interest in the life
of moth >r person as follow-
(a) a parent or guardian of a child who is under eighteen
(b) a husband, in the life of his wife;
(c) a wife, in the life of her husband;
(6, a grandparent of a child who is under eighteen years
of age, in the life of his grandchild;
(e) any person, in the life of another upon whom he is
wholly or partly dependent for support or education;
Ifl a company or other person, in the life of an officer or
employee thereof; and
(g) any person who has a pecuniary interest in the
duration of the life of another person, in the life of
that person.
(2) This section applies to policies whether effected
before or after the appointed day.
years of age, in the life of the child;
Designation of Beneficiary or Legal Personal
Representative
0
DeslFtlan
ofbeneficoa-
r m generally
97.-(1) For the purpose of this section and sections 98 to
"beneficiary" means a person, other than the insured
person or his legal personal representative (except
where the legal personal representative is also a
beneficiary) to whom or for whose benefa insurance
money ismadepayable in a contract or by a
declaration;
"declaration" means an instrument signed by the insured
person and witnessed by a Justice of the Peace or
Notary Public-
105-
0
>
[TIX III~IU~loli ot clvs mge 1s auibnirzed bv L N 1 I1,2002 I
INSURANCE 89
0
0
(a) with respect to which an endorsement is made
(h) that identifies the contract of insurance; or
(c) that describes the insurance or insurance
in which the insured person designates, alters or
revokes the designation of his legal personal
representative, trustee or a beneficiary as one to whom
or for whose benefit insurance money is payable;
on the insurance policy; or
money or part thereof,
“insured person” means-
(a) the person who makes a contract of insurance
with an insurer; or
(b) in relation to a group policy, an employee on
whose behalf an employer effects a group
policy;
“life insured” means, except in relation to a group policy, a
person on whose life an insurance policy has been
made.
(2) An insured person may designate his legal personal
representative, trustee or beneficiary as the person to receive the
proceeds of the insurance policy-
(a) at the time of making a contract of insurance; or
(b) by declaration at any time subsequent to the making
of the contract.
(3) A designation made under subsection (2)-
(a) shall be in a form and effected in the manner
specified in the contract of insurance;
(b) shall he deposited with the insurer at its principal
office in Jamaica w i t h the lifetime of the insured
person and of the life insured;
[Tlae ~ ~ x l n u m d 11#1\ p . t p I < ~iiclioriz~d h) I P* I 121200? I
90 IIKWRANCE
(c) shall. subject to section 98 (2) (b), not affect the right
of an insured person to assign, exercise rights under
or in respect of, surrender or otherwise deal with, the
contract of insurance as provided therein or as may be
agreed upon with the insurer; and
(d) may, subject to section 98 (1) and (2) (a), be altered
or revoked from time to time and such alteration or
revocation shall be made by declaration which shall
be deposited with the insurer at its principal office in
Jamaica within the lifetime of the insured person and
of the life insured.
0
(4) A designation made in favour of "the heirs", "next of
kin" or "estate" of the insured person or the use of words of like
import in a designation, shall be deemed to be a designation of
the legal personal representative of the insured person.
(5) For the avoidance of doubt, where a designation is
made in favour of a legal personal representative or is deemed
under subsection (4) to be so made, that legal personal
representative shall receive the proceeds of the insurance policy
on behalf of the beneficiaries of the insured person's estate.
(6) An insurer shall, in a contract of insurance, specify
the requirements for the making of a valid deposit under
subsection (3) (6) and (4.
Irrevocable
designetion of
knefisiarxs
98.-(1) An insured person may designate irrevocably a
(a) at the time of the making of a contract of insurance;
or
(b) by declaration at any time subsequent to the making
of the contract.
named beneficiary-
0
(2) Where an insured person designates a beneficiary
irrevocably, then so long as the designated beneficiary is alive-
NSURANCE 91
0
(a) subject to section 99, the insured person may not alter
or revoke the designation without the beneficiary's
consent;
(b) the insured person may not assign, exercise rights
under or in respect of, encash any units accruing to or
surrender or otherwise deal with the insurance policy
without the beneficiary's consent;
(c) the insured person or his creditors shall have no
control over the proceeds of the insurance policy; and
(d) the proceeds of the policy shall not form part of the
insured person's estate.
