Insurance Act

Link to law: http://www.parliament.gov.zm/node/1396
Published: 1968

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The Laws of Zambia

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REPUBLIC OF ZAMBIA

THE INSURANCE ACT

CHAPTER 392 OF THE LAWS OF ZAMBIA

CHAPTER 392 THE INSURANCE ACT

THE INSURANCE ACT

ARRANGEMENT OF SECTIONS

PART I

PRELIMINARY

Section

1. Short title

2. Application

3. Application in relation to Lloyd's

4. Interpretation

PART II

PROVISIONS RELATING TO INSURERS

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5. Qualifications for registration

6. Registration of insurers

7. Registered insurers to be licensed

8. Refusal, suspension and cancellation of insurers' licences

9. Representation against refusal, suspension or cancellation of an insurer's
licence

10. Cancellation of registration of insurers

11. Principal office and principal officer of registered insurers

12. Returns by and records of registered insurers

13. Audit of accounts of insurers

14. Publication of authorised capital, etc., of registered insurers

15. Amalgamations and transfers of insurance business

16. Statement in case of amalgamation or transfer of business

17. Life insurers carrying on business other than life insurance business

18. Periodical investigations to be made into financial position of life insurers

19. Reinsurance contracts of life insurers

PART III

PROVISIONS RELATING TO BROKERS

20. Registration of brokers

21. Registered broker to be licensed

22. Refusal, suspension and cancellation of brokers' licences

23. Cancellation of broker's registration

24. Principal office and principal officer of a registered broker

25. Returns by and records of registered brokers

26. Audit of the accounts of a registered broker

PART IV

PROVISIONS RELATING TO INSURANCE AGENTS

27. Insurance agents to be licensed

28. Refusal, suspension and cancellation of insurance agents' licences

PART V

SPECIAL PROVISIONS GOVERNING LIFE AND OTHER INSURANCE

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29. Value of certain assets

30. Minor may insure his life

31. Life policies effected by married persons

32. Life policy on own life: protection afforded during life

33. Protection for life beneficiaries on death of policy owner

34. Protection afforded in respect of life policy inuring to spouse or children

35. Protection afforded in respect of life policy inuring to wife

36. Certain provisions in life insurance policies to be of no force or effect

37. Selection for realisation of life policies in respect of which protection is afforded

38. Partial realisation and partial conversion of life policies

39. Provisions in case where life policy ceded or trust policy cannot be kept up

40. Life policies ceded or premiums paid with intent to benefit someone at the
expense of a creditor

41. Proof of age

42. Age incorrectly stated

43. Death of insured by his own act

44. Lost or destroyed life policies

45. Life policy may include disability benefits

46. Discrimination between life policies, etc., prohibited

47. Application of certain provisions of Part V to industrial policies

48. Application of certain provisions of Part V to sinking fund policies

49. Application of certain provisions of Part V to funeral policies and other
provisions in regard thereto

50. Days of grace, paid-up policies and non-forfeiture provisions: life, industrial and
sinking fund policies

51. Owner may cancel life policy within limited period without penalty

52. Days of grace, paid-up policies and non-forfeiture provisions: funeral policies

53. Grant of more favourable terms than those specified in section 50 or 52 not
precluded.

PART VI

OFFENCES AND PENALTIES

54. Unlawfully acting as an insurer

55. Unlawfully acting as a broker

56. Unlawfully acting as an insurance agent

57. Insurers not to accept business from unlicensed agents

58. Soliciting insurance business on behalf of an unregistered insurer or broker

59. Malpractice in life insurance

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PART VII

MISCELLANEOUS PROVISIONS

60. Registrar of Insurance

61. Annual reports by Registrar

62. Business information to be supplied by insurers and brokers

63. Documents to be signed and copies supplied

64. Translation of documents into English

65. Inspection of documents, etc.

66. Certified documents as evidence

67. Investigation of the affairs of an insurer or broker

68. Special deposit to cover liabilities of an insurer or broker

69. Provisions concerning deposits made by insurers and brokers

70. Insurance to relate to Zambia

71. Jurisdiction in relation to local policies

72. Policies not invalidated by failure to comply with the law

73. Insurance forms subject to approval

74. Policies to be printed in clearly legible form

75. Change of name of insurers and brokers

76. Registrar may re-classify insurance business

77. Preferred creditors of an insurer

78. Adaptation of prescribed forms

79. Control of motor insurance premiums

80. Association of insurers and/or brokers

81. Regulations

82. Transitional

CHAPTER 392

INSURANCE

An Act to make provision relating to the carrying on of insurance business; and to
provide for matters connected therewith and incidental thereto.

[1st January, 1968]

Act No.
10 of 1968
26 of 1976
28 of 1989
2 of 1992
13 of 1994

PART I

PRELIMINARY

1. This Act may be cited as the Insurance Act. Short title

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2. The provisions of this Act shall not extend or apply to-

(a) an association of individuals with no share capital established for the
purpose of rendering aid to its members or their dependants, commonly
called a friendly society, which does not at any time after the
commencement of this Act employ a person whose principal remunerated
occupation consists of inducing persons to become members of the
association or of collecting from members of the association contributions
or subscriptions towards the association's funds;

Application

(b) a person or class of persons declared by the President by order to be
exempt from the provisions of this Act; or

(c) a class of insurance business declared by the President by order to be
exempt from the provisions of this Act.

3. (1) For the purpose of this Act, Lloyd's shall be deemed to be an insurer provided
that-

Application in relation
to Lloyd's

(a) the provisions of subsection (2) of section seventy requiring certain policies
issued by a registered insurer to be issued in Zambia shall not apply to
policies issued by Lloyd's;

(b) the provisions of section eleven relating to the principal office and principal
officer of a registered insurer shall not apply to Lloyd's and

(c) nothing in this Act or regulations made thereunder shall prevent the
transaction of insurance business by any person if-

(i) he transacts that business as a member of Lloyd's;

(ii) Lloyd's is a registered insurer; and

(iii) the transaction of that business by a registered insurer is not
prevented by or under this Act.

(2) Any contravention of or failure to comply with any provision of this Act or of
regulations made thereunder by a member of Lloyd's shall be deemed to be a
contravention or failure by Lloyd's.

4. In this Act, unless the context otherwise requires- Interpretation

"bankruptcy" shall be construed in accordance with the law relating to bankruptcy
and as including an assignment to or arrangement or composition with
creditors made under the law relating thereto, and "bankrupt" shall be
construed accordingly;

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"broker" means a person who is not an insurance agent and who acts on behalf of
an insured or prospective insured, other than himself, in any type of
insurance transaction with a registered insurer;

"broker's licence" means a licence granted to a registered broker;

"chairman", in relation to an association of persons, includes the individual
presiding over the governing body of the association;

"child" includes an illegitimate child, stepchild or a child adopted in terms of any
enactment whatsoever, whether within or outside Zambia, relating to the
adoption of children;

"contingent obligation dependent on human life" means-

(a) an obligation to pay to a particular person certain sums of money at
specified intervals or a certain sum of money or to provide for a
particular person certain other benefits-

(i) on the occurrence of the death of a particular person or the
birth of a child to a particular person at any time or within a
specified period;

(ii) in the event of a particular person continuing to live
throughout a specified period or specified periods; or

(b) an obligation assumed-

(i) until the occurrence of the death of a particular person; or

(ii) during a specified period or until the occurrence of the death
of a particular person before the expiration of that period;

"dependant", in relation to any person, includes his surviving spouse and any
parent, child and grandchild of his;

"deposit" means a deposit of money but includes a deposit of anything having a
monetary value which by virtue of regulations made under this Act may be
accepted as a deposit;

"director" includes an individual occupying the position of director or alternate
director of an association of persons and a member or alternate member of
a committee of management or of any other governing body of an
association of persons, by whatever name he may be called;

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"external insurer" means a registered insurer whose head office is not in Zambia;

"financial year", in relation to a person, means each period at the end of which the
balance of his accounts is struck, whether that period is a year or not;

"funeral policy" means a policy whereby the insurer assumes, in return for a
premium or the promise of a premium, an obligation to provide, on the
death of any person, benefits, not exceeding in value a total of two hundred
kwacha, which consist principally of provision for the funeral of that person
or the grant to another person of some other non-monetary benefit, whether
or not the policy provides for-

(a) the payment at the option of the insurer or any other person, of a
sum of money instead of provision of a funeral or the grant of a
non-monetary benefit; or

(b) the payment of a sum of money in addition to the provision of a
funeral or the grant of some non-monetary benefit;

"industrial policy" means a policy whereby the insurer assumes, in return for a
premium or the promise of a premium payable from time to time, at
intervals not exceeding two months, a contingent obligation dependent on
human life, not exceeding in amount the sum of two hundred kwacha, if the
insurer has expressly or tacitly undertaken to send a person from time to
time to the owner of the policy or to his residence or place of work to collect
the premiums;

"insurance agent" means a person who solicits applications for insurance, collects
moneys by way of premiums or issues cover notes of insurance for and on
behalf of a registered insurer but does not include an employee serving in
the office of an insurer unless the emoluments of that employee are related
to the volume of business handled by him;

"insurance agent's licence" means a licence granted to an insurance agent under
Part IV;

"insurance business" means the business of assuming the obligations of an insurer
in any class of insurance business whatsoever, whether defined in this Act
or not, which is not declared to be exempt from the provisions of this Act by
order made in terms of paragraph (c) of section two, and includes
reinsurance business;

"insurer" means a person carrying on insurance business, otherwise than as a
broker or insurance agent, who is not a person or a member of a class of
persons declared to be exempt from the provisions of this Act by order
made in terms of paragraph (b) of section two;

"insurer's licence" means a licence granted to a registered insurer under Part II;

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"licensed insurance agent" means an insurance agent holding a valid insurance
agent's licence;

"life insurance business" means the business of assuming the obligations of an
insurer under life policies, funeral policies, industrial policies or sinking fund
policies;

"life insurance fund" means the fund to which the receipts of an insurer in respect
of his life insurance business are carried;

"life insurer" means a registered insurer carrying on life insurance business;

"life policy" means a policy whereby the insurer assumes, in return for the payment
or the promise of the payment of a sum or sums of money or the promise of
a periodical payment of a certain premium, a contingent obligation
dependent on human life, and includes any contract of insurance
customarily regarded as a life insurance contract, but does not include a
funeral policy, an industrial policy, a personal accident policy, a sinking fund
policy or an insurance policy whereby the insurer assumes a contingent
obligation dependent on human life in which the contingent obligation forms
a subordinate part of the insurance effected by the policy;

"Lloyd's" means the association of underwriters known as Lloyd's;

"local insurer" means a registered insurer whose head office is in Zambia;

"local policy" means a policy issued in Zambia upon a proposal made to a
registered insurer and includes a life policy issued outside Zambia and
subsequently made payable in Zambia at the request of the owner which
the owner has agreed in writing shall be treated as a local policy for the
purposes of this Act, but does not include a life policy made payable, after
the date of its issue, outside Zambia at the request of the owner which the
owner has agreed in writing shall not be treated as a local policy for the
purposes of this Act;

"minor" means a person who, by reason of his youth, is under a legal disability;

"owner", in relation to a policy, means the person who is entitled to enforce any
provision in the policy providing for benefits;

"personal accident policy" means a policy whereby the insurer assumes, in return
for the payment or the promise of payment of a sum or sums of money and
otherwise than incidentally to an insurance effected by means of some
other class of policy, an obligation to pay a certain sum or certain sums of
money to, or provide any other benefit for, a particular person in the event
of an accident or illness causing the death or injury or disability of a
particular person;

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"policy" means a valid insurance contract whatever the form in which the rights and
obligations of the parties to the contract are expressed or created, and
includes a sinking fund policy, but does not include an insurance contract in
which-

(a) a person or member of a class of persons declared to be exempt
from the provisions of this Act by order made under paragraph (b) of
section two assumes the obligation of the insurer; or

(b) a person assumes the obligations of an insurer in a class of
insurance business declared to be exempt from the provisions of
this Act by order made under paragraph (c) of section two;

"principal office" means the principal office of an insurer or broker provided for in
section eleven or twenty-four;

"principal officer" means the principal officer of an insurer or broker provided for in
section eleven or twenty-four;

"registered broker" means a broker registered under Part III;

"registered insurer" means an insurer registered under Part II;

"Registrar" means the Registrar of Insurance provided for in section sixty;

"sinking fund policy" means a contract whereby one party to the contract assumes
the obligation to pay, after the expiration of a certain period or during a
specified period, a certain sum or certain sums of money to a particular
person in return for the payment or the promise of a payment from time to
time of a certain sum of money by the other party to the contract;

"trustee", in relation to an estate in bankruptcy, includes an assignee or, as the
case may be, a trustee in a deed of arrangement or the person having the
conduct of an order of composition.

PART II

PROVISIONS RELATING TO INSURERS

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5. A person shall be qualified to be a registered insurer if the Registrar is satisfied-

(a) that all insurance business carried on by him within or outside Zambia is
carried on in accordance with sound insurance principles;

(b) that the class of insurance business to be carried on in Zambia is likely to
be carried on by him in accordance with sound insurance principles;

(c) that his management and operations are likely adequately to protect the
interests of the general public;

(d) that he has a margin of solvency sufficient in terms of regulations made
under this Act for the purposes both of the class of insurance business in
respect of which registration is sought or obtained and all other classes of
insurance business carried on by him within and outside Zambia;

(e) that a person who is a corporate body with share capital is lawfully formed
in accordance with the laws of the country in which his head office is situate
and has a paid-up share capital of not less than one hundred thousand
kwacha; and

(f) that the name of the person is not likely to be mistaken for the name of any
other insurer who is or has been a registered insurer.

Qualifications for
registration

6. (1) The Registrar shall register as an insurer in the class of business to which the
application relates any person who-

Registration of
insurers

(a) applies to him in the prescribed manner;

(b) is qualified to be a registered insurer under section five; and

(c) pays such fee as may be prescribed for registration as an insurer.

(2) Where an applicant for registration is not qualified to be a registered insurer
under section five, the Registrar shall reject the application and notify the applicant of the
rejection and of the appropriate provision or provisions of section five by virtue of which
the applicant is not qualified for registration.

(3) In rejecting an application for registration, the Registrar may notify the applicant
of the conditions which, if complied with by the applicant, would enable him to satisfy the
provision or provisions of section five by virtue of which he is not qualified for registration.

(4) The Registrar shall cause notice of every registration of an insurer to be
published in the Gazette.

7. (1) Subject to the provisions of this section, no person shall transact any class of
insurance business in Zambia as an insurer unless he is a registered insurer holding a
valid licence to transact that class of insurance business.

Registered insurers to
be licensed

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(2) Where an insurer's licence to transact a class of insurance business has been
suspended or cancelled, the provisions of subsection (1) shall not apply to business
relating to policies in that class of insurance which were issued by him before that
suspension or cancellation.

(3) Subject to the provisions of sections eight and nine, the Registrar shall, on
payment of the appropriate prescribed annual fee, grant a licence to a registered insurer
to transact insurance business of the class or classes to which his registration relates.

(4) Unless suspended or cancelled under this Part, a licence shall be valid until the
expiration of the calendar year in respect of which it is issued.

8. (1) The Registrar may, as the case may be, refuse to renew or suspend any
insurer's licence if-

Refusal, suspension
and cancellation of
insurers' licences

(a) the insurer ceases to be qualified under section five to be a registered
insurer;

(b) the Registrar considers that the insurer has contravened or failed to comply
with any provision of this Act or regulations made thereunder or of any
insurance law of another country applying to the insurer; or

(c) a judgment in any court against the insurer remains unsatisfied for
twenty-one days from the date of the judgment or, in the event of any
appeal, from the date of the judgment on appeal.

(2) The Registrar shall forthwith notify the insurer of the refusal or suspension under
subsection (1) of any insurer's licence and shall state his grounds for such refusal or
suspension.

(3) Any licence suspended under this section which remains suspended after sixty
days from the date the insurer is notified of the suspension shall without further notice be
cancelled.

9. (1) An insurer may on being notified of a suspension of his insurer's licence
make written representations to the Registrar showing cause why the suspension should
be revoked and, if before the expiration of sixty days from that notification the Registrar
considers that the grounds for the suspension are not applicable or have ceased to be
applicable to the insurer, the Registrar shall revoke his suspension of the licence.

Representation
against refusal,
suspension or
cancellation of an
insurer's licence

(2) A registered insurer who is aggrieved by a refusal or cancellation under section
eight of an insurer's licence of any class or classes may-

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(a) in the case of a refusal to renew a licence, within ninety days of being
notified of that refusal; and

(b) in the case of the cancellation of a licence, within thirty days thereof;

lodge with the Registrar a request for review.

(3) A request for review lodged under subsection (2) shall be in writing, shall specify
in detail the grounds upon which the request is based, and shall be forwarded by the
Registrar with his comments to the Minister.

