Prudential Supervision Manual for Insurance Companies

CENTRALE BANK VAN ARUBA

Prudential Supervision Manual
Insurance Companies
Issued by:
The Centrale Bank van Aruba
July 2003

______________________________________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES
TABLE OF CONTENTS
I. Guidelines for the composition and compilation of the annual
statements and quarterly reports for insurance companies I.1 General guidelines I.2 Annual statements Life insurance companies I.3 Annual statements Nonlife insurance companies I.4 Quarterly reports Life insurance companies I.5 Quarterly reports Nonlife insurance companies
II. Insurance Supervisory Guidelines and Directives
II.1 Asset Management
II.2 Appointment of an External auditor
II.3 Actuarial report and certification for Life Insurance Companies II.4 Publication of the audited Financial Statements II.5 Guidelines on the Coverage Test II.6 Guidelines on the Solvency Margin II.7 Guidelines with regards to the transfer of rights and obligations from insurance agreements II.8 Managing Directors and Members of the Supervisory Board II.9 Prospective (In-) Direct Shareholders – Natural Persons II.10 Directive on the appointment of a certifying actuary
Annex 1 Questionnaire for Prospective Director(s) or Members of the Supervisory
board and for Prospective (In-) Direct Shareholders – Natural Persons
Annex 2 Questionnaire for appointment of or change in External Auditor

______________________________________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES
TABLE OF CONTENTS
III. Policy Papers
III.1 Corporate Governance practices for Insurance Companies III.2 Outsourcing Arrangements
IV. Admission policy Application forms
IV.1 Application form for a license for a Life Insurance Company IV.2 Application form for a license for a Non-Life Insurance Company IV.2 Application form for a license for a Captive Insurance Company
V. Legislation
Landsverordening toezicht verzekeringsbedrijf (AB 2000 no. 82) Unofficial translation of the State Ordinance Supervision Insurance Business Landsbesluit bijzondere bedrijfsrisicoverzekeraars (AB 2002 no. 50) Unofficial English translation of the State Decree Captive Insurance Companies Landsbesluit vertegenwoordiging verzekeringsbedrijf (AB 2003 no. 12) Unofficial English translation of the State Decree Representative Insurance Companies

CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I/i
Part I
Guidelines for the composition and compilation of the annual statements and quarterly reports for insurance companies I.1 General guidelines I.2 Annual statements Life insurance companies I.3 Annual statements Nonlife insurance companies I.4 Quarterly reports Life insurance companies I.5 Quarterly reports Nonlife insurance companies

I/ii CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES

CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I/iii Version overview Version Appendix Date Effective as of Amendments
1.0 All November 23,
January 1,

Addition of the Quarterly
reporting requirements
Digital submission of the
regulatory reports
Revision of the Coverage Test
Report
1.1 Appendices K. and M. on the
Solvency Margin Requirement of the annual statements and quarterly reports May 2, July 1,
Revision of the calculation of
the solvency margin requirement
1.2  Appendix B of the annual
statements and quarterly reports
November 2,
January 1,
Removal of items 11.00
Shareholders’ dividend and
Net earnings from form B.
Income Statement
 Section 13 “Annual filings” • Updated with the amendments made to Supervisory directive “II.4 Directive on the publication of the Audited Annual Financial Statements” and the electronic submission of the annual filings Version management The Guidelines for the composition and compilation of the annual statements and quarterly reports for the insurance companies (the Guidelines) may change over time. The version overview only contains content changes. Editorial changes are not included in this overview.

I/iv CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.1/1 I.1 General guidelines

Introduction
The Guidelines for the composition and compilation of the annual statements and quarterly reports for the insurance companies (the Guidelines) apply to all licensed insurance companies. The annual statements and quarterly reports are primarily used for prudential supervision purposes. The Guidelines form part of the Prudential Supervision Manual Insurance Companies and should be used in conjunction with the other parts of the Prudential Supervision Manual Insurance Companies, namely, the Supervisory Guidelines, Policy Papers, Admission policy, Application forms, and Legislation.
Legal basis
The legal basis for the issuance of the Guidelines is grounded in article 10, paragraphs 1 and 2,
article 11, paragraph 4, article 13, paragraph 2, and article 14, paragraph 3, of the State Ordinance
on the Supervision of the Insurance Business (AB 2000 no. 82) (SOSIB), and article 8, paragraph 2, of the State Ordinance on Foreign Exchange Transactions (AB1990 no. GT6) (SOFET).
Structure of the reporting framework
The annual statements and quarterly reports should reflect the operations conducted in or from Aruba. If it is difficult to classify a particular item, it should be included under the heading that is most suitable to the situation and a brief explanatory note should be provided to the CBA in hard copy and via e-mail address supreports@cbaruba.org. If the nature, complexity, and the size of the reporting institution’s operations warrant this, pursuant to article 25, paragraph 3a of the SOSIB, the CBA may require additional reports, or may no longer require some or all of the reports.
Reporting frequency and submission due dates
The reporting period of the annual statements must be from January 1 to December 31 of the corresponding year. Upon request, the CBA may grant an insurance company permission to change its reporting period. In such case, the CBA may request the insurer to submit additional information. The annual statements are due within six months after the end of each financial year. The quarterly reports are submitted on a quarterly basis and are due within fifteen calendar days after the end of each quarter. The reporting period of the quarterly reports are:
First quarter: January 1 – March 31;
Second quarter: April 1 – June 30;
Third quarter: July 1 – September 30;
Fourth quarter: October 1 – December 31.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.1/2 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES
5. Electronic submission via the DMZ Login Portal
Both the annual statements (CBA-format) and quarterly reports must be submitted via the DMZ Login Portal (https://webapp.cbaruba.org). The templates hereof are available on the DMZ Login Portal and must be uploaded (in Excel-format) within the due dates mentioned under paragraph 4 above. To submit the excel files, the following minimum requirements must be met:

All amounts should be rounded to thousand Florins and amounts below Afl. 500 must be
rounded to zero.
Yellow cells must be filled in.
Orange cells must be filled in (only applicable to annual statements).
Gray cells should not be filled in.
All sheets (in the Excel file) must be completed. If there is no information to report on a
specific item, the value of zero should be entered.
If the file is uploaded successfully, the insurance company will receive an e-mail with the
following text:
From: NoReply@cbaruba.org
Re: Data Loaded Successfully
Dear [username],
Data Loading of [name of the] report, for the period [ddmmmyyy] uploaded at [date and time], PASSED, submission is completed. Uploaded file name: [File.xlsx].
If the file failed to upload, the insurance company will receive an e-mail with the following
text:
From: NoReply@cbaruba.org
Re: Data Loaded Failed
Dear [username],
Data Loading of [name of the] report, for the period [ddmmmyyy] uploaded at [date and time], FAILED, please resubmit the input form. Please log in to the web portal and download the trouble shooting guide for assistance. Uploaded file name: [File.xlsx].
The program will run a number of validations when uploading the excel files to the data
warehouse of the CBA:
a. A hard validation is a minimum requirement for the file to be uploaded, e.g. “total assets” are equal to “total liabilities and shareholders’ equity”. b. When a value does not comply with the minimum requirements (e.g. the coverage ratio is less than 100%) the file will still be uploaded (soft validation).
c. Cross validations are validations between the different reporting files, e.g. the total
investments reported in the fourth quarter must be equal to the total investments reported in the annual filings. d. If the uploaded file did not pass the required validation, the reporter must review the file and resubmit the report.
The following minimum computer requirements are needed:
 Excel 2007 and above (Excel 2013 and above recommended).
 Microsoft Internet Explorer (IE) 9 and above (IE 11 recommended).

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.1/3  Browser cookies should be enabled.  HTTPS should be allowed/enabled in IE browser settings.  File upload should be enabled/allowed through IE browser.  E-mail address "noReply@cbaruba.org" and "noReply-cbaruba@setar.aw" should not be blocked. Reference is also made to the “Troubleshooting guide” available online via the DMZ Login Portal.
6. Applicable standards
It is recommended to apply the International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB).
7. Offsetting
Offsetting of debit and credit balances of a similar nature is not allowed. Debit and credit balances must be reported at their corresponding amounts (i.e. gross).
8. Rounding of figures
All amounts must be rounded to thousand Florins. Only whole numbers are to be filled in. The rounding should be effected in such a way that the total assets equal the total liabilities. Amounts below Afl. 500 must be rounded to zero; the relevant item should then show “0” (zero).
9. Currency conversion
All amounts must be reported in Aruban florin (Afl.) Foreign currency balances must be converted to their Afl. equivalent. Foreign currencies officially quoted by the CBA should be converted using the average of the buying and selling rate quoted by the CBA on the reporting date. Foreign currencies not quoted by the CBA should be converted using Afl. 1.79 per USD
1.00 as a cross-rate.
10. Technical provisions
According to article 13, paragraph 1, of the SOSIB, an insurer must maintain adequate technical provisions, which are fully covered by admissible assets. Pursuant to the second paragraph of
article 13, an insurance company must also take into account the Actuarial Guidelines for
Insurance Companies issued by the CBA. The CBA may raise objections against the nature and valuation of these assets, which objections shall be promptly addressed by the insurer.
11. Solvency requirements
Life insurance companies
According to article 14, paragraph 1, of the SOSIB an insurer engaged in the life insurance business must have a solvency margin equal to eight percent of the provision for insurance obligations at the end of the preceding financial year, without taking the reinsurance portion of these obligations into account.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.1/4 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES Nonlife insurance companies According to article 14, paragraph 2, of the SOSIB an insurer engaged in the nonlife insurance business must have a solvency margin equal to the highest outcome of one of the following calculations:
 fifteen percent of the gross premiums booked in the preceding financial year; or  fifteen percent of the average gross claims incurred in the last three financial years. The amount of intercompany current accounts receivable exceeding the 5 percent of Total investments must be deducted from the Shareholders’ Equity in the calculation of the solvency margin requirement. This does not apply to branches or agencies. Furthermore, pursuant to the third paragraph of article 14 of the SOSIB, an insurer must comply with the Solvency Guidelines issued by the CBA.
12. Fine
Article 16, paragraphs 1 and 2, of the SOSIB states that, if an insurer does not (timely) comply
with the reporting requirement set by the CBA, the CBA can impose an administrative sanction, i.e. a penalty charge order and/or an administrative fine.
13. Annual filings
Within six months after the end of each financial year an insurer must submit the following documents as part of its annual filings:
 The audited annual statements (CBA-format), which provide a clear picture of the management carried out by the insurer and its financial position. It must be accompanied by the auditors’ report stating that the audited annual statements have been prepared in accordance with the guidelines of the CBA, and the management letter issued by the external auditor. The management certification (form 1) must be signed by the management of the insurance company.  Each page of the annual statements must be certified by the external auditor as evidence that the annual statements have been audited (by the external auditor).  The actuarial report and actuarial certification for life insurance companies. Reference is made to the Actuarial Guidelines for Insurance Companies.  The audited financial statements together with the auditor’s opinion. Branches and agencies must submit the audited financial statements of the group of which they form part of.  The audited financial statements of the group to which the reporting institution forms
part of.
 A reconciliation between the equity and the result reported in the financial statements and the equity and result reported in the audited annual statements must be submitted in case that there is a difference.  If there have been important changes in the concerning year, a separate written explanation in case there have been important changes in the concerning year. With

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.1/5 important changes we refer to all changes in the balance sheet and income statement items greater than 10 percent and/or Afl. 1 million compared to the amount reported in the preceding year.  Confirmation of compliance with the requirements set in Supervisory directive “II.4 Directive on the publication of the Audited Annual Financial Statements”.  The annual filings are submitted only digitally in an electronic readable format. This electronic version should be in color and have a minimum document quality of 300 DPI.  The audited annual statements (CBA-format) must be uploaded through the DMZ Login Portal (https://webapp.cbaruba.org).  If, based upon the results of the audit, significant changes have been made vis-à-vis the submitted unaudited quarterly reports, the revised quarterly reports over these periods must also be submitted through the DMZ Login Portal (https://webapp.cbaruba.org).
14. Quarterly reports
As of the first quarter of 2018, the quarterly reports are submitted only digitally via the DMZ Login Portal. Consequently, the management certification, management report, and accounting and valuation principles no longer form part of the quarterly reports. The quarterly reports are due within fifteen calendar days after the end of each reporting quarter and should be submitted only electronically via the DMZ Login Portal (https://webapp.cbaruba.org). Note that the management of each institution remains ultimately responsible for the correctness and completeness of the (digitally) submitted quarterly reports and annual statements (CBAformat) to the CBA. Revised quarterly reports must be digitally resubmitted through the DMZ Login Portal, for example, in case changes have been made based on the results of the external audit. All insurance companies must provide the CBA with a written explanation on significant changes (larger than 10% and/or Afl. 1 million) when compared to the previous quarter. This information must be submitted to the CBA in hard copy, and an electronic readable version hereof must also be submitted via e-mail address supreports@cbaruba.org.
15. Residency
The balance sheet and notes to the balance sheet of the quarterly reports have been expanded with a resident and non-resident column. The classification of the residency of a balance sheet item is according to the definition of resident and non-resident in article 1 of the SOFET.
Article 1 of the SOFET defines residents as:
A. Natural persons residing in Aruba and registered in the population register of the Civil Registry, or those who actually have been living in Aruba for a period exceeding one year after the date of their arrival in Aruba, as soon as that year has lapsed; B. Legal entities, partnerships, and limited partnerships domiciled in Aruba;
C. Branches, branch offices, enterprises and agencies domiciled in Aruba, and not covered
under b;

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.1/6 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES D. Persons, legal entities and other institutions designated by the CBA, and not covered under a, b and c. Nonresidents are: natural persons, legal entities, partnerships, branches, agencies and enterprises not covered by the definition of “residents”.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.2/1 I.2 ANNUAL STATEMENTS LIFE INSURANCE COMPANIES

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.2/2 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES

MANAGEMENT CERTIFICATION
We, the undersigned, hereby certify as follows:
That the attached balance sheet, income statement, and other forms are true and correct.
That all assets, liabilities, income and expenditures for the period ending December 31, 20xx
are included in these financial statements.
That all the assets reported are the property of the company, free of liens and claims, unless
stated otherwise in these financial statements.
That all known capital and or surplus commitments and contingent liabilities are disclosed
appropriately in these financial statements.
Name and position : __________________________________ Signature : __________________________________

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.2/3
2. MANAGEMENT REPORT
In this report senior-management of the company must elaborate on the most important developments occurred during the reporting year and present the company’s projections on the operations of the company for the immediate future.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.2/4 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES A. BALANCE SHEET CURRENT PREVIOUS YEAR YEAR ASSETS
1.00 Investments
2.00 Fixed Assets
3.00 Affiliated Companies
4.00 Current Assets
5.00 Intangibles

TOTAL ASSETS

LIABILITIES AND SHAREHOLDERS’ EQUITY

6.00 Technical Provisions
7.00 Long Term Liabilities
8.00 Current Liabilities

TOTAL LIABILITIES

9.00 Shareholders' Equity 1
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
1 The assigned capital in the case of a branch or agency.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.2/5 B. INCOME STATEMENT

CURRENT
YEAR
AFL
PREVIOUS
YEAR
AFL

INCOME

1.00 Net earned premiums
2.00 Investment income
3.00 Other income

TOTAL INCOME
EXPENDITURES
4.00 Net claims incurred
5.00 Commissions and other acquisition costs
6.00 General and administrative expenses
7.00 Change in technical provisions
8.00 Policyholders’ dividends
9.00 Other expenditures
TOTAL EXPENDITURES
NET INCOME (LOSS) BEFORE TAXES

10.00 Less: Corporate taxes

NET INCOME (LOSS) AFTER TAXES

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.2/6 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES
C. ACCOUNTING AND VALUATION PRINCIPLES
Summarize the accounting and valuation principles used to prepare the statements and disclose any significant change in the principles applied in comparison with previous year.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.2/7 D. NOTES TO THE BALANCE SHEET CURRENT YEAR AFL PREVIOUS YEAR AFL
1.00 INVESTMENTS
1.10 Shares
1.20 Bonds
1.30 Real Estate
1.40 Time Deposits
1.50 Mortgage Loans
1.60 Policy Loans
1.70 Other Loans
1.71 - Secured
1.72 - Unsecured
1.80 Other-specify
Total

2.00 FIXED ASSETS
2.10 Real Estate
2.20 Office Furniture and Equipment
2.30 Other-specify
Total

3.00 AFFILIATED COMPANIES
3.10 Shares
3.20 Loans
3.30 Current Accounts
Total
4.00 CURRENT ASSETS
4.10 Cash on Hand
4.20 Due from other depository corporations
4.30 Agents' and Brokers' Debit Balances
4.40 Uncollected Premiums from Direct Business
4.50 Investment Income Due Or Accrued
4.60 Amounts Receivable from Reinsurers
4.70 Amounts Due from Members (Mutual Companies)
4.80 Other–specify
Total

5.00 INTANGIBLES
Specify

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.2/8 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES D. NOTES TO THE BALANCE SHEET (Continued) CURRENT YEAR AFL PREVIOUS YEAR AFL
6.00 TECHNICAL PROVISIONS
6.10 Previous Year
6.20 Additions
6.30 Deductions
Total

7.00 LONG TERM LIABILITIES
7.10 Loans form Financial Institutions
7.20 Members’ Loan/Loans affiliates
7.30 Other-specify
Total

8.00 CURRENT LIABILITIES
8.05 Premiums Paid in Advance
8.10 Premiums in Suspense
8.15 Agents' and Brokers' credit balances
8.20 Benefits Payable
8.25 Bank Overdrafts and Loans
8.30 Amounts due to Reinsurers
8.35 Corporate Taxes Payable
8.40 Dividends Payable to Policyholders
8.45 Dividends Payable to Shareholders
8.50 Amounts Payable to Affiliates
8.55 Other-specify
Total

9.00 SHAREHOLDERS’ EQUITY
9.10 Issued and paid-in Capital
9.20 Reserves-specify
9.30 Retained Earnings
Total
OFF BALANCE SHEET
Contingent Liabilities (provide details)
Commitments (provide details)
Related Party Transactions (provide details)

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.2/9 E. NOTES TO THE INCOME STATEMENT CURRENT YEAR AFL PREVIOUS YEAR AFL
1.00 NET EARNED PREMIUMS
1.10 Direct Written Premiums
1.20 Assumed Reinsurance Premiums
Gross Written Premiums
1.30 Less: Ceded Reinsurance Premiums
Total

2.00 INVESTMENT INCOME
2.10 Direct Investment Income
2.11 Dividend Income
2.12 Interest on Bonds
2.13 Income from rent
2.14 Interest on Time Deposits
2.15 Interest on Mortgage Loans
2.16 Interest on Policy Loans
2.17 Interest on Other Loans
2.18 Other-specify
Sub-total

2.20 Indirect Investment Income
2.21 Revaluation Adjustments
2.22 Capital Gain / (Loss) On Sales
2.23 Other-specify
Sub-total
TOTAL INVESTMENT INCOME

3.00 OTHER INCOME
Specify

4.00 NET CLAIMS INCURRED
4.10 Deaths Claims
4.20 Maturities / lapses
4.30 Surrenders
4.40 Other-specify
4.50 Less: Ceded Claims Recovered
Total

6.00 GENERAL AND ADMINISTRATIVE EXPENSES
6.10 Personnel costs (including social premiums)
6.20 Other-specify
Total

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.2/10 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES F. OTHER ITEMS-NOTES TO THE BALANCE SHEET

CURRENT
YEAR
Other item description Other item specified AFL
1.80 Investments other
2.30 Fixed assets other
4.80 Current assets other
5.00 Intangibles
7.30 Long term liabilities other
8.55 Current liabilities other
9.20 Reserves
Contingent Liabilities
Commitments
Related Party Transactions
Items pertaining to form D. Notes to the balance sheet for which further specification is required.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.2/11 G. OTHER ITEMS-NOTES TO THE INCOME STATEMENT

CURRENT
YEAR
Other item description Other item specified AFL
2.18 Direct investment income other
2.23 Indirect investment income other
3.00 Other income
4.40 Net claims incurred other
6.20 General and administrative expenses other
Items pertaining to form E. Notes to the income statement for which further specification is required.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.2/12 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES H. BREAK-DOWN OF THE INVESTMENTS AFL LOCAL INVESTMENTS 1) Afl. Fc FOREIGN INVESTMENTS TOTAL

1.00 INVESTMENTS

1.10 Shares

1.20 Bonds

1.30 Real estate
1.31 - Own use
1.32 - Other

1.40 Time deposits

1.50 Mortgage loans

1.60 Policy loans

1.70 Other loans
1.71 - Secured
1.72 - Unsecured

1.80 Other-specify
TOTAL INVESTMENTS

Local investments denominated in local currency (Afl.) and foreign currencies (Fc).

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.2/13
I. THE 40-60% INVESTMENT RULE
Table I
% of Total liabilities insurance companies 1) Required amount in Local Investments Total liability 40% First 10 million 4 million

50% Second 10 million 5 million
60% Remainder 60% of the remainder
TOTAL 9 million + 60% of the remainder
Table II
AFL
Total Liabilities 1)
Required local investments (40%)

Required local investments (50%)
Required local investments (60%)
Total required local investments (A)
Actual local investments 2) (B)
Surplus/Deficit (B-A)

Excluding shareholders’ equity (paid-in capital, reserves and retained earnings) or assigned capital.
Local investments denominated in Aruban Florins and foreign currencies.
It should be emphasized that no rights can be derived from the 40–60% investment rule, which is merely one of the criteria the CBA uses to evaluate requests from institutional investors for a foreign exchange license. Account is also taken, among other things, of the monetary policy stance and the development in the official reserve position.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.2/14 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES J. COVERAGE TEST 1 ADMISSABLE ASSETS Outstanding Amount Weight Factor Weighted Assets
1.00 Investments
1.10 Shares ............... 80% ................
1.20 Bonds
Government Bonds ............... 100% ................
Corporate-High credit quality ............... 95% ................
Corporate-Medium to low grade quality ............... 85% ................
1.30 Real Estate ............... 90% ................
1.40 Time Deposits ............... 100% ................
1.50-1.60 Mortgage and Policy Loans ............... 100% ................
1.71 Other Loans – secured ............... 100% ................
1.72 Other loans – unsecured ............... 95% ................
1.80 Other investments ............... 65% ................

2.00 Fixed Assets:
2.10 Real Estate-in own use ............... 90% ................
2.20-2.40 Other Fixed Assets ............... 65% ................

3.00 Affiliated companies 2
............... 90% ................

4.00 Current assets:
4.10 Cash on Hand ............... 100% ................
4.20 Due from other depository corporations ............... 100% ................
4.30 Agents’/brokers’ balances, 90 days and under ............... 100% ................
4.40 Uncollected Premiums, 90 days and under ............... 100% ................
4.50 Investment Income due, 90 days and under ............... 100% ................
4.60 Reinsurance Receivables ............... 100% ................
4.70 Amounts due from Members 3
............... 100% ................
4.80 Other ............... 100% ................

Total weighted assets ...............

8.00 Less: Current liabilities 4
................

Assets available to cover Technical Provisions ................

6.00 Less: Technical Provisions ................

Surplus or (Deficit) ................
Coverage ratio (in percent) ................
For further guidance please refer to the CBA’s guidelines on the coverage test.

In case the company sells insured investment products, whereby the policyholder bears the complete investment risk,
the investments and technical provisions associated with these products should not be included in the coverage test calculation. In such case an explanatory note should be added to the coverage test sheet.
Only branches and agencies of life insurance companies are allowed to include claims on affiliated companies under
this line item.
Only applicable to mutual insurance companies.
Excluding liabilities to affiliated companies.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.2/15 K. SOLVENCY MARGIN REQUIREMENT According to article 14, paragraph 1 of the SOSIB, an insurer engaged in the life insurance business must have a solvency margin equal eight percent of the provision for insurance obligations at the end of the preceding financial year, without taking the reinsurance portion of these obligations into account. Furthermore, pursuant to the third paragraph of this article, an insurer must comply with the Solvency Guidelines issued by the CBA. In the case of a life insurer AFL 400,000 if the insurer is doing strictly doing life insurance or AFL 500,000 if the insurer has been doing both life, accident & sickness insurance prior to July 2001 within the same legal entity. Solvency Margin Calculation Life Insurance Company Amounts in AFL
9.00 Shareholders’ Equity
(= available solvency margin) A ………………
5% of Total investments ………………
Excess intercompany current accounts receivable1 B ………………
6.00 Technical Provisions ………………..
8% thereof or ……………….. a minimum of AFL 400,000 or AFL 500,000 ……………….. Required solvency margin2 C ……………… Surplus/(Deficit) (A-B-C) ………………

The outstanding amount of intercompany current accounts receivable that exceeds 5% of Total
investments. Not applicable to branches or agencies. Branches or agencies should fill out 0 (zero) under this line item.
The highest outcome of either:
 8% of the “Provision for Insurance Obligations” in the preceding financial year, or  AFL 400,000 if the insurer is doing strictly doing life insurance, or  AFL 500,000 if the insurer has been doing both life, accident & sickness insurance prior to July 2001 within the same legal entity.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.2/16 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES
L. ADMISSIBLE ASSETS TO COVER THE MINIMUM SOLVENCY
MARGIN OF AFL 400,000 or AFL 500,000
Assets to cover the minimum Solvency Margin of AFL 400,000 or AFL 500,000 Amounts in AFL 1 Treasury Bonds issued by the Government of Aruba 2 Shares certificates, debentures, profit-sharing certificate and other similar securities 3 Proof of Partnership rights 4 Certificates of the assets as referred to in points 2 and 3 5 Scrip certificates of the assets as referred to in points 1 up to and including 3 6 Acknowledgement of debt towards the insurer, not being treasury bills or debentures, issued by or guaranteed by the Government of Aruba or other public entities in Aruba 7 Acknowledgement of debt towards the insurer, not being debentures, issued by companies incorporated in Aruba or issued by companies incorporated in Aruba for which a license pursuant to article 4 or 24 of the State Ordinance on the Supervision on the Credit System (AB 1998 no.16) has been granted TOTAL For further guidance please refer to the CBA’s Guidelines on the Solvency Margin.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.2/17
I. AUDITORS’ REPORT

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.2/18 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES

II. ACTUARIAL REPORT
Refer to the actuarial guidelines for life insurance companies issued by the CBA.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.2/19
III. ACTUARIAL CERTIFICATION
Refer to the actuarial guidelines for life insurance companies issued by the CBA.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.2/20 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.3/1 I.3 ANNUAL STATEMENTS NONLIFE INSURANCE COMPANIES

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.3/2 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES

MANAGEMENT CERTIFICATION
We, the undersigned, hereby certify as follows:
That the attached balance sheet, income statement, and other statements are true and
correct.
That all assets, liabilities, income and expenditure for the period ending December 31,
20xx are included in these financial statements.
That all the assets reported are the property of the company, free of liens and claims,
unless stated otherwise in these financial statements.
That all known capital and or surplus commitments and contingent liabilities are properly
disclosed in these financial statements.
Name and position: _____________________________ Signature: _____________________________

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.3/3
2. MANAGEMENT REPORT
In this report senior-management of the company must elaborate on the most important developments occurred during the reporting year and present the company’s projections on the operations of the company for the immediate future.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.3/4 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES A. BALANCE SHEET CURRENT YEAR AFL PREVIOUS YEAR AFL ASSETS
1.00 Investments
2.00 Fixed Assets
3.00 Affiliated Companies
4.00 Current Assets
5.00 Intangibles
TOTAL ASSETS
LIABILITIES AND SHAREHOLDERS’ EQUITY
6.00 Technical Provisions
7.00 Long Term Liabilities
8.00 Current Liabilities
TOTAL LIABILITIES
9.00 Shareholders' Equity 1
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY
The assigned capital in the case of a branch or agency.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.3/5 B. INCOME STATEMENT CURRENT YEAR AFL PREVIOUS YEAR AFL

INCOME
1.00 Net earned premiums
2.00 Investment income
3.00 Other income
TOTAL INCOME
EXPENDITURES
4.00 Net claims incurred
5.00 Commissions and other acquisition costs
6.00 General and administrative expenses
7.00 Change in technical provisions
8.00 Policyholders’ dividends
9.00 Other expenditures
TOTAL EXPENDITURES
NET INCOME (LOSS) BEFORE TAXES
10.00 Less: Corporate taxes
NET INCOME (LOSS) AFTER TAXES

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.3/6 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES
C. INCOME STATEMENT BY INDEMNITY GROUP
Current year in AFL
Accident
&
Health
Motor
Vehicle
Marine
Transport
&
Aviation
Property Other Total

INCOME
1.00 Net Earned Premiums
2.00 Investment Income
3.00 Other Income
TOTAL INCOME
EXPENDITURES
4.00 Net Claims Incurred
5.00 Commissions and other
Acquisition costs
6.00 General and Administrative
Expenses
7.00 Changes in Technical
Provisions
8.00 Policyholders’ Dividend
9.00 Other Expenditure
TOTAL
EXPENDITURES
NET INCOME (LOSS)
BEFORE TAXES

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.3/7 D. ACCOUNTING AND VALUATION PRINCIPLES

Summarize the accounting and valuation principles used to prepare the statements and disclose any significant change in the principles applied in comparison with previous year.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.3/8 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES E. NOTES TO THE BALANCE SHEET CURRENT YEAR AFL PREVIOUS YEAR AFL
1.00 INVESTMENTS
1.10 Shares
1.20 Bonds
1.30 Real Estate
1.40 Time Deposits
1.50 Loans
1.51 - Secured
1.52 - Unsecured
1.60 Other-specify
Total

2.00 FIXED ASSETS
2.10 Real Estate
2.20 Office Furniture and Equipment
2.30 Motor Vehicles
2.40 Other-specify
Total

3.00 AFFILIATED COMPANIES
3.10 Shares
3.20 Loans
3.30 Current Accounts
3.40 Other-specify
Total

4.00 CURRENT ASSETS
4.10 Cash in Hand
4.20 Due from other depository corporations
4.30 Agents' and Brokers' debit balances
4.40 Uncollected Premiums from Direct Business
4.50 Investment Income due or accrued
4.60 Amounts receivable from Reinsurers
4.70 Amounts due from members (Mutual Companies)
4.80 Other-specify
Total

5.00 INTANGIBLES
Specify

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.3/9 E. NOTES TO THE BALANCE SHEET (Continued) CURRENT YEAR AFL PREVIOUS YEAR AFL

6.00 TECHNICAL PROVISIONS
6.10 NET UNEARNED PREMIUM PROVISION
6.11 Accident and Health
6.12 Motor Vehicle
6.13 Marine, Transport and Aviation
6.14 Property
6.15 Other-specify
Subtotal
6.20 NET CLAIMS PROVISION
6.21 Accident and Health
6.22 Motor Vehicle
6.23 Marine, Transport and Aviation
6.24 Property
6.25 Other-specify
Subtotal
6.30 FUNDS PROVISION
6.31 Accident and Health
6.32 Motor Vehicle
6.33 Marine, Transport and Aviation
6.34 Property
6.35 Other-specify
Subtotal
6.40 OTHER TECHNICAL PROVISIONS
6.41 Accident and Health
6.42 Motor Vehicle
6.43 Marine, Transport and Aviation
6.44 Property
6.45 Other-specify
Subtotal
TOTAL

7.00 LONG TERM LIABILITIES
7.10 Loans from Financial Institutions
7.20 Members' Loans/Loans Affiliates
7.30 Other-specify
TOTAL

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.3/10 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES E. NOTES TO THE BALANCE SHEET (Continued) CURRENT YEAR AFL PREVIOUS YEAR AFL
8.00 CURRENT LIABILITIES
8.05 Premiums Paid in Advance
8.10 Premiums in Suspense
8.15 Agents' and Brokers' credit balances
8.20 Claims Outstanding
8.25 Bank Overdrafts and Loans
8.30 Amounts due to Reinsurers
8.35 Corporate Taxes Payable
8.40 Dividends Payable to Policyholders
8.45 Dividends Payable to Shareholders
8.50 Amounts Payable to Members (Mutual Companies)
8.55 Amounts Payable to Affiliated Companies
8.60 Other-specify
TOTAL

9.00 SHAREHOLDERS’ EQUITY
9.10 Issued and paid-in Capital
9.20 Reserves-specify
9.30 Retained Earnings
TOTAL

OFF-BALANCE SHEET ITEMS
Contingent Liabilities-specify
Commitments-specify
Related Party Transactions-specify

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.3/11 F. OTHER ITEMS-NOTES TO THE BALANCE SHEET

CURRENT
YEAR
Other item description Other item specified AFL
1.60 Investments other
2.40 Fixed assets other
4.80 Current assets other
5.00 Intangibles
7.30 Long term liabilities other
8.60 Current liabilities other
9.20 Reserves
Items pertaining to form E. Notes to the balance sheet for which further specification is required.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.3/12 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES G. OTHER ITEMS-NOTES TO THE INCOME STATEMENT

CURRENT
YEAR
Other item description Other item specified AFL
2.16 Direct investment income other
2.24 Indirect investment income other
3.00 Other income
6.20 General and administrative expenses other

Items pertaining to form H. Notes to the income statement for which further specification is required.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.3/13 H. NOTES TO THE INCOME STATEMENT CURRENT YEAR AFL PREVIOUS YEAR AFL
1.00 NET EARNED PREMIUMS
1.10 Direct Written Premiums
1.20 Assumed Premiums
Gross Written Premiums
1.30 Less: Ceded Premiums
Net Written Premiums
1.40 Change In Unearned Premium Provision
TOTAL

2.00 INVESTMENT INCOME
2.10 DIRECT INVESTMENT INCOME
2.11 Dividend
2.12 Interest Bonds
2.13 Income from rent
2.14 Interest Time Deposits
2.15 Interest Loans
2.16 Other-specify
Subtotal

2.20 INDIRECT INVESTMENT INCOME
2.21 Revaluation Adjustments
2.22 Capital Gain/(Loss) On Sales
2.23 Capital Gain/(Loss) On Exchange Rates
2.24 Other-specify
Subtotal
TOTAL

3.00 OTHER INCOME-specify

4.00 NET CLAIMS INCURRED
4.10 Direct Claims Paid
4.20 Assumed Claims Paid
Gross Claims Paid
4.30 Less: Ceded Claims Recovered
Net Claims Paid
4.40 Change In Net Claims Provision
TOTAL

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.3/14 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES H. NOTES TO THE INCOME STATEMENT (Continued)

CURRENT
YEAR
AFL
PREVIOUS
YEAR
AFL
6.00 GENERAL AND ADMINISTRATIVE EXPENSES
6.10 Personnel costs (including social premiums)
6.20 Other-specify
TOTAL

7.00 CHANGES IN TECHNICAL PROVISIONS
7.10 Change in Funds Provision
7.20 Change in other Technical Provisions
TOTAL

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.3/15
I. NOTES TO THE INCOME STATEMENT BY INDEMNITY GROUP
Direct written premium
Assumed premiums
Gross
Written premiums
Ceded premiums
Net written premiums
Change in unearned premiums provisions
Net earned premium
1.10 Accident &
health

1.11 Accident
1.12 Medical
1.13 Disability
1.14 Other
Subtotal
1.20 Motor Vehicle
1.21 All risk
1.22 Third party
liability
1.23 Disability
1.24 Other
Subtotal
1.30
Marine, transport and aviation

1.31 Ocean Marine
1.32 Inland Marine
1.33 Aircraft
1.34 Other
Subtotal
1.40 Property
1.41 Fire
1.42 Homeowners
multiple peril

1.43 Commercial
multiple peril
1.44 Business
interruption
1.45 Burglary and
theft
1.46 Other
Subtotal
1.50 Other
1.51 Other-specify
Subtotal
TOTAL

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.3/16 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES J. BREAK-DOWN OF THE INVESTMENTS AFL LOCAL INVESTMENTS 1) Afl. Fc FOREIGN INVESTMENTS TOTAL

1.00 INVESTMENTS

1.10 SHARES

1.20 BONDS

1.30 REAL ESTATE
1.31 - OWN USE
1.32 - OTHER

1.40 TIME DEPOSITS

1.50 OTHER LOANS
1.51 - SECURED
1.52 - UNSECURED

1.60 OTHER-SPECIFY
TOTAL INVESTMENTS

Local investments denominated in local currency (Afl.) and foreign currencies (Fc).

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.3/17 K. THE 40-60% INVESTMENT RULE
Table I
% of Total liabilities insurance companies 1) Required amount in Local Investments Total liability 40% First 10 million 4 million

50% Second 10 million 5 million
60% Remainder 60% of the remainder
TOTAL 9 million + 60% of the remainder
Table II
AFL
Total Liabilities 1)
Required local investments (40%)

Required local investments (50%)
Required local investments (60%)
Total required local investments (A)
Actual local investments 2) (B)
Surplus/Deficit (B-A)

Excluding shareholders’ equity (paid-in capital, reserves and retained earnings) or assigned capital.
Local investments denominated in Aruban Florins and foreign currencies.
It should be emphasized that no rights can be derived from the 40–60% investment rule, which is merely one of the criteria the CBA uses to evaluate requests from institutional investors for a foreign exchange license. Account is also taken, among other things, of the monetary policy stance and the development in the official reserve position.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.3/18 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES
L. COVERAGE TEST
AFL Admissible assets
Outstanding amount
Weight
Factor
Weighted
Assets
1.00 Investments %
1.10 Shares ............... 80% ...............
1.20 Bonds
Government bonds ............... 100% ...............
Corporate: Highest or strong credit quality ............... 95% ...............
Corporate: Upper medium to medium low quality ............... 85% ...............
1.30 Real estate ............... 90% ...............
1.40 Time deposits ............... 100% ...............
1.51 Loans-secured ............... 100% ...............
1.52 Loans-unsecured ............... 95% ...............
1.60 Other ............... 65% ...............