(3) The provisions of section 97(3) (a) and (b) shall
apply to a designation made under subsection (1) of this section.
99. Where under section 98(1), in respect of a life policy, a mmmnor
named beneficiary is the insured person's spouse, then, if during ~ ~ ~ ~ n o f
the subsistence of the insurance policy, the named beneficiary anccrratlon
ceases to be the insured person's spouse, otherwise than by
death-
(a) the insured person may alter or revoke the
irrevocable designation without the consent of the
named beneficiary; and
(b) such alteration or revocation shall be made by
declaration which shall be deposited with the insurer
at its principal ofice in Jamaica within the lifetime
of the insured person and of the life insured.
lOO.+l) Notwithstanding the designation of a beneficiary Insured
irrevocably under section 98(1), an insured person is entitled, E:dlo
while living, to the dividends or bonuses declared on a contract dividends
of insurance, unless the contract otherwise provides.
(2) Unless the contract of insurance otherwise directs,
an insurer may apply the dividends and bonuses declared on a
contract of insurance to that contract for the purpose of keeping
the contract in force.
0
92 INSURANCE
ctrcumrrincc~ 101. Where the proceeds of an insurance policy are payable
to a beneficiary. such proceeds shall not form part of the insured in which insurance
prucccds not
p n of
Insured
person's
Estate, etc.
Pre5"mplio"
"flrurt
negalivcd.
hppaintmenl
"fmnEC.
Bencficlar)
predrcrasing
insured
person.
Right to
enfilrcr
payment of
praccedr
person's estate- and shall not, as &om the date that the proceeds
of the insurance policy become payable, be subject to the claim
of any of the insured person's creditors.
102. For the avoidance of doubt, it is hereby declared that on
a construction of a cotrrract of insurance there shall be no
presumption of a trust except in cases where the insured person
expressly provided for the creation of a trust.
103.41) An insured person may, in a contract of insurance
or by declaration, appoint a trustee for a beneficiary and may
alter or revoke that appointment by declaration.
(2) A payment made by an insurer to a trustee for a
beneficiary discharges the insurer to the extent of the payment.
104. Where a beneficiary predeceases the insured person and
no disposition of the share of the deceased beneficiary in the
insurance money is provided in the contract of insurance or by a
declaration, the deceased beneficiary's share of the policy
proceeds shall be payable as follow+
(a) to the surviving beneficiary;
(6) if there is more than one surviving beneficiary, to
the surviving beneficiaries in equal shares; or
(c) if there is no surviving beneficiary, to the insured
person or his legal personal representative.
105.41) A beneficiary may, on the death of a life insured,
enforce for his own benefit, and a trustee appointed pursuant to
section 103 may enforce as trustee, the payment of the proceeds
of an insurance policy made payable to him in tkt, contract of
insurance or by a declaration and in accordance with the
provisions thereof.
(2) Notwithstanding subsection ( I ) , the insurer
concerned may set up any defence that he could have set up
against the insured person or his legal personal representative.
0
0
INSURANCE 93
0
0
106. A life insured under a group policy may, in his own powerof
p u p life
name, enforce a right given him under a contract, subject to any mrured 10 sue
defence available to the insurer against him or against the ulsurc~
insured.
Protection of Policies
107,+1) The property and interest of any person in a policy lmerea of
effected (whether before or after the appointed day) upon his in
own life is not liable to be applied or made available in payment c a n C B ~ S
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 appointed day, the moneys payable
upon his death under or in respect of such policy shall not 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, except by
virtue of-
(a) a contract or charge made by the person whose life
is insured; or
(6) an express direction contained in his will or other
testamentary instrument executed by him that the
moneys arising h m the policy shall be so applied.