(4) The Minister shall, within thirty days of receipt of a request therefor, review the
decision of the Registrar complained of and may-

(a) affirm that decision;

(b) indicate the conditions to be fulfilled by the insurer before an insurer's
licence may be granted; or

(c) direct the Registrar to grant an insurer's licence of one or more classes;

and the Minister shall cause the insurer to be notified of his decision.

(5) Where a licence is granted by the Registrar pursuant to a direction of the
Minister under subsection (4), the appropriate prescribed fee shall be payable by the
insurer save where the licence is in respect of a part of a year to which a licence
previously held by the insurer but cancelled under section eight related.

10. (1) The Registrar shall cancel the registration in any class of insurance
business of an insurer who-

Cancellation of
registration of insurers

(a) has held no insurer's licence in that class during the period of six months
immediately preceding: provided that the registration of an insurer who has
requested a review under section nine shall not be cancelled save with the
approval of the Minister;

(b) the Registrar is satisfied has ceased to transact insurance business of that
class in Zambia; or

(c) himself or by way of any person having control of his affairs so requests.

(2) The Registrar shall cause notice of every cancellation of the registration of an
insurer to be published in the Gazette.

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11. (1) A registered insurer shall, for the sole purpose of transacting insurance
business, maintain a principal office in Zambia and shall notify the Registrar of the
address thereof and, if it is proposed to change that address, shall notify the Registrar of
the new address of the principal office not less than three weeks in advance of the
change.

Principal office and
principal officer of
registered insurers

(2) The registered insurer shall be represented in Zambia by a principal officer who
shall be appointed in writing by the head office of the registered insurer after the Registrar
has signified that in his opinion the person in question possesses the prescribed minimum
qualifications and is not disqualified by any regulations under this Act from such
appointment.

(3) The principal officer shall have a power of attorney sufficient to satisfy the
Registrar that that officer is authorised to act for the registered insurer in all matters to
secure the compliance of the insurer with the provisions of this Act and regulations made
thereunder and a copy of such power of attorney shall be lodged with the Registrar
immediately after every appointment of a principal officer.

12. (1) A registered insurer shall each year submit to the Registrar in accordance
with regulations made under this Act such information as may be prescribed relating to the
insurance business transacted by him during the twelve months immediately preceding
the date prescribed for the submission of that information.

Returns by and
records of registered
insurers

(2) If in the opinion of the Registrar any information submitted by a registered
insurer does not comply with the requirements of subsection (1), the Registrar may notify
the insurer accordingly and, until the expiration of thirty days from that notification, the
insurer shall be deemed not to have failed to comply with those requirements.

(3) A registered insurer shall keep at his principal office in Zambia such original
records and documents relating to his insurance business in Zambia as may be necessary
to enable his principal officer to prepare the information to be submitted under subsection
(1), and such records and documents shall be kept in such manner as to facilitate
verification by the Registrar and shall be so kept for not less than five years from the date
on which the transactions to which they relate occurred.

(4) A local insurer shall keep at his head office in the manner and for the period
prescribed such additional records and documents as may be prescribed.

13. (1) An external insurer shall each year furnish evidence showing to the
satisfaction of the Registrar that his accounts have been subject to an annual audit by an
independent auditor.

Audit of accounts of
insurers

(2) The accounts of a local insurer shall be audited annually by an independent
auditor approved by the Registrar and the auditor shall either-

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(a) certify that-

(i) the accounts have been properly prepared in accordance with the
records of the insurer;

(ii) the records of the insurer contain information adequate for the
purpose of his audit; and

(iii) the balance sheet and profit and loss account of the insurer give a
true and fair view of the insurer's financial position and his profit or
loss respectively; or

(b) notify the Registrar that he is unable to complete the certificate provided for
in paragraph (a) giving his reasons.

14. No registered insurer shall publish a statement or issue a document on which
there appears a statement-

(a) of his authorised capital, unless the statement also sets forth the amount of
his subscribed capital and of his paid-up capital; or

(b) of his subscribed capital, unless the statement also sets forth the amount of
his paid-up capital.

Publication of
authorised capital,
etc., of registered
insurers

15. (1) No registered insurer shall- Amalgamations and
transfers of insurance
business

(a) amalgamate with one or more insurers; or

(b) transfer any insurance business to or take transfer of any insurance
business from another insurer;

unless the amalgamation or, as the case may be, the transfer is sanctioned by the
Minister in accordance with the provisions of this section.

(2) If it is intended to amalgamate two or more insurers or to transfer any insurance
business of one insurer to another insurer, the insurers concerned may apply to the
Minister to sanction the proposed amalgamation or, as the case may be, transfer.

(3) Before an application to the Minister is made in terms of subsection (2)-

(a) notice of the intention to make the application shall be published in the
Gazette; and

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(b) a statement of the nature of the amalgamation or, as the case may be,
transfer, together with-

(i) an abstract containing the material facts embodied in the agreement
under which the amalgamation or transfer is proposed to be
effected; and

(ii) where applicable, copies of the actuarial reports upon which the
agreement referred to in sub-paragraph (i) is founded, including a
report by an actuary approved by the Registrar;

shall be posted to the registered or last known address of every policy owner in Zambia of
each insurer and to the Registrar; and

(c) the agreement under which the amalgamation or, as the case may be,
transfer is proposed to be effected shall be open for inspection by owners
of policies and shareholders at the offices of the insurers in Zambia for a
period of twenty-one days after the publication of the notice in the Gazette.

(4) The Minister, after considering the application and such representations as may
be made by owners of policies and shareholders of the insurers concerned and by other
persons whom he considers are entitled to be heard, may sanction the proposed
amalgamation or transfer if he is satisfied that no sufficient objection thereto has been
established.

(5) The Minister shall not sanction an amalgamation or, as the case may be,
transfer if it appears to him that the owners of policies aggregating one-fifth or more of the
total amount insured by any of the insurers concerned, dissent from the amalgamation or
transfer.

(6) If an amalgamation or transfer has taken place in accordance with the provisions
of this section, no owner of a policy shall be regarded as having abandoned any claim
which he would have had against the original insurer or to have accepted in place thereof
the liability of another insurer, unless he or his agent has signed a written document
abandoning that claim and accepting in place thereof the liability of that other insurer.

(7) Nothing in this section provided shall be deemed to apply to an arrangement
under which a registered insurer places business with another insurer by way of
reinsurance.

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16. Within three months of the date of the completion of an amalgamation or
transfer sanctioned under section fifteen, the combined insurer or, as the case may be,
the purchasing insurer shall deposit with the Registrar-

(a) certified copies of statements of the assets and liabilities of the insurers
concerned in the amalgamation or transfer, together with a statement of the
nature and terms of the amalgamation or transfer; and

(b) a certified copy of the agreement or deed under which the amalgamation or
transfer was effected; and

(c) certified copies of the actuarial or other reports upon which the agreement
or deed was founded; and

(d) a declaration under the hand of the chairman and the principal officer of
each insurer that-

Statement in case of
amalgamation or
transfer of business

(i) to the best of their knowledge and belief, all payments made or to be
made to any person whatsoever on account of the amalgamation or
transfer are therein fully set forth and no other payments, except
those set forth, have been made or are to be made, either in money,
policies, bonds, valuable securities or other property, by or with the
knowledge of the parties to the amalgamation or transfer; and

(ii) due notice of the proposed amalgamation or transfer was given to
the shareholders, if any, and the owners of policies with each insurer
concerned in compliance with the provisions of section fifteen.

17. (1) A life insurer who carries on, in addition to his life insurance business, any
other business, whether insurance business or otherwise, shall keep a separate account
of all receipts in respect of his life insurance business.

Life insurers carrying
on business other than
life insurance business

(2) The receipts in respect of the business of a life insurer referred to in subsection
(1) which are receipts in respect of his life insurance business shall be carried to and form
part of the life insurance fund.

(3) The life insurance fund of a life insurer referred to in subsection (1) shall be as
absolutely the security of the owners of the life, funeral, industrial and sinking fund policies
issued by the life insurer as though it belonged to a life insurer carrying on no other
business than life insurance business. Payments from the life insurance fund of a life
insurer referred to in subsection (1) shall not be made in pursuance of the contracts of the
life insurer which would not be made if the business of the life insurer were only that of life
insurance, and the life insurance fund shall not be applied directly or indirectly to any
purposes other than those of life insurance.

(4) Nothing in this section contained shall preclude a life insurer referred to in
subsection (1) from investing the life insurance fund in the same investments as any other
fund.

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18. (1) A life insurer shall, once in every three years, cause an investigation to be
made into his financial position by an actuary approved by the Registrar.

Periodical
investigations to be
made into financial
position of life insurers

(2) An investigation into the financial position of a life insurer made in terms of
subsection (1) shall include-

(a) a valuation of the liabilities in respect of the whole of his life insurance
business; and

(b) a valuation of the liabilities in respect of his life insurance business in
Zambia.

(3) A life insurer whose financial position is investigated in terms of this section,
shall prepare and furnish to the Registrar in the appropriate forms prescribed, within six
months of the date to which his accounts are made up for the purposes of the
investigation, an abstract of the report of the actuary approved by the Registrar by whom
the investigation was made, and a statement of his insurance business at that date.

(4) An external insurer who carries on life insurance business, whether or not he
carries on life insurance business in Zambia, shall, whenever he furnishes to the
appropriate authority in the country in which his head office is situate, an abstract,
statement, return or other document reflecting the results of an actuarial investigation of
the liabilities of the whole of his life insurance business, furnish a copy of the abstract,
statement, return or other document to the Registrar.

(5) Notwithstanding the provisions of subsections (1) to (3), the Registrar may,
subject to the provisions of subsection (6), require a life insurer who he suspects is not
conducting his life insurance business in accordance with sound insurance principles to
prepare and furnish, within six months commencing on the date the Registrar calls upon
him in writing to do so, valuations of the liabilities referred to in paragraphs (a) and (b) of
subsection (2) and an abstract and statement referred to in subsection (3).

(6) The Registrar shall not require a life insurer to prepare and furnish the
documents referred to in subsection (5) more than once in any year.

19. No life insurer shall enter into a contract of reinsurance against any liability in
respect of his life insurance business in Zambia otherwise than with a life insurer or
reinsurer.

Reinsurance contracts
of life insurers

PART III

PROVISIONS RELATING TO BROKERS

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20. (1) Subject to the provisions of this Act and regulations made thereunder, the
Registrar shall register as a broker any person who-

Registration of brokers

(a) applies to him in the prescribed manner

(b) is qualified under regulations made under this Act to be a registered broker;
and

(c) pays such a fee as may be prescribed for registration as a broker.

(2) Where an applicant for registration is not qualified under regulations made under
this Act to be a registered broker, the Registrar shall reject the application and notify the
applicant of the rejection and of the appropriate provision or provisions of such regulations
by virtue of which the applicant is not qualified for registration.

(3) In rejecting an application for registration, the Registrar may notify the applicant
of the conditions which, if complied with by the broker, would enable him to satisfy the
provision or provisions of the regulations by virtue of which he is not qualified for
registration.

(4) The Registrar shall cause notice of every registration of a broker to be published
in the Gazette.

21. (1) No person shall act in Zambia as a broker unless he is a registered broker
holding a valid broker's licence.

Registered brokers to
be licensed

(2) Subject to the provisions of section twenty-two, the Registrar shall on payment of
the prescribed annual fee grant a broker's licence to a registered broker.

(3) Unless suspended or cancelled under this Part, a broker's licence shall be valid
until the expiration of the calendar year in respect of which it is granted.

22. (1) The Registrar may, as the case may be, refuse to renew or suspend any
broker's licence if-

Refusal, suspension
and cancellation of
brokers' licences

(a) the broker ceases to be qualified under regulations made under this Act to
be a registered broker; or

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(b) the Registrar considers that the broker has contravened or failed to comply
with any provisions of this Act or regulations made thereunder or of any
insurance law of another country applying to the broker.

(2) The Registrar shall forthwith notify the broker of a refusal or suspension under
subsection (1) of any broker's licence and shall state his grounds for such refusal or
suspension.

(3) The broker may on receiving notification under subsection (2) make written
representations to the Registrar showing cause why the suspension should be revoked or,
as the case may be, the licence should be renewed and, if before the expiration of thirty
days from that notification the Registrar considers that the grounds for his action are not
applicable or have ceased to be applicable to the broker, the Registrar shall revoke his
suspension of or renew the licence as the case may be.

(4) Any licence suspended under this section which remains suspended after sixty
days from the date the broker is notified of the suspension shall without further notice be
cancelled.

23. (1) The Registrar shall cancel the registration of a broker- Cancellation of
broker's registration

(a) whose broker's licence has been cancelled under this Part;

(b) who has held no broker's licence during the period of sixty days
immediately preceding;

(c) who the Registrar is satisfied has ceased to act as a broker in Zambia; or

(d) who himself or by way of any person having control of his affairs so
requests.

(2) The Registrar shall cause notice of every cancellation of the registration of a
broker to be published in the Gazette.

24. (1) A registered broker shall for the sole purpose of transacting business as a
broker maintain a principal office in Zambia and shall notify the Registrar of the address
thereof and, if it is proposed to change that address, shall notify the Registrar of the new
address not less than three weeks in advance of the change.

Principal office and
principal officer of a
registered broker

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(2) A registered broker shall be represented in Zambia by a principal officer who
shall be appointed in writing by the head office of the registered broker after the Registrar
has signified that in his opinion the person in question has the prescribed minimum
qualifications and is not disqualified by any regulations made under this Act from such
appointment.

25. (1) A registered broker shall each year submit to the Registrar in accordance
with regulations made under this Act such information as may be prescribed relating to his
business during the twelve months immediately preceding the date prescribed for the
submission of that information.

Returns by and
records of registered
brokers

(2) If in the opinion of the Registrar any information submitted by a registered broker
does not comply with the requirements of subsection (1), the Registrar may notify the
broker accordingly and, until the expiration of thirty days from that notification, the broker
shall be deemed not to have failed to comply with those requirements.

(3) A registered broker shall keep at his principal office in Zambia such original
records and documents relating to his business in Zambia as may be necessary to enable
his principal officer to prepare the information to be submitted under subsection (1), and
such records and documents shall be kept in such manner as to facilitate verification by
the Registrar and shall be so kept for not less than three years from the date on which the
transactions to which they relate occurred.

26. (1) A registered broker whose head office is outside Zambia shall each year
furnish evidence showing to the satisfaction of the Registrar that his accounts have been
subject to an annual audit by an independent auditor.

Audit of the accounts
of a registered broker

(2) The accounts of a registered broker whose head office is within Zambia shall be
audited annually by an independent auditor approved by the Registrar and the auditor
shall either-

(a) certify that-

(i) the accounts have been properly prepared in accordance with the
records of the broker;

(ii) the records of the broker contain information adequate for the
pourpose of his audit;

(iii) the balance sheet and profit and loss account of the broker give a
true and fair view of the broker's financial position and his profit or
loss respectively; or

(b) notify the Registrar that he is unable to complete the certificate provided for
in paragraph (a) giving his reasons.

(As amended by Acts No. 26 of 1976 and No. 21 of 1992)

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PART IV

PROVISIONS RELATING TO INSURANCE AGENTS

27. (1) No person shall act in Zambia as an insurance agent save under a valid
licence granted under this Part.

Insurance agents to be
licensed

(2) Subject to the provisions of this Act and regulations made thereunder, the
Registrar shall grant an insurance agent's licence to any person who-

(a) applies to him in the prescribed manner;

(b) is qualified under regulations made under this Act to be a licensed
insurance agent; and

(c) pays such fee as may be prescribed for an insurance agent's licence.

(3) Unless suspended or cancelled under this Part, an insurance agent's licence
shall be valid until the expiration of the calendar year in respect of which it is granted.

(4) An insurance agent's licence shall allow the holder to act as an insurance agent
for the registered insurer named in the licence:

Provided that nothing in this subsection shall prevent an insurance agent from being
granted more than one insurance agent's licence in order to act for more than one
registered insurer.

28. (1) The Registrar may, as the case may be, refuse to renew or suspend any
insurance agent's licence if-

Refusal, suspension
and cancellation of
insurance agents'
licences

(a) the insurance agent ceases to be qualified under regulations made under
this Act to be a licensed insurance agent;

(b) the Registrar considers that the insurance agent has contravened or failed
to comply with any provision of this Act or regulations made thereunder; or

(c) the Registrar considers that the insurance agent has in his dealings with
any member of the public acted otherwise than in accordance with sound
insurance practice.

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(2) The Registrar shall forthwith notify an insurance agent of the refusal to renew or
suspension of his insurance agent's licence and shall state his grounds for such refusal or
suspension.

(3) An insurance agent may on receiving notification under subsection (2) make
written representations to the Registrar showing cause why the suspension should be
revoked or, as the case may be, the licence should be renewed and, if before the
expiration of thirty days from that notification the Registrar considers that the grounds for
his action are not applicable or have ceased to be applicable to the insurance agent, the
Registrar shall revoke his suspension of or renew the licence, as the case may be.