2.00 Fixed assets
2.10 Real estate ............... 90% ...............
2.20/2.30/2.40 Other fixed assets ............... 65% ...............
3.00 Affiliated Companies 1
............... 90% ...............
4.00 Current assets
4.10 Cash in Hand ............... 100% ...............
4.20 Due from other depository corporations ............... 100% ...............
4.30 Agents’/brokers’ balances, 90 days and under ............... 100% ...............
4.40 Uncollected premiums, 90 days and under ............... 100% ...............
4.50 Investment income due, 90 days and under ............... 100% ...............
4.60 Amounts receivable from reinsurers ............... 100% ...............
4.70 Amounts due from members 2
............... 100% ...............
4.80 Other ............... 100% ...............

Total weighted assets ...............
8.00 Less: Current liabilities 3
...............
Assets available to cover Technical provisions ...............

6.00 Less: Technical provisions ...............

Surplus or (Deficit) ...............
Coverage ratio (in percent) ...............
For further guidance please refer to the CBA’s guidelines on the coverage test.

Only branches and agencies of nonlife insurance companies are allowed to include claims on affiliated
companies under this line item.
Only applicable to mutual insurance companies.
Excluding liabilities to affiliated companies.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.3/19 M. SOLVENCY MARGIN REQUIREMENT According to article 14, second paragraph of the SOSIB, an insurer engaged in the general (non-life) insurance business must have a solvency margin equal to the highest outcome of one of the following calculations:
a. 15% of the gross premiums booked in the preceding financial year, or b. 15% of the average gross claims incurred in the last three financial years. However, there is a minimum solvency requirement of Afl. 300,000. Solvency Margin Calculation Nonlife Insurance Companies Amounts in AFL 1,000
9.00 Shareholders’ Equity
(= available solvency margin) A ………………..

5% of Total investments ………………..

Excess intercompany current accounts receivable1 B ………………..

15% gross premium income; or ………………..

15% of the average gross claims incurred ……………….. or a minimum of AFL 300,000 300 Required solvency margin2 C ……………….. Surplus/(Deficit) (A-B-C) ………………..

The outstanding amount of intercompany current accounts receivable that exceeds 5% of Total
investments. Not applicable to branches or agencies. Branches or agencies should fill out 0 (zero) under this line item.
Highest outcome of either:
 15% of the gross premiums booked in the preceding financial year, or  15% of the average gross claims incurred in the last three financial years, or  a minimum of Afl. 300,000.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.3/20 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES N. ADMISSIBLE ASSETS TO COVER THE MINIMUM SOLVENCY MARGIN OF AFL 300,000 Assets to cover minimum Solvency Margin of AFL 300,000 Amounts in AFL 1 Treasury Bonds issued by the Government of Aruba 2 Shares certificates, debentures, profit-sharing certificate and other similar securities 3 Proof of Partnership rights 4 Certificates of the assets as referred to in points 2 and 3 5 Scrip certificates of the assets as referred to in points 1 up to and including 3 6 Acknowledgement of debt towards the insurer, not being treasury bills or debentures, issued by or guaranteed by the Government of Aruba or other public entities in Aruba 7 Acknowledgement of debt towards the insurer, not being debentures, issued by companies incorporated in Aruba or issued by companies incorporated in Aruba for which a license pursuant to article 4 or 24 of the State Ordinance on the Supervision on the Credit System (AB 1998 no. 16) has been granted TOTAL For further guidance please refer to the CBA’s guidelines on the solvency margin.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.3/21
I. AUDITORS’ REPORT

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.3/22 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES
II. ACTUARIAL REPORT

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.3/23
III. ACTUARIAL CERTIFICATION

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.3/24 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.4/1 I.4 QUARTERLY REPORTS LIFE INSURANCE COMPANIES

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.4/2 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES A. BALANCE SHEET CURRENT QUARTER AFL Resident Non-resident Total ASSETS
1.00 Investments
2.00 Fixed Assets
3.00 Affiliated Companies
4.00 Current Assets
5.00 Intangibles

TOTAL ASSETS

LIABILITIES AND SHAREHOLDERS’ EQUITY

6.00 Technical Provisions
7.00 Long Term Liabilities
8.00 Current Liabilities

TOTAL LIABILITIES

9.00 Shareholders' Equity 1
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY
The assigned capital in the case of a branch or agency.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.4/3 B. INCOME STATEMENT

CURRENT QUARTER
AFL

INCOME

1.00 Net earned premiums
2.00 Investment income
3.00 Other income

10.00 Less: Corporate taxes
NET INCOME (LOSS) AFTER TAXES

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.4/4 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES D. NOTES TO THE BALANCE SHEET CURRENT QUARTER AFL Resident Non-resident Total
1.00 INVESTMENTS
1.10 Shares
1.20 Bonds
1.30 Real Estate
1.40 Time Deposits
1.50 Mortgage Loans
1.60 Policy Loans
1.70 Other Loans
1.71 - Secured
1.72 - Unsecured
1.80 Other-specify
Total

2.00 FIXED ASSETS
2.10 Real Estate
2.20 Office Furniture and Equipment
2.30 Other-specify
Total

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.4/5 D. NOTES TO THE BALANCE SHEET (Continued) CURRENT QUARTER AFL Resident Non-resident Total
6.00 TECHNICAL PROVISIONS
6.10 Previous Quarter
6.20 Additions
6.30 Deductions
Total

7.00 LONG TERM LIABILITIES
7.10 Loans form Financial Institutions
7.20 Members’ Loan/Loans affiliates
7.30 Other-specify
Total

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.4/6 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES E. NOTES TO THE INCOME STATEMENT CURRENT QUARTER AFL
1.00 NET EARNED PREMIUMS
1.10 Direct Written Premiums
1.20 Assumed Reinsurance Premiums
Gross Written Premiums
1.30 Less: Ceded Reinsurance Premiums
Total

2.20 Indirect Investment Income
2.21 Revaluation Adjustments
2.22 Capital Gain / (Loss) On Sales
2.23 Other-specify
Sub-total
TOTAL INVESTMENT INCOME

3.00 OTHER INCOME
Specify

4.00 NET CLAIMS INCURRED
4.10 Deaths Claims
4.20 Maturities / lapses
4.30 Surrenders
4.40 Other-specify
4.50 Less: Ceded Claims Recovered
Total

6.00 GENERAL AND ADMINISTRATIVE EXPENSES
6.10 Personnel costs (including social premiums)
6.20 Other-specify
Total

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.4/7 F. OTHER ITEMS-NOTES TO THE BALANCE SHEET CURRENT QUARTER AFL Other item description Other item specified Resident Non-resident Total
1.80 Investments other
2.30 Fixed assets other
4.80 Current assets other
5.00 Intangibles
7.30 Long term liabilities other
8.55 Current liabilities other
9.20 Reserves

Items pertaining to form D. Notes to the balance sheet for which further specification is required.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.4/8 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES G. OTHER ITEMS-NOTES TO THE INCOME STATEMENT CURRENT QUARTER Other item description Other item specified AFL
2.18 Direct investment income other
2.23 Indirect investment income other
3.00 Other income
4.40 Net claims incurred other
6.20 General and administrative expenses other
Items pertaining to form E. Notes to the income statement for which further specification is required.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.4/9 H. BREAK-DOWN OF THE INVESTMENTS AFL LOCAL INVESTMENTS 1) Afl. Fc FOREIGN INVESTMENTS TOTAL

1.00 INVESTMENTS

1.10 Shares

1.20 Bonds

1.30 Real estate
1.31 - Own use
1.32 - Other

1.40 Time deposits

1.50 Mortgage loans

1.60 Policy loans

1.70 Other loans
1.71 - Secured
1.72 - Unsecured

1.80 Other-specify

TOTAL INVESTMENTS

Local investments denominated in local currency (Afl.) and foreign currencies (Fc).

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.4/10 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES
I. THE 40-60% INVESTMENT RULE
Table I
% of Total liabilities insurance companies 1) Required amount in Local Investments Total liability 40% First 10 million 4 million

50% Second 10 million 5 million
60% Remainder 60% of the remainder
TOTAL 9 million + 60% of the remainder

Excluding shareholders’ equity (paid-in capital, reserves and retained earnings) or assigned capital.
Table II
AFL
Total Liabilities 1)

Required local investments (40%)

Required local investments (50%)

Required local investments (60%)

Total required local investments (A)

Actual local investments 2) (B)

Surplus/Deficit (B-A)
2) Local investments denominated in Aruban Florins and foreign currencies.
It should be emphasized that no rights can be derived from the 40–60% investment rule, which is merely one of the criteria the CBA uses to evaluate requests from institutional investors for a foreign exchange license. Account is also taken, among other things, of the monetary policy stance and the development in the official reserve position.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.4/11 J. COVERAGE TEST 1 ADMISSABLE ASSETS Outstanding Amount Weight Factor Weighted Assets
1.00 Investments
1.10 Shares ............... 80% ................
1.20 Bonds
Government Bonds ............... 100% ................
Corporate-High credit quality ............... 95% ................
Corporate-Medium to low grade quality ............... 85% ................
1.30 Real Estate ............... 90% ................
1.40 Time Deposits ............... 100% ................
1.50-1.60 Mortgage and Policy Loans ............... 100% ................
1.71 Other Loans – secured ............... 100% ................
1.72 Other loans – unsecured ............... 95% ................
1.80 Other investments ............... 65% ................

2.00 Fixed Assets:
2.10 Real Estate-in own use ............... 90% ................
2.20-2.40 Other Fixed Assets ............... 65% ................

3.00 Affiliated companies2
............... 90% ................

8.00 Less: Current liabilities 4
................

Assets available to cover Technical Provisions ................

6.00 Less: Technical Provisions ................

Surplus or (Deficit) ................
Coverage ratio (in percent) ................
For further guidance please refer to the CBA’s guidelines on the coverage test.

In case the company sells insured investment products, whereby the policyholder bears the complete investment risk,
the investments and technical provisions associated with these products should not be included in the coverage test calculation. In such case an explanatory note should be added to the coverage test sheet.
Only branches and agencies of life insurance companies are allowed to include claims on affiliated companies under
this line item.
Only applicable to mutual insurance companies.
Excluding liabilities to affiliated companies.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.4/12 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES K. SOLVENCY MARGIN REQUIREMENT According to article 14, paragraph 1 of the SOSIB, an insurer engaged in the life insurance business must have a solvency margin equal eight percent of the provision for insurance obligations at the end of the preceding financial year, without taking the reinsurance portion of these obligations into account. Furthermore, pursuant to the third paragraph of this article, an insurer must comply with the Solvency Guidelines issued by the CBA. In the case of a life insurer AFL 400,000 if the insurer is doing strictly doing life insurance or AFL 500,000 if the insurer has been doing both life, accident & sickness insurance prior to July 2001 within the same legal entity Solvency Margin Calculation Life Insurance Company Amounts in AFL 1,000
9.00 Shareholders’ Equity
(= available solvency margin) A ………………..

5% of Total investments
………………..

Excess intercompany current accounts receivable1 B ………………..

6.00 Technical Provisions ………………..
8% thereof or ……………….. a minimum of AFL 400,000 or AFL 500,000 ……………….. Required solvency margin2 C ……………….. Surplus/(Deficit) (A-B-C) ………………..

The outstanding amount of intercompany current accounts receivable that exceeds 5% of Total
investments. Not applicable to branches or agencies. Branches or agencies should fill out 0 (zero) under this line item.
The highest outcome of either:
 8% of the “Provision for Insurance Obligations” in the preceding financial year, or  AFL 400,000 if the insurer is doing strictly doing life insurance, or  AFL 500,000 if the insurer has been doing both life, accident & sickness insurance prior to July 2001 within the same legal entity.

DIGITAL SUBMISSION OF THE GUIDELINES REPORTS
CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.5/1 I.5 QUARTERLY REPORTS NONLIFE INSURANCE COMPANIES

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.5/2 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES A. BALANCE SHEET CURRENT QUARTER AFL Resident Non-resident Total ASSETS
1.00 Investments
2.00 Fixed Assets
3.00 Affiliated Companies
4.00 Current Assets
5.00 Intangibles

TOTAL ASSETS

LIABILITIES AND SHAREHOLDERS’
EQUITY

6.00 Technical Provisions
7.00 Long Term Liabilities
8.00 Current Liabilities

TOTAL LIABILITIES

9.00 Shareholders' Equity 1
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY
The assigned capital in the case of a branch or agency.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.5/3 B. INCOME STATEMENT CURRENT QUARTER AFL INCOME
1.00 Net earned premiums
2.00 Investment income
3.00 Other income

10.00 Less: Corporate taxes
NET INCOME (LOSS) AFTER TAXES

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.5/4 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES
C. INCOME STATEMENT BY INDEMNITY GROUP
Current quarter in AFL
Accident
&
Health
Motor
Vehicle
Marine
Transport
&
Aviation
Property Other Total

INCOME
1.00 Net Earned Premiums
2.00 Investment Income
3.00 Other Income
TOTAL INCOME

EXPENDITURES

4.00 Net Claims Incurred
5.00 Commissions and other
Acquisition costs
6.00 General and Administrative
Expenses
7.00 Changes in Technical
Provisions
8.00 Policyholders’ Dividend
9.00 Other Expenditure
TOTAL
EXPENDITURES
NET INCOME (LOSS)
BEFORE TAXES

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.5/5 E. NOTES TO THE BALANCE SHEET CURRENT QUARTER AFL Resident Non-resident Total
1.00 INVESTMENTS
1.10 Shares
1.20 Bonds
1.30 Real Estate
1.40 Time Deposits
1.50 Loans
1.51 - Secured
1.52 - Unsecured
1.60 Other-specify
Total

2.00 FIXED ASSETS
2.10 Real Estate
2.20 Office Furniture and Equipment
2.30 Motor Vehicles
2.40 Other-specify
Total

3.00 AFFILIATED COMPANIES
3.10 Shares
3.20 Loans
3.30 Current Accounts
3.40 Other-specify
Total

5.00 INTANGIBLES
Specify

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.5/6 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES E. NOTES TO THE BALANCE SHEET (Continued) CURRENT QUARTER AFL Resident Non-resident Total
6.00 TECHNICAL PROVISIONS
6.10 NET UNEARNED PREMIUM PROVISION
6.11 Accident and Health
6.12 Motor Vehicle
6.13 Marine, Transport and Aviation
6.14 Property
6.15 Other-specify
Subtotal
6.20 NET CLAIMS PROVISION
6.21 Accident and Health
6.22 Motor Vehicle
6.23 Marine, Transport and Aviation
6.24 Property
6.25 Other-specify
Subtotal
6.30 FUNDS PROVISION
6.31 Accident and Health
6.32 Motor Vehicle
6.33 Marine, Transport and Aviation
6.34 Property
6.35 Other-specify
Subtotal
6.40 OTHER TECHNICAL PROVISIONS
6.41 Accident and Health
6.42 Motor Vehicle
6.43 Marine, Transport and Aviation
6.44 Property
6.45 Other-specify
Subtotal
TOTAL

7.00 LONG TERM LIABILITIES
7.10 Loans from Financial Institutions
7.20 Members' Loans/Loans Affiliates
7.30 Other-specify
TOTAL

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.5/7 E. NOTES TO THE BALANCE SHEET (Continued) CURRENT QUARTER AFL Resident Non-resident Total
8.00 CURRENT LIABILITIES
8.05 Premiums Paid in Advance
8.10 Premiums in Suspense
8.15 Agents' and Brokers' credit balances
8.20 Claims Outstanding
8.25 Bank Overdrafts and Loans
8.30 Amounts due to Reinsurers
8.35 Corporate Taxes Payable
8.40 Dividends Payable to Policyholders
8.45 Dividends Payable to Shareholders
8.50 Amounts Payable to Members (Mutual Companies)
8.55 Amounts Payable to Affiliated Companies
8.60 Other-specify
TOTAL

9.00 SHAREHOLDERS’ EQUITY
9.10 Issued and paid-in Capital
9.20 Reserves-specify
9.30 Retained Earnings
TOTAL
OFF-BALANCE SHEET ITEMS
Contingent Liabilities-specify
Commitments-specify
Related Party Transactions-specify

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.5/8 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES F. OTHER ITEMS-NOTES TO THE BALANCE SHEET

CURRENT
QUARTER
Other item description Other item specified AFL
1.60 Investments other
2.40 Fixed assets other
4.80 Current assets other
5.00 Intangibles
7.30 Long term liabilities other
8.60 Current liabilities other
9.20 Reserves
Items pertaining to form E. Notes to the balance sheet for which further specification is required.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.5/9 G. OTHER ITEMS-NOTES TO THE INCOME STATEMENT

CURRENT
QUARTER
Other item description Other item specified AFL
2.16 Direct investment income other
2.24 Indirect investment income other
3.00 Other income
6.20 General and administrative expenses other

Items pertaining to form H. Notes to the income statement for which further specification is required.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.5/10 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES H. NOTES TO THE INCOME STATEMENT CURRENT QUARTER AFL
1.00 NET EARNED PREMIUMS
1.10 Direct Written Premiums
1.20 Assumed Premiums
Gross Written Premiums
1.30 Less: Ceded Premiums
Net Written Premiums
1.40 Change In Unearned Premium Provision
TOTAL

2.00 INVESTMENT INCOME
2.10 DIRECT INVESTMENT INCOME
2.11 Dividend
2.12 Interest Bonds
2.13 Income from rent
2.14 Interest Time Deposits
2.15 Interest Loans
2.16 Other-specify
Subtotal

2.20 INDIRECT INVESTMENT INCOME
2.21 Revaluation Adjustments
2.22 Capital Gain/(Loss) On Sales
2.23 Capital Gain/(Loss) On Exchange Rates
2.24 Other-specify
Subtotal
TOTAL

3.00 OTHER INCOME-specify

4.00 NET CLAIMS INCURRED
4.10 Direct Claims Paid
4.20 Assumed Claims Paid
Gross Claims Paid
4.30 Less: Ceded Claims Recovered
Net Claims Paid
4.40 Change In Net Claims Provision
TOTAL

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.5/11 H. NOTES TO THE INCOME STATEMENT (Continued)

CURRENT QUARTER
AFL
6.00 GENERAL AND ADMINISTRATIVE EXPENSES
6.10 Personnel costs (including social premiums)
6.20 Other-specify
TOTAL

7.00 CHANGES IN TECHNICAL PROVISIONS
7.10 Change in Funds Provision
7.20 Change in other Technical Provisions
TOTAL

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.5/12 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES
I. NOTES TO THE INCOME STATEMENT BY INDEMNITY GROUP
Direct written premium
Assumed premiums
Gross
Written premiums
Ceded premiums
Net written premiums
Change in unearned premiums provisions
Net earned premium
1.10 Accident &
health

1.11 Accident
1.12 Medical
1.13 Disability
1.14 Other
Subtotal
1.20 Motor Vehicle
1.21 All risk
1.22 Third party liability
1.23 Disability
1.24 Other
Subtotal
1.30 Marine,
transport and aviation

1.31 Ocean Marine
1.32 Inland Marine
1.33 Aircraft
1.34 Other
Subtotal
1.40 Property
1.41 Fire
1.42 Homeowners
multiple peril

1.43 Commercial
multiple peril
1.44 Business
interruption
1.45 Burglary and theft
1.46 Other
Subtotal
1.50 Other
1.51 Other-specify
Subtotal
TOTAL

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.5/13 J. BREAK-DOWN OF THE INVESTMENTS AFL LOCAL INVESTMENTS 1) Afl. Fc FOREIGN INVESTMENTS TOTAL

1.00 INVESTMENTS

1.10 SHARES

1.20 BONDS

1.30 REAL ESTATE
1.31 - OWN USE
1.32 - OTHER

1.40 TIME DEPOSITS

1.50 OTHER LOANS
1.51 - SECURED
1.52 - UNSECURED

1.60 OTHER-SPECIFY
TOTAL INVESTMENTS

Local investments denominated in local currency (Afl.) and foreign currencies (Fc).

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.5/14 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES K. THE 40-60% INVESTMENT RULE
Table I
% of Total liabilities insurance companies 1) Required amount in Local Investments Total liability 40% First 10 million 4 million

50% Second 10 million 5 million
60% Remainder 60% of the remainder
TOTAL 9 million + 60% of the remainder
Table II
AFL
Total Liabilities 1)

Required local investments (40%)

Required local investments (50%)

Required local investments (60%)

Total required local investments (A)

Actual local investments 2) (B)

Surplus/Deficit (B-A)

Excluding shareholders’ equity (paid-in capital, reserves and retained earnings) or assigned capital.
Local investments denominated in Aruban Florins and foreign currencies.
It should be emphasized that no rights can be derived from the 40–60% investment rule, which is merely one of the criteria the CBA uses to evaluate requests from institutional investors for a foreign exchange license. Account is also taken, among other things, of the monetary policy stance and the development in the official reserve position.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES I.5/15
L. COVERAGE TEST
AFL Admissible assets
Outstanding amount
Weight
Factor
Weighted
Assets
1.00 Investments %
1.10 Shares ............... 80% ...............
1.20 Bonds
Government bonds ............... 100% ...............
Corporate: Highest or strong credit quality ............... 95% ...............
Corporate: Upper medium to medium low quality ............... 85% ...............
1.30 Real estate ............... 90% ...............
1.40 Time deposits ............... 100% ...............
1.51 Loans-secured ............... 100% ...............
1.52 Loans-unsecured ............... 95% ...............
1.60 Other ............... 65% ...............

Total weighted assets ...............
8.00 Less: Current liabilities 3
...............
Assets available to cover Technical provisions ...............

6.00 Less: Technical provisions ...............

Surplus or (Deficit) ...............
Coverage ratio (in percent) ...............
For further guidance please refer to the CBA’s guidelines on the coverage test.

Only branches and agencies of nonlife insurance companies are allowed to include claims on affiliated
companies under this line item.
Only applicable to mutual insurance companies.
Excluding liabilities to affiliated companies.

GUIDELINES FOR THE COMPOSITION AND COMPILATION OF THE ANNUAL STATEMENTS AND QUARTERLY REPORTS I.5/16 CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES M. SOLVENCY MARGIN REQUIREMENT According to article 14, second paragraph of the SOSIB, an insurer engaged in the general (non-life) insurance business must have a solvency margin equal to the highest outcome of one of the following calculations:
a. 15% of the gross premiums booked in the preceding financial year, or b. 15% of the average gross claims incurred in the last three financial years. However, there is a minimum solvency requirement of Afl. 300,000. Solvency Margin Calculation Nonlife Insurance Companies Amounts in AFL 1,000
9.00 Shareholders’ Equity
(= available solvency margin) A ………………..

5% of Total investments ………………..

Excess intercompany current accounts receivable1 B ………………..

15% gross premium income; or ………………..

15% of the average gross claims incurred ……………….. or a minimum of AFL 300,000 300 Required solvency margin2 C ……………….. Surplus/(Deficit) (A-B-C) ………………..

The outstanding amount of intercompany current accounts receivable that exceeds 5% of Total
investments. Not applicable to branches or agencies. Branches or agencies should fill out 0 (zero) under this line item.
Highest outcome of either:
 15% of the gross premiums booked in the preceding financial year, or  15% of the average gross claims incurred in the last three financial years, or  a minimum of Afl. 300,000.

Part II
Supervisory Guidelines and Directives
______________________________________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES

Preamble
This guideline containing “best practices” with respect to asset management is largely based on the supervisory standard on Asset Management by Insurance Companies issued by the International Association of Insurance Supervisors (IAIS). The objective of this guideline is to describe the essential elements of a sound asset management system and reporting framework across the full range of investment activities. Given the wide variation in the nature of companies, it is acknowledged that the extent of the application of the practices described in this guideline by any given insurer may differ according to the size and structure of an insurance company and the type of business it conducts. However, the basic principles of sound corporate governance, the need for an investment policy, segregation of duties and control are applicable to all insurance companies.
Introduction
2.1 Asset Liability Management
A key driver of the asset strategy adopted by an insurer will be its liabilities profile, and the need to ensure that it holds sufficient assets of appropriate nature, term and liquidity to enable it to meet the liabilities as they become due. Detailed analysis and management of this asset/liability relationship will therefore be a pre-requisite to the development and review of investment policies and procedures, which seek to ensure that the insurer adequately manages the investment-related risks to its solvency.
2.2 The Investment Process
Depending upon the nature of their liabilities insurers will typically hold, in varying proportions, four main types of financial assets either directly, via other investment vehicles, or through third party investment managers:
a. Bonds and other fixed income instruments; b. Equities and equity type investments;
c. Debts, deposits and other rights;
d. Property.
The holding of a given asset portfolio carries a range of investment-related risks to technical provisions and solvency which insurers need to monitor, measure, report and control.

The insurers should develop and operate overall asset management strategies, which take account of the need to ensure the existence of:
a. The definition of a strategic investment policy by the Board in consultation with senior-management, based on an assessment of the risks incurred by the company and its risk appetite; b. On-going Board and senior management oversight of, and clear management accountability for, investment activities;
c. Comprehensive, accurate and flexible systems that allow the identification,
measurement and assessment of investment risks, and the aggregation of those risks at various levels, and for any given time. d. Key control structures, such as the segregation of duties, approvals, verifications, reconciliations; e. Adequate procedures for the measurement and assessment of investment performance; f. Adequate and timely communication of information on investment activities between all levels within the insurance company; g. Internal procedures to review the appropriateness of the investment policies and procedures in place; h. Effective audit procedures and monitoring activities to identify and report weaknesses in investment controls and compliance.
i. Procedures to identify and control the dependence on and vulnerability of the
insurer to key personnel and systems.
The following sections further develop the above principles, recognizing that less formalized structures and procedures than those described herein may be applicable depending on the size and nature of the business of an individual insurer.

SUPERVISORY DIRECTIVES
______________________________________________________________________________________ ______________________________________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES II.1/3
3. Definition of the Investment Policy and Procedures
3.1 Supervisory Board
The Board in consultation with senior management is responsible for the designing of the strategic investment policy, taking account of the analysis of the asset/liability relationship, the insurer’s overall risk tolerance, its long-term risk-return requirements, its liquidity requirements and its solvency position. The Board should authorize senior management to implement the overall established investment policy. The Board should, however, retain ultimate responsibility for the company’s investment policy and procedures, regardless of the extent to which associated activities and functions are delegated or, outsourced. As part of the development of the asset management strategy, the Board must also ensure that adequate reporting and internal control systems of the insurer are in place, and designed to monitor that assets are being managed in accordance with the investment policy and mandate(s), and legal and legal and regulatory requirements. The Board must ensure that:
a. They receive regular information, including feedback from the company’s risk management function, on asset exposures, and the associated risks, in a form which is understood by them and which permits them to make an informed judgement as to the level of risk on a mark-to-market basis; b. The systems provide accurate and timely information on asset risk exposure and are capable of responding to ad hoc requests;
c. The internal controls include an adequate segregation of the functions responsible
for measuring, monitoring and controlling investment activities from those conducting day to day asset transactions; Where external asset managers are used, the Board must ensure that senior management is in a position to monitor the performance of the external managers against Board approved policies and procedures. External managers should be engaged under a contract that, inter alia, sets out the policies, procedures and quantitative limits of the investment mandate. The insurer must retain appropriate expertise and ensure that, under the terms of the contract, it regularly receives sufficient information to evaluate the compliance of the external asset manager with the investment mandate. The Board should collectively have sufficient expertise to understand the important issues related to investment policy and should ensure that all individuals conducting and monitoring investment activities have sufficient levels of knowledge and experience.

3.2 Senior Management
Senior management should be responsible for the preparation of written operational policies and procedures for implanting the overall investment policy established by the Board. The precise content of these policies and procedures will be different for each insurance company but the level of detail should be consistent with the nature of any regulatory constraint and complexity and volume of investment activity, and should specify as approciate:
a. The investment objective and the determination of the strategic asset allocation, that is, the long-term asset mix over the main investment categories; b. The establishment of limits for the allocation of assets by geographical area, markets, sectors, counterparties and currency;
c. The formulation of an overall policy on the selection of individual securities and
other investment titles; d. The adoption of passive or more active investment management in relation to each level of decision making; e. In the case of active management, definition of the scope for investment flexibility, usually through the setting of quantitative asset exposure limits; f. The extent to which the holding of some types of assets is ruled out or restricted where, for example, the disposal of the asset could be difficult due to the illiquidity of the market or where independent (i.e. external) verification of pricing is not available; g. An overall policy on the use of financial derivatives as part of the general portfolio management process or of structured products that have the economic effect of derivatives; h. The framework of accountability for all asset transactions; Senior management should also be responsible for establishing policies on related issues of a more operational nature, including:
a. The choice between internal or external investment management, and, for the latter, the criteria for selection of the manager(s). Also, in case of external management, a choice usually needs to be made between having a segregated (discretionary) portfolio managed, or participating in a collective or pooled fund, or other indirect investment vehicle; b. The selection and the use of brokers;
c. The nature of custodial arrangements;
d. The methodology and frequency of the performance measurement and analysis.

SUPERVISORY DIRECTIVES
______________________________________________________________________________________ ______________________________________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES II.1/5 Supporting internal management procedures should be documented and include:
a. Procedures for seeking approval for the usage of new types of investment instruments: the desirability of retaining the flexibility to utilize new investment instruments should be balanced with the need to identify the risks inherent in them and ensure that they will be subject to adequate controls before approval is given for their acquisition. The principles for measuring such risk, and the methods of accounting for the new investments should be clarified in detail prior to approval being given for their acquisition; b. Procedures for the selection and approval of new counterparties and brokers;
c. Procedures covering front office, back office, measurement of compliance with
quantitative limits, control and reporting; d. Details of the action which will be taken by senior management in cases of noncompliance; e. Valuation procedures for risk management purposes; f. Identification of who should be responsible for the valuation. Valuations should be carried out by individuals independent of those responsible for trade execution or, if this is not possible, valuations should be independently checked or audited on a timely basis. Accounting and taxation rules should be taken into consideration in developing the above operational policies and procedures. Senior management should ensure that all individuals conducting, monitoring and controlling investment activities are suitably qualified and have appropriate levels of knowledge and experience. At least annually, senior management should review the adequacy of its written operational procedures and allocated resources in the light of the insurance company’s activities and market conditions.
4. Monitoring and Control
4.1 Risk Management Function
Insurers should be capable of identifying, monitoring, measuring, reporting and controlling the risks connected with investment activities. This process should be performed by a risk management function with responsibility for:
a. Monitoring compliance with the approved investment policy; b. Formally noting and promptly reporting breaches;

SUPERVISORY DIRECTIVES
______________________________________________________________________________________ ______________________________________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES II.1/6
c. Reviewing asset risk management activity and results over the past period;
d. Reviewing the asset/liability and liquidity position.
The risk management function should also assess at least on an annual basis the appropriateness of the asset allocation limits. The risk management function should also regularly report to appropriate levels of senior management and, as appropriate, to the Board. The reports should provide aggregate information as well as sufficient detail to enable management to assess the sensitivity of the company to changes in market conditions and other risk factors. The frequency of reporting should provide these individuals with adequate information to judge the changing nature of the insurer’s assets profile, the risks that stem from it and the consequences for the company’s solvency.
4.2 Internal Controls
Adequate systems of internal control must be present to ensure that investment activities are properly supervised and that transactions have been entered into only in accordance with the insurer’s approved policies and procedures. Internal control procedures should be documented. The extent and nature of internal controls adopted by each insurer will be different, but procedures to be considered should include:
a. Reconciliations between front office and back office and accounting systems; b. Procedures to ensure that any restrictions on the power of all parties to enter into any particular asset transaction are observed. This will require close and regular communication with those responsible for compliance, legal and documentation issues in the insurer;
c. Procedures to ensure all parties to the asset transaction agree with the terms of the
deal. Procedures for promptly sending, receiving and matching confirmations should be independent of the front office function; d. Procedures to ensure that formal documentation is completed promptly; e. Procedures to ensure reconciliation of positions reported by brokers; f. Procedures to ensure that positions are properly settled and reported, and that late payments or late receipts are identified; g. Procedures to ensure asset transactions are carried out in conformity with prevailing market terms and conditions; h. Procedures to ensure that authority and dealing limits are not exceeded and all breaches can be immediately identified;
i. Procedures to ensure the independent checking of rates or prices: the systems
should not solely rely on dealers for rate/price information.

SUPERVISORY DIRECTIVES
CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES II.2/1 II.2 Appointment of an external auditor Directive on the appointment of an external auditor by virtue of article 10 in conjunction with article 15a of the State Ordinance on the Supervision of the Insurance Business (AB 2000 no. 82) (SOSIB) for insurance companies licensed by the Centrale Bank van Aruba (the CBA).

Introduction
It is important that supervisors obtain the information they need to properly form an opinion on the financial strength of the operations of each insurance company. This information is obtained, amongst others, from the financial reports that are filed, supported by information obtained through communication with the external auditor. As such, supervisors have a clear interest in ensuring that external audits performed are acceptable and that an adequate relationship between them and the insurance companies’ external auditors exists, essentially based on the principles and guidance formulated by the International Association of Insurance Supervisors. In this respect, high standards of auditing are indispensable. As such, the audit performed should be carried out by external auditors who:

are properly licensed and in good standing;
have relevant professional experience and competence;
are subject to a quality assurance program. In this regard, the external audit firm must
have policies and procedures in place on the appointment and eligibility of the engagement quality reviewer, the performance of the engagement quality review(er), and the documentation of the quality review. Said policies and procedures must comply with paragraphs 14 up to and including 30 of the International Standard on Quality Management 2, issued by the International Auditing and Assurance Board;
are independent in fact and in appearance;
are objective and impartial; and
comply with relevant ethical requirements. Relevant ethical requirements are defined as
the principles of professional ethics and ethical requirements that are applicable to a professional accountant when undertaking the engagement quality review (e.g., International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) related to audits or reviews of financial statements. As defined under article 1 of the SOSIB an external auditor is: ‘a person who is not employed by the company or institution, being a “registeraccountant” or an “accountantadministratieconsulent” registered pursuant to article 36, paragraph 2, item i, of the Dutch Law on the accounting profession (Stb. 2012, 680)’.

Directive
Any appointment of or change in external auditor needs the CBA’s prior written approval. In order to assess the intended appointment or change, the institution concerned and the external auditor are required to complete the “Questionnaire External Auditor” (Annex 2). Reference is also made to the Guidance notes associated with the Questionnaire External Auditor.

SUPERVISORY DIRECTIVES
CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES II.2/2 In case of a change of external auditor, the CBA should also be informed on the reason(s) for the intended change. The CBA will grant its approval if the external auditor complies with the requirements as stipulated in article 1 of the SOSIB and if there are no circumstances that, in the opinion of the CBA, would make the external auditor unfit for the assignment. With regard to the independence in fact and appearance, there may not be any material financial interest, loans and guarantees, business relationships, and family and personal relationships between i) the insurance company, its Managing Board or a member thereof, its Supervisory Board or a member thereof, its direct or indirect shareholder(s), and (ii) the external auditor, the audit firm of the external auditor or a member/partner thereof. The CBA maintains at all times the right to revoke its approval if there are circumstances that in the opinion of the CBA justify such an action. The provision of information to the CBA by the external auditors of insurance companies is covered in article 11, paragraph 2, of the SOSIB. Pursuant to this section, when granting the auditor the assignment to audit the annual accounts, the insurance company shall instruct its auditor in writing to:
a. after consultation with the insurance company that granted the assignment, provide the CBA forthwith with a copy of the auditor’s report to the Supervisory Board, of the management letter and of the correspondence that relates directly to the auditor’s report, in so far as these documents are considered to be necessary in reason for the proper fulfillment of the CBA’s supervisory tasks; b. after consultation with the insurance company, inform the CBA in writing forthwith of circumstances that could hinder the issue of an auditor’s report stating that the annual accounts give a true and fair view of the financial position of the insurance company;
c. after consultation with the insurance company that granted the assignment, inform the
CBA in writing forthwith of circumstances which could endanger the continuity of the insurance company, or from which it appears that there is a serious suspicion of an extensive fraud; and d. furnish the CBA, if required, with additional information on the documents referred to under a. and on the circumstances referred to under b. and c. Subject provisions should be included in the engagement letter. A copy of the draft engagement letter must be attached to the request for the appointment of an external auditor. Upon the CBA’s approval of the external auditor, the final and signed engagement letter must be submitted to the CBA. This directive enters into force as of July 1, 2023.