(3) A direction to pay debts, 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 an express direction
referred to in subsection (2) (b).
Paid-up Policies, Surrender Values and Non-Forfeiture
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 a paid-up policy instead of that policy.
108.+1) A policyholder who desires to disconhue further paid-up
policief
94 IiVSURANCE
Sunender of
polLCkC5.
Notice in
respen of
long term
insurance
policies by
inrllrer.
(2) 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.
109. Notwithstanding the t e r n of a particular policy, the
owner of a policy that has been in force for at least three years
is, on application to the company, entitled to surrender the
policy, and within the prescribed period after the application, to
receive not less than the cash surrender value of the policy (if
any) less the amount of any debt owing to the company under,
or secured by, the policy.
110.-(1) Subject to section 111 (3), an insurer shall not
enter into a contract for ordinary long term insurance business
unless the insurer-
0
(a) at the time the contract is entered into; or
(b) not later than seven days thereafter,
serves on the other party to the contract a notice containing the
information specified in subsection (2).
(2) A notice mentioned in subsection (1)-
(a) shall specify the nature and type of the policy; arid
(b) shall have annexed thereto a form of notice of
cancellation for use by the other party to the contract.
(3) An insurer who contravenes this section shall be > ,
guilty of an offence,
(4) A contravention under this section does not 0
invalidate' the contract.
lorured'sr~ghl 111.--(1) A person who has entered into a contract of
insurance with an insurer may serve notice of cancellation on of cancella- 1lOn
the insurer not later than-
[The i i lc lu~lo i i o ~ h s p q c 8 % atithixized by L N I 12l?W2 ]
INSURANCE 95
(U) the expiration of the tenth day kom the date on
which he receives a notice mentioned in section
110;or
(h) ten days fkom the expiration of the day on which he
first became aware that the contract was entered
into,
0 whichever is the later.
(2) Subsection (1) does not apply where an insurer,
having failed to serve a notice under section 110(1), within the
time specified therein, does so before cancellation of the
contract.
(3) A notice of cancellation need not be in the form
attached to the notice required to be served under section 1 lO(1)
but shall indicate a desire to withdraw fiom the contract.
0
(4) Service of a notice of cancellation operates-
(a) as a rescission of a contract, if it is served after the
contract has been entered into; and
(b) as a withdrawal of offer in any other case
( 5 ) Where a contract has been rescinded or an offer
has been withdrawn as a result of the service of a notice of
cancellation, any moneys paid by way of premium or otherwise,
whether to the insurer or to any person acting on behalf of the
insurer for the purpose of receiving the moneys, are recoverable
kom the insurer as a debt in civil proceedings.
by reason only of the non-payment of any premium (in this
112.+1) An ordinary long term policy shall not be forfeited an-
section referred to as the overdue premium) if- pol lc lCS I"
a M m cases
afmn-
(U) not less than three years' premiums have been paid pymnnsof
on the policy; and pemmms.
96 INSURANCE
(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 interest on it, on terms not less favourable to
the policyholder than such terms (ifany) 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 owing to the company under the
policy.
(4) Without prejudice to the generality of the
foregoing provisions of this section, an ordinary long term
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 afier the day on which the premium fell
due-
(U ) the company liable under the policy serves a notice
in the prescribed manner on the policyholder
stating-
(i) the amount due or payable to the company
at the date of the notice in respect of the
policy;
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
(5) For the purposes of subsection (4), a notice posted
to the last known address of the policyholder shall be deemed to
be a notice on the policyholder.
(ii)
service of the notice.
lTlie 111cIu~i0n of llm page I< alhnn,ed b? L N I I !/ZIJO! I
0
U
INSURANCE 97
0
113. Where under any provision of this Part a policyholder is T m m n t u J
entitled to receive, or a company is required to grant a paid-up ~ ~ ~ ~ u ~ a m
policy and there is any debt owing to the company under or policies.
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
(6) on ascertaining the amount of the paid-up policy, to
reduce the amount by taking into account, upon a
basis approved by the Commission, the debt so
owing to the company, and thereupon the debt shall
cease to be owing to the company.
