On 21/05/2013,
you requested for the version in force on 21/05/2013
incorporating all amendments published on or before 21/05/2013.
The closest version currently available is that of 09/12/2003.
18. Section 17 of the Insurance Act is amended —
(a)
by inserting, immediately after subsection (1), the following subsection:
“(1A) Every direct insurer registered to carry on life business shall establish and maintain, in addition to the insurance funds under subsection (1) and subject to such conditions or restrictions as the Authority may impose, separate insurance funds —
(a)
for its investment-linked policies; and
(b)
for its non-investment-linked policies.”;
(b)
by deleting subsection (2) and substituting the following subsection:
“(2) If, in the case of a direct insurer registered to carry on life business, no part of the surplus of assets over liabilities from its non-participating policies is allocated by the insurer by way of bonus to its participating policies, the insurer shall, in addition to the funds maintained under subsections (1) and (1A) and subject to such conditions or restrictions as the Authority may impose, establish and maintain, in respect of its non-investment-linked policies, separate insurance funds —
(a)
for its participating policies; and
(b)
for its non-participating policies.”;
(c)
by deleting the words “subsections (1) and (2)” in subsection (3) and substituting the words “subsections (1), (1A) and (2)”;
(d)
by deleting subsections (5) to (10) and substituting the following subsections:
“(5) For the purposes of subsection (4), the Authority may prescribe or specify in directions what constitutes receipts, income, liabilities or expenses of the insurer which are properly attributable to the business to which an insurance fund relates and the manner in which each item is to be determined or valued.
(6) In the case of an insurance fund maintained by a direct insurer registered to carry on life business which comprises wholly or partly of participating policies —
(a)
there shall be a surplus account, established and maintained in such manner as may be prescribed, as part of the insurance fund;
(b)
no part of the fund shall be allocated by way of bonus to the participating policies except —
(i)
with the approval of the directors of the insurer, upon considering a written recommendation from the actuary appointed under section 31; and
(ii)
where the making of such allocation does not contravene any condition or restriction that may be prescribed or specified in directions for the purposes of this section;
(c)
no part of the fund shall be allocated to the surplus account except —
(i)
with the approval of the directors of the insurer, upon considering a written recommendation from the actuary appointed under section 31;
(ii)
where the making of such allocation does not contravene the fund solvency requirement under section 18;
(iii)
where the making of such allocation does not contravene any condition or restriction that may be prescribed or specified in directions for the purposes of this section; and
(iv)
where the amount does not exceed 1/9th of the amount allocated pursuant to paragraph (b) for a particular accounting period.
(7) Notwithstanding subsection (6)(c), an insurer may make additional allocations to the surplus account of an insurance fund which comprises wholly or partly of participating policies of an amount and in a manner as prescribed or specified in directions by the Authority.
(8) Where the amount allocated to the surplus account in a particular accounting period pursuant to subsection (6)(c) is less than 1/9th of the amount allocated pursuant to subsection (6)(b) for that accounting period, the insurer shall not allocate the difference between the amount actually allocated and the 1/9th amount allowed to the surplus account in any subsequent accounting period.
(9) An insurer may, where there is a surplus of assets over liabilities of an insurance fund, at any time withdraw from the fund an amount not exceeding the surplus over any fund solvency requirement prescribed for that fund under section 18 if and only if —
(a)
there is no provision in any instrument or contract binding the insurer disallowing such a withdrawal; and
(b)
the insurer ascertains from the latest statement of accounts lodged with the Authority in accordance with section 36 or such other subsequent audited statement of accounts provided to the Authority that there is in fact such a surplus at the time of the withdrawal.
(10) On the making of any withdrawal in accordance with subsection (9), the surplus of the fund shall, for the purposes of this section, be treated as reduced by the amount withdrawn.”; and
(e)
by deleting the words “subsection (6), (8), (9) or (10)” in subsection (11) and substituting the words “subsection (9)”.