Introduction
These guidelines must be taken into account for the preparation of the actuarial report and the actuarial certification of the adequacy of the technical provisions disclosed in the Annual Statements of life Insurance Companies.
Guidelines
The certifying actuary shall draw up an actuarial report on his analysis of the
financial position of the life insurance company (hereafter: the company) in accordance with the instructions contained in item 2.
The Actuarial Report shall contain the following items:
(a) The objective of the report;
(b) Substantiated conclusions with regard to the financial position; (c) The methods and principles applied; (d) The methods and techniques used to evaluate the financial position; (e) Comments on the activities of the company and the commercial and institutional environment in which it operates, in so far as this has a bearing on the risk profile of the company; (f) Comments, an opinion and recommendations with regard to the operations, based on an actuarial analysis of all possible factors that may threaten the solvency of the institution in the near future. In addition, the measures or management instruments should be stated which the management of the company may take or use to avert these threats; (g) The declaration, as referred to in section 11 paragraph 3 of the State Ordinance on the Supervision of the Insurance Business (AB 2000 No. 82); (h) Information on financially significant reinsurance agreements (including financial reinsurance) and implicit and explicit options contained therein, with an opinion on the purpose and feasibility of these agreements and the extent of the counterparty risk.
If deemed necessary, the draft of the report to be issued shall be discussed first
with the external auditor. The outcome of these discussions with the external auditor shall be disclosed in a separate addendum to the report. Any remarks made by the auditor shall be taken into account. In the event that the actuary does

prospective or retrospective;
entry age basis used to determine age at balance sheet date and period
until retirement;
individual or aggregate approach.
(2) The actuarial principles used to establish the technical provision:
mortality table used;
family structure;
age difference;
actuarial interest rate;

Static or dynamic: In case of the static method, the coverage test (as
stipulated in the annual filings) can be derived from the balance sheet, whereby the value of the assets are compared to the technical provision. This test should be performed yearly and should be compared with previous year. Significant changes in the outcome of the coverage test should be analyzed;
Changes in the methods applied;
(2) Changes in these compared to the previous report; (3) Information on any limitations on the evaluation as a result of a lack of data, shortcomings in the administrative organization and systems, and the qualification that the certifying actuary makes as a consequence of this. Item 2(f) comments, an opinion and recommendations with regard to the operations, based on an actuarial audit of all possible factors that may threaten the solvency of the institution in the future. This relates to risks insofar as these have a bearing on the risk profile of the company, from the perspective of the actuary. The risks that can have a direct influence on the performance of life insurance business are for example changes in the mortality assumptions as well as changes in the investments results as a consequence of for example epidemics or war. Item 2(g) declaration as referred to in section 11 sub 3 of the SOSIB The declaration of the certifying actuary should consist of the following parts:

SUPERVISORY DIRECTIVES
PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES II.4/1 II.4 Directive on the publication of the Audited Annual Financial Statements

Introduction
In order to promote the soundness and integrity of the financial sector, it is necessary that stakeholders (including the public in general) have access to sufficient information to evaluate the financial position and performance of insurance companies. Transparency plays an important role in the constant improvement of the quality of the financial sector. In view thereof, a requirement on public disclosure of relevant, comprehensive and adequate information on a timely basis, in order to give policyholders and market participants a clear view of the insurer’s business activities, risks, performance and financial position, is included in the Insurance Core Principles (ICPs) issued by the International Association of Insurance Supervisors (IAIS).
Legal framework
‘Directive on the Publication of the Audited Annual Financial Statements’ is issued, by virtue of
section 10 of the State Ordinance on the Supervision of the Insurance Business (AB 2000 no. 82)
(SOSIB) for insurance companies licensed by the Centrale Bank van Aruba. Pursuant to Article 2:116, paragraph 6 and Article 2:171, paragraph 4 of the Civil Code of Aruba (AB 2021 no. 137) (CCA), all insurance companies that are incorporated under Aruban law with the legal status of a public limited company or a limited liability company should, within 8 days after their financial statements have been approved, file complete transcripts of these documents and the accompanying notes with the Aruban Chamber of Commerce. If the insurance company has the legal status of a mutual insurance company (onderlinge waarborgmaatschappij), it must declare in its articles of association that Article 2:120 of the CCA is applicable mutatis mutandis1 . Pursuant to Article 2:120, paragraph 8 of the CCA, it must therefore meet the requirements laid down in Article 2:116, paragraph 6 of the CCA and file complete transcripts of their financial statements and the accompanying notes with the Aruban Chamber of Commerce within 8 days after these documents have been approved.
Directive
With due regard to the aforementioned, an insurance company must, within six (6) months after the end of each financial year, publish its audited financial statements by filing subject statements with the Aruban Chamber of Commerce and post these statements on its website. Insurance companies are allowed to exclude information on the compensation of management and the Supervisory Board from the information that is made public. This in view of privacy considerations. Branches and agencies of insurance companies must publish the audited annual financial statements of the legal entity of which they form part by filing subject statements with the Aruban Chamber of Commerce within six (6) months after the end of each financial year and post these statements on their website. This directive enters into force as of February 27, 2023. 1 Reference is made to article 2:94, paragraph 6 of the CCA.

SUPERVISORY DIRECTIVES
II.5/1
II.5 Guidelines on the Coverage Test

Legal framework
According to article 13 paragraph 1 of the State Ordinance Supervision Insurance business (AB 2000 no. 82) (SOSIB) an insurer is required to maintain adequate technical provisions which are fully covered by assets. The Centrale Bank van Aruba (CBA) may raise objections against the nature and valuation of these assets, which objections shall be promptly met by the insurer. According to article 13 paragraph 2 of the SOSIB, the CBA can provide general guidelines with regard to the contents and the magnitude of the technical provisions.
Purpose
The purpose of article 13 of the SOSIB is to ensure that the technical provisions are at all times fully covered by sufficient and acceptable assets in order to guarantee that an insurer can meet its actual and future obligations.
Policy
In exhibit 1 (life insurance companies) and 2 (nonlife insurance companies) the CBA has listed the categories of assets that can be maintained to cover the technical provisions with their respective weight factors. In order to address specific risk issues, such as the risk that assets could lose value, the CBA has applied the assets-risk method. This method is part of the so-called “risk-based capital” standards. According to this method a risk factor will be assigned to each assets category. This factor is related to the riskiness of the assets. The riskiness is associated with the insurer’s assets losing value and therefore no longer being adequate to cover the liabilities. In order to determine the required amount needed to cover the risk, individual groups of assets are examined separately. The balance sheet values of the relevant assets categories used are multiplied by factors (percentages), which after they have been multiplied by a risk factor are to reflect the special risk of the asset group (excluding the interest rate risk). The lower the risk, the lower the risk factor applied. Government paper for example bears a 0% risk factor while shares bear a 20% risk factor.
Coverage test
The coverage test report is used to assess whether an insurance company has sufficient assets to meet its actual and future obligations. The “total weighted assets” is derived by adding up the sum of the assets multiplied by their respective weight factor. An insurance company is not allowed to include claims (including loans and current account receivables) on affiliated companies when calculating the “total weighted assets”, unless it concerns a branch or agency. The “total weighted assets” less “current liabilities” (excluding liabilities to affiliated companies) are the “Assets available to cover the Technical Provisions”. The “Assets available to cover the Technical Provisions” of an insurance company divided by its “technical provisions” is defined as the Coverage Test Ratio (CTR).

SUPERVISORY DIRECTIVES
II5/2
5. The minimum requirement
Insurers are required to comply with the minimum CTR at all times. In case of a failure to comply with the minimum CTR, the CBA must be notified immediately. Furthermore, a remediation plan must be prepared and submitted to the CBA for its approval. Life insurance companies Life insurance companies are required to maintain the following coverage ratio:
Effective date Minimum CTR
January 1, 2025 102 percent
January 1, 2026 104 percent
January 1, 2027 106 percent
January 1, 2028 108 percent
January 1, 2029 110 percent
Non-life insurance companies
The minimum CTR for non-life insurance companies is 100 percent.
December 19, 2024

SUPERVISORY DIRECTIVES
II.5/3
Exhibit 1: COVERAGE TEST1 FOR LIFE INSURANCE COMPANIES ADMISSABLE ASSETS Outstanding Amount Weight Factor Weighted Assets
1.00 Investments
1.10 Shares ............... 80% ................
1.20 Bonds
Government Bonds ............... 100% ................
Corporate-High credit quality ............... 95% ................
Corporate-Medium to low grade quality ............... 85% ................
1.30 Real Estate ............... 90% ................
1.40 Time Deposits ............... 100% ................
1.50-1.60 Mortgage and Policy Loans ............... 100% ................
1.71 Other Loans – secured ............... 100% ................
1.72 Other loans – unsecured ............... 95% ................
1.80 Other investments ............... 65% ................
2.00 Fixed Assets:
2.10 Real Estate-in own use ............... 90% ................
2.20-2.40 Other Fixed Assets ............... 65% ................
3.00 Affiliated companies 2
............... 90% ................
4.00 Current assets:
4.10 Cash on Hand ............... 100% ................
4.20 Due from other depository corporations ............... 100% ................
4.30 Agents’/brokers’ balances, 90 days and under ............... 100% ................
4.40 Uncollected Premiums, 90 days and under ............... 100% ................
4.50 Investment Income due, 90 days and under ............... 100% ................
4.60 Reinsurance Receivables ............... 100% ................
4.70 Amounts due from Members3
............... 100% ................
4.80 Other ............... 100% ................
Total weighted assets ...............
8.00 Less: Current liabilities4
................
Assets available to cover Technical Provisions ................
6.00 Technical Provisions ................
Coverage Test Ratio (CTR) 5
................
In case the company sells insured investment products, whereby the policyholder bears the complete investment risk, the investments and technical provisions associated with these products should not be included in the coverage test calculation. In such case an explanatory note should be added to the coverage test sheet. 2 Only branches and agencies of life insurance companies are allowed to include claims on affiliated companies under this line item. 3 Only applicable to mutual insurance companies. 4 Excluding liabilities to affiliated companies. 5 The minimum CTR is as follows: January 1, 2025: 102%, January 1, 2026: 104%, January 1, 2027: 106%, January 1, 2028: 108%, January 1, 2029: 110%.

SUPERVISORY DIRECTIVES
II5/4
Exhibit 2: COVERAGE TEST FOR NONLIFE INSURANCE COMPANIES AFL Admissible assets Outstanding amount Weight Factor Weighted Assets
1.00 Investments %
1.10 Shares ............... 80% ...............
1.20 Bonds
Government bonds ............... 100% ...............
Corporate: Highest or strong credit quality ............... 95% ...............
Corporate: Upper medium to medium low quality ............... 85% ...............
1.30 Real estate ............... 90% ...............
1.40 Time deposits ............... 100% ...............
1.51 Loans-secured ............... 100% ...............
1.52 Loans-unsecured ............... 95% ...............
1.60 Other ............... 65% ...............
2.00 Fixed assets
2.10 Real estate ............... 90%
2.20/2.30/2.40 Other fixed assets ............... 65%
3.00 Affiliated Companies 1
............... 90%
4.00 Current assets
4.10 Cash in Hand ............... 100%
4.20 Due from other depository corporations ............... 100%
4.30 Agents’/brokers’ balances, 90 days and under ............... 100%
4.40 Uncollected Premiums, 90 days and under ............... 100%
4.50 Investment Income due, 90 days and under ............... 100%
4.60 Amounts receivable from reinsurers ............... 100%
4.70 Amounts due from members 2
............... 100%
4.80 Other ............... 100%
Total weighted assets ...............
8.00 Less: Current liabilities 3
...............
Assets available to cover Technical provisions ...............
6.00 Technical provisions ...............
Coverage Test Ratio (CTR) 4
...............
1 Only branches and agencies of nonlife insurance companies are allowed to include claims on affiliated companies under this line item. 2 Only applicable to mutual insurance companies. 3 Excluding liabilities to affiliated companies. 4 The minimum CTR is 100%.

Legal framework
Life insurance companies
According to article 14, paragraph 1, of the State Ordinance on the Supervision of the Insurance Business (AB 2000 no. 82) (SOSIB) an insurer engaged in the life insurance business must have a solvency margin equal to eight percent of the provision for insurance obligations at the end of the preceding financial year, without taking the reinsurance portion of these obligations into account. Nonlife insurance companies According to article 14, paragraph 2, of the SOSIB an insurer engaged in the nonlife insurance business must have a solvency margin equal to the highest outcome of one of the following calculations:

fifteen percent of the gross premiums booked in the preceding financial year; or
fifteen percent of the average gross claims incurred in the last three financial
years.
Pursuant to article 14, paragraph 3, of the SOSIB, the Centrale Bank van Aruba (CBA) can give general guidelines with regard to the solvency margin. The CBA may also determine the minimum solvency margin amount that needs to be maintained by an insurer.

Purpose
The solvency margin serves as a buffer to ensure that the obligations under the insurance contracts can be met at any time and that the insurer has free financial means (own funds) at its disposal in order to absorb discrepancies between the anticipated and actual expenses and profits.
Definition
The following capital elements form the available solvency margin:
“Paid-in capital”;
“Statutory and general reserves”;
“Retained earnings”;
“Asset revaluation reserves”;
“Net income current year”.
In case of a mutual insurance company the paid-in capital is considered the policyholders’ surplus. A branch office or an agency does not have “paid-in capital”, in such case the capital assigned to the Aruban operations may be considered as paid-in capital.

AFL 400,000 if it is engaged in the life insurance business (exhibit 1).
AFL 300,000 if it is engaged in the nonlife insurance business (exhibit 2).
AFL 500,000 for an insurer as referred to in section IX of the Implementation
Ordinance on the Supervision of Insurance Business (AB 2001, No. 91) (exhibit 3). The admissible assets to cover the minimum solvency margin are:
Treasury bonds issued by the Government of Aruba;
Shares certificates, debentures, profit-sharing certificate and other similar
securities;
Proof of partnership rights;
Certificates of the assets as referred to in points 2 and 3;
Scrip certificates of the assets as referred to in points 1, 2 and 3;
Acknowledgement of debt towards the insurer, not being treasury bills or
debentures, issued by or guaranteed by the Government of Aruba or other public entities in Aruba;
Acknowledgement of debt towards the insurer, not being debentures, issued by
companies incorporated in Aruba or issued by companies incorporated in Aruba for which a license pursuant to article 4 or 24 of the State Ordinance on the Supervision of the Credit System has been granted. The appraisal and distribution of these assets require the CBA’s prior approval. Furthermore, these assets should be pledged to the CBA and kept in custody of a credit institution supervised by the CBA. Finally, the amount of intercompany current accounts receivable exceeding the maximum of 5 percent of Total investments must be deducted from the Shareholders’ Equity in the calculation of the solvency margin requirement. This does not apply to branches or agencies. The solvency calculation is also part of the annual statements (CBA format) and quarterly reports that all insurers should submit to the CBA (refer to exhibit 1 to 3). These guidelines enter into force as of July 1, 2019.

8% of the “Provision for Insurance Obligations” in the preceding financial year, or
AFL 400,000 if the insurer is strictly doing life insurance.

15% of the gross premiums booked in the preceding financial year, or
15% of the average gross claims incurred in the last three financial years, or
a minimum of Afl. 300,000.

8% of the “Provision for Insurance Obligations” in the preceding financial year, or
AFL 500,000 if the insurer has been doing both life, accident & sickness insurance prior to July
2001 within the same legal entity.

SUPERVISORY DIRECTIVES
______________________________________________________________________________________ ______________________________________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES II.7/1 II.7 Guidelines with regard to the transfer of rights and obligations from insurance agreements Guidelines on the execution of Section 22, third paragraph of the State Ordinance on the Supervision of Insurance Business (AB 2000 no. 82) Introduction Under the present law the insureds’ cooperation is required for the transfer of debts. This does not make it easy for an insurer to transfer its portfolio in whole or in part to another insurer, as this requires the consent of each individual policyholder. Therefore a special arrangement is necessary, because a transfer is often the most expedient way to ensure the interests of the insured parties. Before amplifying this, it should be pointed out that there may be question of a voluntary or a compulsory transfer of rights and obligations. A transfer is compulsory when, at the request of the Centrale Bank van Aruba (the Bank), the court of first instance orders that the emergency regulation (section 20, first paragraph of the state ordinance) be applied to an insurer and authorizes one or more administrators to transfer all or part of the rights and obligations of the insurer. A transfer is voluntary if the insurer, at the Bank’s instigation or not, requests so, or if an individual policyholder requests for a transfer. In practice a transfer of rights and obligations from insurance agreements is effected for various reasons. It may be that the lack of growth in a certain portfolio induces the insurer to transfer the rights and obligations in question. It is also possible that an insurer wishes to get rid of the part of its portfolio that is not profitable or wishes to sell part of its portfolio in order to use the proceeds to improve its financial position. By a transfer an insurer in difficulties can not only serve the interests of the “transferred” insured persons, but also safeguard the interests of the remaining insured persons and possible creditors by means of the proceeds of the sale. Particularly in the life insurance business it is not in the insured persons interest to liquidate an insurer, even if the insurer is still solvent at that time. In such a case they will only receive the cash value of their claims, which will seldom correspond with the object for which they concluded the insurance. The purpose of these guidelines is to facilitate the transfer of rights and obligations by one insurer to the other and at the same time to protect the interests of the insured. In view of the special nature of the life insurance business chapter I, part 1, sub a stipulates that for the transfer of rights and obligations from life insurance agreements the Bank’s permission is always required. Only at the written request of an individual

SUPERVISORY DIRECTIVES
______________________________________________________________________________________ ______________________________________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES II.7/2 policyholder this person’s life insurance may be transferred to another insurer without the permission of the Bank. The difference in character between the life and general insurance business is also apparent in the different procedures laid down in these guidelines with regards to obtaining permission from the Bank. In the case of the transfer of rights and obligations from life insurance agreements the decision is not left exclusively in the hands of the Bank, but the policyholders also have a say in this (chapter I, part 3). For practical reasons it was decided not to opt for a positive declaration of permission by three-fourths of the policyholders, but to reject the transfer when one fourth of the policyholders opposes such a transfer. When assessing the draft agreement to transfer, the Bank in the first place will have to check if the transfer is in the interest of the insured persons. The Bank will reject the transfer of rights and obligations to a financially weak insurer. Moreover, the Bank must ensure that the policy conditions do not undergo substantial changes. Another consequence of the difference in character between the life and general insurance business is that for the life insurance business no provision is necessary in chapter I, like the one laid down in chapter II, part 3, point c for the general insurance business. Under that provision policyholders who, for whatever reason, object to the transfer of their general insurance are offered the opportunity to terminate their insurance agreement within 60 days subsequent to the publication of the transfer. Such a provision is not necessary for the life insurance business, as the policyholder can terminate the life insurance agreement at all times.
Chapter I
Transfer of rights and obligations life insurance agreements
Part 1
a. An insurer may only transfer his rights and obligations from all or part of the life insurance agreements to another insurer by written agreement and with the Bank’s written permission. b. In deviation from the stipulations under point a, an insurer is allowed to transfer his rights and obligations from an individual life insurance agreement to another insurer at the written request of the individual policyholder.
Part 2

SUPERVISORY DIRECTIVES
______________________________________________________________________________________ ______________________________________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES II.7/3 a. The application to obtain permission from the Bank for the transfer of rights and obligations shall be accompanied by a draft agreement together with all the explanatory documents. The insurer shall also supply the Bank with any supplementary data it requires. b. If the Bank has no initial objections to the draft agreement for the transfer it shall notify the insurer thereof as soon as possible in writing. If it does have initial objections, it shall likewise as soon as possible notify the insurer of its objections in writing.
Part 3
a. If the Bank has no initial objections to the proposal, or if these objections have been acted upon, the insurer shall publish its intentions to transfer the rights and obligations in the publication containing official government announcements and by other means to be determined by the Bank, in the interests of the policyholders. The announcement shall state a term to be determined by the Bank, within which the policyholders involved may inform the Bank, in writing, of their objections to the transfer. b. If policyholders, representing one fourth or more of the insured sum5 involved, have raised objections to the transfer within the term stipulated under point a above, a transfer is not permitted. The Bank shall notify the insurer accordingly in writing.
c. If the Bank still has objections against the transfer, it shall notify the insurer of
these objections in writing, as soon as possible after the term stipulated under point a above, has expired, stating the reasons for these objections. d. If within the stipulated term, policyholders representing one fourth or more of the insured sum involved have not raised objections to the transfer and also the Bank has no objections, the Bank shall grant the insurer a written permission to effect the transfer. The transfer may then take place and shall be effective with regard to all interested parties. e. The insurer that has transferred its rights and obligations shall announce the transfer in the publication containing official government announcements and by other means to be determined by the Bank, in the interests of the policyholders.

5 The insured sum shall be understood to be the insured capital increased by ten times the insured annual interests.

Chapter II
Transfer of rights and obligations general insurance agreements
Part 1
By written agreement and with written permission from the Bank, an insurer may transfer its rights and obligations from or pursuant to general insurance agreements to another insurer, without permission of those who may derive rights from said agreements. The transfer may involve all or part of the general insurance agreements.
Part 2
a. Chapter I, part 2, point a, similarly applies to the application to obtain permission from the Bank for a transfer. b. The Bank shall notify the insurer as soon as possible, in writing of its decision. A refusal must be motivated.
Part 3
a. If, with the Bank’s permission, a transfer of rights and obligations from general insurance agreements has taken place, the respective insurer shall announce that transfer in the publication containing official government announcements and by other means to be determined by the Bank in the interest of those who may derive rights from the indemnity agreements in question. The contents of said announcements require the previous written approval of the Bank. b. With regard to all persons involved, other than the insurers in question, the transfer shall become effective as from the day following the date of publication of the announcements referred to in point a.
c. During a period of sixty days following the date of publication of the
announcement referred to in point a, the policyholders in question shall be entitled to terminate their general insurance agreement in writing. The insurer shall refund the prepaid premium for the part proportional to the part of the period not yet lapsed.

SUPERVISORY DIRECTIVES
______________________________________________________________________________________ _______________________________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES II.8/1
II. 8 Managing Directors and members of the
Supervisory Board
The day–to-day policy of an insurance company must be determined by at least one natural person, while it should have a supervisory board or a comparable body of at least three natural persons in so far it concerns a legal entity. In order to safeguard the good reputation of the financial sector of Aruba, the Centrale Bank van Aruba (the Bank) in its licensing procedure, applies certain requirements as to the integrity, knowledge and experience of directors of the insurance company. These criteria are also applied in cases where new directors are appointed. In view of these requirements, the Bank may object to the appointment of one or more persons who determine the day-today policy of a supervised institution because his, her or their knowledge is considered inadequate to engage in the insurance business. Likewise, the Bank may object one or more persons accepting a post involving the (co-) determination of the policy of a supervised institution if, based on the intentions or the past history of that person or those persons, the Bank holds the opinion that the interests of the policy holders of the institution could be jeopardized. Pursuant to section 7, sub a and b, and section 17 of the SOSIB any appointment of a new managing director and/or member of the supervisory board, needs the Bank's prior written approval. In order to assess the intended appointment in the light of the criteria above, the candidate is required to complete the Bank’s questionnaire (Annex 1), sign and return it to the Bank via the institution concerned. A formal request together with the filled-out questionnaire and requested documents should be send to the Bank. Reference is made to paragraph 2 of the Directive on Sound Business Operations for further information on the integrity and suitability assessment conducted by the Bank. The questions must be answered truthfully and as fully as possible. Questions relating to legal proceedings, convictions, refusal of licenses, supervision of payment or bankruptcy must be answered regardless of whether these facts occurred in Aruba or elsewhere and regardless of the nature of the facts (economic or other offenses). The Bank's decision is taken on the basis of all available information, including that about the nature of the position and of the institutions. The answers to the questionnaire are merely one among many considerations. Together with the filled out questionnaire the applicant must submit a declaration of good conduct. The Bank informs the institutions concerned of its decision.

II.9 Prospective (In-) Direct Shareholders - Natural Persons

Change in shareholding
(Section 31 of the SOSIB/ section 3 of the State Degree regulating changes in ownership) Pursuant to section 3 of the State Degree regulating changes in ownership any natural person or legal entity needs the Bank’s prior written approval to hold, acquire or increase a qualifying holding in An insurance company or to exercise any control attaching to a qualifying holding. The prospective shareholder should fill in the Bank’s questionnaire for prospective shareholder (annex 1). A formal request together with the filled-out questionnaire and requested documents should be send to the Bank. Reference is made to paragraph 2 of the Directive on Sound Business Operations for further information on the integrity and suitability assessment conducted by the Bank. If such an interest or control could lead to any influence on the insurance business, which is contrary to sound insurance policy, the Bank may refuse authorization. According to section 1 of the SOSIB a qualifying holding is defined as: a direct or indirect holding of more than ten percent of the issued share capital of an insurer or the ability to exercise directly or indirectly more than 10 percent of the voting rights in an insurer or the ability to exercise directly or indirectly a comparable degree of control.

II.10 Directive on the appointment of a certifying actuary Directive on the appointment of a certifying actuary by virtue of articles 10 and 15a of the State Ordinance on the Supervision of the Insurance Business (AB 2000 no. 82) (SOSIB) for (life) insurance companies licensed by the Centrale Bank van Aruba (CBA).

Introduction
It is important that supervisors obtain the information they need to properly form an opinion on the minimum required technical provision: the assumptions, methods and principles applied; potential factors that threaten the solvency; financially significant reinsurance agreements; and compliance with related statutory and regulatory requirements. This information is obtained, amongst others, from the actuarial declaration/certification and actuarial report that must be filed, on a yearly basis, at the CBA. As such, supervisors have a clear interest in ensuring that the actuarial valuation is performed in a diligent way, taking into account the principles and guidance issued by the International Association of Insurance Supervisors (IAIS). In this respect, high standards of actuarial duties are essential for the proper operation of an insurer and play a key role in the insurers’ overall systems of risk management and internal controls1 . As such, the actuarial valuation performed must be carried out by an actuary who:

is properly licensed and in good standing;
has relevant professional experience and competence;
is independent in fact and in appearance;
is objective and impartial; and
complies with all ethical requirements.

Certifying and advising actuary
The certifying and advising actuary is an expert in actuarial science and is also chartered by a professional body, such as the “Koninklijk Actuarieel Genootschap” in the Netherlands, the Society of Actuaries in the United States of America, or the Canadian Institute of Actuaries in Canada. The certifying and advising actuary is a professional trained in evaluating the financial implications of contingency events and has an understanding of the stochastic nature of insurance and other financial services, the risks inherent in assets and the use of statistical models (Insurance Core Principles, IAIS). The CBA distinguishes between a certifying actuary and an advising actuary. The certifying actuary is the actuary that issues an actuarial report, based on his/her analysis of the minimum

Insurance Core Principles, November 2017 (IAIS).
SUPERVISORY DIRECTIVES
______________________________________________________________________________________ _______________________________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES II.9/1

required technical provisions of the insurance company, and an actuarial certification or declaration. The actuarial report and actuarial certification/declaration must be submitted to the CBA each year not later than 6 months after the end of the fiscal year, as required by article 11, paragraph 3 of the SOSIB. In this regard, reference is made to supervisory directive II.3. “Actuarial report and certification of a Life Insurance Company”. The advising actuary may assist the insurance company in different areas. The certifying actuary and advising actuary may not be performed by the same person or the same actuary office/group.
3. Directive
The CBA’s prior written approval is required for any appointment of, or change in the certifying actuary. The request for approval must be submitted to the CBA together with, at least, the following information/documents:
a. Name of the proposed certifying actuary who will sign the actuarial report and declaration; b. Proof of the certifying actuary’s registration at a professional body for actuaries;
c. Detailed resume/curriculum vitae of the signing actuary, including an overview of the
financial institutions to which he/she provided actuarial services during his/her career; d. A copy of the draft engagement letter; e. Confirmation from the proposed certifying actuary that no disciplinary measures have been taken against him/her, or that a disciplinary complaint has been filed against him/her which is pending a decision; and f. A statement from the insurance company and a statement from the actuary firm must be submitted stating that there are no material business interests as described under paragraph 4 below.
4. Independence of a certifying actuary
There may not be any material business interest between i) the insurer, its management or a member thereof, its Supervisory Board or a member thereof, its direct or indirect shareholder(s), and ii) the certifying actuary and the members of the actuary team, and other entities part of the same group of the firm of the certifying actuary. In case of a change of the certifying actuary, the CBA should be informed on the reasons of the intended change. The CBA will grant its approval if the proposed certifying actuary complies with the requirements as stipulated in this directive and if there are no circumstances that, in the opinion of the CBA, would make the proposed actuary unfit for the assignment. The CBA maintains at all times the right to revoke its approval if there are any circumstances that, in the opinion of the CBA, justify such action. This directive enters into force as of February 2019. _______________________________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES II.10/2 SUPERVISORY DIRECTIVES ______________________________________________________________________________________

Annex 1
CENTRALE BANK VAN ARUBA
PERSONAL QUESTIONNAIRE
&
ASSOCIATED GUIDANCE NOTES
April 1, 2020
J.E. Irausquin Boulevard 8 P.O. Box 18 Oranjestad Aruba www.cbaruba.org

GUIDANCE NOTES
PURPOSE AND SCOPE
The Centrale Bank van Aruba (‘CBA’) is, amongst other things, responsible for the integrity and suitability testing of prospective Key Persons (Candidates) in relation to an entity under its supervision pursuant to:

the State Ordinance on the Supervision of the Credit System (Landsverordening toezicht
kredietwezen or ‘SOSCS’)1
;
the State Ordinance on the Supervision of the Insurance Business (Landsverordening toezicht
verzekeringsbedrijf or ‘SOSIB’)2
;
the State Ordinance on the Supervision of Money Transfer Companies (Landsverordening toezicht
geldtransactiebedrijven or ‘SOSMTC’)3
; and
the State Ordinance on the Supervision of Trust Service Providers (Landsverordening toezicht
trustkantoren or ‘SOSTSP’)4
;
the State Ordinance on Company Pension Funds (Landsverordening ondernemingspensioenfondsen or ‘SOCPF’)5
;
the State Ordinance on the Supervision of the Securities Business (Landsverordening toezicht
effectenverkeer or ‘SOSSB’).6
the State Decree on the Supervision of Insurance Brokers (Landsbesluit toezicht
assurantiebemiddelaars or ‘SDSIB’)7
;
(henceforth referred to as the ‘Supervisory Laws’) Pursuant to the Supervisory Laws, the CBA’s prior approval is required to appoint or become a Key Person. In this respect, relevant information must be submitted to enable the CBA to assess the integrity and suitability of the Candidate. These guidance notes seek to assist Applicants and Candidates by clarifying areas of uncertainty that may arise when completing or answering questions contained within this Personal Questionnaire (‘PQ’). When assessing integrity the CBA looks at facts and circumstances that are relevant to ascertain if the behaviour of the Candidate is in line with a sound execution of the key position. When assessing suitability the CBA looks at the knowledge, experience and professional conduct of the Candidate as evident from, for instance, education, work experience, competences and their practical application. Suitability testing takes into account the key position, the nature, scope, complexity, and risk profile of the Regulated Entity, and the composition8 and functioning of the respective managing or supervisory body as a whole. If the integrity of the Candidate is not beyond doubt and/or the suitability is not sufficient to fulfil the function in question, the CBA can refuse the request for approval of the Candidate in a key position.
Article 5, paragraph 1, subsections a, b and c; and article 9 of the SOSCS.
Article 6, paragraph 1, subsections a and b; and article 17 of the SOSIB.
Article 4, paragraph 1, subsections a, b and c; and article 5, paragraphs 2 and 3 of the SOSMTC.
Article 3, paragraph 1, subsections b, c and d; and article 5; and article 5a of the SOSTSP.
Article 4 of the SOCPF.
Article 19 and article 20 of the SOSSB.
Article 6 of the SDSIB.
In the assessment of the composition of the Supervisory Board, the CBA also takes into account the independence requirements as laid down in the Corporate Governance Policy Papers.

For the purpose of this PQ and associated guidance notes:
Applicant includes the Regulated Entity which has filed an application for approval to appoint a Key Person or, in case the application relates to a qualifying holding9 in a Regulated Entity, the person who holds or will hold the qualifying holding. Candidate means the prospective Key Person. CBA means Centrale Bank van Aruba. Key Person is a. a natural person who is a managing director or a person who otherwise (co)-determines the policy of a Regulated Entity; b. a natural person who is a member of the supervisory board or a comparable body of a Regulated Entity;
c. a holder (natural person) of a qualifying holding in a Regulated Entity (excluding company pension
funds) or, in case the holder of the qualifying holding is a legal person, the persons who determine the policy of this legal person. Regulated Entity includes an entity that is regulated under any of the Supervisory Laws and supervised by the CBA. PROCESS FOR APPROVAL The process for approval usually involves at least three parties:

the Applicant;
the Candidate;
the CBA.
After the Candidate and the Applicant have completed the PQ, the Applicant must submit the PQ and all other requested documents to the CBA for its review and approval. Upon completion of the assessment and after the CBA has reached a conclusion on the integrity and suitability of the Candidate (which may take up to thirteen weeks once all requested information and documents are in the CBA’s possession), the CBA sends its decision to the Applicant. It is very important that the CBA be informed of the proposed commencing date. In this regard it is noteworthy to mention that the Candidate may not exercise the proposed function without the CBA’s prior approval. The CBA’s decision is subject to objection and appeal by both the Applicant and the Candidate in accordance with the provisions of the State Ordinance on Administrative Proceedings (Landsverordening administratieve rechtspraak). A qualifying holding is a direct or indirect holding of ten percent or more of the issued share capital or the ability to exercise directly or indirectly ten percent or more of the voting rights or comparable control.

Notwithstanding legal procedures regarding the CBA’s decision, the Candidate concerned may not act as a Key Person until the CBA has given its written approval. It should be noted that approval by the CBA always concerns a specific position in relation to a specific Regulated Entity in specific circumstances. If circumstances change (e.g. the Regulated Entity becomes active in a new field of business), or the person concerned is to be appointed in a new Key Person position or in a Key Position at a different Regulated Entity, a new application must be filled out and submitted to the CBA (see section “Continuing obligation to advise the CBA of changes” below). The CBA reserves the right to request a PQ to be completed if, in the CBA’s opinion, the person is considered to be a Key Person. REQUIRED INFORMATION In addition to the PQ, the following documents must be submitted to the CBA as part of the application. Documents and information to be provided by the Applicant:

a formal request for the appointment of the proposed Candidate, including the reason(s) for the
proposed appointment;
the Regulated Entity’s recruitment and selection policy and procedures. This concerns in any case the
actual assessment that was followed for the recruitment and selection of the Candidate. If a suitability matrix of the body at which the Candidate will become a member is available this must also be submitted;
the profile of the function concerned. This profile must at least contain information on the tasks and
responsibilities (focus areas) and the expected time expenditure, the required knowledge, experience and competences for the function concerned; and
the Regulated Entity’s decision-making process regarding the selection of a Candidate and the
considerations that led to the outcome of the selection process. The considerations must indicate the extent to which the Candidate meets the function profile, in terms of knowledge, experience, competences and professional conduct, taking into account the composition and functioning of the body of which the Candidate will become a member. Documents and information to be provided by the Candidate:
a certified true copy of the photograph and signature page(s) of the Candidate’s passport ensuring that
the photograph is clear and the signature legible;10
an extract (uittreksel) from the Civil Registry (Bevolkingsregister) regarding the Candidate not older
than two (2) months;
a declaration of good conduct (Verklaring omtrent het gedrag) or an equivalent declaration from the
relevant judicial authority from where the Candidate is domiciled, not older than three (3) months;
a declaration of good standing of the tax authority (Verklaring van fiscaal gedrag) from where the
Candidate is domiciled, not older than three (3) months.
copies of the test results of any assessment with respect to the Candidate’s integrity or suitability by a
regulator (in Aruba or elsewhere) in charge with financial supervision; 10 This copy must be certified by a Key Person approved by the CBA or a civil notary. The Key Person certifying the copy of the passport should state, “I certify that this is a true copy of the original page(s) of the passport of [individual’s name] presented to me on [date].” The Key Person certifying should also sign and date the copy and print their name and capacity in which they have signed.
copies of the Candidate’s certificated qualifications (including proof of relevant courses attended);
the Candidate’s curriculum vitae; and
if the Candidate holds any direct or indirect financial and/or controlling interest of ten percent or more
in another institution, a copy of the articles of incorporation, the shareholders’ register, an extract from the Chamber of Commerce, and the most recent financial statements of that institution. If the CBA deems it necessary, it may ask the Applicant or Candidate for additional information. Furthermore, the CBA may invite the Candidate for an interview. The CBA may also consult with third parties, such as the references provided by the Candidate, the Chamber of Commerce and Industry Aruba, law enforcement agencies, foreign regulators in charge with financial supervision, tax authorities and any other agencies or persons that may be able to provide relevant information on the Candidate. By submitting and signing this PQ both the Applicant and the Candidate provide their consent to the information gathering by the CBA from third parties. CONTINUING OBLIGATION TO ADVISE THE CBA OF CHANGES On an on-going basis, the CBA is to be informed of any changes to information previously submitted in the PQ and all other circumstances that can reasonably be considered relevant to the CBA’s assessment of the Key Person involved. This obligation lies with the Applicant. On the basis of the new information, or other new facts or circumstances, the CBA may decide to conduct a reassessment of the Key Person’s integrity and suitability. RESIGNATIONS Should a Key Person cease to fulfill this role, the CBA should be advised by the Regulated Entity of the date that the Key Person ceased acting in this capacity and the reason for such cessation. However, should a person be a Key Person by way of his or her qualifying holding in the Regulated Entity, the CBA should be informed of any change in the qualifying holding by the person holding the (qualifying) holding. COMMUNICATION WITH KEY PERSONS The CBA will in principle communicate with the Applicant. However, the CBA may invite the Candidate for an interview and thus have direct contact with this person. Also for clarifications on matters that regard the Applicant’s antecedents, the CBA may decide to contact the Applicant directly. GENERAL POINTS This PQ comprises of 13 sections and each section contains a number of questions. All questions contained in the PQ must be answered. All responses should be typed or written in blue ink. Incomplete PQs will be returned to the Applicant for completion and resubmission. The Key Person should initial all amendments to confirm they are correct. All (other) facts and circumstances that can reasonably be considered relevant to the CBA’s assessment must be disclosed in the application. Withholding such information may be considered as providing misleading information and as such may have consequences for this application and future applications.