(4) Any licence suspended under this section which remains suspended after sixty
days from the date the insurance agent is notified of the suspension shall without further
notice be cancelled.

PART V

SPECIAL PROVISIONS GOVERNING LIFE AND OTHER INSURANCE

29. If the proceeds on realisation of an asset, which was acquired with moneys
paid by the insurer under a life policy and with other moneys, exceed in amount the
moneys paid under the policy which were used for the purpose of acquiring the asset, a
reference in this Part to the proceeds on realisation of the asset shall be construed as a
reference to the amount of the moneys paid under the policy which were used for the
purpose of acquiring the asset, and a reference to the value of any such asset shall be
construed accordingly.

Value of certain assets

30. (1) A minor who has attained the age of eighteen years may, without the
consent of his guardian, effect a life policy upon his own life and pay any premium due
under the policy with any money at his disposal.

Minor may insure his
life

(2) Subject to the provisions of subsection (3), a minor who has effected a life policy
upon his own life as in subsection (1) is provided shall be as competent in all respects to
be the owner of such policy and to have and to exercise all the powers and privileges of
such owner in relation to the policy as if he were of full age.

(3) A minor who has effected a life policy upon his own life shall not, without the
consent of his guardian, pledge, cede or surrender the policy while he remains a minor.

(4) If any money becomes payable to a minor who has attained the age of eighteen
years under a life policy effected by him on his own life, the insurer liable under the policy
shall pay that money to the minor, who may, without the consent of his guardian, deal
therewith as he thinks fit.

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31. (1) Notwithstanding anything to the contrary contained in any law or in the
common law, but subject to the provisions of this Part-

Life policies effected
by married persons

(a) a married woman may, in all respects as if she were a single woman of full
age and capacity-

(i) effect and own a life policy;

(ii) hold and, by way of gift or otherwise, acquire from or dispose of to
any person, including her husband, any interest in a life policy;

(iii) hold any moneys paid by the insurer in respect of any interest held
by her in a life policy or any assets acquired by her with those
moneys;

(iv) hold any moneys or assets acquired by her in respect of the
disposal of any interest held by her in a life policy or any assets
acquired by her with those moneys; and

(v) dispose of to any person, including her husband, by way of gift or
otherwise, any moneys or assets referred to in sub-paragraphs (iii)
and (iv); and

(b) a married man may, in all respects as if he were a single man of full age
and capacity, by way of gift acquire from or dispose of to his wife-

(i) any interest in a life policy;

(ii) any moneys paid by the insurer in respect of any interest in a life
policy or any assets acquired with those moneys; and

(iii) any moneys or assets acquired in respect of the disposal of any
interest in a life policy or any assets acquired with those moneys.

(2) The provisions of paragraph (a) of subsection (1) shall apply in relation to-

(a) a life policy effected by a married woman before her marriage;

(b) any interest in a life policy acquired by a married woman before her
marriage;

(c) any moneys due or paid to a married woman before her marriage in respect
of a life policy referred to in paragraph (a) or any interest in a life policy
referred to in paragraph (b) or acquired by her before her marriage in
respect of the disposal of any interest in a life policy; or

(d) any assets acquired by a married woman before her marriage with moneys
referred to in paragraph (c);

as if the policy, interest, moneys or assets was or were effected or paid to or acquired by
her or became due during her marriage.

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32. (1) If a life policy effected by a person, whether married or not, on his or her
own life which has inured for three years from the date of the payment of the first premium
or longer-

Life policy on own life:
protection afforded
during life

(a) is attached in execution of a judgment or order of any court at the instance
of a creditor of that person; or

(b) becomes part of that person's estate in bankruptcy;

during the lifetime of that person, the proceeds on realisation of the policy shall, to the
extent specified in subsection (2), be protected against that person's creditors and against
any claim in connection with the attachment or bankruptcy.

(2) The protection afforded by the provisions of subsection (1) in respect of a life
policy referred to in that subsection-

(a) shall extend to so much of the proceeds on realisation of the policy as does
not exceed an amount of four thousand kwacha; and

(b) shall, subject to the provisions of paragraph (a), extend, if the policy is
pledged, to so much of the proceeds on realisation of the policy as exceeds
the amount of the liability, the payment of which the pledge secures, but no
further.

(3) If moneys due or paid by the insurer under a life policy referred to in subsection
(1) or assets acquired with those moneys or with those moneys and other moneys-

(a) are attached in execution of a judgment or order of any court at the
instance of a creditor of a person by whom the policy was effected; or

(b) become part of the estate in bankruptcy of the person by whom the policy
was effected;

during the period of five years from the date the moneys due or paid under the policy first
became due, the moneys due or paid under the policy or the proceeds on realisation of
the assets shall, to the extent specified in subsection (4), be protected against that
person's creditors and against any claim in connection with the attachment or bankruptcy.

(4) The protection afforded by the provisions of subsection (3) in respect of moneys
or assets of a person referred to in that subsection-

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(a) shall extend to those moneys or the proceeds on realisation of those assets
in so far as those moneys and proceeds, together with-

(i) all other moneys due or paid to that person under life policies
referred to in subsection (1);

(ii) the value of all other existing assets of that person acquired with
moneys paid under life policies referred to in subsection (1) or with
such moneys and other moneys; and

(iii) the realisable value of all life policies referred to in subsection (1) of
which that person is the owner;

do not exceed four thousand kwacha;

(b) shall, subject to the provisions of paragraph (a), extend, in the case of an
asset which is pledged or mortgaged, to so much of the proceeds on
realisation of the asset as exceeds the amount of the liability, the payment
of which the pledge or mortgage secures, but no further; and

(c) shall not extend to any moneys due or paid under a life policy referred to in
subsection (1) on surrender of the policy or to any assets acquired with
those moneys or with those moneys and other moneys.

(5) For the purposes of this section-

(a) a life policy which an insurer issues in exchange for or in consideration of
the surrender of another life policy under which the insurer was previously
liable shall be regarded as having been effected on the date on which the
surrendered policy was issued if the insurer received no payment other than
the value of the surrendered policy as a consideration for the new policy;

(b) a life policy which an insurer issues in terms of subsection (3) of section
thirty-eight shall be regarded as having been effected on the date on which
the old life policy for which it was substituted was issued.

33. If, on the death of the owner of a life policy, money or assets in respect of
which protection is afforded by the provisions of section thirty-two, a dependant has a
claim under such policy or to such money or assets, and the policy, money or assets-

(a) are attached in execution of a judgment or order of any court at the
instance of a creditor of the deceased owner; or

(b) become part of the deceased owner's estate in bankruptcy;

the dependant shall, in respect of his claim, enjoy the protection afforded by section
thirty-two.

Protection for life
beneficiaries on death
of policy owner

34. (1) If- Protection afforded in
respect of life policy
inuring to spouse or
children

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(a) before or during marriage a man effects or cedes for the benefit of his wife
or his wife and children, including children to be born to him and his wife, or
any of them:

(b) before or during marriage a woman effects or cedes for the benefit of her
husband or her husband and children, including children to be born to her
and her husband, or any of them; or

(c) a person effects or cedes for the benefit of his or her children, including
children to be born to him or her;

a life policy on his or her life or on the life of his or her spouse, the policy or moneys due to
be paid thereunder by the insurer or any asset acquired with those moneys shall not,
subject to the provisions of this section and, in the case of a policy which is ceded, to the
terms of the cession-

(i) be liable to be attached in execution of a judgment or order of any court at
the instance of a creditor of the person by whom the policy was effected or
ceded; or

(ii) form part of the estate in bankruptcy of the person by whom the policy was
effected or ceded.

(2) A benefit conferred or purported to be conferred upon a spouse or child under a
life policy referred to in subsection (1) by virtue of the cession of a life policy referred to in
that subsection shall, notwithstanding any agreement to the contrary between the insurer
and the person by whom the policy was effected, but subject, in the case of a policy which
is ceded, to the terms of the cession, be enforceable against the insurer liable under the
policy at the suit of the spouse or child or the legal representative of the spouse or child,
notwithstanding that the spouse or child has not accepted the benefit and is not a party to
the contract of insurance.

(3) A life policy shall not be treated for the purpose of this section as having been
effected for the benefit of the spouse and, additionally or alternatively, the children,
including unborn children, or any of them, of the person by whom the policy was effected
unless, at the time of its issue, the policy expressly so provides.

35. (1) If, before or during marriage, a man effects or cedes for the benefit of his
wife a life policy on his or her life and the policy-

Protection afforded in
respect of life policy
inuring to wife

(a) is attached in execution of a judgment or order of any court at the instance
of her creditors; or

(b) becomes part of her estate in bankruptcy;

the proceeds on realisation of the policy shall, to the extent specified in subsection (2) of
section thirty-two, be protected against her creditors and against any claim in connection
with the attachment or bankruptcy.

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(2) The provisions of subsections (3) to (5) of section thirty-two and of subsections
(2) and (3) of section thirty-four shall, mutatis mutandis, apply to a life policy referred to in
subsection (1) or moneys due or paid thereunder by the insurer or any assets acquired
with those moneys or with those moneys and other moneys.

36. (1) A provision in a life policy issued on or after the 27th November, 1959- Certain provisions in
life insurance policies
to be of no force or
effect

(a) in which a person is named as a beneficiary; or

(b) which confers on a person, other than the person effecting the policy or his
estate, a benefit provided for in the policy;

shall not, subject to the provisions of subsection (2), be of force or effect.

(2) The provisions of subsection (1) shall not apply to-

(a) a life policy effected for the benefit of a spouse and, additionally or
alternatively, children, including unborn children, to which the provisions of
section thirty-four relate;

(b) a life policy effected for the benefit of a wife to which the provisions of
section thirty-five relate which was issued before the 27th November, 1959;
or

(c) the cession of a benefit provided for in a life policy.

37. If-

(a) two or more life policies or assets in respect of which protection is afforded
by the provisions of section thirty-two, thirty-three or thirty-five, being the
property of one person, are attached in execution of a judgment or order of
any court at the instance of a creditor; or

(b) the owner of two or more life policies or assets in respect of which
protection is afforded by the provisions of section thirty-two, thirty-three or
thirty-five is adjudged or otherwise declared bankrupt;

and a part only of the aggregate realisable value of the policies or assets is protected, the
judgment creditor or, as the case may be, the trustees of the estate in bankruptcy shall
determine which policy or policies or other asset or other assets shall be realised, wholly
or partly, in order to make available to him so much of the aggregate realisable value as is
not protected.

Selection for
realisation of life
policies in respect of
which protection is
afforded

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38. (1) A judgment creditor of the owner of a life policy or the trustee of his estate in
bankruptcy who is entitled to a part of the realisable value of the policy may, if he is in
possession of the policy, deliver it to the insurer who is liable under the policy for the
purposes of the payment to him of the sum to which he is entitled.

Partial realisation and
partial conversion of
life policies

(2) If a judgment creditor or trustee referred to in subsection (1) is not in possession
of the life policy to which the provisions of that subsection relate, the owner or any other
person in possession of the policy shall, at the request of the judgment creditor or trustee,
deliver it to the insurer who is liable under the policy for the purposes of the payment to
the judgment creditor or trustee of the sum to which he is entitled.

(3) On receipt of a life policy delivered to him in terms of subsection (1) or (2), the
insurer shall-

(a) at the request of the judgment creditor or trustee referred to in subsection
(1), pay to him a sum equal to the part of the realisable value of the policy
to which he is entitled; and

(b) at the request of the owner of the policy, issue to him a new policy of the
same class, but for a sum insured equal to the difference between-

(i) the full sum insured under the old policy, including any bonus which
may have accrued in connection therewith; and

(ii) an amount which bears the same ratio to the full sum insured under
the old policy, including any bonus, as the amount paid by the
insurer to the judgment creditor or trustee referred to in subsection
(1) bears to the full realisable value of the old policy.

(4) If an insurer has made the payment and issued a new life policy as in subsection
(3) provided, the old life policy shall lapse.

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39. If a person who-

(a) has effected or ceded a life policy for the benefit of his spouse, and,
additionally or alternatively, children, including unborn children, or any of
them; or

(b) holds a life policy in trust for any other person and is obliged to pay the
premiums on the policy;

is or has been unable to pay the premiums, that person may, with the consent of each
person who has an interest in the policy or, if any such person is a minor, with the consent
of his guardian or the Registrar of the High Court, agree with the insurer liable under the
policy-

(i) to exchange the policy for a paid-up life policy of a value equal to that of the
original policy according to the insurer's current tariff, payable at the time
and in the manner stipulated in the original policy to the person or persons
entitled to the sum insured by the original policy; or

(ii) to borrow from the insurer upon security of the policy such sums as may be
necessary to keep the policy in force or to revive it; or

(iii) to apply any bonus which may have accrued in connection with the policy to
a temporary or permanent reduction of premiums or to the payment of any
premiums which have fallen due.

Provisions in case
where life policy ceded
or trust policy cannot
be kept up

40. (1) Nothing in this Part contained shall be construed as derogating from the
power of a competent court to set aside, under the law relating to bankruptcy, any cession
of a life policy made with intent to benefit someone at the expense of a creditor.

Life policies ceded or
premiums paid with
intent to benefit
someone at the
expense of a creditor

(2) If a premium upon a life policy was paid with intent to benefit a person at the
expense of a creditor of the person making the payment, a competent court may order the
owner of the policy to pay a sum equal to the aggregate of all premiums so paid, with
interest at the rate of six per centum per annum, on the amount of each premium so paid
from the date of its payment to the person to whose detriment the premium was or the
premiums were paid or, if the person has been adjudged or otherwise declared bankrupt,
to the trustee of his estate in bankruptcy.

(3) An order for the payment of a sum of money made in terms of subsection (2)
shall have the effect of pledging the life policy referred to in that subsection to the person
entitled to the payment as security for the payment and, until the payment is made, that
person shall be entitled to possess the policy.

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41. If-

(a) a claim is made for a benefit under a life policy which has inured for a
period of three years from the date of the payment of the first premium; and

(b) the age or date of birth of the insured has not been admitted by the insurer
liable under the policy; and

(c) the person claiming the benefit shows that, owing to circumstances beyond
the control and through no default either of himself or of the person by
whom the policy was effected, there was, at no time after the date of the
payment of the first premium under the policy, either in existence or
available any documentary evidence affording reasonable proof of the age
or date of birth of the insured;

Proof of age

any written statement made in the proposal or application for the policy as to the age or
date of birth of the insured shall be accepted for the purposes of the claim as the correct
age or date of birth of the insured, unless the contrary is proved by records of a medical
examination of the insured, made at the instance of the insurer, within the period of three
years referred to in paragraph (a) or in any other manner.

42. (1) If after the issue of a life policy it is proved that the policy is based upon an
incorrect statement of the age of the person whose life is insured, the sum insured and
other benefits under the policy shall, subject to the provisions of subsection (2), be the
same as those which the premiums payable under the policy would have secured had the
policy been based upon a correct statement of the person's age.

Age incorrectly stated

(2) If the Registrar is satisfied that the actuarial nature of life policies of any
particular kind is such as to render the application of the provisions of subsection (1)
inequitable, he may direct an insurer to apply, in relation to policies of that kind such other
method of making adjustments in respect of incorrect statements of age as may appear to
the Registrar to be equitable.

43. (1) No life policy in which it is provided that the policy shall be void in the event
of the insured, whether sane or insane, dying by his own act within a stipulated period
shall be void for that reason if the insured dies by his own act after the expiration of that
period.

Death of insured by
his own act

(2) A life policy in which no provision such as is referred to in subsection (1) is
contained shall not be void by reason of the insured, whether sane or insane, dying by his
own act at any time after the issue of the policy.

44. (1) If a local life policy is lost or destroyed and the loss or destruction is proved
and advertised in the manner prescribed, the insurer liable under the policy shall, at the
request of the owner of the policy and on payment by that owner to the insurer of the
prescribed fee, issue to the owner-

Lost or destroyed life
policies

(a) a correct and certified copy of the policy upon which shall be inscribed any
endorsement made by the insurer on the original policy after its issue; and

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(b) a correct and certified copy of any record in the possession of the insurer of
any dealings with the policy after its issue.

(2) A certified copy of a life policy issued in terms of subsection (1) shall for all
purposes-

(a) take the place of the policy lost or destroyed; and

(b) be the sole evidence of the contract made by the policy.

45. (1) If a registered insurer by notice in writing- Life policy may include
disability benefits

(a) informs the Registrar that he has issued on or before the commencement of
this Act, or that he intends to issue, local life policies which provide
benefits-

(i) on the total or partial permanent disablement of the person whose
life such a policy insures; or

(ii) on the death of the person whose life such a policy insures as a
result of an accident or a particular disease; and

(b) requests the Registrar that the policies referred to in paragraph (a) shall be
treated for the purposes of this Act as life policies only;

any such policy issued by the insurer on or before the commencement of this Act or after
notification to the Registrar as in paragraph (a) is provided shall, subject to the provisions
of subsection (2), be treated, for the purposes of this Act, as a life policy only.