Payment of Policy Moneys
1 1 4 . 4 1 ) Subject to this section, where a policyholder, not Deathof
polqhalder
being the person whose life is insured by the policy, predeceases not king life
the person whose life is so insured, and another person satisfies lnsured
the company which issued the policy-
(a) that he is entitled under the will or on the intestacy
of the deceased policyholder, to the benefit of the
policy; or
(b) that he is entitled to obtain probate or the will or to
take out letters of administration of the estate of the
deceased policyholder,
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. 0
(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.
98 NSURANCE
(3) This section applies in relation to a policy referred
to in subsection (1) whether the deceased holder dies before or
after the appointed day.
uncialmed
mO”Ey5
115.41) A company shall, within the prescribed period,
deliver to the Commission and also publish weekly for four
consecutive weeks in a newspaper circulated in Jamaica, a
statement of all moneys (hereinafter called “unclaimed
moneys“) that have remained unclaimed and in the possession or
under the control of the company for a period of fifteen or more
years.
0
(2) The publication under subsection ( I ) shall state-
(a) 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 on which it became
due;
(b) that unless within one year fiom the date of the first
publication of the statement a claim to those moneys
is established to the satisfaction of the Company
concerned or, faiiing that, to the satisfaction of a
court of competent jurisdiction, the moneys will be
dealt with in accordance with sukection (3).
(3) Upon the expiration of the one year period,
unclaimed moneys shall lapse to and become part of the
revenues of Jamaica, and shall be paid by the company to the
Accountant-General for payment into the Consolidated Fund,
accompanied by a statement of account made in the prescribed
form and approved by the Commission.
(4) Subject to subsection ( l ) , upon payment of
unclaimed moneys to the Accountant-General under this section,
the company is discharged from further liability in respect of
that amount.
Ih'SURAh'CE 99
Mutualisation
0
0
116 .41) Notwithstanding anything in its memorandum of Conversion
association or other instruments of incorporation or in its articles mmpn,ff
or other rules or in this Act, a company incorporated in Jamaica and w e
versa. that-
Into rrmtllal
(a) has a share capital; and
(b) is registered under this Act to transact long term
business, whether alone or in combination with any
other class of insurance business,
may with the approval of not less than three-fourths of the
number of its shareholders who together hold not less than
three-fourths of its share capital and with the permission of the
Commission, establish and implement a plan for the conversion
of the company into a mutual company by the purchase of its
shares or the conversion of the shares into debentures in
accordance with such conditions as may be prescribed.
(2) Notwithstanding anything in its memorandum of
association or other instruments of incorporation or in its articles
or other rules or in this Act, a company incorporated in Jamaica
that-
(a) does not have a share capital; and
(b) is registered under this Act to transact long term
business, whether alone or in combination with any
other class of insurance business,
may with the approval of not less than three-fourths of the
number of its voting policyholders, and with the permission of
the Commission establish and implement a plan for the
conversion of the company into a company incorporated in
Jamaica with a share capital which is distributed on an equitable
basis to all policyholders, and in accordance with such
conditions as may be prescribed.
100 INSURANCE
pro ,a14
condition 01
average.
Third paw
fighrs.
PART VI. Reserves and Dividends
117.41) Every insurer shall include among the liabilities
provided in its annual statement of account, reserves as
prescribed by the Commission.
(2) The Minister may, on the recommendation of the
Commission, exempt any insurer fiom the provisions of this
section.
ReS'ZrW9
0
mvldcndnot
to lrnpal,
118. No shareholders' 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.
PART VII. General Insurance
119. This Part applies to all companies registered under this
Act to transact insurance business in any class of such business
other than ordinary long term insurance business, industrial life
insurance business or sickness and health insurance business.
12OP-(1) Where a contract of insurance contains a pro rara
condition of average, the condition is of no effect unless, before
the contract is entered into, the insurer informs the insured in the
AWIUIKX
ofthir Pan
D ~ ~ ~ o s ~ ~ ~ of
.
prescribed manner of the nature and effect of the condition.