If you have any further questions concerning the completion of this form, you can contact the CBA via email address: informationcenter@cbaruba.org. SUBMISSION OF THE PQ After completion, the PQ should be signed by both the Applicant and the Candidate. The Applicant must submit its request for the appointment of the proposed Candidate, including the filled-out PQ and required documents, to the CBA in hardcopy and provide the CBA with an electronic readable version (pdf format) via e-mail address informationcenter@cbaruba.org.

CENTRALE BANK VAN ARUBA
PERSONAL QUESTIONNAIRE
All questions must be answered.
Please refer to the Guidance Notes to aid completion of this Personal Questionnaire. All responses should be typed or written in blue ink. Any attachments should be clearly referenced to the relevant question(s) and signed by the individual completing the Personal Questionnaire, as confirmation that they are complete and accurate. The CBA reserves the right to seek references from organizations and individuals named in this Personal Questionnaire, including foreign regulatory authorities. It is important, therefore, to ensure that full and accurate names, addresses, and contact information are provided. J.E. Irausquin Boulevard 8 P.O. Box 18 Oranjestad Aruba www.cbaruba.org

CENTRALE BANK VAN ARUBA
Information to be provided by the Applicant
All responses should be typed or written in blue ink.
SECTION 1
1.1 Name and address of the Regulated Entity at which the Candidate will become a Key Person:
1.2 In which function will the Candidate become a Key Person:
Please provide the job title and a brief description of the role to be undertaken. If the Candidate is to fulfil more than one role, please specify.
1.3 Please state the main tasks and responsibilities in respect of the function in which the
Candidate will become a Key Person:
1.4 Proposed commencement date of the Key Person’s duties:
Please note that the proposed commencement is a date in the future and cannot be the same date as the Application form due to the fact that only after the CBA’s approval the Key Person is allowed to exercise the proposed function. Day: Month: Year:

1.5 Provide an overview of the new composition of the Managing Board or Supervisory Board
after the appointment and approval of the proposed Candidate.
Please state for each Supervisory Board member whether he/she is independent.
1.6 Mark the relevant boxes to indicate the legislation under which you are seeking approval:
State Ordinance on the Supervision of the Credit System State Ordinance on the Supervision of the Insurance Business State Ordinance on the Supervision of Money Transfer Companies State Ordinance on the Supervision of Trust Service Providers State Ordinance on the Supervision of the Securities Business State Ordinance on Company Pension Funds State Decree on the Supervision of Insurance Brokers

Information to be provided by the Candidate
All responses should be typed or written in blue ink.
Please refer to the Guidance Notes to aid completion of this PQ.
If you need more writing space to answer a question than provided by this PQ, please provide the requested details on a clearly referenced attachment. The answers provided must be legible.
SECTION 2 – Personal Details
2.1 Surname:
Title(s):
2.2 Given name(s):
2.3 Place of birth:
Town/City: Country
2.4 Date of birth:
Day: Month: Year:
2.5 Nationalities and how acquired:
Nationality: Acquired:
2.6 Private address (including, if applicable, postal code):

Home telephone number:
Country/area code:
Number:
Personal mobile number:
Private email address:
2.7 Business telephone number:
Country/area code:
Number:
Business fax number:
Country/area code:
Number:
Business email address:
2.8 Passport:
Number: Expiry date:
Issuing country:

2.9 Have you ever changed your name?
Please include details of any changes to your name, including forenames and surnames, e.g. through marriage. *YES / NO *If YES, please list all previous names (given names and surnames), the dates on which they were changed and reasons for the change. Previous full name(s) & title Date changed Registry at which details are recorded Reason for change
2.10 Have you changed your private address at any time in the previous ten years?
*YES / NO
*If YES, please give details of each address and the date (mm/yy) on which it changed. Previous address(es) Date changed

2.11 Have you ever changed your nationality?
*YES / NO
*If YES, please list all previous nationalities, the date, how they were acquired/lost. Previous nationalit(y)(ies) Date changed Acquired by Lost through
2.12 Please provide the name(s) and address(es) of all banks where you hold accounts.
Name(s) of bank(s) Address(es)
2.13 Are you a ‘Politically Exposed Person’ (PEP)?
A PEP or Politically Exposed Person means a person who holds or held a prominent public position, as well as direct family members and direct associates of such a person. *YES / NO *If YES, please give details.

SECTION 3 – Experience
Not applicable in case the application relates to a (qualifying) holding in a Regulated Entity.
3.1 Please state the number of contracted hours per week or month that you anticipate
dedicating to this position.
If this position is not full-time, please explain what other roles and activities will be occupying your time. Answers such as ‘as much time as is necessary’ or similar are not acceptable and actual indicative hours are required.
3.2 Will you be acting as a Managing Director or Supervisory Board Member?
*YES / NO
*If YES, please provide full details on your role and what particular contribution you will bring. Please use clearly referenced attachments if needed. *If YES, please also give details of your current day-to-day employment position(s).
3.3 Employment history
Please provide details of your current employment position and your employment history. Your reasons for leaving should be categorised as follows:

Resignation;
Redundancy;
Retirement;
Termination/dismissal;
End of contract; and
Other (please provide details).

Please provide as much contact information as possible on any relevant regulator in order to accelerate the inter-regulatory checks process undertaken by the CBA. Should you, or the Regulated Entity in relation to whom you will become a Key Person, maintain or have previously maintained a business relationship with any of your previous employers listed, please give details using a clearly referenced attachment. Name / address of employer and nature of business Name of regulator Position(s) held Relevant dates (mm/yy) Reason(s) for leaving
3.4 Please provide details of any employment or otherwise important positions, whether paid or
unpaid, including memberships of a board or a committee, which you will not resign from when you will become a Key Person. Name / address of organization and nature of business or activities Name of regulator Position(s) held Relevant dates (mm/yy) Task and responsibilities Total number of contracted hours per week or month that is dedicated to the position
3.5 Please provide details of relevant professional qualifications, degrees, etc.
Please state the awarding body (to include full name and address), the date the qualification was obtained and provide a copy of the awarding certificate. Qualification(s) Date awarded (dd/mm/yy) Name & address of awarding body

3.6 Please provide details of past and current membership of any relevant professional body or
organization and the year of admission.
If applicable, please provide details of why your membership ceased. Membership details Date of admission (dd/mm/yy) Name and address of professional body or organization A relevant professional body or organization would in any case include an organization of fellow professionals.
3.7 Please provide details of your specific experience (knowledge, capabilities, competences, etc.)
relevant to the position.
3.8 Please provide three independent references and further details, including their names,
positions, addresses, telephone numbers, e-mail addresses and relationship to you (not applicable in case the application relates to a (qualifying) holding in a Regulated Entity). The references should preferably have affinity with the financial or trust sector and (used to) work as your direct superior(s) or fellow (co-)policymaker(s). At least one of the three references should work for your last/current employer. Persons who cannot act as references include persons related by consanguinity in a direct or indirect line up to and including relations in the third degree, your (former) spouse or partner.

Listed references must be notified in advance and be prepared to act in such a capacity. Name Position Address, telephone number(s), e-mail address(es) Relationship to you

SECTION 4 – Criminal antecedents
4.1 At any time, have you been considered a suspect in a criminal investigation in Aruba or
elsewhere, or do you expect to be considered as such?
*YES / NO
*If YES, please specify and explain the criminal offence, the state of affairs and the outcome of each case, e.g. still under investigation, conviction, acquittal, discharge from further prosecution, a settlement or (conditional) dismissal of charges. For each case, please provide details, including relevant dates, courts, current status of the proceedings (if still pending), etc. Please also include traffic offences (minor traffic violations may be excluded). Traffic offences include:

joyriding;
driving under the influence of alcohol or drugs;
hit-and-run driving;
driving while under a disqualification order;
driving during suspension of driving license;
involuntary manslaughter;
driving with false license plates.
4.2 Has any institution whose policy is or was (co-)determined by you, e.g. as a managing
director or supervisory board member, ever been a suspect in a criminal investigation? *YES / NO *If YES, please specify and explain the criminal offence, state of affairs and the outcome of each case, e.g. still under investigation, conviction, acquittal, discharge from further prosecution, a settlement or (conditional) dismissal of charges. For each case, please provide details, including relevant dates, courts, whether or not proceedings are pending or final, etc. Where applicable, please explain how you were involved or how the offence related to your responsibilities. This question includes the indirect (co-)determination of policies of companies through the provision of trust services as defined in Article 1 of the SOSTSP.

4.3 Are you/ have you been involved in any criminal related matters not covered by the previous
questions?
*YES / NO
*If YES, please provide details.

SECTION 5 – Personal financial antecedents
5.1 Do your personal financial liabilities stand in a sound relationship, by general standards, to
your income and/or personal assets?
*YES/NO
*If NO, please explain.
5.2 Have you been in any financial problems or personal financial difficulties?
*YES/NO
*If YES, please explain if these problems have led to any legal, debt collecting or debt recovery proceedings and how this situation was resolved (e.g. suspension of payments petition filed/declared, bankruptcy petition filed/declared, debts rescheduled, agreement with creditors).
5.3 Do you expect, within a year from today, to run into financial difficulties leading to legal,
debt collecting or debt recovery steps?
*YES/NO
*If YES, please explain.

5.4 Are there any other facts or circumstances on your personal financial position that could be
of relevance for the integrity assessment?
*YES/NO
*If YES, please provide details.

SECTION 6 – Supervisory antecedents
6.1 Have you, or has any institution whose policy is or was (co-)determined by you, ever had a
permission, an authorization, a license, an exemption, a dispensation or a registration withdrawn or refused by a (financial) regulator or other authorization-granting entity? *YES/NO *If YES, please provide details.
6.2 Have you, or has any institution whose policy is or was (co-)determined by you, ever had a
conflict with a foreign or domestic (financial) regulator that led to a regulatory measure, or do you expect such a situation to develop within the next twelve months? *YES/NO *If YES, please explain.
6.3 Are there any other facts or circumstances with a foreign or domestic (financial) regulator or
other authorization-granting entity that could be of relevance for the integrity assessment? Examples would be: warning letters, normative conversations, settlement agreements with a foreign or domestic (financial) regulator and withdrawn nomination(s) for appointment. *YES/NO *If YES, please provide details.

SECTION 7 – Tax related antecedents
7.1 Have you ever received a tax punitive fine (fiscale vergrijpboete) that became irrevocable?
*YES/NO
*If YES, please provide details.
7.2 Are you currently involved in a procedure that might lead to the imposition of a tax punitive
fine?
*YES/NO
*If YES, please provide details (including the current status of the proceedings).
7.3 Has a tax subject whose policy is or was (co-)determined by you ever received a tax punitive
fine that became irrevocable?
This question includes the indirect (co-)determination of policies of companies through the provision of trust services as defined in Article 1 of the SOSTSP. *YES/NO *If YES, please provide details.

7.4 Is a tax subject whose policy is or was (co-)determined by you currently involved in a
procedure that might lead to the imposition of a tax punitive fine?
This question includes the indirect (co-)determination of policies of companies through the provision of trust services as defined in Article 1 of the SOSTSP. *YES/NO *If YES, please provide details (including the current status of the proceedings).
7.5 Are there any other facts or circumstances on tax related matters that could be of relevance
for the integrity assessment?
*YES/NO
*If YES, please provide details.

SECTION 8 – Business related financial antecedents
8.1 Do you have a direct or indirect interest or relationship with the Regulated Entity as referred
to under section 1.1, other than your proposed Key Person position?
A direct or indirect interest may in this case be related by consanguinity or affinity in a direct or indirect line up to and including relations in the third degree, your (former) spouse or cohabitant. *YES/NO *If YES, please provide details.
8.2 Has any institution whose policy is or was (co-)determined by you experienced major
financial difficulties?
This question includes the indirect (co-)determination of policies of companies through the provision of trust services as defined in Article 1 of the SOSTSP. *YES/NO *If YES, please explain (legal procedure, suspension of payments, bankruptcy, or other).
8.3 Is there currently a judicial inquiry concerning, or were you ever ordered by a court of law
to pay, (unpaid) debts because of liability for the bankruptcy of a legal entity pursuant to the applicable provisions of the Bankruptcy State Ordinance (Faillissementsverordening), the Civil Code of Aruba (Burgerlijk Wetboek van Aruba) or any similar provisions elsewhere? *YES/NO *If YES, please provide details.

8.4 If you answered question 8.2 or 8.3 affirmatively, please provide any particulars if you were
directly involved with the financial difficulties, or with the legal proceedings, suspension of payments, bankruptcy or other, and if you were found liable on what grounds.
8.5 Of which other institutions are you currently a (co-)policymaker?
8.6 Do you hold any direct or indirect financial and/or controlling interest of ten percent or more
in an other institution?
Financial interest entails: the equity share or other similar capital providing interest which you have in an institution other than the one you work for or intend to join. Controlling interest entails: voting rights or another similar type of controlling power at the highest level in an institution other than the one you work for or intend to join. *YES/NO *If YES, please provide details.
8.7 Do these other institution(s), referred to under sections 8.5 and 8.6, maintain a commercial
interest with the Regulated Entity as referred to under section 1.1? *YES/NO *If YES, please provide details.

SECTION 9 – Other antecedents
9.1 If you are now, or have ever been, a member of a relevant professional body or organization
(refer to section 3.6), have any disciplinary or similar measures ever been taken against you? *YES/NO *If YES, please explain (the measures, the organization by which, when, and the reason why).
9.2 Have you ever been involved in a conflict with an employer?
*YES/NO
*If YES, please provide the name of the employer(s) and explain.
9.3 Relating to any conflict specified under question 9.2, where there any sanctions imposed on
you under employment law (e.g., a warning, a reprimand, or dismissal)? *YES/NO *If YES, please explain.

SECTION 10 – Holders of a qualifying holding
Complete this section only if you intend to become (a director of) a holder of a qualifying holding in a Regulated Entity. Pursuant to the Supervisory Laws, the CBA assesses the integrity of the holders of a qualifying holding in the Applicant. In case a holder of a qualifying holding is a legal person, all natural persons determining the day-to-day policy of this legal person (in any case: the legal person’s directors), must complete this PQ. A qualifying holding is a direct or indirect holding of 10% or more of the issued capital or the right to exercise, directly or indirectly, 10% or more of the voting rights or equivalent control.
10.1 Please provide the following information concerning the prospective qualifying holding in the
applicant.
Name(s) qualifying holder (s)
Address(es) qualifying holder(s)
Shares
(%)
Preferred shares
(Yes/No)
Priority shares
(Yes/No)
Share certificates
(Yes/No)
Voting rights
(%)
Other form of control
(%)
Direct
(D) or
Indirect
(I)
10.2 Please explain your reasons for acquiring or increasing the qualifying holding in the
Regulated Entity and your intentions regarding the qualifying holding.

10.3 Please specify any existing relationships between the prospective holder(s) of a qualifying
holding mentioned in 10.1 and the existing shareholders of the Regulated Entity.
10.4 Please provide the name(s) and address(es) of all other subsidiaries and affiliates of the
prospective holder(s) of a qualifying holding mentioned in 10.1
10.5 Are you or will you be involved in the (co-)determining of the Regulated Entity’s policy?
*YES/NO
*If YES, please explain.

SECTION 11 – Miscellaneous questions
11.1 Is there between you and the Regulated Entity any financial relationship which does not
ensue directly from your (intended) function or position (e.g. a loan)? *YES/NO *If YES, please explain.
11.2 At any time in the past, have you been assessed with respect to integrity and suitability by a
regulator (in Aruba or elsewhere) in charge of financial supervision? *YES/NO *If YES, please explain (name of regulator, period and result of the assessment).
11.3 Are you aware of any other facts or circumstances that could reasonably be expected to be of
relevance to the CBA when assessing your personal and/or professional qualities? *YES/NO *If YES, please provide full particulars. PLEASE DISCLOSE ANY OTHER FACTS THAT YOU CONSIDER MATERIAL TO THIS APPLICATION.

SECTION 12 – Checklist additional information and documents
Please check the corresponding box to indicate whether the documents and information listed have been included with your application (reference is made to pages 4 and 5 of the Guidance Notes). Documents and information to be provided by the Applicant:
A formal request for the appointment of the proposed Candidate, including the reason(s) for the proposed appointment. The Regulated Entity’s recruitment and selection policy and procedures.11 The profile of the function concerned.12 The decision-making process regarding the selection of a Candidate and the considerations that led to the outcome of the selection process.13 Documents and information to be provided by the Candidate:
A certified true copy of the photograph and signature page(s) of the Candidate’s passport.14 An extract (uittreksel) from the Civil Registry (Bevolkingsregister) regarding the Candidate not older than two (2) months. A Declaration of Good Conduct (Verklaring omtrent het gedrag) or an equivalent declaration from the relevant judicial authority from where the Candidate is domiciled, not older than three (3) months. A declaration of good standing of the tax authority (Verklaring van fiscaal gedrag) from where the Candidate is domiciled, not older than three (3) months. Test results of any assessment with respect to the Candidate’s integrity or suitability by a regulator (in Aruba or elsewhere) in charge with financial supervision. The Candidate’s certificated qualifications (including proof of relevant courses attended). The Candidate’s curriculum vitae. If the Candidate holds any direct or indirect financial and/or controlling interest of ten percent or more in another institution, a copy of the articles of incorporation, the shareholders’ register, an extract from the Chamber of Commerce, and the most recent financial statements, of that institution. 11 This concerns in any case the actual assessment that was followed for the recruitment and selection of the Candidate. If a suitability matrix of the body at which the Candidate will become a member is available this must also be submitted 12 This profile must at least contain information on the tasks and responsibilities (focus areas) and the expected time expenditure, the required knowledge, experience and competences for the function concerned 13 The considerations must indicate the extent to which the Candidate meets the function profile, in terms of knowledge, experience, competences and professional conduct, taking into account the composition and functioning of the body of which the Candidate will become a member. 14 This copy must be certified by a Key Person approved by the CBA or a civil notary. The Key Person certifying the copy of the passport should state, “I certify that this is a true copy of the original page(s) of the passport of [individual’s name] presented to me on [date].” The Key Person certifying should also sign and date the copy and print their name and capacity in which they have signed.

SECTION 13 – Declaration(s)
The Candidate
I am aware that withholding information may be considered as providing misleading information and as such may have consequences for this application and future applications. I am also aware that it is a criminal offence to knowingly or recklessly provide any information which is false or misleading in connection to this PQ. I confirm that the information in this form and any attachment is accurate and complete to the best of my knowledge and belief. I agree to provide details of any changes to information in this form and any attachment immediately to the CBA. I authorize the CBA to make such enquiries and to seek further information as it deems appropriate to verify the information given in this form. In particular, I consent to the CBA carrying out a judicial record check on any unspent convictions and convictions for relevant offences that I may have, conducting checks with other regulators, companies and institutions stated in this Personal Questionnaire and using external data sources. I confirm that I fully understand my role(s), responsibilities and accountabilities under the Supervisory Law(s) to which this PQ relates. Signed:
Date:
Name (BLOCK CAPITALS):
The Applicant (Only in case the Applicant is not the same person as the Candidate.) I confirm to have completed Section 1 of the PQ fully and truthfully. I declare to be authorised to represent the Applicant named under 1.1. Signed:
Date:
Name (BLOCK CAPITALS):
Position:

Annex 2
CENTRALE BANK VAN ARUBA
QUESTIONNAIRE EXTERNAL AUDITOR
&
ASSOCIATED GUIDANCE NOTES
July 1, 2023

PURPOSE AND SCOPE
The Centrale Bank van Aruba’s (‘CBA’) written approval is required for any appointment of, or change in external auditor in relation to an entity under its supervision pursuant to:

the State Ordinance on the Supervision of the Credit System (Landsverordening toezicht
kredietwezen or ‘SOSCS’)1
;
the State Ordinance on the Supervision of the Insurance Business (Landsverordening toezicht
verzekeringsbedrijf or ‘SOSIB’)2
;
the State Ordinance on Company Pension Funds (Landsverordening ondernemingspensioenfondsen or ‘SOCPF’)3
;
the State Ordinance on the Supervision of the Securities Business (Landsverordening toezicht
effectenverkeer or ‘SOSSB’)4
; and
the State Decree on the Supervision of Insurance Brokers (Landsbesluit toezicht
assurantiebemiddelaars or ‘SDSIB’)5
.
(henceforth referred to as the ‘Supervisory Laws’) Beside abovementioned supervisory laws, reference is made to the supervisory directives issued by the CBA for the different sectors on the appointment of an external auditor. These guidance notes seek to assist applicants and external auditors by clarifying areas of uncertainty that may arise when completing or answering questions contained within this Questionnaire External Auditor (‘Questionnaire’). For the purpose of this Questionnaire and associated guidance notes:
Applicant includes the regulated entity which has filed an application for approval to appoint an external auditor. External auditor as defined under section 1 of the Supervisory Laws: ‘a person who is not employed by the company or institution, being a “registeraccountant” or an “accountant-administratieconsulent” registered pursuant to article 36, paragraph 2, item i, of the Dutch Law on the accounting profession (Stb. 2012, 680)’. Engagement quality review is defined as an objective evaluation of the significant judgements made by the engagement team and the conclusions reached thereon, performed by the engagement quality reviewer and completed on or before the date of the engagement report. Engagement quality reviewer is a partner, other individual in the firm, or an external individual, appointed by the firm to perform the engagement quality review. Relevant ethical requirements are defined as the principles of professional ethics and ethical requirements that are applicable to a professional accountant when undertaking the engagement quality review (e.g., International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) related to audits or reviews of financial statements.
Article 15, paragraph 1, in conjunction with article 21a, of the SOSCS.
Article 10 in conjunction with article 15a of the SOSIB.
Article 11a in conjunction with article 12a of the SOCPF.
Article 98 of the SOSSB.
Article 4, paragraph 5 of the SDSIB.

CBA means Centrale Bank van Aruba.
Regulated entity includes an entity that is regulated under the SOSCS, SOSIB, SOCPF, SOSSB, or SDSIB. PRIOR WRITTEN APPROVAL Pursuant to the respective Supervisory Laws, the CBA’s prior written approval is required for any appointment of or change in external auditor. In this respect, relevant information must be submitted to enable the CBA to assess the proposed candidate. PROCESS FOR APPROVAL The process for approval usually involves at least four parties:

the regulated entity (“applicant”) that intends to appoint an external auditor;
the external auditor;
the engagement quality reviewer;
the CBA.
After the applicant and the external auditor have completed the Questionnaire, the applicant must submit the Questionnaire and all other requested documents to the CBA for its review and approval. Upon completion of the assessment and after the CBA has reached a conclusion, the CBA sends its decision to the applicant. The CBA’s decision is subject to objection and appeal by both the applicant and the external auditor in accordance with the provisions of the State Ordinance on Administrative Proceedings (Landsverordening administratieve rechtspraak AB 1993 no. 45). REQUIRED INFORMATION In addition to the Questionnaire, the following documents must be submitted to the CBA as part of the application:
 A formal request for the appointment of the proposed external auditor, including the reason(s) for the intended change.  Draft engagement letter, including the stipulations as mentioned in the supervisory directive “Appointment of an External Auditor”.  Detailed resume/curriculum vitae of the external auditor, including an overview of the financial institutions which he/she audited during his/her career. The overview must also include the number of years worked on the engagement, and the role he/she had in relation to the engagement.  Proof of registration of the external auditor at the “Nederlandse Beroepsorganisatie van Accountants” (including registration number).  Detailed resume/curriculum vitae of the engagement quality reviewer, including the number of years of audit experience in the financial sector, and the role he/she had in relation to the engagement.  Policies and procedures of the external audit firm on the appointment and eligibility of the engagement quality reviewer, the performance of the engagement quality review(er) and the documentation of the quality review. Said policies and procedures must comply with paragraphs 14 up to and including 30 of the International Standard on Quality Management 2, issued by the International Auditing and Assurance Board.

If the CBA deems this necessary, it may ask the applicant and the external auditor for additional information. CONTINUING OBLIGATION TO ADVISE THE CBA OF CHANGES On an on-going basis, the CBA is to be informed of any changes to information previously submitted in the Questionnaire, and of any other circumstances, that can reasonably be considered relevant to the CBA’s assessment of the external auditor involved. This obligation lies with the applicant. On the basis of the new information, or other new facts or circumstances, the CBA may decide to conduct a re-assessment of the external auditor. CHANGE OF EXTERNAL AUDITOR In case of a change of the external auditor, the CBA should be informed on the reason(s) for the intended change. COMMUNICATION The CBA will in principle communicate with the applicant. However, the CBA may invite the external auditor for an interview at its premises. GENERAL POINTS This Questionnaire comprises of 9 sections and each section contains a number of questions. All questions contained in the Questionnaire must be answered. All responses should be typed or written in blue ink. Incomplete Questionnaires will be returned to the applicant for completion and re-submission. All (other) facts and circumstances that can reasonably be considered relevant to the CBA’s assessment must be disclosed in the application. Withholding such information may be considered as providing misleading information and as such may have consequences for this application and future applications. SUBMISSION OF THE QUESTIONNAIRE After completion, the Questionnaire should be signed by both the External Auditor and the Applicant. The Applicant must submit its request for the appointment of the External Auditor, including the filledout Questionnaire and required documents, to the CBA in hard copy and provide the CBA with an electronic readable version (pdf format) via e-mail address informationcenter@cbaruba.org.

CENTRALE BANK VAN ARUBA
QUESTIONNAIRE EXTERNAL AUDITOR
All questions must be answered.
Please refer to the Guidance Notes to aid completion of this Questionnaire. July 1, 2023 All responses should be typed or written in blue ink. Any attachments should be clearly referenced to the relevant question(s) and signed by the individual completing the Questionnaire, as confirmation that they are complete and accurate. The CBA reserves the right to seek references from organizations and individuals named in this Questionnaire, including foreign regulatory authorities. It is important, therefore, to ensure that full and accurate names, addresses, and contact information are provided.

CENTRALE BANK VAN ARUBA
Information to be provided by the applicant
SECTION 1
1.1 Name and address of the regulated entity who requests the proposed appointment of the
external auditor:
1.2 Name and address of the audit firm of the external auditor:
1.3 Mark the relevant boxes to indicate the legislation under which you are seeking approval:
State Ordinance on the Supervision of the Credit System State Ordinance on the Supervision of the Insurance Business State Ordinance on Company Pension Funds State Ordinance on the Supervision of the Securities Business State Decree on the Supervision of Insurance Brokers

Information to be provided by the external auditor
SECTION 2 – Personal Details
2.1 Surname:
Title(s):
2.2 Given name(s):
SECTION 3 – Experience
3.1 Employment history
Please provide details of your current employment position and your employment history. Your reasons for leaving should be categorised as follows:

Resignation;
Redundancy;
Retirement;
Termination/dismissal;
End of contract; and
Other (please provide details).
Please provide as much contact information as possible on any relevant regulator in order to accelerate the inter-regulatory checks process undertaken by the CBA. Should you, or the regulated entity, maintain or have previously maintained a business relationship with any of your previous employers listed, please give details using a clearly referenced attachment. Name / address of employer and nature of business Name of regulator Position(s) held Relevant dates (mm/yy) Reason(s) for leaving

3.2 Please provide details of any employment or otherwise important positions, whether paid
or unpaid, including memberships of a board or a committee.
Name / address of organization and nature of business or activities Name of regulator Position(s) held Relevant dates (mm/yy) Task and responsibilities
3.3 Please provide details of relevant professional qualifications, degrees, etc.
Please state the awarding body (to include full name and address), and the date the qualification was obtained. Qualification(s) Date awarded (dd/mm/yy) Name & address of awarding body
3.4 Please provide details of past and current membership of any relevant professional body
or organization and the year of admission.
If applicable, please provide details of why your membership ceased. Membership details Date of admission (dd/mm/yy) Name and address of professional body or organization A relevant professional body or organization would in any case include an organization of fellow professionals.

3.5 Please provide details of your specific experience (knowledge, capabilities, competences,
fields of expertise, etc.).
SECTION 4 – Quality review process
4.1 Detailed resume/curriculum vitae of the engagement quality reviewer, including the
number of years of audit experience in the financial sector, and the role he/she had in relation to the engagement.
4.2 Provide a summary of the policies and procedures of the external audit firm on the
appointment and eligibility of the engagement quality reviewer, the performance of the engagement quality review(er) and the documentation of the quality review. Said policies and procedures must comply with paragraphs 14 up to and including 30 of the International Standard on Quality Management 2, issued by the International Auditing and Assurance Board.

SECTION 5 – Business related financial antecedents
5.1 Do you have a direct or indirect interest or relationship with the regulated entity as
referred to under section 1.1, other than your proposed appointment? A direct or indirect interest may in this case be related by consanguinity or affinity in a direct or indirect line up to and including relations in the third degree, your (former) spouse or cohabitant. *YES/NO *If YES, please provide details.
5.2 Has any institution whose policy is or was (co-)determined by you experienced major
financial difficulties?
*YES/NO
*If YES, please explain (legal procedure, suspension of payments, bankruptcy, or other).
5.3 Is there currently a judicial inquiry concerning, or were you ever ordered by a court of
law to pay, (unpaid) debts because of liability for the bankruptcy of a legal entity pursuant to the applicable provisions of the Bankruptcy State Ordinance (Faillissementsverordening), the Civil Code of Aruba (Burgerlijk Wetboek van Aruba) or any similar provisions elsewhere? *YES/NO *If YES, please provide details.

5.4 If you answered question 5.2 or 5.3 affirmatively, please provide any particulars if you
were directly involved with the financial difficulties, or with the legal proceedings, suspension of payments, bankruptcy or other, and if you were found liable on what grounds.
5.5 Do you hold directly or indirectly, shares in an other institution?
*YES/NO
*If YES, please provide details.
5.6 Do these other institution(s), referred to under section 5.5, maintain a commercial interest
with the regulated entity as referred to under section 1.1?
*YES/NO
*If YES, please provide details.

SECTION 6 – Other antecedents
6.1 Have any disciplinary or similar measures ever been taken against you or a disciplinary
complaint has been filed against you which is pending a decision by a relevant professional body or organization (refer to section 3.4)? *YES/NO *If YES, please explain (the measures, the organization by which, when, and the reason why).
6.2 Have you ever been involved in a conflict with an employer?
*YES/NO
*If YES, please provide the name of the employer(s) and explain.
6.3 Relating to any conflict specified under question 6.2, where there any sanctions imposed
on you under employment law (e.g., a warning, a reprimand, or dismissal)? *YES/NO *If YES, please explain.

SECTION 7 – Miscellaneous questions
7.1 Is there between you and the regulated entity any financial relationship?
*YES/NO
*If YES, please explain.
7.2 At any time in the past, have you been assessed by a regulator (in Aruba or elsewhere) in
charge of financial supervision?
*YES/NO
*If YES, please explain (name of regulator, period and result of the assessment).
7.3 Are you aware of any other facts or circumstances that could reasonably be expected to
be of relevance to the CBA when assessing your personal and/or professional qualities? *YES/NO *If YES, please provide full particulars. PLEASE DISCLOSE ANY OTHER FACTS THAT YOU CONSIDER MATERIAL TO THIS APPLICATION.

SECTION 8 – Checklist additional information and documents
Please check the corresponding box to indicate whether the documents and information listed have been included with your application (reference is made to page 3 of the Guidance Notes). Documents and information to be provided by the applicant:
 A formal request for the appointment or change of the proposed external auditor, including the reason(s) for the intended change. Documents and information to be provided by the external auditor:
 Draft engagement letter, including the stipulations as mentioned in the supervisory directive “Appointment of an External Auditor”.  Detailed resume/curriculum vitae of the external auditor, including an overview of the financial institutions which he/she audited during his/her career. The overview must also include the number of years worked on the engagement, and the role he/she had in relation to the engagement.  Proof of registration of the external auditor at the “Nederlandse Beroepsorganisatie van Accountants” (including registration number).  Detailed resume/curriculum vitae of the engagement quality reviewer, including the number of years of audit experience in the financial sector, and the role he/she had in relation to the engagement.  Policies and procedures of the external audit firm on the appointment and eligibility of the engagement quality reviewer, the performance of the engagement quality review(er) and the documentation of the quality review. Said policies and procedures must comply with paragraphs 14 up to and including 30 of the International Standard on Quality Management 2, issued by the International Auditing and Assurance Board.

SECTION 9 – Declaration(s)
The external auditor
I am aware that withholding information may be considered as providing misleading information and as such may have consequences for this application and future applications. I am also aware that it is a criminal offence to knowingly or recklessly provide any information which is false or misleading in connection to this Questionnaire. I confirm that the information in this form and any attachment is accurate and complete to the best of my knowledge and belief. I agree to provide details of any changes to information in this form and any attachment immediately to the CBA. I authorize the CBA to make such enquiries and to seek further information as it deems appropriate to verify the information given in this form. In particular, I consent to the CBA carrying out a judicial record check on any unspent convictions and convictions for relevant offences that I may have, conducting checks with other regulators, companies and institutions stated in this Questionnaire External Auditor and using external data sources. I confirm that I fully understand my role(s), responsibilities and accountabilities under the Supervisory Law(s) to which this Questionnaire relates. Signed:
Date:
Name (BLOCK CAPITALS):
The applicant
I confirm to have completed Section 1 of the Questionnaire fully and truthfully. I declare to be authorised to represent the applicant named under 1.1. Signed:
Date:
Name (BLOCK CAPITALS):
Position:

______________________________________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES
Part III
Policy papers
III.1 Corporate Governance practices for Insurance Companies III.2 Outsourcing Arrangements

POLICY PAPERS
______________________________________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES III.1/1 III.1 Corporate Governance practices for Insurance companies This policy paper is applicable to all licensed insurance companies operating in or from Aruba and is issued pursuant to section 10 of the State Ordinance on the Supervision of the Insurance Business (AB 2000 no. 82) (SOSIB).

Introduction
Insurance companies face special challenges, since they differ from other companies in that most of the funds they put at risk belong to third parties. Using third-party funds to generate income for the benefit of shareholders of a supervised institution demands that some limitation be placed by the supervisory authority on how prudently these funds can be put at risk. It is essential that the management of the insurance company and its board of supervisory directors fully understand the nature of the business being undertaken by the company and the related risks, and are suitably qualified and competent to perform the necessary functions and oversight of the operation. In order to meet this goal, insurance supervisory authorities have developed a keen interest in determining that these institutions adopt sound corporate governance practices. These practices are presented below and the Centrale Bank van Aruba (the Bank) aims at promoting the adoption of sound corporate governance practices by insurance companies subject to its supervision.
Basic elements of sound corporate governance practices
Basic elements of sound corporate governance practices are:
 Establish clear strategic objectives and corporate values that are communicated throughout the organization.  Set and enforce clear lines of responsibility and accountability throughout the organization.  Ensure that board members and senior-management are qualified for their positions.  Install adequate risk management policies.  Implement comprehensive internal controls.  Provide for full, accurate and timely financial disclosure. In the following paragraphs these elements will be discussed more in length, especially in relation to the responsibilities of the Board.

POLICY PAPERS
______________________________________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES III.1/2
3. Responsibilities of the board and its members
The Board has dual responsibilities. The Board has its responsibilities as a whole, while each Supervisory Director has responsibilities as an individual member of the Board. The responsibilities of the Board as a whole can be summarized as follows:
 Ensure competent management on an ongoing basis.
 Ensure appropriate plans and policies for the institution.
 Monitor operations to ensure compliance and adequate control.
 Oversee business performance.
3.1 Board responsibilities
A. To ensure competent management on an ongoing basis Capable management is a critical element in the difference between success and failure of on institution. Integrity and suitability should be key considerations in the selection process of senior-management. Reference is made to paragraph 2 of the Directive on Sound Business Operations for further information on the integrity and suitability assessment conducted by the Bank. The appointment or dismissal of a member of seniormanagement should have the approval or at least the consent of the Board. B. To ensure appropriate plans and policies for the institution Planning Rapid changes in the insurance industry call for clear strategies and business planning. Long-term strategic planning is done in strong cooperation with the Board and forms the broad policy framework, containing the institution’s philosophy and vision to the future. Policies All major activities must be covered by adequate policies and no such activity should be initiated before appropriate written policies and procedures are in place. Furthermore, policies should be communicated clearly through all levels, in order to promote consistency of interpretation throughout the organization as a whole. Reference is also made to paragraph 3 of the Directive on Sound Business Operations.
C. To monitor operations to ensure compliance and adequate control
The Board needs to ensure that senior-management has put adequate internal controls in place to ensure that the institution’s operations are properly controlled and that they comply with adopted policies, applicable laws and regulations. D. To oversee business performance The Board must receive timely all necessary information to evaluate management's performance (refer also to paragraph IV.3). The information provided should include at least:
 quarterly balance sheet and profit and loss account;  analysis of actual versus budgeted income and costs (also per insurance branche);  analysis of key ratio's and trends (including prudential ratio's);

POLICY PAPERS
______________________________________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES III.1/3  information on accounting, policy and compliance matters;  information on important external developments;  internal audit reports (including management's comments);  reports from and correspondence with the external auditor (including the so-called management-letter);  on-site examination letter and other relevant correspondence with the supervisor; and,  changes in relevant laws and regulations;
3.2 Supervisory director’s individual responsibilities
A Supervisory Director should:
A. be aware of the institution’s operating environment Each Supervisory Director should be generally informed of both the business environment and the legal and regulatory framework affecting the institution’s activities. B. be diligent in performing its duties Supervisory Directors must devote adequate time and attention necessary to fulfill their duties in a proper manner and should be knowledgeable enough to contribute in a meaningful sense to the activities of the Board.
C. exercise independent judgment
If a Supervisory Director disagrees with a Board decision, he or she should say so and formally register and explain his or her disagreement. Objective judgment, with due observance of the articles 9 and 10 of the Directive on Sound Business Operations, is critical to the Board’s effectiveness. D. be loyal to the institution’s interests Supervisors Directors are responsible for protecting the institution's interests. They must also ensure that neither they nor others abuse their position to benefit personally from the institution and avoid even the appearance of a conflict of interest. Reference is also made to articles 9 and 10 of the Directive on Sound Business Operations.
3.3 Required qualifications
Candidates for board positions in supervised insurance companies need at least some basic knowledge of either insurance or financial accounting. However, the Board as a whole must possess sufficient knowledge and experience in the insurance field.
3.4 Separate Board Committees
The Board can form, for example, the following separate committees, in order to perform certain tasks that require detailed review or in-depth consideration.