(2) A policy referred to in paragraph (a of subsection (1) shall not be treated for the
purposes of this Act as a life policy only if the value of the benefits referred to in
sub-paragraphs (i) and (ii) of that paragraph which it provides exceeds an amount equal to
a waiver of claims to a premium under the policy in respect of the period of disability,
together with-

(a) a monthly benefit, payable during the period of the disability of the person
whose life the policy insures, but not extending beyond the date of
termination of the risk of the life insurance proper effected by the policy,
amounting to one and one-quarter per centum of the sum payable under
the policy on the death of the person;

(b) a lump sum equal to the sum payable under the policy on the death of the
person whose life the policy insures; or

(c) in the case of a deferred annuity policy, a monthly benefit, payable during
the period of the disability of the person whose life the policy insures, but
not extending beyond the date as from which the annuity will become
payable, amounting to one-twelfth of the annuity.

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(3) A local life policy providing benefits such as are described in paragraph (a) of
subsection (1) which cannot, by reason of the provisions of subsection (2), be treated for
the purposes of this Act as a life policy only shall, for the purposes of this Act, be treated
as both a life policy and a personal accident policy.

46. (1) No insurer shall make or permit to be made any discrimination in respect of
the rate of premiums charged or the rate of bonuses granted between life policies which
are of the same kind and under which the persons whose lives are insured have an equal
expectation of life.

Discrimination
between life policies,
etc., prohibited

(2) Nothing in subsection (1) shall apply to life policies which-

(a) are reinsurance contracts;

(b) are for large sums at preferential rates in accordance with the current tariff
of the insurer concerned;

(c) insure at preferential rates the lives of employees of one employer or a
combination of employers or members of the families of such employees or
the lives of a group of persons carrying on the same occupation; or

(d) are of a class prescribed.

(3) No insurer and no director, servant or agent of an insurer shall pay, allow or give
or offer to pay, allow or give, directly or indirectly-

(a) a rebate of the premium payable on a life policy;

(b) an advantage in the nature of a rebate of the premium payable on a life
policy; or

(c) preferential treatment in connection with a bonus or other benefit under a
life policy;

as an inducement to insure.

(4) No person shall knowingly receive as such any rebate or premium, advantage or
preferential treatment referred to in subsection (3) as an inducement to insure.

(5) No director, servant or agent of an insurer shall accept any proposal or
application for a life policy in respect of which-

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(a) a promissory note, bill of exchange or other negotiable instrument, not
being a cheque payable on the date of issue; or

(b) an acknowledgment of debt, not being a stop order;

in favour of the insurer or any person whatsoever has been given for the first year's
premium or any part thereof.

47. The provisions of sections thirty to forty-three inclusive and section forty-five
shall, mutatis mutandis, apply to industrial policies.

Application of certain
provisions of Part V to
industrial policies

48. The provisions of sections forty-four and forty-six shall, mutatis mutandis, apply
to sinking fund policies.

Application of certain
provisions of Part V to
sinking fund policies

49. (1) The provisions of sections thirty to forty-one inclusive, forty-three and
forty-five shall, mutatis mutandis, apply to funeral policies.

Application of certain
provisions of Part V to
funeral policies and
other policies and
other provisions in
regard thereto

(2) If after the issue of a funeral policy it is proved that the policy is based upon an
incorrect statement of the age of the person whose life is insured, the benefits under the
policy shall not be affected thereby, but the premiums payable under the policy from the
date on which the person became insured shall be deemed to be those which would have
been required had the age been correctly stated, and the insurer liable under the policy
shall-

(a) be entitled to recover from the owner any resultant shortfall in the premiums
actually paid; or, as the case may be;

(b) refund to the owner any resultant overpayment of premiums.

(3) A funeral policy issued on or after the commencement of this Act-

(a) shall provide that the owner shall, at his option, be entitled to a sum of
money instead of each funeral or other non-monetary benefit for which
provision is made in the policy; and

(b) may provide that the insurer liable under the policy shall likewise have the
option to pay the sum of money referred to in paragraph (a) instead of
providing for each funeral or other non-monetary benefit for which provision
is made in the policy.

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(4) An option referred to in subsection (3) and the sum of money to which it relates
shall be stated expressly and clearly in the funeral policy and, in every premium receipt
book issued in connection therewith, in printed or typed letters no smaller than, and as
legible as, the letters of the provisions of the policy.

(5) A registered insurer who issued a funeral policy before the commencement of
this Act shall, if the policy is still in force, within three months of that date declare to the
Registrar the value in money of each funeral or other non-monetary benefit for which
provision is made in the policy, and that value shall be stated in clear type and in distinct
terms in every premium receipt book issued thereafter in connection with the policy.

(6) If the Registrar is of the opinion that a sum of money stated in a funeral policy in
terms of subsection (4), or that the value declared by a registered insurer in terms of
subsection (5) with reference to a particular funeral policy, does not approximate to the
value of the funeral or other non-monetary benefit for which provision is made in the
policy, he shall declare the amount of money which is, in his opinion, equal to the value of
the funeral or other benefit provided for in the policy.

(7) In a funeral policy the amount declared by the Registrar in terms of subsection
(6), or if no amount is so declared, the sum of money stated in the policy in terms of
subsection (4), or the value declared in terms of subsection (5), shall be deemed to be the
sum insured.

50. (1) If a premium under a local life, industrial or sinking fund policy has not been
paid on its due date, the insurer liable under the policy shall, notwithstanding any
agreement to the contrary between the parties to the policy, maintain the policy in force for
the full sum insured without payment of a further premium for a period of one month as
from the due date of the first unpaid premium and if the premium is paid within the month
the insurer shall renew the policy.

Days of grace, paid-up
policies and
non-forfeiture
provisions: life,
industrial and sinking
fund policies

(2) If the premiums under a local life or sinking fund policy are payable at monthly
intervals, or at intervals of less than one month, the provisions of subsection (1) shall have
effect as if the references in that subsection to the words "one month" and "month" were
references to the words "fifteen days".

(3) If a claim under a local life, industrial or sinking fund policy arises during the
period of grace provided for in this section, the insurer liable under the policy shall be
entitled to deduct the amount of the unpaid premium from the claim.

(4) If a premium under a local policy which is-

(a) a life policy under which at least three years' premiums have been paid; or

(b) an industrial policy under which at least five years' premiums have been
paid; or

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(c) a sinking fund policy under which at least three years' premiums have been
paid;

has not been paid within the period specified in subsection (1) or, as the case may be,
subsection (2), the insurer liable under the policy shall, in accordance with rules made by
him and approved by the Registrar issue, in return for and instead of the policy, a paid-up
policy which shall be free from the obligation to pay any premiums thereunder.

(5) The rules referred to in subsection (4) shall specify the basis on which and the
methods by which the amount of the paid-up policy is to be calculated and whether a
paid-up policy such as is referred to in that subsection shall entitle the owner to any future
bonuses thereon.

(6) The provisions of subsection (4) shall not apply in connection with any particular
kind of life or industrial policy which an insurer has issued or proposes to issue if the
Registrar is satisfied that the actuarial nature of that kind of policy prevents the insurer
from accumulating, in respect of policies of that kind, sufficient funds to enable him to
grant any substantial benefit of a kind described in that subsection.

(7) If on or after the commencement of this Act a local life policy under which at
least three years' premiums have been paid is dealt with as in subsection (4) is provided
and the owner informs the Registrar within thirty days of the date on which he is notified by
the insurer liable under the policy that the policy has been so dealt with or, if he is not so
notified, within six months of the date on which the policy has been so dealt with that he
received no written notice from the insurer a reasonable time beforehand to the effect that
the policy was due to be so dealt with, the Registrar may, unless the insurer satisfies him
that the notice was duly despatched to the owner at his last known residence or place of
work a reasonable time before the policy was due to be so dealt with, require the insurer
to revive the policy on payment of the premium required within a period to be fixed by the
Registrar. A policy shall be revived in terms of this subsection without any alterations in its
conditions with effect from the date of the payment of the premium required.

51. Any life policy issued after the commencement of this Act may be cancelled by
the proposer or the owner within a period of three months from the date on which the
proposal form has been signed or within thirty days of the receipt of the policy by the
owner, whichever is the later. In the event of such cancellation, all premium payments
made by the proposer or owner shall be refunded to him but the insurer is entitled to
deduct an amount of four kwacha in respect of expenses and the amount of any medical
fees incurred.

Owner may cancel life
policy within limited
period without penalty

52. (1) If a premium under a local funeral policy has not been paid on its due date,
the insurer liable under the policy shall, notwithstanding any agreement to the contrary
between the parties to the policy, maintain the policy in force for the full value of the
benefits-

Days of grace, paid-up
policies and
non-forfeiture
provisions: funeral
policies

(a) if the insurer is bound by an express or tacit undertaking to send a person
from time to time to the owner or to his residence or place of work to collect
the premiums, for a period of one month as from the due date of the first
unpaid premium; and

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(b) if the provisions of paragraph (a) do not apply, for a period expiring on a
date specified for that purpose in a written notice which the insurer has
served on the owner at least fourteen days before that date.

(2) If a premium referred to in subsection (1) is paid within the relevant period
specified in paragraph (a) or (b) of that subsection, the insurer liable under the policy shall
renew the policy, and if a claim under the policy arises during the period, the insurer shall
be entitled to require the owner to pay the amount of the premium.

(3) If a premium under a local funeral policy which is issued on or after the
commencement of this Act is not paid within the period specified in subsection (1), the
policy shall, subject to the provisions of this section, nevertheless remain in force for the
appropriate period fixed in terms of subsection (6) for the full sum insured without payment
of further premiums.

(4) If an insurer's liability under a funeral policy is contingent upon the death of two
or more persons and the policy provides for a benefit on the death of a person who is
under the age of twenty-one years and who is not the owner or his wife or her husband, no
benefit shall be claimable under that policy on that person's death if it occurs after he or
she attained the age of twenty-one years.

(5) If an insurer's liability under a funeral policy is contingent upon the death of one
person only, who was under nine years of age when the policy was issued, the period
specified in subsection (6) shall be computed as if the policy had been issued on the
anniversary of the date of its issue when that person was between nine and ten years of
age.

(6) A funeral policy referred to in subsection (3) shall remain in force for the
appropriate period listed in the first column of the following table in accordance with the
number of years for which premiums were paid under the policy specified opposite thereto
in the second column of the table:

6 months . . 5 years or over and less than 7 years.

9 months . . 7 years or over and less than 9 years.

12 months . . 9 years or over and less than 11 years.

18 months . . 11 years or over and less than 14 years.

24 months . . 14 years or over and less than 17 years.

36 months . . 17 years or over and less than 21 years.

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48 months . . 21 years or over and less than 25 years.

60 months . . 25 years or over.

53. Nothing in section fifty or fifty-two contained shall preclude an insurer from
granting to an owner of a policy of a kind referred to in section fifty or fifty-two more
favourable terms than those specified for that kind of policy in section fifty or, as the case
may be, fifty-two.

Grant of more
favourable terms than
those specified in
section 50 or 52 not
precluded

PART VI

OFFENCES AND PENALTIES

54. Any person who transacts insurance business of any class in Zambia and who
is not the holder of a valid insurer's licence for that class shall be guilty of an offence and
liable to a fine not exceeding one thousand two hundred and fifty penalty units:

Unlawfully acting as
an insurer

Provided that-

(i) if that person is not a registered insurer in the class of business transacted,
he shall be liable to a fine not exceeding two thousand five hundred penalty
units;

(ii) this section shall not apply in the case of business transacted in
accordance with the provisions of subsection (2) of section seven.

(As amended by Act No. 28 of 1989 and Act No. 13 of 1994)

55. Any person who acts in Zambia as a broker and who is not the holder of a valid
broker's licence shall be guilty of an offence and liable to a fine not exceeding one
thousand two hundred and fifty penalty units:

Unlawfully acting as a
broker

Provided that if that person is not a registered broker he shall be liable to a fine not
exceeding two thousand five hundred penalty units.

(As amended by Act No. 28 of 1989 and Act No. 13 of 1994)

56. Any person who acts in Zambia as an insurance agent and who is not the
holder of a valid insurance agent's licence naming the insurer for whom he acts or
purports to act shall be guilty of an offence and liable to a fine not exceeding one hundred
and twenty five penalty units.

(As amended by Act No. 28 of 1989 and Act No. 13 of 1994)

Unlawfully acting as
an insurance agent

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57. An insurer who accepts any insurance business in Zambia from an insurance
agent who is not the holder of a valid insurance agent's licence naming such insurer
therein shall be guilty of an offence and liable to a fine not exceeding two hundred and fifty
penalty units.

(As amended by 28 of 1989 and Act No. 13 of 1994)

Insurers not to accept
business from
unlicensed agents

58. Any person who solicits insurance business in Zambia on behalf of an insurer
or broker who is not registered under this Act shall, whether or not his action is authorised
by that insurer or broker, be guilty of an offence and liable to a fine not exceeding one
thousand two hundred and fifty penalty units.

(As amended by 28 of 1989 and Act No. 13 of 1994)

Soliciting insurance
business on behalf of
an unregistered
insurer or broker

59. Any person who contravenes any provision of section forty-six shall be guilty of
an offence and liable to a fine not exceeding double the amount of the annual premium
normally payable on a life policy similar to the one in respect of which the offence is
committed.

Malpractice in life
insurance

PART VII

MISCELLANEOUS PROVISIONS

60. There shall be-

(a) a Registrar of Insurance who shall be a public officer; and

(b) such other public officers as may be necessary to assist the Registrar in the
performance of his duties and functions under this Act.

Registrar of Insurance

61. The Registrar shall, within nine months of the 31st December each year,
submit to the Minister a report relating to insurance business in Zambia during the twelve
months immediately preceding that date and the Minister shall, as soon as may be, lay
that report before the National Assembly.

Annual reports by
Registrar

62. (1) A registered insurer or registered broker or an applicant for registration as
an insurer or broker shall supply the Registrar with any documents or information relating
to any matter connected with his business or transactions, whether insurance business or
transactions or otherwise, which the Registrar requests him to supply.

Business information
to be supplied by
insurers and brokers

(2) A registered insurer shall, on the request of the Registrar, supply him with such
particulars of reinsurance contracts or other arrangements entered into with another
insurer or reinsurer as the Registrar may specify.

63. (1) Every document furnished to the Registrar by an insurer or broker in
pursuance of any provision of this Act or regulations made thereunder relating to the
supply of information to the Registrar shall-

Documents to be
signed and copies
supplied

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(a) in the case of documents which are not in a prescribed form, be signed-

(i) by the chairman and one other director of the insurer or broker or, if
the insurer or broker has no chairman or director, by such other
person or persons having control over the business of the insurer or
broker as the Registrar may specify;

(ii) by the principal officer of the insurer or broker; and

(iii) by such other persons as are required under this Act to sign or
certify the document;

(b) in the case of a document in a prescribed form, be signed by the persons
specified in the form; and

(c) in the case of a copy of a document, be certified by the insurer or broker to
be a true copy of such document.

(2) An insurer or broker who has furnished the Registrar with any document by
virtue of this Act or regulations made thereunder shall, on the request of the Registrar,
furnish such copies or further copies of that document as the Registrar may specify.

64. The Registrar may require any person who furnishes him in terms of this Act
with any statement, certificate, document or other information whatsoever in a language
other than the English language to provide a translation thereof in the English language at
that person's expense.

Translation of
documents into
English

65. (1) Any person may, on payment to the Registrar of the appropriate prescribed
fee, inspect and copy any document furnished to the Registrar in compliance with section
twelve, eighteen or twenty-five.

Inspection of
documents, etc.

(2) The Registrar shall, on payment of the prescribed fee, furnish any person with a
certified copy of or abstract from any document furnished to the Registrar in compliance
with section twelve, eighteen or twenty-five.

(3) On the request of any person, the Registrar shall without charge furnish that
person with the address of the principal office in Zambia of any registered insurer or
registered broker and the name of his principal officer.

(4) Notwithstanding the provisions of subsections (1) and (2), the Registrar shall not
permit any person by virtue of those subsections to have access to any information the
divulgence of which, in the opinion of the Registrar-

(a) would be harmful to the interests of the insurer or broker who supplied it;

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(b) is not necessary in the interests of the general public.

66. (1) Any document purporting to be certified by the Registrar to be a document
furnished to him under this Act shall in any proceedings in a court be receivable in
evidence without proof of the signature of the Registrar:

Certified documents
as evidence

Provided that the court may direct that oral evidence be brought relating to that
signature.

(2) Any document purporting to be certified by the Registrar to be a true copy of a
document furnished to him under this Act shall in any proceedings in a court be receivable
in evidence without proof of the signature of the Registrar or production of the original as
though it were the original:

Provided that the court may direct that other evidence be brought relating to that
signature or copy.

