Regulatory Alerts2010-01-01
Insurance (General Insurance Business Solvency) (Amendment) Rules 2010
The Financial Services Commission amended the general insurance solvency framework to permit insurers to include legally subordinated loans in their available capital. The rules require these unsecured loans to exceed five years in original maturity, carry explicit policyholder priority, and remain redeemable only at the insurer’s discretion with prior Commission approval. Repayment of such loans is explicitly deferred until all policyholder and creditor claims are fully satisfied during winding up.
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