POLICY PAPERS
______________________________________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES III.1/4 Audit Committee: This committee serves to monitor for compliance with Board’s policies, applicable laws and regulations, and to review financial and auditing matters. Risk Management Committee: This committee ensures that acceptable risk limits and that appropriate risk-control techniques are in place to monitor and minimize losses to the institution. Investment Committee: This committee ensures that the institution’s investment policies and assets/liabilities mix are adequate and that the institution’s investments comply with Board policies, general principles of asset and liability management, principles of risk management, and applicable laws and regulations. Personnel development Committee: Matters usually dealt with by this committee include CEO compensation arrangements, remuneration, recruitment and termination policies, incentive schemes, and remuneration arrangements for Board members. It should be stressed, however, that the Board as a whole remains fully responsible for a proper supervision of the institution. Therefore, these committees should report to the complete Board on all major issues discussed.
4. Risk Management
When evaluating the quality of risk management at insurance companies, the Bank considers primarily if the following conditions are met:
 active Board and senior-management oversight;  adequate policies, procedures, and limits;  adequate risk measurement, monitoring, and management information systems; and  adequate and comprehensive internal controls.
4.1 Active Board and senior-management oversight
The Board should be consulted on the overall business strategy and on significant policy matters, including those related to the managing and taking of risks. Senior-management is, however, primarily responsible for implementing strategies in a manner that limits risks associated with each strategy and that ensures compliance with laws and regulations on both a long-term and a day-to-day basis.

POLICY PAPERS
______________________________________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES III.1/5
4.2 Adequate policies, procedures, and limits
The following guidelines are considered by the Bank in evaluating the adequacy of a supervised institution’s policies, procedures, and limits:
 The institution’s policies, procedures, and limits provide for adequate identification, measurement, monitoring, and control of the risks posed by its activities.  The policies, procedures, and limits are consistent with the institution’s stated goals and objectives and the overall financial strength of the institution.  Policies clearly delineate accountability and lines of authority across the institution’s activities.  Policies provide for the review of new activities of the financial institution to ensure that the infrastructure necessary to identify, monitor, and control risks associated with an activity is in place before the activity is initiated.
4.3 Adequate risk measurement, monitoring, and management information
systems
Effective risk monitoring requires institutions to identify and measure all material risk exposures. Consequently, risk monitoring activities must be supported by informationsystems that provide senior-managers and Board with timely reports on the financial condition, operating performance, and risk exposure of the financial institution, as well as with regular and sufficiently detailed reports for line managers in the day-to-day management of the institution’s activities. In assessing the adequacy of a supervised institution’s measurement and monitoring of risk and its management reports and information systems, the Bank will consider whether the following conditions exist:
 The institution’s risk monitoring practices and reports address all of its material risks.  Key assumptions, data sources, and procedures used in measuring and monitoring risk are appropriate and adequately documented and tested for reliability on an ongoing basis.  Reports and other forms of communication are consistent with the institution’s activities, structured to monitor exposures and compliance with established limits, goals, or objectives, and as appropriate, compare actual versus expected performance.  Reports to the Board and management are accurate and timely and contain sufficient information to identify any adverse trend and to evaluate adequately the level of risk faced by the institution.

POLICY PAPERS
______________________________________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES III.1/6
4.4 Comprehensive internal controls
An institution’s internal control environment is critical to the safe and sound functioning of the institution and, in particular, to its risk management system. Establishing and maintaining an effective system of controls, including appropriate segregation of duties, is one of senior-management’s primary responsibilities. When properly structured, a system of internal controls promotes effective operations and reliable financial and regulatory reporting. Moreover, the system safeguards assets and helps to ensure compliance with relevant laws, regulations, and institutional policies. An internal auditor should test internal controls regularly. The results of audits or reviews should be adequately documented, as should management’s responses to them. In addition, communication channels should exist that allow negative or sensitive findings to be reported directly to the Board or to the relevant Committee of the Board.

POLICY PAPERS
_____________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES III.2/1 III.2 Outsourcing Arrangements Policy Paper issued on the basis of sections 15 and 15a of the State Ordinance on the Supervision of the Credit System (SOSCS), sections 10 and 10a of the State Ordinance on the Supervision of the Insurance Business (SOSIB), section 11a of the State Ordinance on Company Pension Funds (SOCPF), and section 21 of the State Ordinance on the Supervision of the Securities Business (SOSSB).1

Introduction
Outsourcing arrangements may increase the risk profile of an institution due to, for example, reputation, compliance and operational risks arising from failure of a service provider in providing the service, breaches in security, or the institution’s inability to comply with legal and regulatory requirements. An institution can also be exposed to country risk, when a service provider is located overseas, and concentration risk, when more than one service is outsourced to the same service provider. Outsourcing does not diminish the obligations of an institution, and those of its Supervisory Board and Managing Board, to comply with the relevant laws and regulations in Aruba. In this regard, it is important that an institution adopts a sound and responsive risk management framework for all of its material outsourcing arrangements.
Scope and applicability of the Policy Paper
2.1 This Policy Paper is applicable to all companies and institutions that fall under the
scope of the SOSCS, SOSIB, SOCPF and SOSSB. Any deviation from this Policy Paper must be explained in a separate document, to be made directly available to the Centrale Bank van Aruba (CBA) upon request. In case parts of this Policy Paper are not applicable, this must also be recorded in the aforementioned document. Institutions with a limited size (e.g. credit unions) or activities may request for a dispensation of the requirements set out in this Policy Paper, provided that these institutions have policies and procedures in place with regard to outsourced services insofar material that are considered sufficiently effective by the CBA.
2.2 This Policy Paper provides a set of standards on sound practices on risk management
of outsourcing arrangements that institutions must follow. The extent and degree to which an institution implements these standards should be commensurate with the nature of risks in, and materiality of, the outsourcing arrangement. An institution must ensure that outsourced services continue to be managed as if the services were still managed by the institution.
2.3 Annex 1 provides a non-exhaustive list of examples of outsourcing arrangements to
which this Policy Paper is applicable, and arrangements that are not intended to be

1 This Policy Paper is largely based on a policy paper on outsourcing issued by the Monetary Authority of Singapore.

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_____________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES III.2/2 subject to this Policy Paper. It should also not be misconstrued that arrangements not defined as outsourcing need not be subject to adequate risk management and sound internal controls. Annex 2 provides guidance to an institution in assessing whether an outsourcing arrangement would be considered a material outsourcing arrangement.
Annex 3 provides a template for an institution to maintain a register of its material
outsourcing arrangements. This register must be made directly available to the CBA upon request.
3. Definitions
3.1 In this Policy Paper, unless the context otherwise requires:
3.1.1 Institution means:
Credit institutions, insurance companies, pension funds, securities brokers, asset managers, investment institutions, custodians and stock exchanges, supervised by virtue of the SOSCS, SOSIB, SOCPF and SOSSB;
3.1.2 Material outsourcing arrangement means an outsourcing arrangement:
(a) Which, in the event of a service failure or security breach, has the potential to either significantly impact an institution’s:
(i) business operations, reputation or profitability, or (ii) ability to manage risk and comply with applicable laws and regulations, or (b) Which involves customer information and, in the event of any unauthorized access or disclosure, loss or theft of customer information, may have a significant impact on an institution’s customers;
3.1.3 Outsourcing agreement means:
A written agreement setting out the contractual terms and conditions governing relation-ships, obligations, responsibilities, rights and expectations of the contracting parties in an outsourcing arrangement;
3.1.4 Outsourcing arrangement means:
An arrangement in which a service provider provides the institution with a service that may currently or potentially be performed by the institution itself and which includes the following characteristics:
(a) The institution is dependent on the service on an ongoing basis; and (b) The service is integral to the provision of a financial service by the institution or the service is provided to the market by the service provider in the name of the institution;
3.1.5 Service provider means:
Any party which provides a service to the institution, including any entity within the institution’s group 2 , whether it is located in Aruba or elsewhere;

2 This refers to the institution’s Head Office or parent institution, subsidiaries, affiliates, and any entity (including their subsidiaries, affiliates and special purpose entities) that the institution exerts control over or that exerts control over the institution.

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3.1.6 Sub-contracting means:
An arrangement where a service provider which has an outsourcing agreement with an institution, further outsources the services or a material part of the services covered under the outsourcing arrangement to another service provider.
4. Risk management practices
4.1 Responsibility of the Supervisory Board and Managing Board
4.1.1 The Supervisory Board and Managing Board of an institution play pivotal roles in
ensuring a sound risk management culture and environment. While an institution may delegate day-to-day operational duties to the service provider, the responsibilities for maintaining effective oversight and governance of outsourcing arrangements, managing outsourcing risks, and implementing an adequate outsourcing risk management framework, in accordance with this Policy Paper, continue to rest with the institution, its Supervisory Board and Managing Board. The Supervisory Board and Managing Board of an institution must ensure that there are adequate processes to provide a comprehensive institution-wide view of the institution’s risk exposures from outsourcing, and incorporate the assessment and mitigation of such risks into the institution’s outsourcing risk management framework.
4.1.2 The Managing Board is responsible for:
(a) Establishing a framework to evaluate the risks and materiality of all existing and prospective outsourcing arrangements and the policies that apply to such arrangements; (b) Developing sound and prudent outsourcing policies and procedures that are commensurate with the nature, scope and complexity of the outsourcing arrangements as well as ensuring that these policies and procedures are implemented effectively (c) Setting a suitable risk appetite to define the nature and extent of risks that the institution is willing and able to assume from its outsourcing arrangements; (d) Laying down appropriate approval authorities for outsourcing arrangements consistent with its established strategy and risk appetite; (e) Assessing management competencies for developing sound and responsive outsourcing risk management policies and procedures that are commensurate with the nature, scope, and complexity of the outsourcing arrangements; (f) Undertaking regular reviews of outsourcing strategies and arrangements for their continued relevance, safety and soundness; and (g) Communicating information pertaining to risks arising from its material outsourcing arrangements to the Supervisory Board in a timely manner.
4.1.3 The Supervisory Board is responsible for:
(a) Evaluating the materiality and risks from all existing and prospective outsourcing arrangements, based on the framework established by the Managing Board;

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_____________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES III.2/4 (b) Reviewing regularly the effectiveness of, and appropriately adjusting of, policies, standards, and procedures to reflect changes in the institution’s overall risk profile and risk environment; (c) Monitoring and maintaining effective control of all risks from its material outsourcing arrangements on an institution-wide basis; (d) Ensuring that contingency plans, based on realistic and probable disruptive scenarios, are in place and regularly tested; (e) Ensuring that there is independent review and audit for compliance with outsourcing policies and procedures; and (f) Ensuring that appropriate and timely remedial actions are taken to address audit findings.
4.2 Evaluation of risks
4.2.1 In order to be satisfied that an outsourcing arrangement does not result in the risk
management, internal control, business conduct or reputation of an institution being compromised or weakened, the Supervisory board and Managing Board need to be fully aware of and understand the risks arising from outsourcing. The institution must establish a framework for risk evaluation which should include the following steps:
(a) Identifying the role of outsourcing in the overall business strategy and objectives of the institution; (b) Performing comprehensive due diligence on the nature, scope, and complexity of the outsourcing arrangements to identify and mitigate key risks; (c) Assessing the service provider’s ability to employ a high standard of care in performing the outsourced service and meet regulatory standards as if the outsourcing arrangement is performed by the institution; (d) Analyzing the impact of the outsourcing arrangement on the overall risk profile of the institution, and whether adequate internal expertise and resources are available to mitigate the risks identified; (e) Analyzing the institution’s as well as the institution’s group aggregate exposure to the outsourcing arrangement, to manage concentration risk; and (f) Analyzing the benefits of outsourcing against the risks that may arise, ranging from the impact of temporary disruption to service, to that of a material breach in security and confidentiality, and unexpected termination of the outsourcing arrangement, and whether for strategic and internal control reasons, the institution should not enter into the outsourcing arrangement.

4.2.2 Such risk evaluations should be performed when an institution is planning to enter
into a material outsourcing arrangement with an existing or a new service provider, and also re-performed periodically on existing material outsourcing arrangements, as
part of the approval, strategic planning, risk management or internal control reviews
of the outsourcing arrangements of the institution.

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4.3 Assessment of Service Providers
4.3.1 In considering renegotiating or renewing an outsourcing arrangement, an institution
should subject the service provider to appropriate due diligence processes to assess the risks associated with the outsourcing arrangement.
4.3.2 An institution must assess all relevant aspects of the service provider, including its
capability to employ a high standard of care in the performance of the outsourcing arrangement as if the service is performed by the institution to meet its obligations as a regulated entity. The due diligence must also take into account the physical and IT security controls the service provider has in place, the business reputation and financial strength of the service provider, including the ethical and professional standards held by the service provider, and its ability to meet obligations under the outsourcing arrangement. Onsite visits at the service provider, and where possible, independent reviews and market feedback on the service provider, must also be obtained to supplement the institution’s assessment. On-site visits must be conducted by persons who possess the requisite knowledge and skills to conduct the assessment.

4.3.3 The due diligence must involve an evaluation of all relevant information about the
service provider. Information to be evaluated includes the service provider’s:
(a) Experience and capability to implement and support the outsourcing arrangement over the contracted period; (b) Financial strength and resources (the due diligence should be similar to a credit assessment of the viability of the service provider based on reviews of business strategy and goals, audited financial statements, the strength of commitments of major equity sponsors and the ability to service commitments even under adverse conditions); (c) Corporate governance, business reputation and culture, compliance, and pending or potential litigation; (d) Security and internal controls, audit coverage, reporting and monitoring environment; (e) Risk management framework and capabilities in respect of the outsourcing arrangement; (f) Disaster recovery arrangements and disaster recovery track record; (g) Reliance on sub-contractors; (h) Insurance coverage; (i) External environment (such as the political, economic, social and legal environment of the jurisdiction in which the service provider operates); and (j) Ability to comply with applicable laws and regulations, and track record in relation to its compliance with applicable laws and regulations.
4.3.4 The service provider must ensure that the employees of the service provider
undertaking any part of the outsourcing agreement have been assessed to meet the institution’s hiring policies for the role they are performing, consistent with the criteria that are applicable to the institution’s own hiring criteria. Any adverse

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_____________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES III.2/6 findings from this assessment should be considered in light of their relevance and impact to the outsourcing arrangement.
4.3.5 Due diligence undertaken during the assessment process should be documented and
re-performed periodically as part of the monitoring and control processes of material outsourcing arrangements. The due diligence process may vary depending on the nature, extent of risks of the arrangement, and impact on the institution in the event of a disruption to service or breach of security and confidentiality (e.g., reduced due diligence may be sufficient where the outsourcing arrangements are made within the institution’s group) 3 . An institution must ensure that the information used for due diligence evaluation is sufficiently current. An institution must also consider the findings from the due diligence evaluation to determine the frequency and scope of audit on the service provider.
4.4 Outsourcing Agreement
4.4.1 Contractual terms and conditions governing relationships, obligations,
responsibilities, rights, and expectations of the contracting parties in the outsourcing arrangement must be carefully and properly defined in written agreements.
4.4.2 An institution must ensure that every outsourcing agreement addresses the risks
identified during the risk evaluation and due diligence stages. Each outsourcing agreement should allow for timely renegotiation and renewal to enable the institution to retain an appropriate level of control over the outsourcing arrangement and the right to intervene with appropriate measures to meet its legal and regulatory obligations. It should, at the very least, have provisions to address the following aspects of outsourcing:
(a) Scope of the outsourcing arrangement;
(b) Performance, operational, internal control and risk management standards; (c) Confidentiality and security 4 ; (d) Business continuity management 5 ; (e) Monitoring and control 6 ; (f) Audit and inspection 7 ; (g) Notification of adverse developments: an institution must specify in its outsourcing agreement the type of events and the circumstances under which the service provider should report to the institution; (h) Dispute resolution: an institution must specify in its outsourcing agreement the resolution process, events of default, the indemnities, remedies and recourse of the respective parties in the agreement. The institution should ensure that its contractual rights can be exercised in the event of a breach of the outsourcing agreement by the service provider;

3 In case of outsourcing within the same group, the institution must have a Service Level Agreement in place for the outsourced services. Refer to paragraph 4.10. 4 Refer to paragraph 4.5. 5 Refer to paragraph 4.6. 6 Refer to paragraph 4.7. 7 Refer to paragraph 4.8.

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_____________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES III.2/7 (i) Default termination and early exit: an institution must have the right to terminate the outsourcing agreement in the event of default, or under circumstances where:
(i) the service provider undergoes a change in ownership; (ii) the service provider becomes insolvent or goes into liquidation; (iii) the service provider goes into receivership or judicial management; (iv) there has been a breach of security or confidentiality; or (v) there is a demonstrable deterioration in the ability of the service provider to perform the contracted service. The minimum period to execute a termination provision must be specified in the outsourcing agreement. Other provisions must also be put in place to ensure a smooth transition when the agreement is terminated or being amended. Such provisions may facilitate transferability of the outsourced services to a third party. Where the outsourcing agreement involves an intra-group entity, the agreement should be legally enforceable against the intra-group entity providing the outsourced service; (j) Sub-contracting: an institution must retain the ability to monitor and control its outsourcing arrangements when a service provider uses a sub-contractor. An outsourcing agreement must contain clauses setting out the rules and limitations on sub-contracting. An institution must include clauses making the service provider contractually liable for the performance and risk management practices of its sub-contractor and for the sub-contractor’s compliance with the provisions in its agreement with the service provider. The institution must ensure that the sub-contracting of any part of material outsourcing arrangements is subject to the institution’s prior approval; (k) Applicable laws: agreements must include choice-of-law provisions, agreement covenants and jurisdictional covenants that provide for adjudication of disputes between the parties under the laws of a specific jurisdiction.
4.4.3 Each outsourcing agreement must be tailored to address issues arising from country
risks and potential obstacles in exercising oversight and management of the outsourcing arrangements made with a service provider outside of Aruba.
4.5 Confidentiality and Security
4.5.1 As public confidence in institutions is a cornerstone in the stability and reputation of
the financial industry, it is vital that an institution satisfies itself that the service provider’s security policies, procedures, and controls will enable the institution to protect the confidentiality and security of customer information.
4.5.2 An institution must be proactive in identifying and specifying requirements for
confidentiality and security in the outsourcing arrangement. An institution must take the following steps to protect the confidentiality and security of customer information:
(a) State the responsibilities of contracting parties in the outsourcing agreement to ensure the adequacy and effectiveness of security policies and practices, including the circumstances under which each party has the right to change security requirements. The outsourcing agreement should also address:

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_____________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES III.2/8 (i) the issue of the party liable for losses in the event of a material breach of security or confidentiality and the service provider’s obligation to inform the institution; and (ii) the issue of access to and disclosure of customer information by the service provider. Customer information should be used by the service provider and its staff strictly for the purpose of the contracted service; (b) Disclose customer information to the service provider only on a need-to-know basis; (c) Ensure the service provider is able to protect the confidentiality of customer information, documents, records, and assets, particularly where multi-tenancy8

arrangements are present at the service provider; and (d) Review and monitor the security practices and control processes of the service provider on a regular basis, including commissioning audits or obtaining periodic expert reports on confidentiality, security adequacy and compliance in respect of the operations of the service provider, and requiring the service provider to disclose to the institution breaches of confidentiality in relation to customer information.
4.6 Business Continuity Management
4.6.1 An institution must ensure that its business continuity is not compromised by
outsourcing arrangements, in particular, of the operation of its critical systems.
4.6.2 An institution must take steps to evaluate and satisfy itself that the interdependency
risk arising from the outsourcing arrangement can be adequately mitigated in such a way that the institution remains able to conduct its business with integrity and competence in the event of a service disruption or failure, or unexpected termination of the outsourcing arrangement or liquidation of the service provider. These should include taking the following steps:
(a) Determine that the service provider has in place satisfactory business continuity plans (BCP) that are commensurate with the nature, scope, and complexity of the outsourcing arrangement. Outsourcing agreements should contain requirements on the service provider in the area of business continuity, in particular, recovery time objectives (RTO), recovery point objectives (RPO), and resumption operating capacities; (b) Proactively seek assurance on the state of business continuity preparedness of the service provider. It should ensure that the service provider regularly tests its BCP and that the tests validate the feasibility of the RTO, RPO, and resumption of the operating capacities. The institution should require the service provider to notify it of any test findings that may affect the service provider’s performance. The institution should also require the service provider to notify it of any substantial changes in the service provider’s BCP and of any adverse development that could substantially impact the service provided to the institution; and

8 Multi-tenancy generally refers to a mode of operation adopted by service providers where a single computing infrastructure (e.g., servers, databases etc.) is used to serve multiple customers (tenants).

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_____________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES III.2/9 (c) Ensure that there are plans and procedures in place to address adverse conditions or termination of the outsourcing arrangement such that the institution will be able to continue business operations and that all documents, records of transactions and information previously given to the service provider are promptly removed from the possession of the service provider or deleted, destroyed or rendered unusable, with due regard to the applicable legislation in the country where the service provider is located.
4.6.3 For assurance on the functionality and effectiveness of its BCP, an institution should
design and carry out regular, complete and meaningful BCP testing that is commensurate with the nature, scope and complexity of the outsourcing arrangement.
4.6.4 The institution must consider worst case scenarios in its BCP. Some examples of
these scenarios are unavailability of the service provider due to unexpected termination of the outsourcing agreement, liquidation of the service provider and wide-area disruptions that result in collateral impact on both the institution and the service provider.
4.7 Monitoring and Control
4.7.1 An institution must establish a structure for the management and control of its
outsourcing arrangements. Such a structure will vary depending on the nature and extent of risks in the outsourcing arrangements. As relationships and interdependencies in respect of outsourcing arrangements increase in materiality and complexity, a more rigorous risk management approach should be adopted. An institution also has to be more proactive in its relationship with the service provider (e.g., having frequent meetings) to ensure that performance, operational, internal control, and risk management standards are upheld.
4.7.2 An institution must put in place all of the following measures for effective
monitoring and control of any material outsourcing arrangement:
(a) Maintain a register of all material outsourcing arrangements and ensure that the register is readily accessible for review by the Supervisory Board and Managing Board of the institution and the CBA. The information maintained in the register must at a minimum consist of the information set out in Annex 3. (b) Assign clear responsibilities within the institution for the monitoring and controlling of the outsourcing agreement; (c) Periodic reviews on all material outsourcing arrangements. This is to ensure that the institution’s outsourcing risk management policies and procedures, and the requirements in this Policy Paper, are effectively implemented. Such reviews must ascertain the adequacy of internal risk management and management information systems established by the institution (e.g., assessing the effectiveness of processes and metrics used to evaluate the performance and security of the service provider) and highlight any deficiency in the institution’s systems of control;

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_____________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES III.2/10 (d) Reporting policies and procedures: reports on the monitoring and control activities of the institution must be reviewed by its Managing Board, while the outcome must be shared with the Supervisory Board. The institution must also ensure that any adverse development arising in any outsourcing arrangement is brought to the immediate attention of the Managing Board of the institution and service provider, and where warranted, to the institution’s Supervisory Board. When adverse development occurs, prompt actions should be taken by an institution to review the outsourcing relationship for modification or termination of the agreement.
4.8 Audit and Inspection
4.8.1 An institution’s outsourcing arrangements must not interfere with the ability of the
institution to effectively manage its business activities or impede the CBA in carrying out its supervisory functions and meeting its objectives.
4.8.2 An institution must include, in all of its outsourcing agreements for material
outsourcing arrangements, clauses that:
(a) Allow the institution to conduct audits on the service provider, whether by its internal or external auditors, or by agents appointed by the institution; and to obtain copies of any report and finding made on the service provider, whether produced by the service provider’s internal or external auditors, or by agents appointed by the service provider, in relation to the outsourcing arrangement; (b) Allow the CBA, where necessary or expedient, to exercise the contractual rights of the institution to:
(i) access and inspect the service provider, and obtain records and documents, of transactions, and information of the institution given to, stored at or processed by the service provider; and (ii) access any report and finding made on the service provider, whether produced by the service provider’s internal or external auditors, or by agents appointed by the service provider, in relation to the outsourcing arrangement.
4.8.3 Outsourcing agreements for material outsourcing arrangements must also include
clauses that require the service provider to comply, as soon as possible, with any request from the CBA or the institution, to the service provider or its subcontractors, to submit to the CBA any report on the security and control environment of the service provider and its sub-contractors, in relation to the outsourcing arrangement.
4.8.4 An institution must ensure that independent audits and/or expert assessments of all
its material outsourcing arrangements are conducted. In determining the frequency of audit and expert assessments, the institution should consider the nature and extent of the involved risks, and the impact on the institution from the outsourcing arrangements. The scope of the audit and expert assessments should include an assessment of the service provider’s security 9 and control environment, incident

9 The security environment refers to both the physical and IT security environments.

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_____________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES III.2/11 management process (for material breaches, service disruptions or other material issues) and the institution’s observance of this Policy Paper in relation to the outsourcing arrangement.
4.8.5 The independent audit and/or expert assessment on the service provider may be
performed by the institution’s internal or external auditors, the service provider’s external auditors 10 or by agents appointed by the institution. The appointed persons should possess the requisite knowledge and skills to perform the engagement, and be independent of the unit or function performing the outsourcing arrangement. The Supervisory Board must ensure that appropriate and timely remedial actions are taken to address the audit findings 11. Institutions must have adequate processes in place to ensure that remedial actions are satisfactorily completed.
4.8.6 Significant issues and concerns must be brought to the attention of the Managing
Board of the institution and service provider, and where warranted, to the Supervisory Board. Actions must be taken by the institution to review the outsourcing arrangement if the risk posed is no longer within the institution’s risk tolerance.

4.8.7 Copies of audit reports must be directly submitted by the institution to the CBA
upon request. An institution must also, upon request, provide the CBA with other reports or information on the institution and service provider that is related to the outsourcing arrangement.
4.9 Outsourcing outside Aruba
4.9.1 The engagement of a service provider in a foreign country, or an outsourcing
arrangement whereby the outsourced function is performed in a foreign country, may expose an institution to country risk (economic, social and political conditions and events in a foreign country) that may adversely affect the institution. Such conditions and events could prevent the service provider from carrying out the terms of its agreement with the institution. In its risk management of such outsourcing arrangements, an institution must take into account, as part of its due diligence:
(a) Government policies;
(b) Political, social, and economic conditions; (c) Legal and regulatory developments in the foreign country; and (d) The institution’s ability to effectively monitor the service provider, and execute its business continuity plans and exit strategy. The institution must also be aware of the disaster recovery arrangements and locations established by the service provider in relation to the outsourcing arrangement. As information and data could be moved to primary or backup sites located in foreign countries, the risks associated with the medium of transport, be it physical or electronic, should also be considered.

10 An institution should conduct its own audits to supplement the audits performed by the service provider’s auditors, where necessary. 11 Refer to paragraph 4.1.

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4.9.2 Material outsourcing arrangements with service providers located outside of Aruba
must be conducted in a manner so as not to hinder the CBA’s efforts to supervise the Aruban business activities of the institution (i.e., from its books, accounts and documents) in a timely manner, in particular:
(a) An institution may not enter into outsourcing arrangements with service providers operating in jurisdictions that do not uphold confidentiality clauses and agreements; and (b) An institution may not enter into outsourcing arrangements with service providers in jurisdictions where prompt access to information by the CBA at the service provider may be impeded by legal or administrative restrictions.
4.10 Outsourcing within a group
4.10.1 This Policy Paper is also applicable to outsourcing arrangements with parties within
an institution’s group. The expectations may be addressed within group-wide risk management policies and procedures. The institution would be expected to provide, when requested, information demonstrating the structure and processes by which its Supervisory Board and Managing Board discharge their role in the oversight and management of outsourcing risks on a group-wide basis.
4.10.2 Due diligence on an intra-group service provider may take the form of evaluating
qualitative aspects of the service provider’s ability to address risks specific to the institution, particularly those relating to business continuity management, monitoring and control, audit and inspection, including confirmation on the right of access to be provided to the CBA, to retain effective supervision over the institution, and compliance with local regulatory standards. The respective roles and responsibilities of each office in the outsourcing arrangement should be documented in writing in a Service Level Agreement.
4.11 Outsourcing of Internal Audit to External Auditors
4.11.1 Where the outsourced service is the internal audit function of an institution, there are
additional factors that an institution should take into account. One of these is the lack of independence, or the appearance of impaired independence, when a service provider is handling multiple engagements for an institution, such as internal and external audits, and consultancy services. There is doubt that the service provider, in its internal audit role, would criticize itself for the quality of the external audit or consultancy services provided to the institution. In addition, as operations of an institution could be complex and involve large transaction volumes and amounts, it should ensure service providers have the expertise to adequately complete the engagement. An institution should address these and other relevant issues before outsourcing the internal audit function. In addition, as a sound practice, institutions shall not outsource their internal audit function to the institution’s external audit firm.

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4.11.2 Before outsourcing the internal audit function to external auditors, an institution
must satisfy itself that the external auditor is in compliance with the relevant standards, including the independency standards, regulating the accounting profession. This Policy Paper enters into force on July 1, 2018.

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Annex 1
EXAMPLES OF OUTSOURCING ARRANGEMENTS
1 The following are examples of some services that, when performed by a third party, would be regarded as outsourcing arrangements for the purposes of this Policy Paper although they are not exhaustive:
(a) Application processing (e.g., loan origination, insurance underwriting, credit cards); (b) Middle and back office operations (e.g., electronic funds transfer, payroll processing, custody operations, quality control, purchasing, maintaining the register of participants of a collective investment scheme (CIS) and sending of accounts and reports to CIS participants, order processing, trade settlement and risk management); (c) Business continuity and disaster recovery functions and activities; (d) Claims administration (e.g., loan negotiations, loan processing, insurance claim processing, collateral management, collection of bad loans); (e) Document processing (e.g., cheques, credit card and bill payments, bank statements, other corporate payments, customer statement printing); (f) Information systems hosting (e.g., software-as-a-service, platform-as-a-service, infrastructure-as-a-service); (g) Information systems management and maintenance (e.g., data entry and processing, data centers, data center facilities management, end-user support, local area networks management, help desks, information technology security operations); (h) Investment management (e.g., discretionary portfolio management, cash management); (i) Management of policy issuance and claims operations (by managing agents); (j) Manpower management (e.g., benefits and compensation administration, staff appointment, training and development); (k) Marketing and research (e.g., product development, data warehousing and mining, media relations, call centers, telemarketing); (l) Professional services related to the business activities of the institution (e.g., accounting, internal audit, actuarial, compliance); (m) Support services related to archival, storage and destruction of data and records; and (n) Cloud computing.

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_____________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES III.2/15 2 The following arrangements would generally not be considered outsourcing arrangements, falling under the scope of this Policy Paper:
(a) Arrangements in which certain industry characteristics require the use of third party providers; (i) maintenance of custody accounts; (ii) telecommunication services and public utilities (e.g., electricity, SMS gateway services); (iii) postal services; (iv) market information services (e.g., Bloomberg, Moody’s, Standard & Poor’s); (v) common network infrastructure (e.g., Visa, MasterCard); (vi) clearing and settlement arrangements between clearing houses and settlement institutions and their members, and similar arrangements between members and non-members; (vii) global financial messaging infrastructure which are subject to oversight by relevant regulators (e.g., SWIFT); and (viii) correspondent banking services. (b) Introducer arrangements and arrangements that pertain to principal-agent relationships:
(i) sale of insurance policies by agents, and ancillary services relating to those sales; (ii) acceptance of business by underwriting agents; and (iii) introducer arrangements (where the institution does not have any contractual relationship with customers). (c) Arrangements that the institution is not legally or administratively able to provide:
(i) statutory audit and independent audit assessments; (ii) discreet advisory services (e.g., legal opinions, independent appraisals, trustees in bankruptcy, loss adjuster); and (iii) Independent consulting (e.g., consultancy services for areas which the institution does not have the internal expertise to conduct).

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Annex 2
MATERIAL OUTSOURCING ARRANGEMENTS
1 An institution should assess the materiality in an outsourcing arrangement. In assessing materiality, the CBA recognizes that qualitative judgment is involved and the circumstances faced by individual institutions may vary. Factors that an institution should consider include:
(a) Importance of the business activity to be outsourced (e.g., in terms of contribution to income and profit); (b) Potential impact of the outsourcing on earnings, solvency, liquidity, funding, capital, and risk profile; (c) Impact on the institution’s reputation and brand value, and ability to achieve its business objectives, strategy, and plans, should the service provider fail to perform the service or encounter a breach of confidentiality or security (e.g., compromise of customer information); (d) Impact on the institution’s customers, should the service provider fail to perform the service or encounter a breach of confidentiality or security; (e) Impact on the institution’s counterparties and the Aruban financial market, should the service provider fail to perform the service; (f) Cost of the outsourcing as a proportion of total operating costs of the institution; (g) Cost of outsourcing failure, which will require the institution to bring the outsourced activity in-house or seek similar service from another service provider, as a proportion of total operating costs of the institution; (h) Aggregate exposure to a particular service provider in cases where the institution outsources various functions to the same service provider; and (i) Ability to maintain appropriate internal controls and meet regulatory requirements, if the service provider faces operational problems. 2 Outsourcing of all or substantially all of its risk management or internal control functions, including compliance, internal audit, financial accounting and actuarial (other than performing certification activities) is to be considered a material outsourcing arrangement. 3 An institution should undertake periodic reviews of its outsourcing arrangements to identify new outsourcing risks as they arise. An outsourcing arrangement that was previously not material may subsequently become material from incremental services outsourced to the same service provider or an increase in volume or change in nature of the service outsourced to the service provider. Outsourcing risks may also increase when the service provider subcontracts the service or makes significant changes to its sub-contracting arrangements. 4 An institution should consider materiality at both the institution’s level and as a group, i.e. together with the institution’s branches and corporations under its control.

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Annex 3
REGISTER OF MATERIAL OUTSOURCING ARRANGEMENTS 12 An institution should maintain an updated register of all existing material outsourcing arrangements. The register must - at a minimum - contain the following information:
(a) Name of service provider / sub-contractor as set out in the outsourcing agreement; (b) Description of outsourced service(s); (c) Contract renewal date (where applicable); (d) Service expiry (date); (e) Date that the institution undertook due diligence on the outsourcing / sub-contracting arrangement; and (f) Date that an independent audit was last conducted on the service provider / subcontractor.

12 Refer to paragraph 4.7.

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Part IV
Application forms

IV.1 Application form for a license for a Life Insurance Company IV.2 Application form for a license for a Non-Life Insurance Company IV.3 Application form for a license for a Captive Insurance Company

General
Statutory name of the applicant1
:

Country of incorporation of the applicant:

Legal status of the applicant:

The organization form in Aruba:
c Limited Liability Company (Naamloze Vennootschap) c Mutual Company c Aruba Exempt Corporation (A.V.V.) c Branch Office c Agency Question 5 is exclusively for applicants that are already operating in Aruba.
Is the life insurance business in Aruba being carried out together with a non-life
insurance business? c YES c NO
(If answer is ‘YES’)
Is the administration of the two businesses carried out separately? c YES c NO

1 The applicant is the legal entity requesting a license to operate in Aruba.

the risk(s) to be insured, direct assumed and ceded, per line of
business;
the tariffs and technical bases for the calculation of premiums
and technical provisions;
the reinsurance program;
if applicable, the estimated initial cost and funding thereof;
three year financial projections, including the development of
the solvency margin. g. The envisaged administrative organization and organizational structure, including the financial administration and internal controls. h. The names and qualifications of the external auditor and the actuary.
i. Documents proofing that the applicant is in compliance with the solvency
margin in accordance with the requirements as stipulated in section 14, sub 1 of the State Ordinance Supervision Insurance Business. j. If the applicant is part of a group, indicate which other companies or institutions form part of the group (group structure).

If the day-to-day policy of the company is performed by a legal representative, e.g. a management company, the representative of the company must be professionally qualified, reliable and of good repute.