67. (1) For the purposes of checking and verifying any information supplied to the
Registrar under this Act or regulations made thereunder, the Registrar or any public officer
authorised by him in writing may examine the books, vouchers, receipts and such other
documents as he may consider necessary of an insurer or broker. Save as provided in
subsection (2), such examination may not be carried out more than once in any financial
year.

Investigation of the
affairs of an insurer or
broker

(2) As a result of an examination carried out under subsection (1), the Minister may
cause such investigation as he considers necessary to be carried out into the affairs of the
insurer or broker and such investigation may include a special audit by an auditor named
by the Registrar.

(3) The officers or agents of the insurer or broker shall cause the books of the
insurer or broker to be available for examination or investigation under this section and
shall otherwise facilitate such examination or investigation so far as it is in their power.

(4) The Minister shall cause a summary of the conclusions arrived at as a result of
an investigation carried out under this section to be sent to the insurer or broker
concerned.

(5) The Minister may recover from the insurer or broker concerned all expenses
necessarily incurred in connection with an investigation carried out under subsection (2).

(6) The Registrar may, in the light of information acquired as a result of any
examination or investigation carried out under this section, alter or amend any information
submitted to him under this Act.

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68. (1) The Minister may before or during an investigation into the affairs of an
insurer or broker made under section sixty-seven require him to make such special
deposit as the Minister deems sufficient to meet the liabilities of his insurance business in
Zambia and he shall forthwith make such deposit.

Special deposit to
cover liabilities of an
insurer or broker

(2) The Registrar may require an insurer whose licence is suspended or cancelled
under this Act to make such special deposit as the Registrar deems sufficient to meet the
liabilities of his insurance business in Zambia and he shall forthwith make such deposit.

69. (1) The Registrar shall on request furnish an insurer or broker once each year
with a certificate specifying the deposit or deposits made by him under this Act or
regulations made thereunder.

Provisions concerning
deposits made by
insurers and brokers

(2) An insurer or broker who has made a deposit under this Act or regulations made
thereunder shall be entitled to the income derived from that deposit.

(3) If the registration of an insurer or broker is cancelled under this Act, the Minister
may cause any deposit made by that insurer or broker under regulations made under this
Act to be used to meet his insurance liabilities and, when the Minister is satisfied that
those liabilities have been discharged, any balance of such deposit remaining shall be
returned to the insurer or broker, as the case may be.

(4) If at any time the Minister is satisfied as to the financial affairs of an insurer or
broker who has made a deposit by virtue of section sixty-eight, he shall cause that deposit
to be returned to the insurer or broker concerned.

70. (1) In every local policy the sum insured, the premium and every other sum of
money mentioned in the policy shall be stated in Zambian currency except in the case of
marine, aviation or transit insurance.

Insurance to relate to
Zambia

(2) Every policy issued in respect of a proposal for insurance made to a registered
insurer shall be issued in Zambia by a registered insurer and, in the case of a local policy,
all premiums and payments arising under or out of such policy shall be payable in Zambia.

71. (1) The owner of a local policy shall, notwithstanding any contrary provision in
the policy or in any agreement relating to the policy, be entitled to enforce his rights under
the policy against the insurer named in the policy in any competent court.

Jurisdiction in relation
to local policies

(2) Any question of law arising in any action under a local policy which is instituted
by the owner against the insurer named in the policy shall, subject to the provisions of this
Act, be determined in accordance with the law of Zambia.

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(3) Notwithstanding the provisions of subsection (1), a local policy may validly
provide that the amount of any liability under the policy shall be determined by arbitration
and any such arbitration shall be held in Zambia in accordance with the Arbitration Act.

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72. A policy issued to any person before, on or after the commencement of this Act
shall not be invalid merely because that person contravened or failed to comply with the
provisions of any enactment in force applying to that policy.

Policies not invalidated
by failure to comply
with the law

73. (1) Every registered insurer and registered broker shall lodge with the Registrar
copies of all standard policy forms and proposal forms used by him.

Insurance forms
subject to approval

(2) The Registrar may, on grounds which appear to him sufficient, prohibit the use of
any form lodged with him under subsection (1) unless such form is amended in
accordance with his directions.

(3) No registered insurer, registered broker or insurance agent shall use any form
prohibited by the Registrar under subsection (2).

74. No person shall issue a local policy containing printed provisions of any nature
which are not in clear type face with letters of a size not less than eight point.

Policies to be printed
in clearly legible form

75. (1) No registered insurer or registered broker shall change his name without the
consent of the Registrar who shall withhold such consent if he considers that such a
change would be contrary to the public interest.

Change of name of
insurers and brokers

(2) The Registrar shall cause notice of a change in the name of any registered
insurer or registered broker to be published in the Gazette.

76. (1) At the request of an insurer the Registrar may, subject to the provisions of
subsection (2) and to such conditions and limitations as the Registrar may fix, determine
that any insurance business of any particular class which the insurer carries on or intends
to carry on shall be treated for the purposes of this Act as insurance business of another
class.

Registrar may
re-classify insurance
business

(2) The Registrar shall not accede to a request made under subsection (1) unless
he is satisfied that his determination will not be detrimental to the interest of any person
and will not defeat the objects and purposes of this Act.

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77. In the event of the liquidation or bankruptcy of a registered insurer-

(a) the owners of life policies issued by the insurer shall have preference
against all other creditors of the insurer in respect of the life insurance fund
maintained by him; and

(b) the owners of all other policies issued by the insurer shall rank before any
other creditors of the insurer in the distribution of such assets of the insurer
as remain after the claims by owners of life policies against the estate have
been discharged.

Preferred creditors of
an insurer

78. The Registrar may alter any prescribed form for the purpose of adapting the
form to meet the circumstances of a registered insurer or broker or an applicant for
registration as an insurer or broker.

Adaptation of
prescribed forms

79. No registered insurer shall, without the consent of the Minister, increase or
decrease the rates of premium charged by him on motor insurance business.

Control of motor
insurance premiums

80. (1) Every association of five or more registered insurers and, additionally or
alternatively, registered brokers shall within thirty days-

Associations of
insurers and/or
brokers

(a) of its formation, register with the Registrar;

(b) of its formation, furnish the Registrar with such information and documents
relating to its constitution, objects, membership and office bearers as the
Registrar may request; and

(c) of each change in the particulars contained in the information and
documents furnished in pursuance of paragraph (b), notify the Registrar of
such change.

(2) No association registered under subsection (1) shall-

(a) include among its objects any object; or

(b) carry out any object in a manner;

which is contrary to the public interest.

(3) If in his opinion an association has contravened the provisions of subsection (2),
the Minister shall notify the association accordingly giving his reasons, and the association
may within ninety days of receiving such notification make written representations to the
Minister who shall consider any such representations and shall either-

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(a) if he is satisfied that the association has contravened the provisions of
subsection (2), cause the Registrar to cancel the registration of the
association; or

(b) notify the association that he does not propose to cause its registration to
be cancelled.

(4) No registered insurer or registered broker shall become or remain a member of
an association-

(a) which has failed to comply with the requirements of subsection (1); or

(b) the registration of which is cancelled under subsection (3).

(5) The question whether or not an association has contravened the provisions of
subsection (2) shall not be the subject of inquiry in any court.

81. (1) The Minister may, by statutory instrument, make regulations for the proper
carrying out of this Act and, without prejudice to the generality of the foregoing, may in
particular by regulation-

Regulations

(a) prescribe anything which under this Act is to be or may be prescribed;

(b) prescribe the fees to be paid on the doing by the Registrar of anything in
respect of which provision is made in this Act for the payment of a fee,
including different fees to be paid in different circumstances;

(c) prescribe the forms to be used and the procedure to be followed in the
doing of anything which may be done or is required to be done under this
Act;

(d) prescribe minimum qualifications for registered brokers, licensed insurance
agents and the principal officers of registered insurers and registered
brokers, and specify the person to whose satisfaction such qualifications
shall be established;

(e) limit the number of insurers who may be registered in any class of
insurance business and the number of brokers who may be registered;

(f) limit the number of insurance agent's licences which may be held by any
insurance agent including different limits in respect of insurance agents
operating in different areas;

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(g) prescribe the margin of solvency to be held by registered insurers in
different classes of insurance business and the method by which that
margin of solvency is to be calculated;

(h) divide insurance business into different classes for the purposes of this Act
including different divisions for different purposes;

(i) make provision for the protection of owners of and beneficiaries under
insurance policies in the event of the liquidation or bankruptcy of an insurer;

(j) specify-

(i) the minimum percentage of insurance funds accruing to a registered
insurer in respect of his insurance business in Zambia which shall
be invested in Zambia, including different percentages of funds
accruing from different classes of insurance business; and

(ii) the forms of investment in which such moneys as are required under
sub-paragraph (i) to be invested in Zambia may be invested;

(k) prescribe in relation to information to be submitted to the Registrar under
this Act by registered insurers and by registered brokers-

(i) the period within which such information shall be submitted and the
date from which the period shall run; and

(ii) the nature of the information and the form in which it shall be
submitted;

including different provisions in relation to different persons or circumstances;

(l) provide for the manner in which Lloyd's shall be represented in Zambia if
registered as an insurer under this Act.

(2) The Minister may, by statutory instrument-

(a) make regulations requiring every registered insurer and registered broker to
make a deposit and such regulations may specify the value of such deposit
and when it shall be made, and may include different provisions in relation
to different classes of insurance or other different circumstances; and

(b) subject to the provisions of sections sixty-eight and sixty-nine, make
regulations in relation to deposits made pursuant to this Act or to
regulations made under this subsection-

(i) specifying the method by which the value of the deposit shall be
assessed; and

(ii) providing for the making, maintaining, custody, disposition and
disposal of the deposits;

and such regulations may include different provisions to have effect in different
circumstances.

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82. (1) This Act shall, save as otherwise expressly provided, apply in relation to
insurance policies effected before the commencement of this Act as if those policies had
been effected after that commencement.

Transitional

(2) Notwithstanding the provisions of the Interpretation and General Provisions Act,
any licence or registration issued or effected under the Insurance Act, Chapter A.L. 4 of
the 1965 Edition of the Applied Laws, or the Insurance Act, Chapter 201 of the 1951
Edition of the Laws, shall cease to have effect upon the commencement of this Act.

Cap. 2

SUBSIDIARY LEGISLATION

INSURANCE

THE INSURANCE REGULATIONS

CAP. 392

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ARRANGEMENT OF REGULATIONS

Regulation

1. Title

2. Margin of solvency

3. Application for registration as an insurer

4. Application by Lloyd's for registration; and appointment of representative in
Zambia

5. Qualifications for principal officer of insurer or broker

6. Qualifications for registered broker

7. Application for registration as a broker

8. Qualifications for insurance agent

9. Prescribed forms

10. Returns by Lloyd's

11. Returns by registered insurers

12. Additional information from registered insurer

13. Signatures on returns by local insurers

14. Returns by insurers following actuarial investigation into their financial position

15. Returns by brokers in respect of business placed with Lloyd's

16. Returns by brokers in respect of business not placed with Lloyd's

17. Other returns by brokers

18. Conversion rate to be given where returns show foreign currency

19. Time for submission of reports

20. Prescribed fees

21. Loss or destruction of a policy

SCHEDULE-Prescribed forms

SECTION 81-THE INSURANCE REGULATIONS

Regulations by the Minister

Statutory Instruments
118 of 1968
190 of 1971
145 of 1989
157 of 1990
7 of 1992
4 of 1993
190 of 1993
Act No.
13 of 1994

1. These Regulations may be cited as the Insurance Regulations. Title

2. (1) For the purposes of section five of the Act, an insurer other than Lloyd's shall
have a sufficient margin of solvency-

Margin of solvency

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(a) in respect of his life insurance business, if his liabilities, including contingent
and prospective liabilities, under life policies do not exceed the sum in the
life insurance fund or funds maintained by him; and

(b) in respect of his insurance business other than life insurance business, if
the total value of his assets exceeds that of his liabilities by one hundred
thousand kwacha or by one-tenth of his premium income during his last
preceding financial year, whichever is the greater, such assets, liabilities
and premium income being calculated in accordance with sub-regulation
(2).

(2) For the purposes of paragraph (b) of sub-regulation (1)-

(a) in computing the value of liabilities all contingent and prospective liabilities
shall be taken into account but not liabilities in respect of share capital nor
liabilities under life policies;

(b) in computing the value of assets no account shall be taken of any sum held
in a life insurance fund maintained by the insurer; and

(c) premium income shall be calculated as a net sum after deduction of
premiums paid out during the period in question by way of reinsurance.

3. An application by any person other than Lloyd's for registration as an insurer
under section six of the Act shall be accompanied-

(a) by the written law, the memorandum and articles of association or any other
document by virtue of which the applicant is constituted and which
regulates the conduct of his business;

(b) by the balance sheet, profit and loss account and revenue accounts in
respect of his last preceding financial year as submitted to the appropriate
authority in accordance with the law relating to insurance in the country in
which his head office is situate;

(c) if the applicant is not a local insurer, by a certificate of the authority
responsible for the enforcement of the law relating to insurance in the
country in which his head office is situate, to the effect that the applicant
has consistently complied and is complying with that law;

(d) by a copy of each form of proposal and policy which the applicant proposes
to use in Zambia;

(e) by certificates of solvency in the appropriate form prescribed by regulation
9;

(f) if the applicant is already transacting life insurance business anywhere, by-

Application for
registration as an
insurer

(i) a copy of the report of an actuary, on the last investigation into his
financial position in which a valuation of his liabilities was made, as
submitted to the appropriate authority in accordance with the law in
the country in which his head office is situate; and

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(ii) if he has transacted such business in Zambia, a statement signed
by an actuary showing the latest sum of his total net liabilities,
including contingent and prospective liabilities, under policies in
respect of such life insurance business transacted by him in Zambia,
as calculated by the actuary, and the date as at which the
calculation was made;

(g) if the application is for registration in any class of life insurance business
other than funeral insurance business, by any draft rules which the
applicant proposes to make under subsections (4) and (5) of section fifty of
the Act, together with a statement showing whether similar rules have been
submitted to any authority in another country and if so submitted the date
on which such similar rules were approved or disapproved; and

(h) if the application is for registration in any class of life insurance business
and the applicant is not at the time of the application transacting such
business anywhere, by a certificate of an actuary approved by the Registrar
to the effect that the conditions under which the proposed life insurance
business is to be transacted are actuarially sound.

4. (1) Any application by Lloyd's for registration as an insurer shall be made in
writing and shall set out-

Application by Lloyd's
for registration; and
appointment of
representative in
Zambia

(a) the dates in relation to which the applicant's financial year runs;

(b) the names of the members of the Committee of Lloyd's; and

(c) the classes of insurance business with respect to which application for
registration is made.

(2) If registered as an insurer, Lloyd's shall appoint in writing an agent who shall be
authorised to accept service of notices and any legal process and to act on behalf of
Lloyd's in all matters to secure a compliance of Lloyd's with the provisions of the Act and
regulations made thereunder.

(3) Lloyd's shall notify the Registrar of the name and address of each agent
appointed in accordance with these Regulations and of any change in such particulars.

5. A person shall possess the minimum qualifications required by sections eleven
and twenty-four of the Act for the principal officer of an insurer or broker if, in the opinion
of the Registrar, he-

(a) is and will remain a full-time remunerated director or servant of the insurer
or broker concerned; and

(b) has served for not less than five years in the employment of an insurer or
broker, as the case may be.

Qualifications for
principal officer of
insurer or broker

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6. For the purposes of the Insurance Brokers (Cessation and Transfer of Business)
Act, a person shall be qualified to be a registered broker if the Registrar is satisfied that-

(a) all insurance business carried on by him within or outside Zambia is carried
on in accordance with sound insurance principles;

(b) his management and operations are likely adequately to protect the
interests of the general public;

(c) his name is not likely to be mistaken for the name of any other broker or
insurer or other organisation who is or has been operating in Zambia;

(d) he has not been adjudged or otherwise declared insolvent or bankrupt;

(e) he has not made an assignment to, or an arrangement or composition with,
his creditors which has not been rescinded or set aside; and

(f) he has not been convicted by any court of any offence involving dishonesty,
fraud or misrepresentation, an appeal against the conviction not having
been brought or, if brought, having been abandoned or dismissed.

Qualifications for
registered broker

7. An application for registration as a broker under section twenty of the Act shall
be accompanied-

(a) by the written law, memorandum and articles of association or any other
document by virtue of which the applicant is constituted and which
regulates the conduct of his business;

(b) by the balance sheet, profit and loss account and revenue accounts in
respect of his last preceding financial year; and

(c) if the applicant's head office is not in Zambia, by a certificate of the
authority responsible for the enforcement of the law relating to insurance in
the country in which his head office is situate, to the effect that the applicant
has consistently complied and is complying with that law.