(2) This section shall not apply in respect of a contract
entered into before the appointed day.
121.-(1) This section applies to a policy of insurance in
which premises are insured by-
(a) an owner or occupier; or
(b) an independent contractor,
against any liability incurred by such person in respect of injury
to visitors or workmen, as the C ~ P may be, sustained on those
premises.
0
INSURANCE 101
(2) Ifjudgment in respect of any liability to which this
section applies is obtained against any person insured by the
policy, then the insurer shall, subject to the provisions of
subsections (3) and (4) and the terms and conditions of the
policy, pay to the person entitled to the benefit of the judgment
(hereinafter called the plaintiff) any sum payable thereunder in
respect of the liability, without any rekrence to the owner,
occupier or independent contractor, as the case may be. 0
(3) No sum is payable by an insurer under this section,
unless before or within twenty-one days of the commencement
of the proceedings in which the judgment is given, the plaintiff
had given notice to the insurer of the bringing of the
proceedings.
(4) Any term or condition of a policy which limits the
right of payment conferred on the plaintiff under this section is
of no effect.
0
PART VIII. Miscellaneous
122. The Commission may establish a scheme or may require lnwrance
registered insurers to contribute to a scheme approved by the ~ ~ h ' O r )
Commission, for the collection, allocation and application, in
accordance with regulations made under this Act, of monetary
contributions fkom registered insurers and registered insurance
intermediaries, for the purpose of covering prescribed risks, if
the Minister, on the recommendation of the Commission,
determines that-
(a) it is in the public interest; and
(b) a particular insurance cover is not available.
123.-(1) Every registered insurer that authorizes one or Inrum'sdury
more agents to act on its behalf shall establish and maintain a
system that-
I02 Ih'SURAh'CE
(a) is reasonably designed to ensure that each agent
complies with the requirements of this Act and any
regulations made hereunder;
(b) provides for the screening of each agent for suitability
to carry on business as an agent.
(2) An insurer shall report to the Commission if it has
reasonable grounds to believe that an agent who acts on its
behalf is not suitable to carry on business as an agent.
~ e a r t m tobe 124. A company shall keep at its principal office in
kcpr Jamaica a register of policies in accordance with regulations
made under this Act.
0
~ s p l e z ~ t 125.--(1) Where in relation to l i e insurance policy-
of Ion llfc
plicy.
(a) a policyholder; or
(b) a person claiming the benefit pursuant to the
advises the registered insurer that the policy (in this section
referred to as the original policy) is lost or has been stolen or
destroyed, the registered insurer shall, subject to this section,
and on the production of such reasonable evidence as to the loss,
theft or destruction of the original policy, issue a replacement
policy to the person referred to in paragraph (a) or (b).
( 2 ) The registered insurer shall not issue a replacement
policy unless and until it has received sufficient proof of the
validity of the person's claim in respect of the policy.
(3) No replacement policy may be issued unless the
applicant has given to the registered insurer an undertakii to
surrender the original policy to the registered insurer if it is
subsequently found.
provisions of a policy,
0 (4) A replacement policy shall-
(a) be a copy, as nearly as can be ascertained, of the
original policy in substitution for which it is being
issued;
INSURANCE 103
0
0
(b) contain copies of every endorsement on the original
policy issued by the registered insurer; and
(c) include the reason for the issue of the replacement
policy.
(5) The reasonably estimated cost of the issue of a
replacement policy shall be paid by the applicant at the time of
application therefor.
(6) The reason for the issue of the replacement policy
shall be recorded by the registered insurer in the appropriate
register of policies.
(7) A replacement policy is valid and available for all
purposes for which the original policy would have been valid
and available and, after the issue of the replacement policy, the
original policy shall become void.