Statutory name of the applicant1
:

Country of incorporation of the applicant:

Legal status of the applicant:

The organization form in Aruba:
c Limited Liability Company (Naamloze Vennootschap) c Mutual Company c Aruba Exempt Corporation (A.V.V.) c Branch Office c Agency
Please indicate in which line of business the local entity will be engaged (please
indicate by marking an ‘X’ in the corresponding box). Product details should be provided in a separate appendix. a. Accident and health insurance c b. Motor vehicle insurance c
c. Maritime, transport and aviation insurance c
d. Fire insurance and other property insurance c e. Other indemnity insurances c

The applicant is the legal entity requesting a license to operate in Aruba.

In case the application (also) refers to motor vehicle insurance, please provide a
declaration signed by the applicant stating, that the conditions of its motor vehicle insurance are in accordance with the stipulations as prescribed by the State Ordinance Motor Vehicles Liability Insurance (AB 1999 no. GT 12).
Please enclose the following documents together with the application form:
a. Certified copy of the Articles of Incorporation of the applicant and a recent certificate (not older than 6 months) of its registration in the trade register at the Chamber of Commerce. b. The names and completed questionnaire for each of the persons who determine the day-to-day policy of the company.2
c. The names and completed questionnaire for each of the members of the
supervisory board (or comparable body) of the company. d. The names of those who have a qualified holding (more than 5% of the shares or voting rights) in the company, as well as the size of the qualified holding. e. Certified annual financial statements over the past three years of the applicant. If the applicant is a new legal entity, an opening balance sheet certified by an external auditor. f. A business plan, which includes at least the following information:

the risk(s) to be insured, direct, assumed and ceded, per line of
business;
the tariffs and technical bases for the calculation of premiums
and technical provisions;
the reinsurance program;
if applicable, the estimated initial cost and funding thereof;
three year financial projections, including the development of
the solvency margin. g. The envisaged administrative organization and organizational structure, including the financial administration and internal controls. h. The names and qualifications of the external auditor and actuary.
i. Documents proofing that the applicant is in compliance with the solvency
margin in accordance with the requirements stipulated in section 14, sub 2 of the State Ordinance Supervision Insurance Business. j. If the applicant is part of a group, indicate which other companies or institutions form part of the group (group structure).

Name of proposed captive insurance company:

Name of parent company or sponsor:

Name, address, and telephone number of individual to be contacted regarding this
application:

Principal place of business of proposed captive:

Please indicate type of proposed captive.
a. Pure captive c b. Association or industry captive c
c. Rent-a-captive (sponsored) c
d. Other (specify) c

Enclosures
Please enclose the following documents together with the application form:
a. Certified copy of the articles of incorporation of the company and a recent certificate (not older than 6 months) of its registration in the trade register at the Chamber of Commerce of Aruba. b. The names and completed questionnaire for each of the persons who determine the day-to-day policy of the company.1
c. The names and completed questionnaire for each of the members of the
Supervisory Board (or a similar body) of the company. d. The names of those who have a qualifying holding (more than 5% of the shares or voting rights) in the company, as well as the size of the qualifying holding. Explain the relationship among the beneficial owners. e. Certified financial statements or an opening balance sheet. f. A business plan including information on:

Risks to be insured – direct, assumed and ceded – by line of
business, and maximum retained risk (per loss and annual aggregate);
The technical principles that the captive insurer intends to
apply, in particular the rating program and actuarial assumptions;
Reinsurance program;
Insight in the presence of the solvency margin required and an
estimation of the financial assets to cover the solvency margin;
A five year financial projection, including projections of the
solvency margin and liquidity position. g. The envisaged administrative organization and organizational structure, including the financial administration and internal controls.

If the day-to-day management of the company is performed by a management company, the representative of the company must be professionally qualified, reliable and of good repute.

APPLICATION FORMS
________________________________________________________________________________________ ________________________________________________________________________________________ CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES IV.3/3 h. The organization responsible for loss prevention and safety.
i. The name and professional qualifications of the external auditor and the
actuary of the company. j. Documents proofing that the applicant disposes of a solvency margin in accordance with the requirements stipulated in Section 7 of the State Decree. k. If the applicant is part of a group, holding or association indicate which other companies or institutions form part of the group, holding or association and what the relationship is with the applicant. The answer must be clearly formulated in an appendix and an organization chart of the group, holding or association should be included.
l. If applicant is an Association Captive, give history, purpose, size and other
details of parent association. m. If the applicant is incorporated outside of Aruba a written confirmation by the home country supervisor that the applicant is solvent and meets all regulatory requirements in the home jurisdiction. If the day-to-day operation of the company is conducted by a management company please provide:
n. Articles of incorporation of the management company. o. A copy of the contract between the applicant and the management company. p. Documents showing the financial standing of the management company. Number of enclosures included: _____ I certify that to the best of my knowledge and belief all of the information given in this application is true and correct and that all estimates given are true estimates based upon facts that have been carefully considered and assessed. Place and date :
Name :
Position held :
Signature :

Part V
Landsbesluit bijzondere bedrijfsrisicoverzekeraars (AB 2002 no. 50) Unofficial English translation of the State Decree Captive Insurance Companies Landsbesluit vertegenwoordiging verzekeringsbedrijf (AB 2003 no. 12) Unofficial English translation of the State Decree Representative Insurance Companies Legislation Landsverordening toezicht verzekeringsbedrijf (AB 2000 no. 82) Unofficial English translation of the State Ordinance Insurance Business CBA PRUDENTIAL SUPERVISION MANUAL INSURANCE COMPANIES

==================================================================== Intitulé : LANDSVERORDENING houdende regels inzake het toezicht op het verzekeringsbedrijf Citeertitel: Landsverordening toezicht verzekeringsbedrijf Vindplaats : AB 2000 no. 82 Wijzigingen: AB 2012 no. 55 (inwtr. 2012 61); AB 2014 no. 11 (inwtr. AB 2014 no. 12); AB 2016 no. 53 (inwtr. AB 2016 no. 62) ==================================================================== HOOFDSTUK I Algemene bepalingen § 1. Definities Artikel 1 In deze landsverordening en de daarop berustende bepalingen wordt verstaan onder:
levensverzekerings- : een overeenkomst van verzekering tot het doen overeenkomst van geldelijke uitkeringen in verband met het leven of de dood van de mens; schadeverzekerings- : een overeenkomst van verzekering, niet zijnde overeenkomst een levens verzekeringsovereenkomst; levensverzekerings- : het als bedrijf sluiten en afwikkelen van levens- bedrijf overeenkomsten voor eigen rekening, ook al wordt daarmee niet beoogd het maken van winst; schadeverzekerings- : het als bedrijf sluiten en afwikkelen van scha- bedrijf deverzekeringsovereenkomsten voor eigen rekening, ook al wordt daarmee niet beoogd het maken van winst; verzekeringsbedrijf : het levensverzekeringsbedrijf of het schadeverzekeringsbedrijf; verzekeraar : een ieder die het verzekeringsbedrijf uitoefent; gekwalificeerde : een direct of indirect belang van meer dan tien deelneming procent van het geplaatste aandelenkapitaal van een verzekeraar of het direct of indirect kunnen uitoefenen van meer dan tien procent van de stemrechten in een verzekeraar of het direct of indirect kunnen uitoefenen van een daarmee vergelijkbare zeggenschap; witwassen : een misdrijf als bedoeld in de artikelen 2:404, 2:405 en 2:406 van het Wetboek van Strafrecht van Aruba; terrorismefinan- : het misdrijf, bedoeld in artikel 2:55 van het ciering Wetboek van Strafrecht van Aruba; accountant : een persoon die geen dienstbetrekking bij de onderneming of instelling heeft, zijnde een registeraccountant of een accountantadministratieconsulent ten aanzien van wie een aantekening is geplaatst als bedoeld in artikel

==================================================================== 36, tweede lid, onderdeel i, van de Nederlandse Wet op het accountantsberoep (Stb. 2012, 680); vestiging : zetel, agentschap of bijkantoor, alsmede elke andere duurzame aanwezigheid van een verzekeraar op het grondgebied van een staat in de vorm van een inrichting, beheerd door eigen personeel van de verzekeraar of door een zelfstandig persoon die gemachtigd is om voor rekening van de verzekeraar het verzekeringsbedrijf uit te oefenen; bijkantoor : één of meer onderdelen zonder rechtspersoonlijkheid van een verzekeraar; de Bank : de Centrale Bank van Aruba; Gerecht : het Gerecht in eerste aanleg van Aruba; Minister : de minister van Financiën. § 2. Reikwijdte Artikel 2

De Bank oefent toezicht uit op de naar Arubaans recht opgerichte verzekeraars en op de bijkantoren en agentschappen in Aruba van
verzekeraars die buiten Aruba zijn gevestigd.
Een naar Arubaans recht opgerichte verzekeraar heeft de
rechtsvorm van een naamloze vennootschap, vennootschap met beperkte aansprakelijkheid, een Aruba vrijgestelde vennootschap of een onderlinge waarborgmaatschappij.
De Bank bepaalt, of een handeling of een samenstel van handelingen al dan niet uitoefening van het levensverzekeringsbedrijf of
het schadeverzekeringsbedrijf vormt, en of een handeling of samenstel van handelingen al dan niet uitoefening van het verzekeringsbedrijf vanuit een vestiging in Aruba vormt.
Bij landsbesluit, houdende algemene maatregelen kunnen, de
Bank gehoord, categorieën van verzekeraars worden aangewezen, waarop deze landsverordening geheel of gedeeltelijk niet van toepassing is.
Op een verzekeraar is de Vestigingsverordening bedrijven (AB
1990 no. GT 55) niet van toepassing.
Artikel 3
Het schadeverzekeringsbedrijf wordt onderscheiden in vijf
schadegroepen, te weten:
a. ongevallen- en ziektenverzekering; b. motorrijtuigenverzekering;
c. zee-, transport- en luchtvaartverzekering;
d. verzekering van brandschade en andere schade aan goederen; e. overige schadeverzekeringen.
Indien in een geschil de aard van een schadeverzekeringsovereenkomst een rol speelt of kan spelen, bepaalt de Bank op verzoek van
de meest gerede partij, tot welke van de in het eerste lid genoemde schadegroepen een schadeverzekeringsovereenkomst behoort. Artikel 4

====================================================================

De Bank kan beperkingen stellen en voorschriften en voorwaarden verbinden aan de door haar in het kader van de uitvoering van deze
landsverordening afgegeven vergunningen, toestemmingen of ontheffingen.
De Bank kan ontheffing verlenen van bij of krachtens deze
landsverordening gestelde voorschriften, mits de belangen van de verzekeringsnemer, de verzekerde of andere gerechtigden op een uitkering zich naar haar oordeel daartegen niet verzetten.
De Bank beslist binnen dertien weken na de datum van ontvangst van een volledige aanvraag op die aanvraag. Indien door de Bank
nadere gegevens zijn verzocht, begint deze termijn te lopen vanaf de datum van ontvangst van deze nadere gegevens. HOOFDSTUK II De toegang tot het verzekeringsbedrijf § 1. Algemeen Artikel 5
Het is verboden in of vanuit Aruba zonder vergunning van de
Bank zich tot het publiek te wenden ter zake van het direct of indirect uitoefenen van het verzekeringsbedrijf.
Een vergunning wordt verleend voor de uitoefening van hetzij
het levensverzekeringsbedrijf, hetzij het schadeverzekeringsbedrijf. Een vergunning voor de uitoefening van het schadeverzekeringsbedrijf wordt per schadegroep verleend. § 2. Vergunningsaanvraag Artikel 6
De aanvraag om afgifte van een vergunning als bedoeld in artikel 5, eerste lid, wordt aan de Bank gericht en bevat ten minste gegevens omtrent:
a. de identiteit, antecedenten en een verklaring van goed gedrag, alsmede andere door de Bank te bepalen gegevens op basis waarvan de Bank de betrouwbaarheid en geschiktheid kan vaststellen van:
1°. de bestuurders en andere personen die het beleid van de aanvrager bepalen of medebepalen; 2°. de leden van de raad van commissarissen dan wel van het orgaan van de aanvrager dat een aan die van raad van commissarissen gelijksoortige taak heeft; b. de identiteit, antecedenten en een verklaring van goed gedrag, alsmede andere door de Bank te bepalen gegevens op basis waarvan de Bank de betrouwbaarheid kan vaststellen van degenen die een gekwalificeerde deelneming houden in de aanvrager en, indien de houder van een gekwalificeerde deelneming een rechtspersoon is, van de personen die het beleid van deze rechtspersoon bepalen of medebepalen, alsmede de omvang van de desbetreffende gekwalificeerde deelneming;
c. een jaarrekening of openingsbalans, die moet zijn voorzien van een
verklaring omtrent de getrouwheid van de gegevens daarin, onderte-

==================================================================== kend door een accountant; d. een programma van werkzaamheden die de aanvrager voornemens is te verrichten; e. de voorziene bestuurlijke en administratieve organisatie, met inbegrip van de financiële administratie en de interne controle; f. de akte van oprichting, statuten en reglementen van de aanvrager.
2. Indien de aanvrager deel uitmaakt van een groep, worden tevens overgelegd de gegevens omtrent de formele en feitelijke zeggenschapsstructuur binnen de groep en een lijst van namen van degenen die
het beleid van de groep bepalen of mede bepalen.
3. Een aanvrager die voornemens is overeenkomsten te sluiten tot
dekking van de wettelijke aansprakelijkheid, voortvloeiende uit het gebruik van motorrijtuigen, voegt bij zijn aanvraag tevens een door hem ondertekende verklaring dat zijn voorwaarden van verzekering voldoen aan de in de Landsverordening aansprakelijkheid motorrijtuigen (AB 1999 no. GT 12) gestelde voorschriften terzake.
4. De Bank beslist binnen dertien weken na de datum van ontvangst daarvan op een aanvraag. Indien door de Bank nadere gegevens
zijn gevraagd, die verband houden met de vergunningsaanvraag, begint deze termijn te lopen vanaf de datum van ontvangst van deze nadere gegevens.
5. Overschrijding van de termijn, bedoeld in het vierde lid,
wordt gelijkgesteld met een weigering tot verlening van de vergunning. § 3. Vergunningsvoorwaarden Artikel 7 De Bank verleent een vergunning, als bedoeld in artikel 5, eerste lid, mits haar is gebleken dat wordt voldaan aan de volgende voorwaarden:
a. het dagelijks beleid van de aanvrager wordt bepaald door ten minste één natuurlijke persoon; b. de aanvrager heeft, voor zover het een rechtspersoon betreft, een raad van commissarissen of een soortgelijk orgaan, bestaande uit ten minste drie natuurlijke personen;
c. de Bank van oordeel is dat de betrouwbaarheid van één of meer personen, bedoeld in artikel 6, eerste lid, onderdeel a, buiten twijfel staat;
d. de Bank van oordeel is dat de geschiktheid van één of meer van de personen, bedoeld in artikel 6, eerste lid, onderdeel a, individueel of collectief voldoende is in verband met de uitoefening van het verzekeringsbedrijf of de uitoefening van de desbetreffende functie bij de verzekeraar; e. de Bank van oordeel is dat de betrouwbaarheid van een houder van een gekwalificeerde deelneming in de aanvrager of, indien de houder van een gekwalificeerde deelneming een rechtspersoon is, van de personen die het beleid van deze rechtspersoon bepalen of medebepalen, buiten twijfel staat, of dat anderszins ingevolge een gekwalificeerde deelneming in de aanvrager van een ongewenste beïnvloeding van het beleid van de aanvrager geen sprake is of zou kunnen zijn; f. de verklaring, bedoeld in artikel 6, eerste lid, onderdeel c, houdt in dat de jaarrekening of openingsbalans een getrouw beeld geeft van de grootte en de samenstelling van het vermogen van de aanvra-

==================================================================== ger; g. de aanvrager is, gelet op de gegevens als bedoeld in artikel 6, eerste lid, onderdeel d en e, in staat om zijn voornemens ten uitvoer te brengen, dan wel om aan de aan hem uit hoofde van het toezicht te stellen eisen te voldoen; h. de verlening van een vergunning aan de aanvrager leidt niet tot een ongewenste ontwikkeling van het verzekeringswezen of tot een omstandigheid die dit zou kunnen bewerkstelligen;
i. de aanvrager beschikt over een minimum solvabiliteitsmarge als bedoeld in artikel 14.
HOOFDSTUK III
Intrekking van de vergunning
Artikel 8

De Bank trekt een vergunning als bedoeld in artikel 5, eerste
lid, in, indien de verzekeraar:
a. om intrekking verzoekt; b. de uitoefening van het levensverzekeringsbedrijf dan wel de bedrijfsuitoefening in de betrokken schadegroep heeft gestaakt.
De Bank kan een vergunning als bedoeld in artikel 5, eerste
lid, intrekken, indien de verzekeraar:
a. niet meer voldoet aan de voorschriften die bij of krachtens deze landsverordening voor het verkrijgen van de vergunning zijn gesteld; b. naar het oordeel van de Bank in gebreke blijft te voldoen aan de in Aruba of in het buitenland geldende wettelijke voorschriften inzake de uitoefening van het verzekeringsbedrijf;
c. niet voldoet aan een aanwijzing als bedoeld in artikel 15, eerste
lid; d. de bedrijfsuitoefening niet binnen zes maanden na de dag van afgifte van de vergunning heeft aangevangen; e. de bij of krachtens de Landsverordening voorkoming en bestrijding van witwassen en terrorismefinanciering (AB 2011 no. 28) of een andere wettelijke regeling ter zake van de voorkoming en bestrijding van witwassen en terrorismefinanciering gestelde regels naar het oordeel van de Bank niet of onvoldoende naleeft. Artikel 9
De intrekking, bedoeld in artikel 8, wordt eerst van kracht,
nadat het daartoe strekkende besluit onherroepelijk is geworden. Zodra de intrekking van kracht is geworden, maakt de Bank het besluit bekend in de Landscourant van Aruba.
De verzekeraar wikkelt het gedeelte van zijn bedrijf, waarvoor de vergunning werd afgegeven, binnen een door de Bank te bepalen
termijn af. Gedurende deze termijn wordt de verzekeraar voor de toepassing van deze landsverordening gelijkgesteld met een verzekeraar die beschikt over een vergunning als bedoeld in artikel 5, eerste lid.

==================================================================== HOOFDSTUK IV Toezicht op de uitoefening van het verzekeringsbedrijf § 1. Bestuurlijke en administratieve organisatie Artikel 10

De Bank kan richtlijnen geven aan verzekeraars met betrekking
tot hun administratieve organisatie en interne bedrijfsvoering, met inbegrip van de financiële administratie en interne controle.
De richtlijnen, bedoeld in het eerste lid, kunnen betrekking
hebben op de uitvoering van voorschriften in andere landsverordeningen.
De Bank kan aan een verzekeringsbedrijf aanwijzingen geven
met betrekking tot de wijze waarop aan richtlijnen als bedoeld in het eerste lid, uitvoering wordt gegeven. Artikel 10a
Een verzekeraar voert een adequaat beleid voor een deugdelijk
ondernemingsbestuur, en richt haar corporate governance structuur zodanig in dat een deugdelijk ondernemingsbestuur is gewaarborgd.
Het beleid en de structuur als bedoeld in het eerste lid,
gaan in ieder geval in op:
a. de vastlegging en invulling van de taken, verantwoordelijkheden en werkwijze van het bestuur en de raad van commissarissen; b. de geschiktheid, zowel individueel als collectief, van de bestuurders en commissarissen;
c. de vaststelling en uitvoering van een heldere strategie en doelstellingen;
d. de vaststelling, uitvoering, monitoring en waar nodig bijstelling van het algehele risicobeleid; e. de systematische controle op de beheersing van de risico’s die met de bedrijfsactiviteiten samenhangen; f. de adequate informatievoorziening aan het bestuur en de raad van commissarissen; g. een zorgvuldige en integere besluitvorming; h. de bezoldiging van de bestuurders en commissarissen;
i. de onafhankelijkheid van de commissarissen;
j. de rol en verantwoordelijkheden van de aandeelhouders van de vennootschap.
De Bank kan aan verzekeraars richtlijnen geven met betrekking tot
het beleid en de structuur als bedoeld in het eerste lid.
Artikel 10b
Een verzekeraar beschikt over schriftelijke procedures voor de
zorgvuldige en consistente behandeling van klachten binnen een redelijke termijn.
De Bank kan aan verzekeraars richtlijnen geven met betrekking tot
het eerste lid.

==================================================================== § 2. Staten Artikel 11

De verzekeraar zendt binnen zes maanden na afloop van elk
boekjaar de Bank staten toe, die een duidelijk beeld geven van het door de verzekeraar gevoerde beheer en van zijn financiële toestand.
De verzekeraar doet de staten vergezeld gaan van een verklaring van getrouwheid van een accountant. Ten bewijze dat de staten
door hem zijn onderzocht of, indien het betreft staten als bedoeld in het derde lid die in zijn onderzoek zijn betrokken, waarmerkt de accountant de staten. De verzekeraar machtigt bij de opdracht tot het onderzoek de accountant schriftelijk aan de Bank schriftelijk alle inlichtingen te verstrekken, die redelijkerwijs geacht kunnen worden nodig te zijn voor de vervulling van de aan de Bank bij of krachtens deze landsverordening opgelegde taak.
Voor zover van toepassing behelst één van de staten het actuarieel verslag, dat wordt voorzien van een verklaring van de actuaris.
Met zijn verklaring bevestigt de actuaris het feit dat hij zich ervan heeft overtuigd dat de in het actuarieel verslag genoemde voorzieningen juist zijn vastgesteld. Hij is bevoegd zijn verklaring nader toe te lichten of op enig punt een voorbehoud te maken.
De Bank stelt de modellen van de staten, bedoeld in het eerste lid, vast.
§ 3. Jaarverslag
Artikel 12
Een verzekeraar dient jaarlijks binnen zes maanden na afloop
van het boekjaar zijn jaarrekening en jaarverslag in bij de Bank. Het jaarverslag geeft een getrouw beeld van de toestand op de balansdatum en de gang van zaken gedurende het boekjaar.
De jaarrekening en het jaarverslag van een verzekeraar met
zetel buiten Aruba betreffen het gehele bedrijf.
§ 4. Technische voorzieningen
Artikel 13
Een verzekeraar houdt toereikende technische voorzieningen
aan die volledig door waarden zijn gedekt. De Bank kan tegen de aard en de waardering van deze waarden bezwaar maken, aan welk bezwaar de verzekeraar onverwijld tegemoet komt.
De Bank kan algemene richtlijnen geven ten aanzien van de inhoud en de omvang van de technische voorzieningen, bedoeld in het eerste lid.
§ 5. Solvabiliteitsmarge
Artikel 14
Een verzekeraar die het levensverzekeringsbedrijf uitoefent,
beschikt over een solvabiliteitsmarge die acht procent van de voorzie-

==================================================================== ning voor verzekeringsverplichtingen aan het einde van het voorgaande boekjaar bedraagt, zonder dat rekening wordt gehouden met de herverzekering van deze verplichtingen.
2. Een verzekeraar die het schadeverzekeringsbedrijf uitoefent,
beschikt over een solvabiliteitsmarge die gelijk is aan de hoogste uitkomst van een van de navolgende berekeningen:
a. vijftien procent van de in het voorgaande boekjaar geboekte bruto premie, of b. vijftien procent van de gemiddeld geboekte bruto-schaden in de afgelopen drie boekjaren.
3. De Bank kan algemene richtlijnen geven ten aanzien van de
solvabiliteitsmarge, waarin onder meer kan worden aangegeven, welk bedrag aan solvabiliteitsmarge ten minste aangehouden wordt.
4. Bij landsbesluit, houdende algemene maatregelen, kunnen voor
bepaalde categorieën van verzekeraars bijzondere solvabiliteitsmarges worden vastgesteld. § 6. Structuurtoezicht Artikel 14a

Het is een natuurlijke persoon of rechtspersoon verboden zonder toestemming van de Bank:
a. een gekwalificeerde deelneming in een verzekeraar te houden, te verwerven of te vergroten; b. enige zeggenschap, verbonden aan een gekwalificeerde deelneming in een verzekeraar, uit te oefenen.
De Bank verleent een gevraagde toestemming als bedoeld in het
eerste lid, tenzij de Bank van oordeel is dat de betrouwbaarheid van de aanvrager of, indien de aanvrager een rechtspersoon is, van de personen die het beleid van deze rechtspersoon bepalen of medebepalen, niet buiten twijfel staat, of dat anderszins ingevolge de gekwalificeerde deelneming in de onderneming of instelling van een ongewenste beïnvloeding van het beleid van de onderneming of instelling sprake is of zou kunnen zijn.
Indien het houden, verwerven of vergroten van een gekwalificeerde deelneming in een verzekeraar is verricht, zonder dat voor die
handeling een toestemming als bedoeld in het eerste lid is verkregen of de bij de toestemming gestelde beperkingen in acht zijn genomen, maakt de in overtreding zijnde natuurlijke persoon of rechtspersoon binnen een door de Bank te bepalen termijn de verrichte handeling ongedaan, dan wel neemt zij de beperkingen alsnog in acht. Deze verplichting vervalt, indien voor de desbetreffende handeling alsnog een toestemming wordt afgegeven, dan wel de niet in acht genomen beperkingen worden ingetrokken.
Indien het uitoefenen van enige zeggenschap, verbonden aan
een gekwalificeerde deelneming in een verzekeraar, geschiedt zonder dat voor die handeling toestemming is verkregen, of de bij een verleende toestemming van de Bank gestelde beperkingen of voorwaarden niet in acht zijn genomen, is een mede door de uitgeoefende zeggenschap tot stand gekomen besluit vernietigbaar door het Gerecht op vordering van de Bank, indien het besluit, zonder dat de desbetreffende zeggenschap zou zijn uitgeoefend, anders zou hebben geluid, dan wel niet zou zijn genomen, tenzij voor het tijdstip van de uitspraak

==================================================================== alsnog een toestemming wordt verleend, dan wel de niet in acht genomen beperkingen of voorwaarden alsnog zijn nageleefd. Het Gerecht regelt, voor zover nodig, de gevolgen van de vernietiging.
5. Indien een natuurlijk persoon of een rechtspersoon niet alle
aan een toestemming als bedoeld in het eerste lid, verbonden voorschriften of voorwaarden naleeft, kan de Bank een termijn vaststellen, waarbinnen die natuurlijke persoon of rechtspersoon de niet nagekomen voorschriften of voorwaarden alsnog dient te vervullen. Artikel 14b

Op een aanvraag om de verlening van een toestemming als bedoeld in artikel 14a, eerste lid, is artikel 6, eerste lid, onderdelen
a, b, f, en tweede, vierde en vijfde lid, van overeenkomstige toepassing.
Van de verlening van een toestemming als bedoeld in artikel
14a, eerste lid, wordt mededeling gedaan in de Landscourant van Aruba, alsmede in één of meer door de Bank te bepalen nieuwsbladen, tenzij de Bank van oordeel is dat de bekendmaking daarvan zou leiden of zou kunnen leiden tot onevenredige bevoordeling of benadeling van bij de beslissing betrokkenen of derden.
Een toestemming als bedoeld in artikel 14a, eerste lid, kan
door de Bank geheel of gedeeltelijk worden gewijzigd of ingetrokken:
a. op schriftelijk verzoek van de houder; b. indien de gegevens of bescheiden, die zijn verstrekt ter verkrijging van de verklaring, zodanig onjuist of onvolledig zijn gebleken, dat op het verzoek een andere beslissing zou zijn genomen, indien bij de beoordeling van het verzoek de juiste omstandigheden volledig bekend waren geweest;
c. indien niet binnen de termijn, bedoeld in artikel 14a, vijfde lid,
aan alle bij de verklaring gestelde voorschriften of voorwaarden wordt voldaan; d. indien de houder een aanwijzing als bedoeld 15b niet opvolgt. Alsdan is het tweede lid van overeenkomstige toepassing. Artikel 14c
Een natuurlijke persoon of rechtspersoon, wiens gekwalificeerde deelneming in een verzekeraar zodanig wijzigt, dat de omvang
van deze deelneming onder de 10, 20, 33 of 50 procent daalt, stelt de Bank daarvan schriftelijk in kennis.
Een verzekeraar stelt de Bank in de maand juli van ieder jaar
schriftelijk in kennis van de identiteit van iedere natuurlijke persoon of rechtspersoon, die een gekwalificeerde deelneming in die instelling houdt, voor zover die gegevens haar bekend zijn. Tevens stelt een verzekeraar, zodra dat haar bekend wordt, de Bank schriftelijk in kennis van iedere verwerving of afstoting van, dan wel mutatie in een gekwalificeerde deelneming in die instelling, waardoor de omvang van deze deelneming boven onderscheidenlijk onder de 10, 20, 33 of 50 procent stijgt, onderscheidenlijk daalt. §7. Integriteitstoezicht

==================================================================== Artikel 14d

Een verzekeraar voert een adequaat beleid voor een integere
uitoefening van haar bedrijf en richt haar bedrijfsvoering zodanig in, dat de integere uitoefening van haar bedrijf is gewaarborgd.
Het beleid en de bedrijfsvoering, bedoeld in het eerste lid,
zijn in ieder geval gericht op:
a. het tegengaan van belangenverstrengeling; b. het tegengaan van witwassen van geld en terrorismefinanciering;
c. de naleving van de bij of krachtens de Landsverordening voorkoming
en bestrijding van witwassen en terrorismefinanciering en andere wettelijke regelingen ter zake van de voorkoming en bestrijding van witwassen en terrorismefinanciering gestelde regels; d. het tegengaan van strafbare feiten of andere wetsovertredingen door de verzekeraar of haar werknemers, die het vertrouwen in de onderneming of in de financiële markten kunnen schaden; e. het tegengaan van relaties met cliënten of andere zakelijke relaties die het vertrouwen in de onderneming of in de financiële markten kunnen schaden; f. het tegengaan van andere handelingen door de verzekeraar of haar werknemers, die zodanig ingaan tegen hetgeen volgens ongeschreven recht in het maatschappelijk verkeer betaamt dat daardoor het vertrouwen in de onderneming of in de financiële markten kan worden geschaad.
De Bank kan aan verzekeraars richtlijnen geven met betrekking
tot:
a. de integere uitoefening van het verzekeringsbedrijf. b. de wijze waarop wordt vastgesteld of de betrouwbaarheid van een persoon, bedoeld in artikel 6, eerste lid, onderdeel a, buiten twijfel staat en of deze persoon geschikt is en welke feiten en omstandigheden daarbij in aanmerking worden genomen.
De richtlijnen, bedoeld in het derde lid, kunnen betrekking
hebben op de uitvoering van de voorschriften in andere landsverordeningen. Zij worden slechts gegeven of gewijzigd na overleg met de daarbij betrokken representatieve organisatie. Artikel 14e
Een verzekeraar is niet met personen of rechtspersonen verbonden in een formele of feitelijke zeggenschapsstructuur:
a. die in zodanige mate ondoorzichtig is dat deze een belemmering vormt of kan vormen voor het adequaat uitoefenen van toezicht op die onderneming; b. indien op die personen of rechtspersonen buitenlands recht van toepassing is en dat buitenlandse recht een belemmering vormt of kan vormen voor het adequaat uitoefenen van toezicht op die onderneming. HOOFDSTUK V Bijzondere maatregelen § 1. Aanwijzingsrecht

==================================================================== Artikel 15

Indien een verzekeraar niet voldoet aan de voorschriften die
bij of krachtens deze landsverordening voor het verkrijgen van de vergunning zijn gesteld, of indien de Bank constateert dat een verzekeraar het bij of krachtens artikelen 10 tot en met 14, 14c, tweede lid, 14d en 14e, bepaalde niet naleeft, of indien de Bank andere tekenen ontwaart, die naar haar oordeel de solvabiliteit van een verzekeraar in gevaar brengt of zou kunnen brengen, kan zij deze verzekeraar een aanwijzing geven om binnen een door haar te bepalen termijn weer aan deze voorschriften of het bij of krachtens artikelen 10 tot en met 14, 14c, tweede lid 14d en 14e, bepaalde te voldoen, dan wel om er voor zorg te dragen dat de solvabiliteit weer op een door de Bank te bepalen niveau wordt gebracht.
Indien de Bank niet binnen twee weken na dagtekening van de
aanwijzing een voor haar bevredigend antwoord van de verzekeraar heeft ontvangen, of indien naar haar oordeel niet of onvoldoende aan de aanwijzing gevolg is gegeven, kan zij, onverminderd haar bevoegdheid tot intrekking van een vergunning ingevolge artikel 8, het opleggen van een last onder dwangsom ingevolge artikel 16, eerste lid, en het opleggen van een bestuurlijke boete ingevolge artikel 16, tweede lid:
a. de verzekeraar schriftelijk aanzeggen dat vanaf een bepaald tijdstip alle of bepaalde van zijn organen hun bevoegdheden slechts mogen uitoefenen na goedkeuring van een of meer door de Bank aangewezen personen, welke aanzegging terstond van kracht wordt; b. de verzekeraar schriftelijk aanzeggen dat de Bank zal overgaan tot bekendmaking van de aanwijzing in de Landscourant van Aruba.
Indien de in het eerste lid genoemde gevallen onverwijld ingrijpen noodzakelijk maken, kan de Bank zonder toepassing van het eerste lid, onmiddellijk uitvoering geven aan het tweede lid, onderdeel
a, nadat zij de verzekeraar in de gelegenheid heeft gesteld zijn mening over de onmiddellijk uitvoering te geven.
De organen, bedoeld in het tweede lid, onderdeel a, verlenen
de door de Bank aangewezen personen alle medewerking. Voor schade ten gevolge van handelingen die zijn verricht in strijd met een aanzegging als bedoeld in het tweede lid, onderdeel a, zijn degenen die deze handelingen als orgaan van de verzekeraar verrichten, persoonlijk aansprakelijk tegenover de verzekeraar.
Het besluit tot bekendmaking van een aanwijzing wordt eerst
van kracht, nadat dit onherroepelijk is geworden. Indien de verzekeraar na de bekendmaking alsnog voldoet aan de aanwijzing, dan wel indien de Bank de aanwijzing intrekt, wordt dit door de Bank bekendgemaakt in de Landscourant van Aruba.
De kosten en beloning van een of meer op grond van dit artikel door de Bank aangewezen personen komen ten laste van de betrokken
verzekeraar.
Artikel 15a
Indien naar het oordeel van de Bank een accountant of actuaris niet of niet meer de nodige waarborgen biedt dat hij zijn taak met
betrekking tot een verzekeraar naar behoren zal kunnen vervullen, kan de Bank ten aanzien van deze accountant of actuaris bepalen dat hij

==================================================================== niet langer bevoegd is de in deze landsverordening bedoelde verklaringen met betrekking tot die verzekeraar af te leggen.
2. De Bank maakt een besluit als bedoeld in het eerste lid, terstond bekend aan de desbetreffende verzekeraar.
Artikel 15b
De Bank kan de houder van een gekwalificeerde deelneming in een verzekeraar ten aanzien van wie naar haar oordeel niet langer is voldaan aan de voorwaarde van artikel 7, onderdeel e, een aanwijzing geven om ten aanzien van met name genoemde punten een bepaalde gedragslijn te volgen. § 2. Bestuurlijke sancties Artikel 16

Ter zake van de overtreding van de bij of krachtens de artikelen 4, 5, eerste lid, 9, tweede lid, 10 tot en met 15b, 17, 22, eerste en derde lid, 24b, derde, vierde en vijfde lid, 25, zesde lid, en
27a, eerste lid, 27b gestelde voorschriften, kan de Bank een last onder dwangsom opleggen.
Ter zake van de in het eerste lid bedoelde feiten kan de Bank
ook een bestuurlijke boete opleggen van ten hoogste Afl. 1.000.000,- per afzonderlijke overtreding.
Overtredingen kunnen worden begaan door natuurlijke personen
en rechtspersonen. Artikel 1:127, tweede en derde lid, van het Wetboek van Strafrecht van Aruba is van overeenkomstige toepassing.
De Bank stelt richtsnoeren vast voor de toepassing van de bevoegdheden, bedoeld in het eerste en tweede lid, en legt deze vast in
een beleidsdocument. Het beleidsdocument bevat in ieder geval een beschrijving van de te volgen procedures bij de toepassing van de bevoegdheden, bedoeld in het eerste en tweede lid. Het beleidsdocument, bedoeld in de eerste volzin, wordt, evenals alle nadien daarin aan te brengen wijzigingen, vooraf bekend gemaakt op een door de Bank te bepalen wijze.
Bij landsbesluit, houdende algemene maatregelen, worden regels gesteld met betrekking tot de grondslagen voor de vaststelling
van de hoogte van de last onder dwangsom en de bestuurlijke boete per overtreding. De overtredingen worden gerangschikt in categorieën naar zwaarte van de overtreding met de bijbehorende basisbedragen, minimumbedragen en maximumbedragen.
Verbeurde dwangsommen en bestuurlijke boeten komen toe aan de
Bank.
Artikel 16a
Indien tijdens het plegen van een overtreding nog geen vijf
jaren zijn verlopen sedert het opleggen van een bestuurlijke boete aan de overtreder ter zake van eenzelfde overtreding, wordt het maximale bedrag van de bestuurlijke boete, vermeld in artikel 16, tweede lid, voor elke afzonderlijke overtreding verdubbeld.
In afwijking van artikel 16, tweede lid, kan de Bank de hoogte van de bestuurlijke boete vaststellen op ten hoogste twee keer het

==================================================================== bedrag van het voordeel dat de overtreder door de overtreding heeft verkregen, indien diens voordeel groter is dan Afl. 1.000.000,-. Artikel 16b