Application for
registration as a
broker

8. For the purposes of Part IV of the Act, a person shall be qualified to be a
licensed insurance agent if the Registrar is satisfied that he-

(a) is ordinarily resident in Zambia;

(b) has attained the age of twenty-one years;

(c) has received not less than three months' training in insurance business of
the class or classes which he is likely to transact;

(d) has not been adjudged or otherwise declared bankrupt;

(e) has not made an assignment to, or an arrangement or composition with, his
creditors which has not been rescinded or set aside; and

(f) has not been convicted by any court of any offence involving dishonesty,
fraud or misrepresentation, an appeal against the conviction not having
been brought or, if brought, having been abandoned or dismissed.

Qualifications for
insurance agent

9. (1) The forms set out in the Schedule for which no special provision is made in
these Regulations shall be used for the respective purposes of the applications,
certificates, requests and licences to which such forms relate.

Prescribed forms

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(2) Every form prescribed in these Regulations for submission to the Registrar shall
when so submitted be furnished in duplicate.

10. Lloyd's shall furnish the Registrar annually with certified copies of all returns
and information relating to the insurance business carried on by Lloyd's members which
are furnished by Lloyd's in accordance with the law of the United Kingdom to the Board of
Trade in that country.

Returns by Lloyd's

11. Every registered insurer other than Lloyd's shall each year complete in respect
of insurance business transacted by him during his previous financial year and shall
submit to the Registrar the following forms set out in the Schedule:

(a) Forms RI/15 and RI/16;

(b) if he transacted any insurance business other than life insurance business-

Returns by registered
insurers

(i) Form RI/11 in respect of each of the following non-life classes of
business transacted by him:

A. fire;

B. motor;

C. personal accident;

D. burglary, housebreaking, theft and robbery;

E. marine, aviation and transit; and

F. miscellaneous;

(ii) Form RI/12;

(iii) if he transacted any motor insurance business Form RI/13; and

(iv) if he transacted any burglary, housebreaking, theft and robbery
insurance business, Form RI/14;
and

(c) if he transacted any life insurance business, Forms RI/17 and RI/18.

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12. (1) Every local insurer shall submit to the Registrar together with the completed
forms described in regulation 11, a copy of any report on the affairs of the insurer
submitted to the policy owners or shareholders in respect of the financial year to which the
completed forms relate.

Additional information
from registered insurer

(2) Every external insurer shall furnish the Registrar with-

(a) a copy of all returns submitted to the appropriate authority in accordance
with the law relating to insurance in the country in which his head office is
situate; and

(b) a copy of any report on the affairs of the insurer submitted to the policy
owners or shareholders in respect of the financial year to which such
returns relate.

(3) This regulation shall not apply to Lloyd's.

13. Every form submitted to the Registrar in accordance with regulation 9, 11 or 14
by a local insurer shall, in addition to any signatures for which the form may provide, be
signed by the chairman and one director of the insurer.

Signatures on returns
by local insurers

14. (1) Form RI/21 set out in the Schedule is prescribed for completion and
submission to the Registrar for the purposes of section eighteen of the Act.

Returns by insurers
following actuarial
investigation into their
financial position

(2) Form RI/21 shall be submitted to the Registrar together with and in support of-

(a) an abstract of an actuarial report on the financial position of the insurer
concerned which shall be prepared in compliance with the instructions set
out at Form RI/19 of the Schedule; and

(b) a statement relating to the life insurance business of the insurer concerned
which shall be prepared in compliance with the instructions set out at Form
RI/20 of the Schedule;

and both the abstract and the statement shall be signed by the actuary approved by the
Registrar under section eighteen of the Act.

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15. Every registered broker who placed any business with Lloyd's during his
previous financial year shall complete in relation to that business and shall submit to the
Registrar the following forms set out in the Schedule:

(a) Form RI/22; and

(b) Forms RI/13 and RI/14 in relation to any motor insurance business or
burglary, housebreaking, theft and robbery insurance business respectively
placed with Lloyd's.

Returns by brokers in
respect of business
placed with Lloyd's

16. Every registered broker who during his previous financial year acted as a
broker other than by placing insurance business with Lloyd's shall complete and submit to
the Registrar Form RI/23 set out in the Schedule in relation to all his business which was
not placed with Lloyd's.

Returns by brokers in
respect of business
not placed with Lloyd's

17. Every registered broker shall each year complete and submit to the Registrar
Forms RI/24, RI/25 and RI/26 set out in the Schedule in respect of his business
transacted during his previous financial year.

Other returns by
brokers

18. Where in any information submitted to the Registrar under the Act or these
Regulations any sum of money is shown-

(a) in a foreign currency; or

(b) in Zambian currency having been converted from a foreign currency;

there shall be included in that information the rate of conversion between the foreign
currency and Zambian currency at the date of the submission of the information or, in the
case of a conversion, at the date of the conversion.

Conversion rate to be
given where returns
show foreign currency

19. (1) Subject to sub-regulation (3), information to be submitted to the Registrar
pursuant to regulations 11, 12 (1), 15, 16 and 17 shall be submitted within three months of
the end of the financial year, to which such information relates, of the insurer or broker
concerned.

Time for submission of
reports

(2) Subject to sub-regulation (3), information to be submitted to the Registrar
pursuant to regulations 10 and 12 (2) shall be submitted within six months of the end of
the financial year, to which such information relates, of the insurer concerned.

(3) Notwithstanding the provisions of sub-regulations (1) and (2), in any case in
respect of which the Registrar gives his consent in writing, the period for the submission of
information-

(a) to which sub-regulation (1) relates shall be four months; and

(b) to which sub-regulation (2) relates shall be nine months;

from the end of the financial year of the insurer or broker in question.

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20. The following fees are hereby prescribed for the purpose of the Act with effect
from 1st Jan. 1994

Fee units
Insurer's licence 10,000
Broker's licence 5,000
Insurance agent's licence 2,000
Inspection and permission
to copy any document
furnished to the Registrar
in compliance with sections
twelve, eighteen or twenty-five
of the Act 200

(As amended by S.I. No. 190 of 1993, and Act No. 13 of 1994

Prescribed fees

21. (1) The loss or destruction of a policy referred to in subsection (1) of section
forty-four of the Act shall be-

Loss or destruction of
a policy

(a) proved on the production to the insurer of a declaration giving the
circumstances of the loss or destruction, sworn by the policy-owner before
a Commissioner for Oaths or like authority and on the production to the
insurer of such additional proof of loss or destruction as he may reasonably
call for;

(b) advertised once in the Gazette and twice, at an interval of not less than
three weeks, in a newspaper, or, if the insurer desires, in each of two
newspapers nominated by the insurer and circulating in Zambia.

(2) The insurer shall not issue a correct and certified copy of the policy until a period
of three weeks, commencing on the date on which the last advertisement referred to in
paragraph (b) of sub-regulation (1) appeared, has expired.

(3) The fee payable by the owner to the insurer for the issue of a correct and
certified copy of the policy shall be such sum, not exceeding 50 ngwee, as the insurer may
fix, together with the costs incurred by the insurer-

Title Definition
Remittance of
premiums Ceaser of
stop order
arrangement Offences
and penalties

(a) in proving the loss or destruction of the policy; and

(b) in advertising the loss or destruction of the policy; and

(c) in respect of any stamp duty payable on the copy of the policy.

(No. 190 of 1971)

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SCHEDULE

(Regulations 9, 11, 14, 15, 16 and 17)

PRESCRIBED FORMS

Form
Application by any person other than Lloyd's for registration as an insurer . . . . . . . . RI/1
Certificates of solvency . . . . . . . . . . . . . . . . . . RI/2
Application for an insurer's licence . . . . . . . . . . . . . . . . . . RI/3
Insurer's licence (annual) . . . . . . . . . . . . . . . . . . 4
Application for registration as a broker . . . . . . . . . . . . . . . . RI/5
Application for a broker's licence . . . . . . . . . . . . . . . . . . RI/6
Broker's licence (annual) . . . . . . . . . . . . . . . . . . 7
Application for approval of prospective principal officer . . . . . . . . . . . . RI/8
Application for an insurance agent's licence. . . . . . . . . . . . . . . . RI/9
Insurance agent's licence (annual) . . . . . . . . . . . . . . . . . . 10
Insurer's revenue account (specified non-life insurance) . . . . . . . . . . . . RI/11
Summary of insurer's revenue accounts (non-life insurance). . . . . . . . . . . . RI/12
Supplementary statement of motor insurance business . . . . . . . . . . . . RI/13
Supplementary statement of burglary, housebreaking, theft and robbery
robbery insurance business . . . . . . . . . . . . . . . . . . RI/14
Insurer's profit and loss account . . . . . . . . . . . . . . . . . RI/15
Insurer's balance sheet . . . . . . . . . . . . . . . . . . RI/16
Insurer's revenue account (life insurance) . . . . . . . . . . . . . . . . RI/17
Insurer's supplementary statement of life insurance business. . . . . . . . . . . . RI/18
Instructions for preparation of abstract of actuarial report on financial position
of life insurer . . . . . . . . . . . . . . . . . . . . . . RI/19
Instructions for preparation of statement of life insurance business of an
insurer . . . . . . . . . . . . . . . . . . . . . . RI/20
Summary and valuation of the liabilities of a life insurer . . . . . . . . . . . . RI/21
Broker's revenue account: business placed at Lloyd's . . . . . . . . . . . . RI/22
Broker's revenue account: business not placed at Lloyd's . . . . . . . . . . . . RI/23
Summary of broker's revenue accounts (non-life insurance) . . . . . . . . . . . . RI/24
Broker's profit and loss account . . . . . . . . . . . . . . . . RI/25
Broker's balance sheet . . . . . . . . . . . . . . . . . . . . RI/26

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FORM RI/1
Stocked by Registrar of Insurance, Ministry of Financ

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulation 9)

APPLICATION BY ANY PERSON OTHER THAN LLOYD'S FOR
REGISTRATION AS AN INSURER

1. Name of Insurer ..............................................................................................................................................................
2. Address of head office ....................................................................................................................................................
3. Directors-give name, nationality, country of residence and other directorships held in respect of each director.
..................................................................................................................................................................................
..................................................................................................................................................................................
..................................................................................................................................................................................
..................................................................................................................................................................................
..................................................................................................................................................................................
..................................................................................................................................................................................
..................................................................................................................................................................................
..................................................................................................................................................................................
..................................................................................................................................................................................
..................................................................................................................................................................................
..................................................................................................................................................................................
..................................................................................................................................................................................
..................................................................................................................................................................................
4. Name of General Manager ..............................................................................................................................................
5. (a) Name, address and qualifications of actuary (if any) ................................................................................................
..................................................................................................................................................................................
..................................................................................................................................................................................
(b) If applicant has an actuary whether or not his services are continuously retained by the applicant ........................
6. (a) Name, address and qualifications of external auditor ................................................................................................
(b) Name, address and qualifications of local auditor ....................................................................................................
7. Countries in which applicant carries on insurance business ............................................................................................
..................................................................................................................................................................................
..................................................................................................................................................................................
8. (a) Situation of principal office in Zambia ........................................................................................................................
..................................................................................................................................................................................
(b) Postal address ..........................................................................................................................................................
(c) Telephone number ....................................................................................................................................................
9. Period of applicant's financial year ..................................................................................................................................
10. Class(es) of insurance business with respect to which application for registration is made ............................................
11. List of all Branch Offices in Zambia, addresses, telephone numbers and names of officers in charge ..........................
..................................................................................................................................................................................
..................................................................................................................................................................................
We, ..................................................................................................................................., hereby apply for registration
under the Insurance Act and declare the above particulars to be true and correct.
Date .......................................................................................... ....................................................................................
Chairman
....................................................................................
Director
....................................................................................
Principal Officer
(If appointed)



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FORM RI/2
Stocked by Registrar of Insurance, Ministry of Finance

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulation 9)

CERTIFICATES OF SOLVENCY

(Not applicable to Lloyd's)

PART I*(1)
* Delete Part II if only life insurance business is transacted by the insurer, or Part I if no life insurance business is
transacted by the insurer.
I hereby certify that the liabilities including contingent and prospective liabilities under all life policies issued by ................
............................................................................................................................................................................................ as at
.................................................., 19......... (being the end of the insurer's last financial year)
do not exceed the amount of the life insurance fund or funds as shown in the Balance Sheet.
Date .......................................................................................... ....................................................................................
Actuary

PART II*(2)
* Delete Part II if only life insurance business is transacted by the insurer, or Part I if no life insurance business is
transacted by the insurer.
We hereby certify that the total value of the assets of ............................................................................................................
....................................................................................................................................................................................................
exceeds that of the company's liabilities by K100,000 or one-tenth of the company's premium income during its last
financial year, whichever is the greater, such assets, liabilities and premium income having been calculated in accordance
with regulation 2(2).
..................................................................................
Chairman
..................................................................................
Director
..................................................................................
Principal Officer (If appointed)
Date ..................................................................................
Auditor
* Delete Part II if only life insurance business is transacted by the insurer, or Part I if no life insurance business is
transacted by the insurer.

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FORM RI/3
Stocked by Registrar of Insurance, Ministry of Finance

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulation 9)

APPLICATION FOR AN INSURER'S LICENCE

Name of Registered Insurer ....................................................................................................................................................
I hereby make application for an Insurer's Licence permitting the above-named registered insurer during the year ending
31st December, 19......., to transact insurance business of the following classes in which the insurer is registered:
........................................................................................................................................................................................
........................................................................................................................................................................................
........................................................................................................................................................................................
The licence fee of one thousand five hundred fee units is enclosed herewith.
Date .......................................................................................... ....................................................................................
Principal Officer

(As amended by Act No. 13 of 1994)

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FORM 4

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulation 9)
No. ...................

INSURER'S LICENCE (ANNUAL)

....................................................................................................................................................................................................

........................................................................................................................................................................................ having
paid the fee of one hundred kwacha is hereby licensed during the year ending 31st December, 19......., to transact
insurance business of the following classes:
....................................................................................................................................................................................................
....................................................................................................................................................................................................
....................................................................................................................................................................................................
Date .......................................................................................... ....................................................................................
Registrar of Insurance

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FORM RI/5
Stocked by Registrar of Insurance, Ministry of Finance

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulation 9)

APPLICATION FOR REGISTRATION AS A BROKER

1. Name of Broker
2. Address of Head Office ....................................................................................................................................................
3. Directors-give name, nationality, country of residence and details of other directorships held in respect of each
director.
........................................................................................................................................................................................
........................................................................................................................................................................................
........................................................................................................................................................................................
........................................................................................................................................................................................
........................................................................................................................................................................................
........................................................................................................................................................................................
........................................................................................................................................................................................
........................................................................................................................................................................................
........................................................................................................................................................................................
........................................................................................................................................................................................
........................................................................................................................................................................................
4. Name of General Manager ..............................................................................................................................................
5. Name, address and qualifications of auditor in Zambia ..................................................................................................
........................................................................................................................................................................................
........................................................................................................................................................................................
6. Countries in which applicant carries on business as a broker ..................................... ..................................................
........................................................................................................................................................................................
........................................................................................................................................................................................
7. (a) Situation of principal office in Zambia ........................................................................................................................
(b) Postal address ..........................................................................................................................................................
(c) Telephone number ....................................................................................................................................................
8. List of all Branch Offices in Zambia, addresses and telephone numbers and names of officers in charge ....................
9. Name and address of brokers at Lloyd's through whom the applicant transacts insurance business ............................
10. Period of financial year ......................................................................................................................................................
We ......................................................................................................................... hereby apply for registration under the
Insurance Act and declare the above particulars to be true and correct.
..................................................................................
Chairman
..................................................................................
Director
Date ..................................................................................
Principal Officer
(If appointed)

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

FORM RI/6
Stocked by Registrar of Insurance, Ministry of Finance

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulation 9)

APPLICATION FOR A BROKER'S LICENCE

Name of Registered Broker ....................................................................................................................................................
I hereby make application for a Broker's Licence permitting the above-named Registered Broker to act as a broker
during the year ending 31st December, 19............ . The licence fee of one thousand five hundred fee units is enclosed
herewith.

Date .......................................................................................... ....................................................................................
Principal Officer

(As amended by Act No. 13 of 1994)

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

FORM 7
REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulation 9)

BROKER'S LICENCE (ANNUAL) No. ..............

....................................................................................................................................................................................................

....................................................................................................................................................................................................
having paid the sum of one thousand five hundred fee units is hereby licensed to act as a broker during the year ending
31st December, 19......... .

Date .......................................................................................... ....................................................................................
Registrar of Insurance

(As amended by Act No. 13 of 1994)

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

FORM RI/8
Stocked by Registrar of Insurance, Ministry of Finance

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulation 9)

APPLICATION FOR APPROVAL OF PROSPECTIVE PRINCIPAL OFFICER

(To be used by an insurer or broker for submission of details in respect of appointment or
change in appointment of his principal officer.)