(8) Where a registered insurer hils to issue a
replacement policy within three months after receipt of an
application in writing kom a person entitled pursuant to
subsection (1) so to apply, the Commission may, upon such
evidence as to the loss, theft or destruction of the original policy
as the Commission deems sufficient, order the registered insurer
within such time as the Commission thinks fit, to issue a
replacement policy.
avoided solely on the ground that the person whose life is w t a l
insured died by his own hand or act, sane or insane, or suffered On
capital punishment, unless the risk of such happening is
specifically excluded.
appointed day that limits, to an amount less than the sum w v o l d
insured, the amount payable under the policy in the event of the
death of the life insured occurring as a direct result of war, is of
no effect.
128. Failure on the part of a company to comply with any :E;;?'
provision of this Act shall not in any way invalidate any policy m r n ~ , d a t c
Effect of 126. A policy, other than a life insurance policy, shall not be su,c,dcor
punishment
127. Any term or condition of a policy issued after the ~ ~ ~ ~ ~ ~ n f o ,
issued by the company. pllcres
104 Ih'SUR.4 NCE
1oca\po\iuies
lilws.
129.-(1) Every contract of insurance which is evidenced by
a local policy shall be governed by the laws of Jamaica,
notwithstanding any agreement to the contrary.
poreriled b!
JsmJiU"
(2) Subsection ( I ) does not apply to marine insurance
contracts.
Payment or
S p C l f i D d
currency
130. Where any policy is issued after the 2 1 st December 200 1
in respect of which the premiums are payable or paid in Jamaica
such premiums 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 stated in
the policy.
0 rnone! E in
P o u e r t o ~ y
Court.
131.+1) Subject to Rules of Court, any insurance company
carrying on life insurance business may, after giving notice in
writing to the Commission, pay into 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.
money into
(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.
PayIllCllt
without
probate or
adminimat
incertain
C B Y S .
132.+1) An insurer by whom any moneys are payable
under one or more policies to the personal representative of a
ion deceased person may, without requiring the production of the
grant of probate or letters of administration, pay out of such
moneys any amount (including any bonuses added to the policy
or policies) not exceeding the prescribed amount to any person
who satisfies the insurer that he is entitled to obtain probate of
the will of the deceased person or to take out letters of
administration of his estate.
0
INSURANCE 105
(2) All persons to whom any moneys are paid under
subsection ( I ) 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.
(3) Nothing in this section shall be construed as
requiring a company to see to the application of any moneys 0 paid under this section.
133.-(1) A court, in awarding judgment to a plaintiff in smcfured
respect of a claim, the liability for which is covered by a rcn'emen's
contract of insurance may, with the consent of both parties,
instead of a lump sum, order specified payments with interest to
be made at such intervals and over such period not exceeding
three years, as the Court may specify.
(2) Nothing in subsection (1) shall be construed as
preventing an insurer and a person who has made a claim
against an insurer kom entering into a settlement agreement for
the payment by the insurer of specified payments at specified
intervals over a specific period in satisfaction of the claim that
has been made.
(3) Amounts payable by the insured or the beneficiary in
respect of payments made or, as the case may be, received
pursuant to this section shall be exempt ftom income tax.
insurance company or in respect of any such company proposed ~ O f , O e
to be formed after the appointed day, a prospectus, notice, offering
for subscription any shares in the company or proposed
company, unless the prospectus, notice, circular, advertisement
or other invitation is fmst submitted to and approved by the
(2) A person acting as promoter of a proposed company
referred to in subsection (1) shall not accept any ofice of profit
in the company or any payment or pecuniary advantage other
than as provided in the prospmtus, notice, circular,
advertisement or other invitation.
134.-(1) A person shall not publish in respect of any ~ p p o v a i
required for
shares for
circular, advertisement or other invitation offering to the public subscriptton
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106 INSURANCE
Publica-ationnf 135. Where any notice, advertisement or other Official
publication of a company contains a statement of the amount of authoriz.ed rubwibed
and pid-up the authorized capital of the company, the publication shall also
contain a statement of the amount of the capital which has been capital
subscribed and the amount paid up.
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Inspectiun of
documents.