Indien de Bank voornemens is een bestuurlijke boete op te
leggen, geeft zij de betrokkene daarvan kennis onder vermelding van de gronden waarop het voornemen berust.
De Bank stelt de betrokkene in de gelegenheid om binnen een
redelijke termijn naar keuze schriftelijk of mondeling zijn zienswijze naar voren te brengen voordat de bestuurlijke boete bij beschikking wordt opgelegd.
Indien de Bank, nadat de betrokkene zijn zienswijze naar voren heeft gebracht, beslist dat voor de overtreding geen bestuurlijke
boete zal worden opgelegd, wordt dit schriftelijk aan de betrokkene medegedeeld Artikel 16c
De Bank kan op verzoek van de overtreder een last onder
dwangsom opheffen, de looptijd ervan voor een bepaalde termijn opschorten of de dwangsom verminderen ingeval van blijvende of tijdelijke gehele of gedeeltelijke onmogelijkheid voor de overtreder om aan zijn verplichtingen te voldoen.
De Bank kan voorts op verzoek van een overtreder een last onder dwangsom opheffen, indien de beschikking een jaar van kracht is
geweest zonder dat de dwangsom is verbeurd.
Artikel 16d
Degene jegens wie door de Bank een handeling is verricht, waaraan hij in redelijkheid de gevolgtrekking kon verbinden dat hem wegens een overtreding van het gestelde bij of krachtens deze landsverordening een bestuurlijke boete zal worden opgelegd, is niet verplicht ter zake daarvan enige verklaring af te leggen. Hij wordt hiervan in kennis gesteld alvorens hem om informatie wordt gevraagd. Artikel 16e
De bestuurlijke boete is verschuldigd binnen zes weken na de
dagtekening van de beschikking waarbij zij is opgelegd.
De bestuurlijke boete wordt vermeerderd met de wettelijke
rente, te rekenen vanaf de dag waarop sedert de bekendmaking van de beschikking zes weken zijn verstreken. Artikel 16f
De bevoegdheid een bestuurlijke boete op te leggen, vervalt:
a. indien ter zake van de overtreding een strafvervolging is ingesteld en het onderzoek ter terechtzitting een aanvang heeft genomen, dan wel het recht tot strafvordering is vervallen ingevolge artikel 1:149 van het Wetboek van Strafrecht van Aruba;

==================================================================== b. drie jaren na de dag waarop de niet-naleving van het voorschrift is geconstateerd.
2. De termijn, bedoeld in het eerste lid, onderdeel b, wordt gestuit door een bekendmaking van de beschikking waarbij de bestuurlijke
boete werd opgelegd.
3. Het recht tot strafvervolging vervalt indien aan de betrokkene terzake van hetzelfde feit reeds een bestuurlijke boete is opgelegd.
4. Tussen de Bank en het Openbaar Ministerie vindt periodiek
overleg plaats over de keuze tussen de oplegging van een bestuurlijke boete of strafrechtelijke sancties ter voorkoming van ongeoorloofde samenloop van die sancties. Artikel 16g

De Bank is bevoegd, met het oog op de bescherming van het financiële stelsel en het tegengaan van het witwassen en het financieren
van terrorisme, het feit ter zake waarvan de last onder dwangsom of de bestuurlijke boete is opgelegd, het overtreden voorschrift, alsmede de naam, het adres en de woonplaats van degene aan wie de bestuurlijke boete is opgelegd, ter openbare kennis brengen.
De Minister kan regels stellen ter zake van de uitoefening
van de bevoegdheid, bedoeld in het eerste lid.
De beschikking tot het ter openbare kennis brengen treedt in
werking op de dag waarop het feit ter openbare kennis is gebracht, zonder dat de werking voor de duur van de beroepstermijn of, indien beroep is ingesteld, van het beroep wordt opgeschort, indien van de betrokkene geen adres bekend is en het adres ook niet met een redelijke inspanning kan worden verkregen. Artikel 16h De Bank houdt aantekening van de handelingen die in het kader van een onderzoek, voorafgaand aan het opleggen van een bestuurlijke boete, hebben plaatsgevonden onder vermelding van de personen die die handelingen hebben verricht. Artikel 16i
Indien een verbeurde dwangsom of boete niet is betaald binnen
de door Bank bepaalde termijn, wordt de overtreder schriftelijk aangemaand om binnen twee weken alsnog het bedrag van de dwangsom of de boete, verhoogd met de kosten van de aanmaning, te betalen.
Bij gebreke van betaling wordt het bedrag en de kosten, bedoeld in het eerste lid, verhoogd met de invorderingskosten, door de
Bank bij dwangbevel ingevorderd.
De bekendmaking van het dwangbevel geschiedt door middel van
betekening van een exploot als bedoeld in het Wetboek van Burgerlijke Rechtsvordering van Aruba en levert een executoriale titel op, die met toepassing van de voorschriften van dit Wetboek kan worden tenuitvoergelegd.
Het dwangbevel vermeldt ten minste:
a. aan het hoofd het woord dwangbevel; b. het bedrag van de invorderbare hoofdsom, vermeerderd met de ver-

==================================================================== schuldigde wettelijke rente;
c. de beschikking of het wettelijk voorschrift waaruit de verschuldigde geldsom voorvloeit;
d. de kosten van de aanmaning en van het dwangbevel; e. dat het op kosten van de overtreder ten uitvoer kan worden uitgebracht.
5. Gedurende zes weken na de dag van betekening staat tegen het
dwangbevel verzet open. Verzet wordt aanhangig gemaakt tegen de Bank bij het Gerecht en op de voor het indienen van vorderingen bepaalde wijze. Het verzet, mits tijdig en op de voorgeschreven wijze gedaan, schorst de tenuitvoerlegging van het dwangbevel. Artikel 16j

De Bank kan met het oog op de belangen die deze landsverordening beoogt te beschermen, bij overtreding van een verbodsbepaling uit
deze landsverordening een openbare waarschuwing uitvaardigen, indien nodig onder vermelding van de overwegingen die tot de waarschuwing hebben geleid.
De Minister kan regels stellen ter zake van de uitoefening
van de bevoegdheid als bedoeld in het eerste lid.
De beschikking tot het uitvaardigen van een openbare waarschuwing treedt in werking op de dag waarop de openbare waarschuwing
ter openbare kennis is gebracht, zonder dat de werking voor de duur van de beroepstermijn of, indien beroep is ingesteld, van het beroep wordt opgeschort, indien van de betrokkene geen adres bekend is en het adres ook niet met een redelijke inspanning kan worden verkregen. Artikel 16k
De Bank stelt, indien zij voornemens is een openbare waarschuwing uit te vaardigen, de betrokkene schriftelijk in kennis van de
voorgenomen beslissing en stelt hem in de gelegenheid daarover zijn zienswijze naar voren te brengen.
De Bank kan toepassing van het eerste lid achterwege laten,
indien de vereiste spoed zich daartegen verzet, of indien van de betrokkene geen adres bekend is en zijn adres ook niet met een redelijke inspanning kan worden verkregen. § 3. Benoeming in bepaalde functies Artikel 17
Een verzekeraar benoemt geen personen in functies als bedoeld
in artikel 7, onderdelen a en b, alvorens hij daarvoor de toestemming van de Bank heeft erlangd.
De Bank beslist binnen dertien weken na de datum van ontvangst van een volledige aanvraag op die aanvraag. Indien door de Bank
nadere gegevens zijn verzocht, begint deze termijn te lopen vanaf de datum van ontvangst van deze nadere gegevens. HOOFDSTUK VI

==================================================================== Het register Artikel 18

De Bank houdt een register waarin alle verzekeraars worden
ingeschreven, die een vergunning als bedoeld in artikel 5, eerste lid, hebben verkregen. Het register wordt ingericht op een door de Bank te bepalen wijze en ligt voor een ieder kosteloos ter inzage ten kantore van de Bank.
De Bank draagt zorg voor de doorhaling in het register van
iedere verzekeraar waarvan de vergunning als bedoeld in artikel 5, eerste lid, is ingetrokken. Artikel 19
Van de inschrijving of doorhaling in het register wordt door
de zorg van de Bank binnen twee binnen weken na de dag waarop zij heeft plaatsgehad, mededeling gedaan in de Landscourant van Aruba en in twee lokale nieuwsbladen.
Jaarlijks wordt in de maand januari door de zorg van de Bank
een afschrift van het register naar de stand per 31 december van het voorafgaande jaar in de Landscourant van Aruba en in twee lokale nieuwsbladen geplaatst. HOOFDSTUK VII Noodregeling en faillissement § 1. Noodregeling Artikel 20
Ingeval de solvabiliteit van een in het register ingeschreven
verzekeraar tekenen van een gevaarlijke ontwikkeling vertoont of er anderszins tekenen zijn, die het voortbestaan van een verzekeraar bedreigen, en er redelijkerwijs geen verbetering is te voorzien in deze ontwikkeling, kan het Gerecht op verzoek van de Bank verklaren dat de verzekeraar verkeert in een toestand die in het belang van de gezamenlijke schuldeisers een bijzondere voorziening behoeft.
Bij een verklaring als bedoeld in het eerste lid, benoemt het
Gerecht op voordracht van de Bank een of meerdere bewindvoerders, die gemachtigd zijn zowel tot vereffening van het geheel of van een gedeelte van de door de verzekeraar aangegane verzekeringsovereenkomsten als tot overdracht over te gaan van alle of van een deel van zijn rechten en verplichtingen uit of krachtens verzekeringsovereenkomsten.
Bij landsbesluit, houdende algemene maatregelen, kunnen regels worden gesteld ter zake van de inhoud van de bijzondere voorziening, bedoeld in het eerste lid, en de wijze van uitoefening van de
taken, genoemd in het tweede lid. Daarbij kunnen een of meerdere bepalingen van de Faillissementsverordening van overeenkomstige toepassing worden verklaard en kan worden afgeweken van voorschriften van die landsverordening.

==================================================================== § 2. Faillissement en liquidatie Artikel 21

De Bank kan een verzoek tot faillietverklaring van een verzekeraar indienen bij het Gerecht, indien haar gebleken is dat deze een
negatief eigen vermogen heeft en hetzij het met de voorziening, omschreven in artikel 20, te bereiken doel niet of niet meer kan worden verwezenlijkt, hetzij, indien niet tevoren om deze voorziening is gevraagd, geen redelijk vooruitzicht meer bestaat dat het met deze voorziening te bereiken doel alsnog kan worden verwezenlijkt.
In afwijking van artikel 1 van de Faillissementsverordening
wordt de faillietverklaring uitgesproken, ongeacht of de verzekeraar verkeert in een toestand van te hebben opgehouden te betalen.
Indien een verzoek tot faillietverklaring door een ander dan
de Bank wordt ingediend, een eigen aangifte daaronder begrepen, wordt daarover niet eerder beslist, dan nadat het Gerecht de Bank in de gelegenheid heeft gesteld haar gevoelen daaromtrent kenbaar te maken.
Een in het register ingeschreven verzekeraar die tot gehele
of gedeeltelijke liquidatie van zijn bedrijf, dan wel tot ontbinding heeft besloten, doet ten minste dertien weken, voordat aan het besluit uitvoering wordt gegeven, aan de Bank mededeling van de wijze waarop de liquidatie, onderscheidenlijk de ontbinding zal plaatsvinden. HOOFDSTUK VIII Bijzondere bepalingen § 1. Overdracht van rechten en verplichtingen Artikel 22
Een verzekeraar draagt zijn rechten en verplichtingen uit alle of een deel van de verzekeringsovereenkomsten slechts zonder toestemming van degenen die aan die overeenkomsten rechten kunnen ontlenen, over aan een andere verzekeraar bij schriftelijke overeenkomst en
met schriftelijke toestemming van de Bank.
In afwijking van het eerste lid is een verzekeraar bevoegd
zijn rechten en verplichtingen uit een individuele verzekeringsovereenkomst op schriftelijk verzoek van de verzekeringsnemer over te dragen.
De Bank kan algemene richtlijnen geven ten aanzien van de
overdracht van rechten en plichten uit hoofde van verzekeringsovereenkomsten. § 2. Geheimhouding Artikel 23
Het is een ieder die uit hoofde van de toepassing van deze
landsverordening of van een ingevolge deze landsverordening genomen besluit enige taak vervult of heeft vervuld, verboden van gegevens of

==================================================================== inlichtingen die ingevolge deze landsverordening zijn verstrekt of verkregen of van een buitenlandse instantie als bedoeld in artikel 24, eerste lid, zijn ontvangen, verder of anders gebruik te maken of daaraan verder of anders bekendheid te geven dan voor de uitvoering van zijn taak of door deze landsverordening wordt geëist.
2. In afwijking van het eerste lid, is de Bank bevoegd met gebruikmaking van gegevens of inlichtingen, verkregen bij de uitvoering
van haar taak op grond van deze landsverordening, mededelingen te doen, mits deze niet kunnen worden herleid tot afzonderlijke personen of instellingen.
3. Het eerste lid laat onverlet de verplichting om overeenkomstig het Wetboek van Strafvordering van Aruba (AB 1996 no. 75) als
getuige in strafzaken een verklaring af te leggen omtrent gegevens of inlichtingen, verkregen bij de vervulling van zijn ingevolge deze landsverordening opgedragen taak. Het laat evenzo onverlet de verplichting om overeenkomstig het Wetboek van Burgerlijke Rechtsvordering van Aruba (AB 2005 no. 34) als getuige, dan wel partij in een comparitie van partijen in burgerlijke zaken een verklaring af te leggen omtrent gegevens of inlichtingen, verkregen bij de vervulling van zijn in gevolge deze landsverordening opgedragen taak, zulks met dien verstande dat zodanige verplichting slechts geldt, voor zover het betreft een verzekeraar die in staat van faillissement is verklaard of op grond van een rechterlijke uitspraak is ontbonden, en dat zij niet geldt voor gegevens of inlichtingen, die betrekking hebben op ondernemingen of instellingen, die betrokken zijn of zijn geweest bij een poging de desbetreffende verzekeraar in staat te stellen haar bedrijf voort te zetten. § 3. Gegevensuitwisseling Artikel 24

In afwijking van artikel 23, eerste lid, is de Bank bevoegd
om gegevens en of inlichtingen, verkregen bij de vervulling van de haar ingevolge deze landsverordening opgedragen taken, uit te wisselen met aan in het buitenland van overheidswege aangewezen instanties die belast zijn met:
a. het toezicht op personen en instellingen die actief zijn op de financiële markten of; b. het toezicht op de naleving van wet- en regelgeving ter zake van de voorkoming en bestrijding van witwassen en terrorismefinanciering.
Van de bevoegdheid, bedoeld in het eerste lid, wordt geen gebruik gemaakt, indien:
a. het doel waarvoor de gegevens of inlichtingen zullen worden gebruikt, onvoldoende bepaald is; b. het beoogde gebruik van de gegevens of inlichtingen niet past in het kader van het toezicht op financiële markten of op die markten werkzame personen;
c. verstrekking van de gegevens of inlichtingen zich niet verdraagt
met de openbare orde of het recht van Aruba; d. de geheimhouding van de gegevens of inlichtingen niet voldoende is gewaarborgd; e. verstrekking van de gegevens of inlichtingen redelijkerwijs in strijd is of zou kunnen komen met de belangen die deze landsveror-

==================================================================== dening beoogt te beschermen; f. onvoldoende is gewaarborgd dat de gegevens of inlichtingen niet zullen worden gebruikt voor een ander doel dan waarvoor deze worden verstrekt.
3. Voor zover de gegevens of inlichtingen, bedoeld in het eerste
lid, zijn verkregen van een buitenlandse toezichthoudende instantie, verstrekt de Bank deze niet aan een andere buitenlandse toezichthoudende instantie, tenzij de instantie waarvan de gegevens of inlichtingen zijn verkregen, heeft ingestemd met de verstrekking van de gegevens of inlichtingen en in voorkomend geval heeft ingestemd met het gebruik voor een ander doel dan waarvoor de gegevens of inlichtingen zijn verstrekt.
4. Indien een buitenlandse toezichthoudende instantie aan de
Bank verzoekt om gegevens of inlichtingen, die de Bank op grond van het eerste of tweede lid heeft verstrekt, te gebruiken voor een ander doel dan waarvoor zij zijn verstrekt, willigt de Bank dat verzoek slechts in, indien:
a. het beoogde gebruik niet in strijd is met het eerste of tweede lid; of b. de toezichthoudende instantie in kwestie op een andere wijze dan in deze landsverordening voorzien vanuit Aruba met inachtneming van de daarvoor geldende wettelijke procedures voor dat andere doel de beschikking over die gegevens of inlichtingen zou kunnen verkrijgen. Artikel 24a In afwijking van artikel 23, eerste lid, is de Bank bevoegd gegevens of inlichtingen, verkregen bij de vervulling van de haar ingevolge deze landsverordening opgedragen taken, te verstrekken aan personen en instanties die op grond van het Wetboek van Strafvordering van Aruba zijn belast met de uitoefening van strafvorderlijke bevoegdheden. Artikel 24b

De Bank kan ten behoeve van de uitvoering van haar taak op
grond van deze paragraaf van een ieder inlichtingen vorderen, indien dat voor de vervulling van de taak van een in artikel 24, eerste lid, bedoelde instantie nodig is. Artikel 25, derde tot en met zesde lid, is van overeenkomstige toepassing.
Op verzoek van een instantie als bedoeld in het eerste lid,
kan de Bank gegevens en inlichtingen vragen aan of een onderzoek instellen of doen instellen bij een verzekeraar dan wel bij een ieder waarvan redelijkerwijs kan worden vermoed dat hij over gegevens of inlichtingen beschikt, die redelijkerwijs van belang kunnen zijn voor de verzoekende instantie.
Degene aan wie gegevens of inlichtingen als bedoeld in het
tweede lid, zijn gevraagd, verstrekt deze binnen een door de Bank te stellen redelijke termijn.
Degene bij wie een onderzoek als bedoeld in het tweede lid,
wordt ingesteld, verleent alle medewerking die nodig is voor een richtige uitvoering van dat onderzoek. Artikel 25, derde en vierde lid, is van overeenkomstige toepassing.

====================================================================
5. De Bank kan toestaan dat een functionaris van een instantie
als bedoeld in artikel 24, eerste lid, deelneemt aan de uitvoering van een verzoek als bedoeld in het tweede lid. De functionaris, bedoeld in de eerste volzin, volgt de aanwijzingen op van de werknemer van de Bank die met de uitvoering van het verzoek is belast. Het gebod, bedoeld in het vierde lid, geldt eveneens jegens de in de eerste volzin bedoelde functionaris. Artikel 24c

De Bank is bevoegd om de registers te raadplegen en alle inlichtingen te vragen van de Kamer van Koophandel en Nijverheid, de
Dienst Landmeetkunde en Vastgoedregistratie, het Bureau Burgerlijke Stand en Bevolkingsregister, alsmede van andere bij landsbesluit, houdende algemene maatregelen, aan te wijzen instanties.
De in het eerste lid genoemde instanties verlenen aan de Bank
binnen de door haar gestelde redelijke termijn kosteloos alle medewerking die op grond van het eerste lid wordt gevraagd. § 4. Toezicht Artikel 25
Met het toezicht op de naleving van het bij of krachtens deze
landsverordening bepaalde zijn belast de daartoe door de President van de Bank aangewezen personen, werkzaam bij de Bank. Van een zodanige aanwijzing wordt mededeling gedaan in de Landscourant van Aruba.
De krachtens het eerste lid aangewezen personen kunnen het
toezicht op een risicogeoriënteerde wijze uitoefenen. Zij rapporteren ter zake van de uitoefening van de bevoegdheden, genoemd in het derde lid, aan de President van de Bank of aan de door deze schriftelijk aan te wijzen leidinggevenden binnen de Bank.
De krachtens het eerste lid aangewezen werknemers van de Bank
zijn, uitsluitend voor zover dat voor de vervulling van hun taak redelijkerwijs noodzakelijk is, bevoegd:
a. alle inlichtingen te vragen; b. inzage te verlangen van alle zakelijke boeken, bescheiden en andere informatiedragers en daarvan afschrift te nemen of kopie te maken of deze daartoe tijdelijk mee te nemen;
c. alle plaatsen, met uitzondering van woningen zonder uitdrukkelijke
toestemming van de bewoner, te betreden, vergezeld van door hen aan te wijzen personen.
Zo nodig, wordt de toegang tot een plaats als bedoeld in het
derde lid, onderdeel c, verschaft met behulp van de sterke arm.
Bij landsbesluit, houdende algemene maatregelen, worden regels gesteld met betrekking tot de wijze van taakuitoefening van de
krachtens het eerste lid aangewezen werknemers van de Bank.
Een ieder verleent aan de krachtens het eerste lid aangewezen
personen de medewerking die door hen op grond van het derde lid wordt gevorderd. HOOFDSTUK IX

==================================================================== Strafbepaling Artikel 26

Degene die in strijd handelt met een voorschrift, voorwaarde
of beperking, gesteld bij of krachtens de artikelen 4, 5, eerste lid, 9, tweede lid, 10 tot en met 15b, 17, 22, eerste en derde lid, 24b, derde, vierde en vijfde lid, 25, zesde lid, en 27a, eerste lid, 27b wordt gestraft met hechtenis van ten hoogste een jaar of geldboete van de vierde categorie.
Opzettelijk handelen in strijd met enig voorschrift, gegeven
in of ingevolge de artikelen, genoemd in het eerste lid, wordt gestraft met gevangenisstraf van ten hoogste zes jaren of geldboete van de zesde categorie.
De strafbare feiten, bedoeld in het eerste lid zijn overtredingen; de strafbare feiten, bedoeld in het tweede lid, zijn misdrijven.
HOOFDSTUK X
Slotbepalingen
Artikel 27
Deze landsverordening is niet van toepassing op instellingen die bij landsverordening in het leven zijn geroepen, en die handelingen verrichten, die overeenkomen of nagenoeg overeenkomen met de uitoefening van het verzekeringsbedrijf. Artikel 27a
Bij landsbesluit, houdende algemene maatregelen, kunnen natura-uitvaartverzekeraars, herverzekeraars en assurantiebemiddelaars
volgens de in dit landsbesluit te stellen regels onder het toezicht van de Bank worden geplaatst. Daarbij kunnen één of meer artikelen van deze landsverordening van overeenkomstige toepassing worden verklaard.
Onder natura-uitvaartverzekeraar wordt verstaan een ieder
die, geen levensverzekeraar zijnde, zijn bedrijf maakt van het sluiten van natura-uitvaartverzekeringen voor eigen rekening en het afwikkelen van die natura-uitvaartverzekeringen. Onder natura-uitvaartverzekering wordt verstaan een verzekering in verband met de verzorging van de uitvaart van een natuurlijke persoon waarbij de verzekeraar zich verbindt tot het leveren van een prestatie die niet tevens inhoudt het doen van een geldelijke uitkering.
Onder herverzekeraar wordt verstaan een ieder die zijn bedrijf maakt van het sluiten van herverzekeringen voor eigen rekening
en het afwikkelen van die herverzekeringen. Onder herverzekering wordt verstaan een verzekering waarbij risico’s worden geaccepteerd die door een verzekeraar worden overgedragen.
Onder assurantiebemiddelaar wordt verstaan een ieder die, anders dan uit hoofde van een arbeidsovereenkomst, bemiddeling verleent
bij het sluiten, afkopen of uitkeren van een levensverzekeringsovereenkomst of van een schadeverzekeringsovereenkomst.

==================================================================== Artikel 27b

Het is een ieder verboden bemiddeling te verlenen bij het
sluiten, afkopen of uitkeren van een levensverzekeringsovereenkomst of van een schadeverzekeringsovereenkomst met een in of buiten Aruba gevestigde onderneming of instelling die niet beschikt over een vergunning als bedoeld in artikel 5 tot de uitoefening van het verzekeringsbedrijf.
Onverminderd artikel 4, tweede lid, kan de Bank op een daartoe strekkend verzoek ontheffing verlenen van het verbod, bedoeld in
het eerste lid, indien dit naar het oordeel van de Bank niet strijdig is met de belangen die deze landsverordening beoogt te beschermen. Artikel 28 De Bank brengt jaarlijks voor 1 juli en met inachtneming van artikel 23 verslag uit aan de Minister over de uitvoering van deze landsverordening. Artikel 29 Bij regeling van de Minister kan een organisatie worden aangewezen, die een daarbij aangeduide groep van verzekeraars vertegenwoordigt met betrekking tot de uitvoering van deze landsverordening. Artikel 30 Kosten, verbonden aan de uitvoering van deze landsverordening, kunnen geheel of gedeeltelijk bij landsbesluit, houdende algemene maatregelen, de Bank en de organisatie, bedoeld in artikel 29, gehoord, op bepaalde groepen van betrokken verzekeraars worden verhaald. Artikel 31 Bij landsbesluit, houdende algemene maatregelen, kunnen, de Bank gehoord, nadere regels worden gesteld ter uitvoering van deze landsverordening. Artikel 32
Deze landsverordening treedt in werking op een bij of krachtens landsverordening te bepalen tijdstip.
Zij kan worden aangehaald als Landsverordening toezicht verzekeringsbedrijf.

Unofficial and not binding translation of the State Ordinance containing regulations on the supervision of the insurance business (State Ordinance Supervision Insurance Business) (AB 2000 No. 82) -----------------------------------------
CHAPTER I
General Provisions
§ 1. Definitions
Article 1
For the purposes of this State Ordinance and the provisions based there upon, the following terms shall be defined as stated below:
life insurance : an insurance contract concerning the payment contract of cash benefits related to the life or death of a person; general insurance : an insurance contract, other than a life contract insurance contract; life insurance : the business of concluding and settlement of business life insurance contracts for own account irrespective of whether the project is to make a profit; general insurance : the business of concluding and settlement of business general insurance contracts for own account, irrespective of whether the object is to make a profit; insurance business : the life insurance business or the general insurance business; insurer : anyone engaged in the insurance business; qualifying holding : a direct or indirect holding of more than ten percent of the issued share capital of an insurer or the ability to exercise directly or indirectly more than ten percent of the

voting rights in an insurer or the ability to exercise directly or indirectly a comparable degree of control; money laundering : an offence as meant in Articles 2:404, 2:405 and 2:406 of the Criminal Code of Aruba; terrorist financing : the criminal offense, meant in Article 2:55 of the Criminal Code of Aruba; auditor : a natural person who is not employed by the enterprise or institution, and who is an accountant with a “Registeraccountant” or an “Accountant-Administratieocnsulent” qualification listed as referred to in Article 36 second paragraph, subparagraph I, of the Dutch Accountancy Profession Act (”Stb”. [Bulletin of Acts and Decrees] 2012, 680); establishment : registered office, agency or branch, as well as any other permanent presence of an insurer on the territory of a state in the form of an organization, managed by the insurer's own personnel or by an independent person who is authorized to engage in the insurance business on behalf of the insurer; branch : part of an insurer, not being a separate legal entity; the Bank : the Central Bank of Aruba; Court : the Court of First Instance of Aruba; Minister : the Minister of Finance. § 2 Scope
Article 2

The Bank supervises insurers incorporated under the Aruban
law and the branches and agencies in Aruba of insurers incorporated outside Aruba.
An insurer incorporated under the Aruban law shall have the legal
status of a public limited company (“naamloze vennootschap”), a limited liability company (“vennootschap met beperkte aansprakelijkheid”), an Aruba exempt corporation, or a mutual insurance company.
The Bank shall decide whether an action or a combination of
actions does or does not constitute as being engaged in the life insurance business or the general insurance business, and whether an action or a combination of actions does or does not constitute as being engaged in the insurance business from an establishment in Aruba.
By State Decree containing General Administrative Measures,
having heard the Bank, categories of insurers may be designated, for which this State Ordinance shall not be applicable in part or in whole.
The Establishment of Business Ordinance (AB 1990, no. GT 55)
shall not be applicable for insurers.
Article 3
The general insurance business shall be divided into five
indemnity lines, viz.:
a. accident and health insurance; b. motor vehicle insurance;
c. maritime, transport, and aviation insurance;
d. fire insurance and other property insurance; e. other indemnity insurances.
In the event that the nature of a general insurance contract
plays a part or may play a part in a dispute, the Bank shall decide on request of the interested party, to which of the indemnity lines listed in the first paragraph a general insurance contract belongs.
Article 4
The Bank may impose restrictions and attach stipulations and
conditions to licenses, permissions or exemptions issued by it within the framework of the execution of this State Ordinance.
The Bank may grant exemption from regulations laid down by,
or by virtue of, this State Ordinance, provided that in the Bank's opinion this is not in conflict with the interests of the insurant, the insured or other persons entitled to payment.
Within thirteen weeks after receipt of a complete
application, the Bank shall decide on that application. If the Bank requests additional information, this period shall commence after the date of receipt of this additional information.
CHAPTER II
Admission to the insurance business
§ 1. In general
Article 5
Without a license from the Bank it is prohibited to approach the
public in or from Aruba regarding the direct or indirect engagement in the insurance business.
A license is granted either to engage in the life insurance
business or the general insurance business. A license to engage in the general insurance business shall be granted per line of insurance. § 2. Application for a license
Article 6
The application for a license as referred to in Article 5,
first paragraph, shall be addressed to the Bank and shall at least contain information on:
a. the identity, background, and a certificate of good conduct, as well as other data to be determined by the Bank, based on which the Bank can ascertain the integrity and suitability of:
the directors and other persons who determine or codetermine the policy of the applicant;
the members of the board of supervisory directors or of the
body of the applicant that has a task similar to that of the board of supervisory directors; b. the identity, background, and a certificate of good conduct, as well as other data to be determined by the Bank, based on which the Bank can ascertain the integrity of those who hold a qualifying holding in the applicant and, if the holder of a qualifying holding is a legal entity, of the persons who determine or co-determine the policy of this legal entity, as well as the extent of the qualifying holding in question;
c. annual financial statements or an opening balance sheet, which
shall be accompanied by a declaration that the information presents a true and fair view, signed by an auditor; d. a program of activities which the applicant intends to conduct; e. the envisaged management controls and administrative organization, including the financial accounting system and the internal controls; f. the applicant's Deed of Incorporation, Articles of Incorporation, and By-laws.
In the event that the applicant constitutes part of a
group, the data on the formal and factual control structures within the group and a list of names of the persons who determine or codetermine the group's policy shall also be provided.
An applicant who intends to conclude contracts covering
liabilities resulting from the use of motor vehicles, shall include with its application a statement signed by it stating that its insurance terms comply with the stipulations laid down in the State Ordinance Motor Vehicles Liability Insurance (AB 1999, no. GT 12).
The Bank shall decide on the application within thirteen
weeks after the date of receipt thereof. If further information related to the application have been requested by the Bank, this period shall start on the date of receipt of the additional information.
Exceeding the period referred to in the fourth paragraph shall be
similar to a refusal for granting the license.
§ 3 Licensing conditions
Article 7
The Bank shall grant a license, as meant in Article 5, first paragraph, provided it is evident to it that the following conditions are met:
a. the applicant's day-to-day management is determined by at least one natural person; b. in so far it concerns a legal entity, the applicant has a Supervisory Board or a similar body, consisting of at least three natural persons;
c. the Bank is of the opinion that the integrity of one or more
persons, referred to in Article 6, first paragraph, subparagraph a, is beyond doubt; d. the Bank is of the opinion that the suitability of one or more persons, referred to in Article 6, first paragraph, subparagraph a, is sufficient, individually or jointly, in connection with the conduct of the insurance business, or the performance of the duties in question at the insurer; the Bank is of the opinion that the integrity of a holder of a qualifying holding in the applicant, or, if the holder of a qualifying holding is a legal entity, of the persons who determines or also determines the policy of this legal entity is beyond doubt, or that there is no or could be question, otherwise, of undesirable influence

on the policy of the applicant as a result of a qualifying holding in the applicant; f. the declaration, mentioned in Article 6, first paragraph, sub c. implies that the annual financial statements or opening balance sheet present a true and fair view of the size and composition of the capital of the applicant; g. in view of the data as mentioned in Article 6, first paragraph, sub d and e, the applicant is able to realize its intentions, or meet the requirements to be imposed on it in connection with the supervision; h. the granting of a license to the applicant does not lead to an undesirable development of the insurance sector, or to a circumstance that could bring this about;
i. the applicant has a minimum solvency margin as mentioned in
Article 14.
Chapter III
Revocation of the license
Article 8

The Bank shall revoke a license as mentioned in Article 5,
first paragraph, if the insurer:
a. so requests; b. has ceased to operate in the life insurance business or the concerned indemnity line.
The Bank may revoke a license as mentioned in Article 5,
first paragraph, if the insurer:
a. no longer meets the regulations for obtaining the license laid down by, or by virtue of, this State Ordinance; b. in the opinion of the Bank fails to comply with statutory regulations in force in Aruba or abroad concerning the engagement in the insurance business;
c. fails to comply with a directive as mentioned in Article 15,
first paragraph; d. has not commenced the business operations within six months after the day the license was granted;

e. does not or not sufficiently comply with the regulations laid down by or pursuant to the State Ordinance on the Prevention and Combating of Money Laundering and Terrorist Financing (AB 2011 No. 28) or any other statutory rules on the prevention and suppression of money laundering and terrorist financing in the opinion of the Bank.
Article 9

The revocation, mentioned in Article 8, shall only become
effective, after the pertinent decision has become irrevocable. As soon as the revocation has become effective, the Bank shall publish the decision in the Government Gazette of Aruba.
The insurer shall wind up the part of its business, for
which the license was granted, within a term to be determined by the Bank. During this term, for the purposes of this State Ordinance, the insurer shall be put on a par with an insurer who has a license as mentioned in Article 5, first paragraph.
CHAPTER IV
Supervision of the engagement in the insurance business § 1. Management controls and administrative organization
Article 10
The Bank may give insurers directives with regard to the
administrative organization and internal operational management, including the financial accounts and internal control.
The directives meant in the first paragraph may relate to the
implementation of rules in other State Ordinances.
The Bank may give an insurance company instructions on the way
in which directives as meant in the first paragraph are to be implemented.
Article 10a
An insurer shall pursue an adequate policy for sound
corporate governance and shall set up its corporate governance

structure in such a way that sound corporate governance is guaranteed.
2. The policy and structure as referred to in the first
paragraph shall in any case deal with:
a. the recording and performance of the duties, responsibilities and the working method of the management board and the board of supervisory directors; b. the suitability, both individually and collectively, of the directors and supervisory directors;
c. the adoption and implementation of a clear strategy and
objectives; d. the adoption, implementation, monitoring and, where necessary, adjustment of the overall risk policy; e. the systematic control of the management of the risks associated with the business activities; f. the adequate provision of information to the management board and the board of supervisory directors; g. a careful and sound decision-making; h. the remuneration of the directors and supervisory directors;
i. the independence of the supervisory directors;
j. the role and responsibilities of the shareholders of the company.
3. The Bank may give insurers directives with regard to the
policy and the structure as referred to in the first paragraph.
Article 10b

An insurer shall dispose of written procedures for the careful
and consistent handling of complaints within a reasonable period.
The Bank may give insurers directives with regard to the first
paragraph.
§ 2. Statements
Article 11
Within six months after the end of each financial year the
insurer shall send the Bank statements, which provide a clear picture of the management carried out by the insurer and of its financial position.
The insurer shall submit the statements accompanied by an
auditor's declaration stating that they present a true and fair view. As evidence that the statements have been audited by him or, if the statements as mentioned in the third paragraph were included in his audit, the auditor shall certify the statements. When giving the audit assignment, the insurer shall authorize the auditor in writing to provide the Bank all information that may be reasonably considered necessary to carry out the duty imposed on the Bank by, or by virtue of, this State Ordinance.
In so far applicable one of the statements shall consist of the
actuarial report, which shall be provided with an actuarial certification. With his certification the actuary shall confirm that he has ascertained that the provisions stated in the actuarial report have been assessed correctly. He shall be authorized to amplify his certification or to make reservations on any point.
The Bank shall determine the models of the statements
mentioned in the first paragraph.
§ 3. Annual report
Article 12
Each year, within six months after the end of the financial
year, an insurer shall submit its annual financial statements and annual report to the Bank. The annual report shall present a true and fair view of the position on the balance sheet date and of the business transactions during the financial year.
The annual financial statements and annual report of
an insurer domiciled outside Aruba shall concern the entire business. § 4. Technical provisions
Article 13
An insurer shall maintain adequate technical provisions which are
fully covered by assets. The Bank may raise objections against the nature and valuation of these assets, which objections shall be promptly met by the insurer.
The Bank may provide general guidelines with regards to the
contents and the magnitude of the technical provisions, mentioned in the first paragraph.