1. Name of prospective principal officer ..............................................................................................................................
2. Date of birth ....................................................................................................................................................................
3. Academic or professional qualifications ..........................................................................................................................
4. Current appointment held and approximate date of assuming duties ..............................................................................
........................................................................................................................................................................................
5. Appointment to be held on assuming duties of principal officer in Zambia ......................................................................
........................................................................................................................................................................................
6. Particulars of previous insurance and/or broking experience giving employers, dates and positions held ....................

Approval is requested by ...................................................................... (name of insurer or broker) for the appointment of
the above-named person as our Principal Officer in Zambia. A power of attorney as specified in section 11 (3) of the Act is
enclosed.

.................................................................................................. ....................................................................................
Chairman
.................................................................................................. ....................................................................................
Director
Date .......................................................................................... ....................................................................................
General Manager or Secretary



The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

FORM RI/9
Stocked by Registrar of Insurance, Ministry of Finance

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulation 9)

APPLICATION FOR AN INSURANCE AGENT'S LICENCE

(To be submitted in duplicate to the Registrar of Insurance, Ministry of Finance, P.O. Box
RW.62, Lusaka. This form must be typewritten or completed in block capitals in ink)

1. Name of Insurer ..............................................................................................................................................................
2. Name of applicant ............................................................................................................................................................
3. Residential address ........................................................................................................................................................
4. Postal address ................................................................................................................................................................
5. State if full-time or part-time agent ..................................................................................................................................
..........................................................................................................................................................................................
6. If a part-time agent state principal occupation ................................................................................................................
7. Names of other Insurers you represent (if any) ................................................................................................................
..........................................................................................................................................................................................
8. Have you ever been refused an Insurance Agent's Licence? ..........................................................................................
9. Has any Insurance Agent's Licence issued to you ever been suspended or cancelled? If so, when? ............................
10. State:
(a) Date of birth ..............................................................................................................................................................
(b) Insurance experience and qualifications ..................................................................................................................
(c) General educational standard ....................................................................................................................................

DECLARATION BY APPLICANT

I ............................................................................................................. hereby apply for an Insurance Agent's Licence
and declare that the above particulars are true and correct and that I have not-

(a) been adjudged or otherwise declared bankrupt;

(b) made an assignment to, or an arrangement or composition with, creditors which has not been rescinded;

(c) been convicted by any court of any offence involving dishonesty, fraud or misrepresentation, an appeal against
the conviction not having been brought or, if brought, having been abandoned or dismissed.

I undertake to notify the Registrar of Insurance of any material change in the particulars set out above or in the facts to
which my declaration relates.
Date .......................................................................................... Signed ......................................................................

11. A licence fee of ........................................... fee units is enclosed.

DECLARATION BY PRINCIPAL OFFICER OF REGISTERED INSURER TO BE REPRESENTED

I, .................., hereby certify that to the best of my knowledge and belief the above particulars and declaration are true
and correct and that the applicant has undergone a period of training in the class or classes of insurance business he will
be required to transact and that he is competent to explain the conditions of the policies issued by this Company.
Date .......................................................................................... ....................................................................................
Principal Officer
Name of Insurer

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

FORM 10

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulation 9)
No. ..................

INSURANCE AGENT'S LICENCE (ANNUAL)

Name ..........................................................................................................................................................................................
Address (Residential) ..................................................................................................................................................................
having paid the sum of K2 is hereby licensed to canvass for and secure proposals for insurance for ......................................
during the year ending 31st December, 19........ .
Dated at ........................................................ this ................................................... day of ..................................................
19.........
....................................................................................................
Registrar of Insurance
NOTE.-A separate licence is required for each insurer represented.

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulation 11)

INSURER'S REVENUE ACCOUNT (SPECIFIED NON-LIFE INSURAN

Revenue Account in respect of ... Insurance Business carried on by an insurer in Zambia in the financial year ended ............
19..
Name of Insurer .................................................

In

Zambia

Outside

Zambia Total

Amount of the .. Insurance Fund at the end of

preceding year . . . . . . . .

Provision for unexpired risks. .

Additional reserves (if any)

Premiums:

Direct business (a) received K

(b) due K

Deduct:

Reinsurance ceded (a) paid K

(b) due K

Net Total Direct Business

Reinsurance accepted (a) received K

(b) due K

Total Reinsurance Accepted

Commission:

Reinsurance ceded (a) received K

(b) due K

Deduct:

Reinsurance accepted (a) paid K

(b) due K

Net total

K

-

-

-

-

-

-

-

-

-

-

K

-

-

-

-

-

-

-

-

-

-

K

-

-

-

-

-

-

-

-

-

-

A. Claims paid in respect of c

Add Claims outstanding in r

Less Salvages, etc., realise

Less Reinsurance, received

B. Claims paid in current yea

year . . . .

Add Claims outstanding in c

respect of last year

Less Salvages, etc., realise

Less Reinsurance, received

C. Claims paid in current yea

or B above . .

Add Claims outstanding in c

included in A or B above

Less Salvages, etc., realise

Less Reinsurance, received

Payments under reinsuranc

Add Amount due but not pa

accepted . .

INSURER'S REVENUE ACCOUNT (SPECIFIED NON-LIFE INSURANCE)

In

Zambia

Outside

Zambia Total

The Laws of Zambia

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Other Income

Rent . . . . . . . .

Dividends . . . . . . . .

Interest . . . . . . . .

Other revenue (Accounts to be specified) . .

Transferred from Profit and Loss Account

Total

K K K

Commission:

Paid to Brokers . .

Due to Brokers . .

Paid to Agents (a) full-tim

(b) part-ti

Paid to Staff . .

Expenses of management

Other expenses (Specify ac

excess of K200 or if in to

K2,000 . . . .

Transferred to Profit and Loss

Amount of the .....................

end of the year, as per balanc

Provision for unexpired risks,
of premium income for the y

Additional Reserves (if any) ..

______________________________________________________________________________________________
NOTE.-Specify countries in respect of each entry made in the "Outside Zambia" column.

Date .......................................................................................... .................................................................................. .........................
Principal Officer

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulation 11)

SUMMARY OF INSURER'S REVENUE ACCOUNTS (NON-LIFE INSUR

Supplementary summary of Revenue Accounts in respect of all Classes of Non-Life Business in the financial year ended ..., 19.
Name of Insurer ............................................................................................................

In

Zambia

Outside

Zambia Total

Net total premiums received . . . . . .

Total reinsurance accepted . . . . . .

Net total commission received . . . .

TOTAL OTHER INCOME

Rents . . . . . . . . . .

Dividends . . . . . . . .

Interest . . . . . . . . . .

Other revenue (Accounts to be specified) . .

Total

K K K

Net total of claims . .
Total claims paid and outsta
reinsurance accepted
Total commission paid and o
TOTAL EXPENSES OF MA
Salaries:
Zambian staff-
(No. employed at date of
Expatriate staff-
(No. employed at date of

Registered Head Office Exp
Repairs to and Maintenance
Rents . . . .
. .
Rates . . . .
. .
Income tax . .
Directors' fees . .
Other Expenses (specify acc
is in excess of K200 or if in t
exceeds K2,000 . .

In each instance the figure of "total" or "net total" should be the aggregate of the corresponding figures shown on the ind
Date ........................................................ ........................................................................ ..................................

Principal Officer Auditor

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulations 11 and 15)

SUPPLEMENTARY STATEMENT OF MOTOR INSURANCE BUSINE
Name of Insurer .......................................................................

PREMIUMS

Act Third Party

(a) Private use . . . . . . . . . . . . . .

(b) Business and commercial . . . . . . . . . . . .

Full Third Party

(a) Private use . . . . . . . . . . . . . .

(b) Business and commercial . . . . . . . . . . . .

Comprehensive

(a) Private use . . . . . . . . . . . . . .

(b) Business and commercial . . . . . . . . . . . .

K

Act Third Party

(a) Private

(1) Damage to vehicl

(2) Damage to prope

(3) Personal injury

(4) Other payments (

(b) Business and commercia

(1) Damage to vehicl

(2) Damage to prope

(3) Personal injury

(4) Other payments (

Full Third Party

(a) Private

(1) Damage to vehicl

(2) Damage to prope

(3) Personal injury

(4) Other payments (

(b) Business and commercia

(1) Damage to vehicl

(2) Damage to prope

(3) Personal injury

(4) Other payments (

Comprehensive

(a) Private

(1) Damage to vehicl

(2) Damage to prope

(3) Personal injury

(4) Other payments (

(b) Business and commercia

(1) Damage to vehicl

(2) Damage to prope

(3) Personal injury

(4) Other payments (

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

Total

______________________________________________________________________________________________________________________
NOTE 1.-Use net figures after deduction of salvages, reinsurances, etc., to correspond with Motor Revenue Account.

NOTE 2.-Full Third Party Fire and Theft insurance shall be included under the heading "Comprehensive".

Date ................................................................ .................................................................... ................................

Principal Officer Auditor

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulations 11 and 15)

SUPPLEMENTARY STATEMENT OF BURGLARY, HOUSEBREAKING, THEFT AND ROBBE

PREMIUMS

PRIVATE DWELLINGS . . . . . . . . . . . .

OTHER PREMISES . . . . . . . . . . . . . .

K

PRIVATE DWELLINGS

(a) Burglary and Hou

(b) Theft and Robber

OTHER PREMISES . .

(a) Burglary and Hou

(b) Theft and Robber

Total

______________________________________________________________________________________________________________________
Date .......................................................................................... ..................................................................................................................
Principal Officer

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulation 11)

INSURER'S PROFIT AND LOSS ACCOUNT

Profit and Loss Account in respect of Insurance Business carried on by an Insurer in Z
year ended ........................................................, 19..........
Name of Insurer ................................................................

In

Zambia

Outside

Zambia Total

Balance of last year's account. . . . .

Interest and dividends not carried to other accounts

Rents not carried to other accounts . . . .

Profit transferred (accounts to be specified) . .

Other revenue (accounts to be specified) . .

K K K

Dividends and bonuses to

Expenses not charged to
(expenses to be specified

Loss transferred (account

Other expenditure (accou

Balance as per balance s

Total

NOTE.-Specify countries in respect of each entry made in the "Outside Zambia" column.

Date ...................................................... ................................................................................ ...

Principal Officer

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulation 11)

INSURER'S BALANCE SHEET

Balance Sheet showing the financial position in Zambia of an Insurer at the close

year ended ........................................................, 19..........

Name of Insurer ................................................................

In

Zambia

Outside

Zambia Total

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

LIABILITIES

Shareholders' capital paid up (if any) . . . .

Life Insurance Fund (if any) . . . . . .

Other funds (if any) to be specified . . . .

Balance of Profit and Loss Account . . . .

Claims admitted or intimated but not paid:

Life Insurance (if any) . .

Other classes of insurance (to be specified) . .

Other sums owing by the insurer (to be specified) . .

K K K ASSET

Mortgages on property
Loans on insurance policies
Loans on stocks and shares

Loans on personal security

Zambian Government Treas

Zambian Government Devel

ment Bonds . .

Zambian Government stocks

Other Government Treasury

Other Government stocks, e

Municipal and other Local G

Securities . .

Other Debentures and debe

Preference stocks and share

Ordinary stocks and shares

Other investments (to be spe

House and landed property

Motor vehicles . .

Office furniture and equipme

Agents' Balances . .

*Outstanding premiums and

instalments . .

*Outstanding interest, divide

*Interest accrued but not pay

Money on Deposit (at less th

month's notice of withdrawa

time of deposit) . .

Money at call or at short not

Cash on hand, in transit or o

account . . . .

Other assets (to be specified

Total

______________________________________________________________________________________________________________________
*These items are included in the corresponding items in the Revenue Accounts.

NOTE- 1. Specify countries in respect of each entry made in the "Outside Zambia" column.

2. A balance sheet in this form shall be rendered in respect of each separate fund for which separate investments are made, and every su
which the insurer transacts in Zambia, be in the above form.

3. This balance sheet shall state how the values of the stock exchange securities listed are arrived at, and a certificate shall be attached s
effect that, in their belief, the assets set forth in the balance sheet are, in the aggregate, fully of the value stated therein, less any inves
balance sheet which is in respect of life insurance business and no other business, this certificate is to be given on the occasion only
insurer is made in terms of section 18 of the Act.

Date ................................................ .................................................................
Principal Officer

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulation 11)

INSURER'S REVENUE ACCOUNT (LIFE INSURANCE)

Revenue Account in respect of Life Insurance Business carried on by an Insurer in the financial year ended ........................................

Name of Insurer ..........................................................................................

In

Zambia

Outside

Zambia Total

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

Amount of the Insurance Fund at the end of the

preceding year . . . . . .

Premiums

Direct business (a) received K

(b) due K

Deduct

Reinsurance ceded (a) paid K

(b) due K

Net total

Consideration for annuities granted-

(a) received K

(b) due K

Deduct

Reinsurance ceded (a) paid K

(b) due K

Net total

Reinsurance accepted (a) received K

(b) due K

Total Reinsurance Accepted

Commission

Reinsurance ceded (a) received K

(b) due K

Deduct

Reinsurance accepted (a) paid K

(b) due K

Net total

OTHER INCOME

Rent . . . . . .

Dividends . . . . . .

Interest . . . . . .

Stamp duty on insurance policies

Other revenue (accounts to be specified) . .

. . . .

K

-

-

-

-

-

-

-

-

-

-

-

-

-

-

K

-

-

-

-

-

-

-

-

-

-

-

-

-

-

K

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Claims under policies paid and outs

By death . . . . . .

By maturity. . . . . .

By disability . . . . . .

Gross . . . . .

Deduct Reinsurance recoveries

Surrenders, including surrende

Annuities . .

Deduct Reinsurance recoveries

Bonuses in cash or in reduction

COMMISSION: PAIND AND OUTST

A. Broker ...............................

B. Agents (i) full-time ...........

(ii) part-time .........

C. Staff .................................

Total Commission

EXPENSES OF MANAGEMENT

Salaries Zambian Staff

(Number employed at date of ret

Expatriate Staff

(Number employed at date of ret

Registered Head Office expenses

Rents. . . . . . .

Rates . . . . . .

Income tax . . . .

Directors' Fees . . . .

Stamp duty on insurance policies

Other expenses (specify account
excess of K200 or if in total the
K2,000) . .

Amount of Life Insurance Fund at th
as per balance sheet

Total

NOTE 1. Specify countries in respect of each entry made in the "Outside Zambia" column.

NOTE 2. A revenue account shall be rendered in respect of each part of the life insurance business for which a separate fund is maintaine

Date .......................................................... ........................................................

Principal Officer

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

FORM RI/18

Stocked by Registrar of Insurance, Ministry of Finance

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulation 11)

INSURER'S SUPPLEMENTARY STATEMENT OF LIFE INSURANCE BUSINESS

Other than business in connection with funeral, industrial and sinking

fund policies, carried on in Zambia by an insurer in the financial year

ended ............................................, 19.............

Name of Insurer ...........................................................................................................................................................................

A.-STATEMENT OF REVENUE AND EXPENDITURE DURING THE YEAR ENDED

......................................................., 19...............

Individual Group
REVENUE
Premiums . . . . . . . . . . . .
Considerations for annuities granted . . . . . .

EXPENDITURE
Claims under policies paid and outstanding:
By death . . . . . . . . . . . .
By maturity . . . . . . . . . . . .
By disability . . . . . . . . . . . .

Surrenders, including surrenders of bonus,bonuses
in cash and bonuses in reduction of premiums . . . . . .

Annuities . . . . . . . . . . . . . .

B.-STATEMENT OF NEW LIFE INSURANCE AND NEW ANNUITIES EFFECTED DURING THE YEAR ENDED

.........................................................................................................................................................................................., 19.........

Individual Group
INSURANCES
Number of policies . . . . . .
Sums insured . . . . . .
Annual premiums . . . . . .
Single premiums . . . . . .

Number of individual policies lapsed or cancelled during the year, including policies issued in preceding year, within-

3 months of issue ........................................................................

6 months of issue ........................................................................

12 months of issue .......................................................................

Individual Group
Immediate Deferred Immediate Deferred

ANNUITIES
Number of policies . . . .
Amount per annum . . . .

Number of individual policies lapsed or cancelled during the year, including policies issued in preceding year, within-
3 months of issue..................................................................................................................................................................

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

6 months of issue..................................................................................................................................................................
12 months of issue....................................................................................................................................................................
NOTE 1.-All the above figures shall be net figures after deduction of reinsurances.
NOTE 2.-Figures for group endowment assurance schemes must be included under "Individual".

Date .......................................................................... ........................................................................
Principal Officer

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

FORM RI/19

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulation 14)

INSTRUCTIONS FOR PREPARATION OF ABSTRACT OF ACTUARIAL REPORT
ON FINANCIAL POSITION OF LIFE INSURER

NOTE.-Separate returns signed by the actuary of the insurer shall be furnished for life policies, funeral policies,
industrial policies and sinking fund policies, provided, however, that life policies and sinking fund policies may be included
in one return.

