16. The Insurance Act is amended by inserting, immediately after section 14, the following section:
—(1) Every authorised reinsurer shall maintain a reinsurance deposit of a value of such amount as may be prescribed in respect of each class of business for which it is authorised.
(2) A deposit under subsection (1) shall be made in such form and manner, and in assets of such nature, as may be prescribed.
(3) All income accruing in respect of a deposit under subsection (1) shall be payable to the insurer making the deposit.
(4) The Authority may, in relation to a deposit under subsection (1), prescribe —
the rights and obligations of any party in relation to the deposit; and
any other matter which the Authority considers to be incidental to or necessary for this section.”.