136. Any person may, upon payment of such fee as may be
prescribed, inspect at the office of the Commission any of the
records specified under paragraph (a), (b) or (c) of section 29
which has been furnished to the Commission and make a copy
of, or extract from, the document.
hcumentsto 137. Every document purporting to be certified by the
evidence Commission to be a document lodged with it 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 is admissible in evidence as if it
were the original document, unless some variation between it
and the original document is proved.
138. 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 prior to the
exercise of that function that officer is thereto authorized by the
board of directors and the board of directors has notified the
Commission in writing of the authorization
139. Where under this Act, a document is required to be
printed, the Commission may, in its discretion, permit it to be
reproduced by such means as the Commission may approve.
140.41) Any person aggrieved by any action, decision,
ruling, direction, order or proposal of the Commission in any
case may, in writing, appeal to the Appeal Tribunal within thirty
days of being notified of that action, decision, ruling, direction,
order or proposal
be admined in
*uthori*to
~ c u m e m 5 .
sign
kinringof
documcnn.
Appeal.
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(2) A person referred to in subsection (1) shall state the
grounds of appeal and send a copy thereof to the Commission.
INSURANCE 107
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(3) The Tribunal shall give its decision in writing and
may confirm, vary, cancel or reverse the Commission's action,
decision, ruling, direction, order, proposal or any part thereof, as
the case may be.
(4) The Appeal Tribunal shall forward a copy of its
decision to the Commission and a copy to the appellant, together
with a written statement of the reasons for its decision.
141.31) W h e r e Guening of
re$lmtlon
(a) an insurance company, an association of aC
underwriters or other person is registered under this
Act;
(b) an application for registration under this Act of an
insurance company, an association of underwriters
or any other person is refused; or
(c) the registration of an insurance company,
association of undenniters or any other person is
suspended or cancelled,
the Commission shall cause notice of the registration, refusal,
suspension or cancellation to be published at least ome in the
Gazette and in a newspaper in nationwide circulation published
in Jamaica.
(2) The Commission shall h m time to time cause to be
published in the Gazette and in a newspaper in nationwide
circulation published in Jamaica, up-to-date lists of companies,
associations of underwriters and persons registered under this
Act.
142. Subject to this section, after twelve months !Torn the R C S W I C ~ O ~ O ~
(a) no person carrying on any class of insurance t m s
business specified in section 3 shall have or use, or
continue tohave or use, the word "Insurance" or
"Assurance", or any derivative thereof, in the name
under which that person is carrying on business,
unlessthatpersonisregistered under this Act or
exempted h m registration hereunder;
U P of
appointed day- msursnn
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I08 INSURANCE
(6) no person carrying on any such class of insurance
business shall have or use, or continue to have or
use, in the name under which that person is carrying
on business any words indicating that the person is
an insurer unless that person is registered under
Part I1 or exempted h m registration thereunder;
(c) no person registered under Part I1 shall, without the
written consent of the Commission, carry on any
insurance business unless that person has and uses as
part of the business name of that person the word
"Insurance" or "Assurance" or a derivative thereof;
(4 no person registered under Part IV as a broker shall,
without the written consent of the Commission, cany
on business as such unless that person has and uses as
part of the business name of that person the words
"Insurance Broker" or "Assumme Broker"; and
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(e) no person registered under Part IV as an agent (and not
also registered under Part 11) shall, without the
written consent of the Commission, carry on
business as such unless that person has and uses as
part of the business MIX of that person the words
"Insurance Agent" or "Assumme Agent".