The abstract shall be prepared in numbered paragraphs containing the information required in the following form:

1. The date to which the insurer's accounts are made up for the purpose of the investigation.

2. The general principles adopted in the valuation and the method followed in the valuation of the particular classes of
insurance, including a statement of the method by which the net premiums have been arrived at, and whether these
principles were determined by the insurer's articles of association or by his regulations, or how otherwise, together with a
statement of the manner in which policies on under-average lives are dealt with.

3. The table or tables of mortality used in the valuation. In cases where the tables employed are not published,
specimen policy values shall be given at the rate of interest employed in the valuation in respect of whole-life insurance
policies effected at the respective ages of 20, 30, 40 and 50, and having been respectively in force for five years, ten years
and upwards at intervals of five years respectively; with similar specimen policy values in respect of endowment insurance
policies, according to age at entry, original term of policy and duration.

4. The rate or rates of interest employed in the calculations.

5. The actual proportion of the annual premium income, if any, reserved as a provision for future expenses and profits,
separately specified in respect of insurances with immediate profits, with deferred profits, with discounted bonuses and
without profits. If no proportion of the annual premium income is reserved as a provision for future expenses and profit,
how this provision is made shall be stated.

6. The liabilities of the insurer under life policies and annuities at the date referred to in paragraph 1, showing the
number of policies, the amount insured, and the amount of premiums payable annually under each class of policy, both
with and without participation in profits. These returns shall be furnished in Form RI/21. Separate returns shall be furnished
for liabilities in Zambia and for total liabilities.

7. A statement of the principles upon which the distribution of profits, if any, among the shareholders and policy owners
is made, giving the number of years' premiums required to be paid before a bonus-

(a) is allotted; and

(b) vests.

The statement shall specify whether the principles upon which the distribution of profits is made were determined by the
insurer's articles of association or by his regulations, or how otherwise.

8. A statement of the results of the valuation, giving the total amount of profit made by the insurer since the last
valuation (including any amount carried forward from that valuation) allocated as follows:

(a) as interim bonuses;

(b) among the policy owners with immediate participation;

(c) among the policy owners with deferred participation;

(d) among the policy owners with discounted bonuses;

(e) among the shareholders, if any;

(f) to reserve funds or other accounts;

(g) carried forward unappropriated.

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

FORM RI/20

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulation 14)

INSTRUCTIONS FOR PREPARATION OF STATEMENT OF LIFE INSURANCE BUSINESS OF AN INSURER

NOTE.-Separate returns signed by the actuary of the insurer shall be furnished for life policies, funeral policies,
industrial policies and sinking fund policies provided, however, that life policies and sinking fund policies may be included
in one return. The expression "office yearly premium" is to be regarded as excluding any extra premium as defined in Note
1 to Form RI/21.

The statement shall be prepared in paragraphs numbered to correspond with those appearing below. Statements of
reinsurances corresponding to statements in respect of insurances shall be given throughout:

1. The published tables or table of premiums for insurances for the whole term of life and for endowment insurances
which are in use in Zambia at the date to which the insurer's accounts are made up for the purpose of the investigation.

2. Particulars of a kind which would enable an independent actuary to estimate the liability shall be furnished in
respect of policies under which the aggregate liability of the insurer is not less than 90 per centum of the total liabilities as
shown in Form RI/21, in calculating this percentage, any liabilities shown against the item "Adjustments, if any (to be
separately specified)" in Form RI/21 shall be ignored. If, in accordance with the foregoing provision, an insurer elects to
furnish particulars of any of the kinds of policies described in paragraphs 3 to 6 below, then such particulars must be as
stipulated in those paragraphs. Separate returns shall be furnished for business in Zambia and for total business. Separate
information shall be furnished for "individual" and "group deferred annuity" business in respect of liabilities in Zambia.

3. The total amount insured on lives for the whole term of life which are in existence at the date referred to in
paragraph 1 of Form RI/19, distinguishing the portions insured with immediate profits, with deferred profits, with discounted
bonuses and without profits, stating separately the total reversionary bonuses and specifying the particulars for each age
or for each group of five ages, the basis of division as to immediate and deferred profits being stated.

4. The amount of office and net yearly premiums for each age or each group of five ages, after deducting the
abatements made by the application of bonuses in respect of the respective insurances referred to in paragraph 3. A
separate statement shall be given of premiums payable for a limited number of years, classified according to the number of
years' payments remaining to be made or according to attained age, and in either case five-year grouping may be used if
desired. If premiums payable for a limited number of years are classified according to attained age, the valuation constants
are to be given for each age or group of ages together with an explanation of the method by which they have been
calculated.

5. The following particulars are to be given in respect of endowment insurances, and are to be separately stated for
policies with immediate profits, with deferred profits, with discounted bonuses and without profits; the sums insured, the
reversionary bonuses (to be separately specified), the office yearly premiums, and the net yearly premiums, in respect of
each year or group of five years in which the policies will mature for payment, or in respect of each year or group of five
years of attained age. If any of these particulars are classified according to attained age, the corresponding valuation
constants are to be given for each age or group of ages, together with an explanation of the method by which they have
been calculated.

6. The total amount of immediate annuities on lives, distinguishing the amount for each age or group of five ages, and
distinguishing male and female lives.

7. The average net rate of interest yielded by the assets, whether invested or uninvested, constituting the life
insurance fund of the insurer calculated upon the mean fund of each year during the period since the last investigation. It
shall be stated whether or not the mean fund upon which the average net rate of interest is calculated includes
reversionary investments.

8. A table of minimum values used in Zambia, if any, allowed for the surrender of policies for the whole term of life and
for endowment insurances, or a statement of the method pursued in Zambia in calculating such surrender values, with
instances of the application of such method to policies of different durations and taken out at various interval ages.

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulation 14)

SUMMARY AND VALUATION OF THE LIABILITIES OF A LIFE INSURER AT
(See paragraph 6 of the instructions set out on Form RI/19)

Name of Insurer ...........................................................................

PARTICULARS OF THE P
VALUATION

Number
of

policies

Sums
insured

and
bonuses

O
y

pre
INSURANCES:

1. With immediate participation in profits-
For the whole term of life . . . . . . . . . . . .
Other classes (to be specified) . . . . . . . . . .
Extra premiums payable . . . . . . . . . . . .

2. With deferred participation in profits-
For the whole term of life . . . . . . . . . . . .
Other classes (to be specified) . . . . . . . . . .
Extra premiums payable . . . . . . . . . . . .

3. With discounted bonuses-
For the whole term of life . . . . . . . . . . . .
Other classes (to be specified) . . . . . . . . . .
Extra premiums payable . . . . . . . . . . . .

......................

......................

......................

......................

......................

......................

......................

......................

......................

......................

......................

......................

......................

......................

......................

......................

......................

......................

.......

.......

.......

........

........

........

........

........

........

Total Insurances with Profits

4. Without participation in profits-
For the whole term of life . . . . . . . . . . . .
Other classes (to be specified) . . . . . . . . . .
Extra premiums payable . . . . . . . . . . . .

......................

......................

......................

......................

......................

......................

........

........

........

Total Insurances without Profits
TOTAL INSURANCES . . . . . . . . . . . .

Deduct: Reinsurances (to be specified according to class in a separate statement)
Net Amount of Insurances . . . . . . . . . . . .
Adjustments, if any (to be separately specified) . . . . . . . .

......................

......................

......................

......................

......................

......................

......................

......................

........

........

........

........

ANNUITIES ON LIVES:
Immediate-

(i) individual . . . . . . . . . . . . . .
(ii) group . . . . . . . . . . . . . .

Other classes (to be specified)-
(i) individual . . . . . . . . . . . . . .
(ii) group . . . . . . . . . . . . . .

......................

......................

......................

......................

......................

......................

......................

......................

........

........

........

........

TOTAL ANNUITIES:
Deduct: Reinsurances (to be specified according to class in a separate statement)
Net Amount of Annuities . . . . . . . . . . . .
Adjustments, if any (to be separately specified) . . . . . . . .

......................

......................

......................

......................

......................

......................

........

........

........

Total of the Results

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

NOTE.- 1. The term "extra premium" means the charge for any risk not provided for in the minimum contract premium.

2. If separate valuations of any portion of the business re required under insurance laws of countries outside Zambia, a
respect of the business so valued in each country.

3. The information for "individual" and "group" under the heading "Annuities on Lives" is required only in respect of liabilit
4. Separate particulars in the above form must be given of liabilities in Zambia which have been reinsured (except on the
Date ...................................................................................................... .......



The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulation 15)

BROKER'S REVENUE ACCOUNT: BUSINESS PLACED AT LLOYD

In

Zambia

Outside

Zambia Total

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

PREMIUMS

(a) received K ......

(b) due K ......

Deduct

Reinsurance ceded (a) paid K ......

(b) due K ......

Net total

Reinsurance accepted (a) received K ......

(b) due K ......

COMMISSION

Direct business (a) received K ......

(b) due K ......

Reinsurance ceded (a) received K ......

(b) due K ......

Deduct

Reinsurance ceded (a) paid K ......

(b) due K ......

Net total

Stamp duty on insurance policies . . . . . .

Other income (Accounts to be specified) . . . . . .

Money remitted by Lloyd's in respect of claims . . . . . .

settlement:

(a) received K ......

(b) due K ......

Transferred from Profit and Loss Account . . . . .

.

K

-

-

-

-

-

-

-

-

-

-

-

-

-

-

K

-

-

-

-

-

-

-

-

-

-

-

-

-

-

K

-

-

-

-

-

-

-

-

-

-

-

-

-

-

A. Claims paid in respect o

Add claims outstanding

Less Salvages, etc., rel

Reinsurance received a

B. Claims paid in current ye

. . . .

Add Claims outstandin

year . . . .

Less Salvages, etc., rel

Reinsurance received a

C. Claims paid in current ye

. . . .

Add Claims outstandin

or B above . .

Less Salvages, etc., rel

Reinsurance received a

Amount paid and outstandi

. . . .

Expenses of Management

Other expenses (Accounts

PREMIUMS

remitted to Lloyd's

due to Lloyd's . .

Transferred to Profit and Lo

Total

NOTE 1.-Specify countries in respect of each entry made in the "Outside Zambia" column.

NOTE 2.-Separate Revenue Accounts on this Form shall be rendered in respect of Fire; Motor; Personal Accident; Burglary, Housebreaking,

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

Miscellaneous insurance business.

Date ........................................................... .........................................................

Principal Officer

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulation 16)

BROKER'S REVENUE ACCOUNT: BUSINESS NOT PLACED AT LLO

In

Zambia

Outside

Zambia Total

PREMIUMS

Insurance

(a) received K ......

(b) due K ......

_____

Total A K ......

_____

Less Commission (a) paid K ......

(b) due K ......

_____

Total B K ......

_____

Net Total A less B K ......

Reinsurance (a) received K ......

(b) due K ......

_____

Total C K ......

_____

Less Commision (a) received K ......

(b) due K ......

_____

Total D K ......

_____

Net Total C less D K ......

Other income (account to be specified) . . . . . .

Transferred from Profit and Loss Account . . . .

K

-

-

-

-

-

-

-

-

-

-

K

-

-

-

-

-

-

-

-

-

-

K

-

-

-

-

-

-

-

-

-

-

PREMIUMS

Insurance

(a) remitted to insure

(b) due to insurers

Reinsurance

(a) remitted to reinsu

(b) due to reinsurers

Commissions, discount

(a) insurance

(b) reinsurance

Expenses of Manageme

Other expenses (spens

in excess of K 200 or

2,000) .. ..

Transferred to Profit and Los

Total

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

NOTE 1.-Specify countries in respect of each entry made in the "Outside Zambia" column.

NOTE 2.-Separate Revenue Accounts on this Form shall be rendered in respect of Fire; Motor; Personal Accident; Burglary

Miscellaneous insurance business.

Date .................................... .................................................

Principal Officer

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulation 17)

SUMMARY OF BROKER'S REVENUE ACCOUNTS (NON-LIFE INSURA

Summary of Revenue Accounts in respect of all classes of non-life business carried on by a broke
ended ................................................................., 19.........

Name of Broker ...............................................................................

In

Zambia

Outside

Zambia Total

PREMIUMS

Insurance: Total received and due K ......

Less: Total Commission eceived and due K ......

Net total ......

Reinsurance: Total received/due K ......

Less-Total Commission received/due K ......

Net total ......

Total other income (accounts to be specified)

K K K P

Total remitted and due to ins

Total remitted and due to rei

TOTAL EXPENSES OF MA

Salaries: Zambian staff .......

(No. employed at date of ret

Expatriate staff.....................

(No. employed at date of ret

Rents . . . .

Rates . . . .

Income tax . .

Director's fees . .

Repairs to and maintenance

Other expenses (Specify ac

or if in total the a

Total

NOTE.-In each instance the figure of "total" should be the aggregate of the corresponding figures shown on the individual revenue accounts.

Date ............................................. ...........................................................

Principal Officer

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulation 17)

BROKER'S PROFIT AND LOSS ACCOUNT

Profit and Loss Account in respect of insurance business carried on by a broker in Zamb

ended .............................................................., 19.........

Name of Broker ................................................................................

In

Zambia

Outside

Zambia Total

Balance of last year's account . . . . . . . .

Rent . . . . . . . . . . . .

Dividends . . . . . . . . . . . .

Interest . . . . . . . . . . . .

Other income (Accounts to be specified ) . . . .

Profit transfer

K K K

Dividends and bonuses to s

Expenses not charged to oth

specified) . .

Other expenditure (Accounts

Loss transferred . .

Balance as per balance she

Total

NOTE.-Specify countries in respect of each entry made in the "Outside Zambia" column.

Date .................................................... ...................................................................................... .........

Principal Officer

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

REPUBLIC OF ZAMBIA

THE INSURANCE REGULATIONS

(Regulation 17)

BROKER'S BALANCE SHEET

Balance Sheet showing the financial position of a broker in Zambia at the close of

ended .............................................................., 19.........

Name of Broker ................................................................................

In

Zambia

Outside

Zambia Total

Shareholder' s capital paid up . . . . . .

Balance of Profit and Loss Account . . . .

Other sums owing (to be specified) . . . .

K K K

Zambia Government Developm

Zambia Government Treasury

Zambia Government Stocks, e

Other Government Treasury B

Other Government Stocks, etc

Other investments (to be speci

House and landed property

Motor vehicles . .

Office furniture and equipment

Repairs to and maintenance of

Money on deposit (at less than

withdrawal at time of depos

Money at call or at short notice

Cash on hand, in transit or in C

Other assets (to be specified)

Total

NOTE.-Specify countries in respect of each entry made in the "Outside Zambia" column.

Date .......................................................... ................................................................................ .........

Principal Officer

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

THE INSURANCE (REMITTANCE OF PREMIUMS) REGULATIONS

Regulations by the Minister

Statutory Instrument
119 of 1989
175 of 1989
Act No.
13 of 1994

1. These Regulations may be cited as the Insurance (Remittance of Premiums)
Regulations.

Title

2. In these Regulations "stop order arrangement" means the payment of premiums
to the insurer by an employer on behalf of employees.

Definition

3. (1) Where an employer has ten employees or more who have effected life
policies, the employer shall enter into a stop order arrangement with the insurer.

Remittance of
premiums

(2) An employer who enters into a stop order arrangement with the insurer shall
remit the premiums on behalf of its employees to the insurer together with the form set out
in the Schedule to these Regulations.

4. (1) An employer who has entered into a stop order arrangement shall cease to
remit premiums on the death or dismissal of an employee and shall inform the ensurer
accordingly.

Ceaser of stop order
arrangement

(2) An employer who has entered into a stop order arrangement shall inform the
insurer whenever any of the employees with life policies are transferred.

5. Any employer who does not comply with any of the provisions of these
Regulations shall be guilty of an offence and liable on conviction to a fine not exceeding
two thousand five hundred penalty units.

(As amended by Act No. 13 of 1994)

Offences and
penalties

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

SCHEDULE
(Regulation 3)

STOP ORDER ARRANGEMENT FORM

Company/Ministry Name ........................................................................................................ Company Code .........................

Division Code ...................................................................... Payment Schedule from Salary for the Month of..........................

Page No. ............................

Remittance to Zambia State Insurance Corporation Ltd for Life Premiums (Stop Order)

Serial No. Man
No.

Dept No. Pay-point
No.

Name of
Policy
Holder Policy

Number

Loan
Repay-
ment

Amount of
Premium

Total

Total Number of Entries: * Totals **** **** **** ****

(As amended by S.I. No. 175 of 1989)

The Laws of Zambia

Copyright Ministry of Legal Affairs, Government of the Republic of Zambia

Endnotes
1 (Popup - Popup)
* Delete Part II if only life insurance business is transacted by the insurer, or Part I if no life insurance
business is transacted by the insurer.
2 (Popup - Popup)
* Delete Part II if only life insurance business is transacted by the insurer, or Part I if no life insurance
business is transacted by the insurer.