Eaenrlmaf 143. Where any provision of this Act requires anything to be
done within a specifid period of time and no provision is made
for the extension thereof, that period may in any particular case
be extended by the Commission
time limtis
Refllahon~ 144.+1) The Commission may, with the approval of the 0
Minister, make regulations providing for such matters as may be
necessary or expedient for the purposes of this Act and without
prejudice to the generality of the foregoing the regulations may
make provision in relation to all or any of the following-
INSURANCE 109
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(U) the qualifications of auditors and actuaries to be
appointed under this Act;
(b) the forms to be used in connection with any of the
provisions of this Act;
(c) the fees to be paid annually by persons registered
under this Act;
(d) the matters in respect of which fees are to be
payable and the amount of those fees;
(e) deposits to be made by insurance companies;
v) the maintenance and investment of funds by
insurance companies;
(g) the assignment of policies generally or by way of
mortgage or upon trust;
(h) the disposal and vesting of policy moneys that have
remained unclaimed for the prescribed periods;
( i ) the holding of examinations for brokers, sales
representatives and agents;
(I] amalgamations and transfers falling within section
31;
(k) the registers to be kept for the purposes of this Act;
(4 standards of corporate governance of insurers and
insurance intermediaries;
(m) the bond insurance coverage to be maintained by
insurance intermediaries.
(2) Regulations made under this section shall be subject
to negative resolution and may contain such incidental or
supplementary provisions as appear to the Commission to be
expedient for the purposes of the regulations.
(3) Notwithstand ing section 29 of the Interpretation Act,
regulations made under this section may provide for the
imposition of penalties on summary conviction in a Resident
Magistrate's Court of a fine not exceeding one million dollars or
imprisonment for a term not exceeding one year or of both such
fme and imprisonment.
-
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I10 INSURANCE
Excmptionr 145. Regulations made under this Act may authorize the
Commission to exempt any class of insurance business where
the Commission considers the exemption necessary, having
regard to the class of insurance business and to the provisions of
this Act.
146. An insurance company or insurance intermediary shall
not knowingly-
(a) make or permit to be made any statement; or
(b) issue, or permit to be issued, any advertisement,
statement, circular, descriptive booklet or other
document,
which is misleading or likely to mislead the public, in relation to
insurance business.
Mirleading
adveniu-
molt
Offeenoer 147-+1) A person commits an offence ifh-
(U) contravenes or hils to comply with any provision of
this Act or any direction, condition, obligation or
requirement given, imposed or made under any such
provisions;
(b) knowingly causes any person to enter into or make
application to enter into, a contract of insurance
with any person or body carrying on business in
contravention of this Act; or
(c) in purported compliance with a requirement
imposed under any provision of this Act to supply
information or provide an explanation or make a
statement-
(i) supplies information, provides an
explanation or makes a statement which
he knows to be false in a material
particular, or
(ii) recklessly supplies information, provides
an explanation or makes a statement
which is Ezlse in a material particular.
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WSURANCE 1 1 1
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(2) A person required under section 48 to produce
information books, securities or other documents commits an
offence if h e -
(a) destroys, mutilates or falsifies or is privy to the
destruction, mutilation or falsification of such
information books, securities or other documents;
(b) makes or is privy to the makiig of a false entry in
such books or documents; or
(c) i?audulently parts with, alters or makes an omission
in any such books or documents or is-privy to
ffaudulently parting with, ffaudulently altering or
fiaudulently making an omission in any such books
or documents.
(3) Where an offence against this Act is committed by
a body corporate and the offence is proved to have been
committed with the consent or connivance of, or to have been
facilitated by any neglect on the part of, any director, principal
officer or other officer or an actuary or auditor of the body
corporate, he as well as the body corporate shall be guilty of the
offence.
(4) For the purposes of subsection (3), a person shall be
deemed to be a director of a body corporate if he occupies in
relation thereto the position of a director, by whatever name
called, or is a person in accordance with whose directions or
instructions (excluding directions or instructions in a
professional capacity only) the directors of the body corporate
orany ofthemact.
( 5 ) Any proceedings against a person for an offence
against this Act shall be without prejudice to the cancellation of
the registration of such person under this Act or, in the case of
an insurance company, to any proceedings for the temporary
management, or the winding up, of the company which may be
taken in respect of the matter constituting the offence.
I12 INSURANCE
General
peMltleE
148. All offences against th is Act for which no other penalty
is prescribed are punishable on summary conviction in a
Resident Magistrate's Court by a fine not exceeding three
million dollars or imprisonment for a term not exceeding three
years.
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