§ 5. Solvency margin
Article 14

An insurer engaged in the life insurance business must have
a solvency margin amounting to eight percent of the provision for insurance obligations at the end of the preceding financial year, without taking the reinsurance of these obligations into account.
An insurer engaged in the general insurance business must
have a solvency margin equal to the highest outcome of one of the following calculations:
a. fifteen percent of the gross premiums booked in the preceding financial year, or b. fifteen percent of the average gross claims booked in the past three financial years.
The Bank may give general guidelines with regards to the
solvency margin, in which among other things may be indicated, what amount of solvency margin must at least be maintained.
By State Decree, containing General Administrative Orders,
special solvency margins may be prescrbed for certain categories of insurers. § 6. Structural supervision
Article 14a
Without the permission from the Bank, a natural person or a
legal entity is not allowed:
a. to hold, acquire, or increase a qualifying holding in an insurer; b. to exercise any control associated with a qualifying holding in an insurer.
The Bank shall grant permission requested as referred to in the
first paragraph, unless the Bank is of the opinion that the integrity of the applicant or, if the applicant is a legal entity, of the

persons who determine or also determine the policy of this legal entity is not beyond doubt, or that there is or could be question, otherwise, of undesirable influence on the policy of the enterprise or institution as a result of a qualifying holding in the enterprise or institution.
3. If a qualifying holding in an insurer is held, acquired, or
increased without having obtained permission for this act, or without having observed the restrictions imposed when granting the permission, the infringing natural person or legal entity shall reverse the act performed within a period to be determined by the Bank or shall observe the restrictions as yet. This obligation shall cease to apply, if permission is given for the act in question as yet, or the restrictions not observed are withdrawn.
4. If the exercise of any control, associated with a qualifying
holding in an insurer, takes place without having obtained permission for this act, or without having observed the restrictions or conditions imposed when granting the permission, a decision made also based on the control exercised can be annulled by the Court, on the demand of the Bank, if the decision would have been different or would not have been made, if the control in question had not been exercised, unless permission is granted as yet, or the restrictions or conditions not observed are observed as yet. Insofar as necessary, the Court shall provide for the consequences of the annulment.
5. If a natural person or a legal entity does not comply with all
regulations or conditions attaching to the permission as referred to in the first paragraph, the Bank may set a period within which that natural person or legal entity shall comply with the regulations or conditions not complied with as yet.
Article 14b

Article 6, first paragraph, subparagraphs a, b, f, and second,
fourth, and fifth paragraph shall be equally applicable to an application for permission as referred to in Article 14 a, first paragraph.
The issue of the permission as referred to in Article 14a,
first paragraph, shall be announced in the Official Gazette of Aruba, as well as in one or more newspapers to be determined by the Bank, unless the Bank is of the opinion that the announcement thereof would or could lead to disproportionate favoring of, or prejudice to parties involved in the decision or third parties.
The Bank may modify or revoke the permission as referred to in
Article 14a, first paragraph, in whole or in part:
a. at the written request of the holder; b. if the data or documents provided for obtaining the declaration have turned out to be incorrect or incomplete to such an extent that a different decision would have been made on the application, if, at the time of assessing the application, the correct circumstances had been fully known;
c. if not all regulations or conditions laid down in the declaration
are complied with within the period referred to in Article 14a, fifth paragraph; d. if the holder does not comply with an instruction as referred to in 15b. In that case, the second paragraph shall be equally applicable.
Article 14c
A natural person or legal entity whose qualify holding in an
insurer changes in such a way that the extent of this holding falls below 10, 20, 33, or 50 percent, shall notify the Bank thereof in writing.
Each year in the month of July, an insurer shall notify the
Bank in writing of the identity of each natural person or legal entity holding a qualifying holding in that institution, insofar as these data are known to it. As soon as this becomes known to it, an insurer shall also notify the Bank in writing of each acquisition or disposal of, or change to a qualifying holding in that institution, by which the extent of the holding exceeds or falls below 10, 20, 33, or 50 percent.

§ 7. Integrity supervision
Article 14d

An insurer shall pursue adequate policy for an ethical
conduct of its business and shall set up its operational management in such a way that the ethical conduct of its business is safeguarded.
At any rate, the policy and the operational management,
referred to in the first paragraph, shall be aimed at:
a. the countering of conflicts of interests; b. the suppression of money laundering and terrorist financing;
c. the compliance with rules laid down by or pursuant to the State
Ordinance on the Prevention and Suppression of Money Laundering and Terrorist Financing and other statutory regulations on the prevention and combating of money laundering and terrorist financing; d. the prevention of punishable offenses or other violations of the law by the insurer or its employees, which could prejudice the confidence in the enterprise or in the financial markets; e. the countering of relationships with clients or other business relationships, which could prejudice the confidence in the enterprise or in the financial markets; f. the countering of other acts by the insurer or its employees, which are in conflict with generally accepted standards according to unwritten law to such an extent, that this could prejudice the confidence in the enterprise or in the financial markets.
The Bank may give insurers directives with regard to:
a. the ethical conduct of the insurance business; b. the way in which it is determined whether the integrity of a person, referred to in Article 6, first paragraph, subparagraph a, is beyond doubt, and whether such person is suitable, and which facts and circumstances are to be taken into consideration for that purpose.
The directives, referred to in the third paragraph, may be
related to the implementation of the regulations of other State

Ordinances. They shall only be given or modified after consulting the representative organization involved.
Article 14e

An insurer shall not be associated through persons or legal
entities in a formal or factual control structure:
a. that is intransparent to such an extent that it constitutes or can constitute an obstacle to the adequate exercise of supervision of that enterprise; b. if foreign law applies to these persons or legal entities, and this foreign law constitutes or can constitute an obstacle to the adequate exercise of supervision of that enterprise.
CHAPTER V
Special measures
§ 1. Right to give directives
Article 15
If an insurer does not meet the regulations for
obtaining the license laid down by, or by virtue of, this State Ordinance, or if the Bank establishes that an insurer does not comply with the provisions laid down by, or by virtue of, Articles 10 through 14, 14c, second paragraph, 14d and 14e, or if the Bank perceives other signs, that in its opinion endanger or might endanger an insurer's solvency, it can give this insurer a directive to comply again, within a term to be determined by the Bank, with these regulations or with the provisions laid down by, or by virtue of, Articles 10 through 14, 14c, second paragraph, 14d and 14e, or to ensure that the solvency is brought again to a level to be determined by the Bank.
If within two weeks after the date of the directive the Bank
has not received an answer from the insurer which it regards as satisfactory, or if in its opinion the directive has not or not adequately been complied with, it may, without prejudice to its authorization for revocation of a license pursuant to Article 8, to

impose a penalty charge order pursuant to Article 16, first paragraph, and to impose an administrative fine pursuant to Article 16, second paragraph:
a. notify the insurer in writing that as from a certain date all or certain of its bodies may only exercise their powers after approval by one or more persons appointed by the Bank, which notification shall take immediate effect; b. notify the insurer in writing that the Bank will proceed to publication of the directive in the Government Gazette of Aruba.
3. If the cases mentioned in the first paragraph require immediate
intervention, the Bank may without applying the first paragraph, immediately implement the second paragraph, sub a, after it has given the insurer the opportunity to present its views about the immediate enforcement.
4. The bodies, mentioned in the second paragraph, sub a, shall give
the persons appointed by the Bank full cooperation. For losses resulting from acts performed in contravention of a notification as mentioned in the second paragraph, sub a, the persons who perform these acts as a body of the insurer shall be personally liable towards the insurer.
5. The decision to publish a directive shall only become effective
after it has become irrevocable. If after the publication the insurer complies with the directive as yet, or if the Bank withdraws the directive, this shall be published by the Bank in the Government Gazette of Aruba.
6. The costs and remuneration of the persons designated by the Bank
pursuant to this Article shall be paid by the insurer in question.
Article 15a

If the Bank is of the opinion that an auditor or actuary does
not provide or no longer provides the necessary guarantees that he can fulfill his task properly in relation to an insurance company, the Bank may decide that this auditor or actuary is no longer authorized to sign the reports meant in this State Ordinance in relation to that insurance company.
The Bank will notify the insurance company in question
immediately of a decision as meant in the first paragraph.
Article 15b
The Bank may give the holder of a qualifying holding in an insurer, as regards to whom the condition of Article 7, subparagraph

e, is no longer fulfilled in its opinion, an instruction to take a certain course of action with regard to specified issues. §2. Administrative sanctions
Article 16

For the violation of the provisions laid down by or pursuant to
Articles 4, 5, first paragraph, 9, second paragraph, 10 through 15b, 17, 22, first and third paragraph, 24b, third, fourth, and fifth paragraph, 25, sixth paragraph, and 27a, first paragraph, 27b, the Bank may impose a penalty charge order.
For the offenses referred to in the first paragraph, the Bank
may also impose an administrative fine not exceeding Afl. 1,000,000.- per separate violation.
Violations can be committed by natural persons and legal
entities. Article 1:127, second and third paragraph, of the Criminal Code of Aruba shall be equally applicable.
The Bank shall adopt guidelines for the exercise of the powers,
referred to in the first and second paragraph, and shall record them in a policy document. The policy document shall at any rate contain a description of the procedures to be followed when exercising the powers, referred to in the first and second paragraph. The policy document, referred to in the first sentence, as well as all modifications to be introduced to same afterwards shall be announced in advance in a manner to be determined by the Bank.
By State Decree containing General Administrative Orders, rules
shall be laid down with regard to the principles for the determination of the amount of the penalty charge order and the administrative fine per violation. The violations shall be classified into categories based on the severity of the violation, with the corresponding basic amounts, minimum amounts, and maximum amounts.
Forfeited penalties and administrative fines shall accrue to
the Bank.

Article 16a

If, at the time of committing a violation, a period of five
years has not yet expired since an administrative fine was imposed on the violator for a similar violation, the amount of the administrative fine, referred to in Article 16, second paragraph, shall be doubled for each separate violation.
Notwithstanding Article 16, second paragraph, the Bank may set
the amount of the administrative fine at a maximum of twice the amount of the benefit obtained by the violator as a result of the violation, if his benefit exceeds Afl. 1,000,000.-.
Article 16b
If the Bank intends to impose an administrative fine, it shall
notify the person concerned thereof, stating the grounds on which the intention is based.
The Bank shall give the person concerned the opportunity to
express his view, either in writing or orally, within a reasonable period, before imposing the administrative fine by decision.
If, after the person concerned has expressed his view, the Bank
decides that no administrative fine will be imposed for the violation, the person concerned shall be informed hereof in writing.
Article 16c
At the request of the violator, the Bank may cancel a penalty
charge order, suspend the duration thereof for a specific period, or reduce the penalty, in case the violator is permanently or temporarily unable in whole or in part to comply with his obligations.
Furthermore, at the request of a violator, the Bank may cancel
a penalty charge order, if the decision has been effective one year without having forfeited the penalty.
Article 16d
Anyone in respect of whom the Bank has performed an act from which he could reasonably infer that an administrative fine will be imposed on him for violation of the provisions laid down by or pursuant to this State Ordinance will not be required to make any statement in that regard. He shall be notified to this effect before being asked to provide information.
Article 16e
The administrative fine is due within six weeks after the date
of the decision by which it was imposed.
Statutory interest will be added to the fine, to be counted
from the day after the six weeks have elapsed since the notification of the decision.
Article 16f
The power to impose an administrative fine will lapse:
a. if criminal prosecution has been instituted for the infringement, and the court hearings has started, or if the right to prosecute has ceased to exist pursuant to Article 1:149 of the Criminal Code of Aruba; b. three years after the day the non-compliance with the rule was discovered.
The period meant in the first paragraph, sub b will be
interrupted by a notification of the order by which the administrative fine was imposed.
The right to institute criminal proceedings shall lapse, if an
administrative fine was already imposed on the subject matter for the same infringement.
The Bank and the Public Prosecution Service shall consult
periodically on the choice between imposing an administrative fine or criminal-law sanction to avoid unlawful concurrence of those sanctions.
Article 16g
The Bank is authorized, for the purpose of protection of the
financial system and preventing money laundering and terrorist financing, to publish the offence for which the order subject to a penalty or the administrative fine was imposed, the infringed rule, as well as the name, address and domicile of the person on whom the administrative fine was imposed.
The Minister may lay down rules on the exercise of the
authority meant in the first paragraph.
The order to publish shall take effect on the day on which the
offence is made public, without suspension of the effect for the duration of the period for appeal or, if appeal has been brought, of the appeal, if the address of the person concerned is not known and it cannot be obtained either with reasonable efforts.
Article 16h
The Bank shall keep record of the acts carried out in the context of an investigation prior to the imposition of an administrative fine, stating the persons who carried out those acts.
Article 16i
If a forfeited penalty or fine is not paid within the period
set by the Bank, a demand will be made to the infringer to pay the amount of the penalty or fine, plus the costs of the demand, within two weeks.
In the absence of payment, the amount and the costs, referred
to in the first paragraph, shall be augmented by the collection costs, collected by the Bank by writ of execution. 3.The writ of execution shall be published by serving a process as referred to in the Code of Civil Procedure of Aruba and shall constitute entitlement to enforcement, which may be enforced while applying the provisions of this Code. 4.The writ of execution shall at any rate state:
a. the words ‘writ of execution’ in the heading; b. the amount of the collectable principal sum, augmented by the statutory interest due;
c. the order or the statutory provision from which the amount
due arises; d. the costs of the demand and of the writ of execution; e. that it may be enforced for the account of the violator. 5.For a period of six weeks after the date of service, an objection may be lodged against the writ of execution. Objection shall be lodged against the Bank with the Court and in the manner stipulated for filing claims. Provided it has been lodged in a timely fashion and in the prescribed manner, the objection shall suspend the enforcement.
Article 16j
The Bank may, in view of the interests this State Ordinance seeks
to protect, issue a public warning in case of infringement of any prohibitory provision of this State Ordinance, if necessary, stating the considerations that led to the warning.2. The minister may lay down rules concerning the exercise of the power as referred to in the first paragraph.
The decision to issue a public warning shall enter into effect on
the date on which the public warning has been published, without suspending the effect for the duration of the appeal period or, if an appeal has been lodged, of the appeal, if no address of the subject matter is known, and the address also cannot be obtained by reasonable efforts.
Article 16k
If the Bank intends to issue a public warning, it shall notify the
person (legal/natural) concerned in writing of the intended decision and shall give him the opportunity to express his views.
The Bank may decide not to apply the first paragraph, if the
urgency of the matter dictates otherwise, or if no address of the person (legal/natural) concerned is known, and the address also cannot be obtained by reasonable efforts. § 3. Appointment of certain positions
Article 17
1.An insurer shall not appoint persons to positions as referred to in
Article 7, sub a and b, prior to having obtained the approval thereof
from the Bank.
Within thirteen weeks after receipt of a complete application,
the Bank shall decide on that application. If the Bank requests additional information, this period shall commence after the date of receipt of this additional information.
CHAPTER VI
The register
Article 18
The Bank shall keep a register in which all insurers are
entered, which have obtained a license as mentioned in Article 5, first paragraph. The register shall be organized in a way to be determined by the Bank and shall be available for everyone for inspection at the Bank's office, free of charge.
The Bank shall ensure the removal from the register of every
insurer whose license as mentioned in Article 5, first paragraph, is revoked.
Article 19
The entry in or removal from the register shall be published
by the Bank in the Government Gazette of Aruba and in two local newspapers within two weeks after the day on which it took place.
Each year in the month of January, a transcript of the
register showing the position as per December 31 of the preceding year shall be published by the Bank in the Government Gazette of Aruba and in two local newspapers.
CHAPTER VII
Emergency regulation and bankruptcy
§ 1. Emergency regulation
Article 20
In the event that the solvency of an insurer entered in the
register shows signs of a dangerous development or there are otherwise signs, that threaten the continued existence of an insurer, and no improvement in this development may be expected in reason, the Court may, on petition of the Bank declare that the insurer is in a position that in the interests of the combined creditors requires a special measure.
In case of a declaration as mentioned in the first
paragraph, the Court shall appoint on the Bank's recommendation one or more administrators, who shall be authorized to liquidate all or part of the insurance agreements concluded by the insurer as well as to proceed to transfer all or part of its rights and obligations under or by virtue of insurance agreements.
By State Decree, containing General Administrative Orders,
regulations may be laid down concerning the way of performing the duties, mentioned in the second paragraph. By this decree, one or more provisions of the Bankruptcy Ordinance may be declared applicable and may be deviated from regulations of that state ordinance. § 2. Bankruptcy and liquidation

Article 21

The Bank may file a petition at the Court to adjudicate an
insurer bankrupt, if it appears to it that the insurer has a negative proprietors’ equity capital and either the purpose to be achieved by the measure, described in Article 20, can not or no longer be realized, or, if this measure was not previously requested, there is no longer a reasonable prospect that the purpose to be achieved by this measure may be realized as yet.
In deviation from Article 1 of the Bankruptcy Ordinance the
bankruptcy shall be adjudicated, irrespective of whether the insurer is in a position of having ceased to make payments.
If a petition to adjudicate bankrupt is filed by another than the
Bank, including an insurer's own petition, this shall not be decided on until after the Court has given the Bank the opportunity to express its opinion on this matter.
An insurer entered in the register that has decided to
liquidate its business in whole or in part, or to dissolve it, shall notify the Bank at least thirteen weeks before the decision will be executed of the way in which the liquidation, respectively the dissolution, will take place.
CHAPTER VIII
Special provisions
§ 1. Transfer of rights and obligations
Article 22
An insurer shall only transfer its rights and obligations from
all or part of the insurance agreements without the permission of the persons who can derive rights from these agreements to another insurer by written agreement and with written permission of the Bank.
In deviation from the first paragraph, an insurer shall be
authorized to transfer its rights and obligations from an individual insurance agreement at the insurant's written request.
The Bank may give general guidelines with regards to the
transfer of rights and obligations from insurance agreements.
Secrecy
Article 23
Anyone who performs or performed any duty for the purposes of
this State Ordinance or a decision made pursuant to this State Ordinance is not allowed to use data or information provided or obtained pursuant to this State Ordinance or received from a foreign body as referred to in Article 24, first paragraph, further or differently or to make it known further or differently than required for the performance of his duty or by this State Ordinance.
Notwithstanding the first paragraph, the Bank shall be
authorized to make statements by using data or information obtained in the performance of its duty pursuant to this State Ordinance, provided these data or that information cannot be traced back to separate persons or institutions.
The first paragraph shall not affect the obligation to make
a statement, in accordance with the Code of Criminal Procedure of Aruba (AB 1996 No. 75), as a witness in criminal cases with regard to data or information obtained in the performance of the duty assigned to him pursuant to this State Ordinance. Likewise, it shall not affect the obligation to make a statement, in accordance with the Code of Civil Procedure of Aruba (AB 2005 No. 34), as a witness or a party in a personal appearance of parties in civil cases with regard to data or information obtained in the performance of the duty assigned to him pursuant to this State Ordinance, and this on the understanding that such an obligation shall only apply, insofar as it concerns an insurer that has been declared bankrupt or that has been dissolved by court decision, and that it does not apply to data or information related to enterprises or institutions that are or were involved in an attempt to enable the insurer in question to continue its business. § 3. Exchange of data
Article 24
Notwithstanding Article 23, first paragraph, the Bank shall
be authorized to exchange data and/or information obtained in the performance of the duties assigned to it pursuant to this State Ordinance with bodies designated by foreign public authorities, which are charged with:
a. the supervision of persons and institutions that are active in the financial markets, or

b. the supervision of the compliance with legislation and regulations concerning the prevention and suppression of money laundering and terrorist financing.
2. The power, referred to in the first paragraph, shall not be
exercised, if:
a. the purpose for which the data or information will be used has not been sufficiently specified; b. the contemplated use of the data or information is not in line with the supervision of financial markets or persons working in these markets;
c. provision of the data or information is contrary to public order
or the laws of Aruba; d. the secrecy of the data or information has not been sufficiently guaranteed; e. provision of the data or information is or could be contrary in reason to the interests this State Ordinance intends to protect; f. it has not been sufficiently guaranteed that the data or information will not be used for a purpose other than for which they are provided.
3. Insofar as the data or information, referred to in the first
paragraph, have been obtained from a foreign supervisory body, the Bank shall not provide them to another foreign supervisory body, unless the body from which the data or information have been obtained approved the provision of the data and information and, if applicable, approved the use for a purpose other than for which the data or information have been provided.
4. If a foreign supervisory body requests the Bank to use data or
information, which the Bank provided pursuant to the first or second paragraph, for a purpose other than for which they have been provided, the Bank shall only comply with that request, if:
a. the contemplated use is not contrary to the first or second paragraph; or b. the supervisory body concerned could obtain these data or information from Aruba, for that other purpose, in a way other than provided for in this State Ordinance, with due observance of the applicable legal procedures.

Article 24a
Notwithstanding Article 23, first paragraph, the Bank shall be authorized to provide data or information obtained in the performance of the duties assigned to it pursuant to this State Ordinance to persons and bodies charged with the exercise of criminal-law powers pursuant to the Code of Criminal Procedure of Aruba.
Article 24b

For the performance of its duty pursuant to this paragraph, the
Bank may demand information from anyone, if this is necessary for the performance of the duty of a body referred to in Article 24, first paragraph. Article 25, third through sixth paragraph, shall be equally applicable.
At the request of a body as referred to in the first paragraph,
the Bank may ask data and information from or conduct an investigation or cause same to be conducted at an insurer or at anyone who can be suspected in reason of disposing of data or information that may be important to the requesting body.
The person who has been asked for data or information as
referred to in the second paragraph shall provide same within a reasonable period to be set by the Bank.
The person at whom an investigation as referred to in the
second paragraph is conducted shall give all cooperation necessary for the proper conduct of that investigation. Article 25, third and fourth paragraph, shall be equally applicable.
The Bank may allow that an officer of a body as referred to
in Article 24, first paragraph, participates in the implementation of a request as referred to in the second paragraph. The officer referred to in the first sentence shall comply with the instructions of the employee of the Bank, charged with the implementation of the request. The order referred to in the fourth paragraph shall also apply to the officer referred to in the first sentence.

Article 24c

The Bank shall be authorized to consult the registers of and to
ask all information from the Chamber of Commerce and Industry, the Department of Land Surveying and Real Estate Registration, the Civil Registry, as well as other bodies to be designated by State Decree containing General Administrative Orders.
The bodies mentioned in the first paragraph shall give the Bank
all cooperation free of charge and within the reasonable period set by it, as requested pursuant to the first paragraph. § 4. Supervision
Article 25
The persons employed by the Bank and designated for
this purpose by the President of the Bank shall be charged with supervising the compliance with the provisions laid down by or pursuant to this State Ordinance. Such State Decree shall be announced in the Official Gazette of Aruba.
The persons designated pursuant to the first
paragraph may exercise the supervision in a risk-oriented manner. They shall report on the exercise of the powers mentioned in the third paragraph to the President of the Bank or to the executives within the Bank to be designated in writing by the President.
The employees of the Bank, designated by virtue of the first
paragraph, shall be authorized, exclusively in as far as this is necessary in reason for the performance of their duties:
a. to request all information; b. to demand inspection of all books, documents, and other information carriers concerning the business and to make transcripts thereof or copies thereof or to take these along temporarily for this purpose;
c. to enter all places, except for dwelling houses without specific
permission of the occupant, accompanied by persons to be designated by them.
If necessary, access to a place as mentioned in the
third\ paragraph, sub c, shall be gained with the assistance of the police.
By State Decree, containing General Administrative Orders,
rules shall be laid down regarding the way in which the employees of the Bank, designated by virtue of the first paragraph, perform their duties.
Everyone shall give the persons, designated by virtue of the
first paragraph, the cooperation required pursuant to the third paragraph.
CHAPTER IX
Penal provision
Article 26
The person who violates a regulation, condition, or
limitation laid down by or pursuant to Articles 4, 5, first paragraph, 9, second paragraph, 10, through 15b, 17, 22, first and third paragraph, 24b, third, fourth, and fifth paragraph, 25, sixth paragraph, and 27a, first paragraph, 27b, shall be punished with imprisonment not exceeding one year, or with a fine of the fourth category.
Acting intentionally in violation of any provision, laid down in
or in pursuance of the Articles, mentioned in the first paragraph, shall be punished with imprisonment not exceeding six years or a fine of the sixth category.
The punishable acts, mentioned in the first paragraph are
punishable offenses; the punishable acts, mentioned in the second paragraph are criminal offenses.
CHAPTER X
Final provisions
Article 27
This State Ordinance is not applicable for institutions that are established by state ordinance and that conduct activities similar or almost similar to the engagement in the insurance business.

Article 27a

By State Decree containing General Administrative Orders,
funeral insurance companies with in-kind benefits, reinsurers, and insurance agents may be placed under the supervision of the Bank in accordance with rules to be laid down by this State Decree. One or more Articles of this State Ordinance may then be declared equally applicable.
A funeral insurance company with in-kind benefits shall be
understood to be anyone, not being a life insurer, whose business is to conclude funeral insurances with in-kind benefits for own account and to complete these funeral insurances with in-kind benefits. Funeral insurance with in-kind benefits shall be understood to be insurance in connection with the funeral arrangements of a natural person, while the insurer undertakes to deliver a performance that does not also imply paying a financial benefit.
A reinsurer shall be understood to be anyone whose business is
to conclude reinsurances for own account and to complete these reinsurances. Reinsurance shall be understood to be insurance under which risks are accepted that are transferred by an insurer.
An insurance agent shall be understood to be anyone who, other
than on account of an employment contract, acts as an intermediary in the conclusion, surrender, or payment of a life insurance contract or a nonlife insurance contract.
Article 27b
It is not allowed for anyone to act as an intermediary in the
conclusion, surrender, or payment of a life insurance contract or a nonlife insurance contract with an enterprise or institution domiciled in or outside Aruba, which does not dispose of a license as referred to in Article 5 for the conduct of the insurance business.
Without prejudice to Article 4, second paragraph, the Bank may
grant an exemption from the prohibition referred to in the first paragraph, on a request to that effect, if the Bank is of the opinion

that this is not contrary to the interests this State Ordinance intends to protect.
Article 28
Each year, before July 1, the Bank shall report to the Minister on the enforcement of this State Ordinance, with due observance of Article 23.
Article 29
By Ministerial Regulation an organization may be designated, that represents a thereby indicated group of insurers with regard to the enforcement of this State Ordinance.
Article 30
Costs related to the enforcement of this State Ordinance, by Ministerial Decree, having heard the Bank and the organization as mentioned in Article 29, may be fully or partially charged to certain groups of insurers.
Article 31
By State Decree, containing General Administrative Orders, having heard the Bank, further rules may be laid down for the enforcement of this State Ordinance.
Article 32

This State Ordinance shall become effective on a date to be
determined by or by virtue of a state ordinance.
It may be cited as State Ordinance Supervision Insurance
Business.

AB 2002 no. 50 CENTRAAL WETTENREGISTER 30 september 2015 * ==================================================================== Intitulé : LANDSBESLUIT, houdende algemene maatregelen, ter uitvoering van de artikelen 2, vierde lid, 14, vierde lid, en artikel 31 van de Landsverordening toezicht verzekeringsbedrijf (AB 2002 no. 82) Citeertitel: Landsbesluit bijzondere bedrijfsrisicoverzekeraars Vindplaats : AB 2002 no. 50 Wijzigingen: AB 2015 no. 47 ==================================================================== § 1. Inleidende bepalingen Artikel 1 In dit landsbesluit wordt verstaan onder:
bijzondere bedrijfs- : een verzekeringsbedrijf dat risico’s verzekert risicoverzekeraar of herverzekert die uitsluitend of in overwegende mate voortvloeien uit de bedrijfs- of beroepsuitoefening van aandeelhouders of leden van een in een groep verbonden ondernemingen of van deelnemers in een samenwerkingsverband; vergunning : een vergunning als bedoeld in artikel 5, eerste lid, van de Landsverordening toezicht verzekeringsbedrijf (AB 2000 no. 82); Landsverordening : de Landsverordening toezicht verzekeringsbedrijf. Artikel 2

Bijzondere bedrijfsrisicoverzekeraars worden onderscheiden in:
a. zuivere bijzondere bedrijfsrisicoverzekeraars; b. associatieve bijzondere bedrijfsrisicoverzekeraars;
c. uitleenbare bijzondere bedrijfsrisicoverzekeraars;
d. overige bijzondere bedrijfsrisicoverzekeraars.
Bijzondere bedrijfsrisicoverzekeraars als bedoeld in het eerste lid, onderdelen a en b, verzekeren of herverzekeren geen andere
risico’s dan die van hun aandeelhouders respectievelijk leden.
Een bijzondere bedrijfsrisicoverzekeraar als bedoeld in het
eerste lid, onderdeel c, verzekert of herverzekert geen andere risico’s dan die van de deelnemende instellingen. Artikel 3 Een bijzondere bedrijfsrisicoverzekeraar sluit geen overeenkomsten tot dekking van de wettelijke aansprakelijkheid als bedoeld in de Landsverordening aansprakelijkheid motorrijtuigen (AB 1999 no. GT 12). § 2. Vergunningsaanvraag Artikel 4
Het krachtens artikel 6, eerste lid, onderdeel d, van de

AB 2002 no. 50 CENTRAAL WETTENREGISTER 30 september 2015 * ==================================================================== Landsverordening door een bijzondere bedrijfsrisicoverzekeraar te overleggen programma van werkzaamheden bevat ten minste:
a. een opgave van de aard van de risico’s die de bijzondere bedrijfsrisicoverzekeraar voornemens is te dekken, b. de technische grondslagen die de bijzondere bedrijfsrisicoverzekeraar voornemens is toe te passen, met name de grondslagen voor de berekening van de tarieven en de technische voorzieningen,
c. een uiteenzetting omtrent de leidende beginselen op het gebied van
de herverzekering, d. inzicht in de aanwezigheid van de krachtens artikel 8, eerste lid, vereiste solvabiliteitsmarge en een raming van de financiële middelen tot dekking van de solvabiliteitsmarge, en e. een vijfjarige financiële prognose, waaronder een raming van de solvabiliteitsmarge en de liquiditeitspositie.
2. Een aanvrager met zetel buiten Aruba dient in het land waar
zijn zetel zich bevindt, bevoegd te zijn tot uitoefening van het verzekeringsbedrijf.
3. De Bank stelt het model van het aanvraagformulier vast.
Artikel 5

Onverminderd artikel 7 van de Landsverordening verleent de
Bank een vergunning aan een bijzondere bedrijfsrisicoverzekeraar, mits haar is gebleken dat voldaan is aan de volgende voorwaarden:
a. het dagelijks beleid van de bijzondere bedrijfsrisicoverzekeraar wordt bepaald door ten minste één natuurlijke persoon die zijn woonplaats in Aruba heeft; b. de bijzondere bedrijfsrisicoverzekeraar beschikt over een solvabiliteitsmarge als bedoeld in artikel 8;
Een vergunning wordt slechts verleend voor de uitoefening van
het bedrijf van bijzondere bedrijfsrisicoverzekeraar in één van de in artikel 2, eerste lid, genoemde groepen.
Indien het dagelijks beleid van de bijzondere bedrijfsrisicoverzekeraar door een vertegenwoordiger wordt bepaald, zijn de artikelen 7, eerste lid, onderdelen c en d, en 17 van de Landsverordening
van overeenkomstige toepassing op de vertegenwoordiger.
Een bijzondere bedrijfsrisicoverzekeraar voert te hare kantore
in Aruba de financiële administratie van het door haar uitgeoefende verzekeringsbedrijf en bewaart aldaar alle zakelijke bescheiden betreffende dit verzekeringsbedrijf gedurende een periode van tenminste tien jaar. § 3. Bijzondere toezichtsvoorschriften Artikel 6
Een bijzondere bedrijfsrisicoverzekeraar dient jaarlijks binnen zes maanden na afloop van het boekjaar haar jaarrekening bij de
Bank in.
De jaarrekening van een bijzondere bedrijfsrisicoverzekeraar
met zetel buiten Aruba betreft het gehele bedrijf, waar dit ook wordt uitgeoefend.
De jaarrekening van een bijzondere bedrijfsrisicoverzekeraar
is voorzien van een verklaring omtrent de getrouwheid van de gegevens

AB 2002 no. 50 CENTRAAL WETTENREGISTER 30 september 2015 * ==================================================================== daarin, ondertekend door een accountant.
4. Een bijzondere bedrijfsrisicoverzekeraar dient jaarlijks binnen zes maanden na afloop van het boekjaar bij de Bank een actuarieel
verslag in dat voorzien is van een verklaring van een actuaris.
5. De Bank kan het model, de inhoud en de grondslagen van de
jaarrekening en het actuariële verslag vaststellen.
Artikel 7
Een bijzondere bedrijfsrisicoverzekeraar houdt overeenkomstig artikel 13 van de Landsverordening toereikende technische voorzieningen aan, die volledig door waarden zijn gedekt. Artikel 8

Een bijzondere bedrijfsrisicoverzekeraar beschikt over een
solvabiliteitsmarge van:

in het geval van een zuivere bijzondere bedrijfsrisicoverzekeraar,
minimaal Afl. 300.000,-;
in het geval van een associatieve bijzondere bedrijfsrisicoverzekeraar, minimaal Afl. 500.000,-;
in het geval van een uitleenbare bijzondere bedrijfsrisicoverzekeraar, minimaal Afl. 1.000.000,-;
in het geval van een overige bijzondere bedrijfsrisicoverzekeraar,
een door de Bank te bepalen minimum solvabiliteitsmarge die zal variëren tussen Afl. 300.000,- en Afl. 1.000.000,-.

De Bank kan een additionele solvabiliteitsmarge voorschrijven
op basis van het type, de omvang en de aard van de risico’s die een bijzondere bedrijfsrisicoverzekeraar verzekert of herverzekert.
De solvabiliteitsmarge kan aangehouden worden in de vorm van
contanten of een onherroepelijke garantie, uitgegeven door een in Aruba gevestigde bank, die in het bezit is van een vergunning als bedoeld in artikel 4 of 24 van de Landsverordening toezicht kredietwezen (AB 1998 no. 16). Artikel 9
Indien een bijzondere bedrijfsrisicoverzekeraar niet meer beschikt over de ingevolge artikel 8 vereiste minimum solvabiliteitsmarge of indien de Bank andere tekenen ontwaart, die naar haar oordeel de
solvabiliteit van een bijzondere bedrijfsrisicoverzekeraar in gevaar brengt of zou kunnen brengen, dient zij binnen een door de Bank te bepalen termijn, bij de Bank een financieringsplan ter goedkeuring in, dat aangeeft op welke wijze en binnen welke termijn de solvabiliteitsmarge weer op het vereiste niveau zal worden gebracht.
Artikel 15 van de Landsverordening is niet van toepassing op
bijzondere bedrijfsrisicoverzekeraars.
Artikel 10
Onverminderd artikel 8 van de Landsverordening kan de Bank de vergunning van een bijzondere bedrijfsrisicoverzekeraar intrekken, indien niet binnen de ingevolge artikel 9 door de Bank goedgekeurde ter-

AB 2002 no. 50 CENTRAAL WETTENREGISTER 30 september 2015 * ==================================================================== mijn de solvabiliteitsmarge op het vereiste niveau is gebracht. § 4. Kostenvergoeding Artikel 11 Een onderneming die een vergunning als bijzondere bedrijfsrisicoverzekeraar aanvraagt, is voor de behandeling van zijn aanvraag een vergoeding aan de Bank verschuldigd ten bedrage van Afl. 1.000,-. Artikel 12

De kosten, bedoeld in artikel 30 van de Landsverordening, die
door een bijzondere bedrijfsrisicoverzekeraar verschuldigd zijn, hebben betrekking op de diverse, door de Bank krachtens dit landsbesluit uitgevoerde werkzaamheden en worden door deze telkens jaarlijks aan de desbetreffende bijzondere bedrijfsrisicoverzekeraar in rekening gebracht. De kosten bedragen ten hoogste Afl. 7.500,- en worden binnen een door de Bank te bepalen termijn voldaan.
Voor de eerste maal is de betaling van de rekening, bedoeld in
het eerste lid, verschuldigd na afloop van het eerste volle boekjaar, volgende op de afgifte van de vergunning. § 5. Slotbepaling Artikel 13
Dit landsbesluit treedt in werking met ingang van de dag na
plaatsing in het Afkondigingsblad van Aruba.
Het kan worden aangehaald als Landsbesluit bijzondere bedrijfsrisicoverzekeraars.

Unofficial translation of the State Ordinance
Supervision Insurance Business (State Decree
Captive Insurance Companies)

IN THE NAME OF THE QUEEN!
THE GOVERNOR of Aruba,
Having considered:
that with a view to supervision as effective as possible of the insurance business, it is desirable to lay down special rules concerning the supervision of captive insurance companies; Having regard to:
the Sections 2, fourth paragraph, 14, fourth paragraph, and 31 of the State Ordinance Supervision Insurance Business (AB 2000, no. 82); having heard the Advisory Council, has decided:
§ 1. Prefatory provisions
Section 1
For the purposes of this State Decree the following shall be understood by:

Captive insurance : an insurance company that insures or reinsures risks company that exclusively or predominantly arise from the conduct of business or practice of a profession of shareholders or members of enterprises associated in a group, or of participants in a joint venture; license : a license as meant in Section 5, first paragraph, of the State Ordinance Supervision Insurance Business (AB 2000, no. 82); State Ordinance : the State Ordinance Supervision Insurance Business.
Section 2

Captive insurance companies are distinguished into:
a. pure captive insurance companies; b. association captive insurance companies;
c. rent-a-captive insurance companies;
d. other captive insurance companies.
Captive insurance companies as meant in the first paragraph,
subs a and b, do not insure or reinsure any risks other than those of their shareholders or members, respectively.
A captive insurance company as meant in the first paragraph,
sub c does not insure or reinsure any risks other than those of the participating institutions.
Section 3
A captive insurance company shall not effect agreements for the cover of the legal liability as meant in the State Ordinance Liability Motor Vehicles (AB 1999, No. GT 12).

§ 2. Application for a license
Section 4

The program of activities to be submitted by the captive
insurance company pursuant to Section 6, first paragraph, sub d, of the State Ordinance, shall contain at least:
a. a statement of the nature of the risks the captive insurance company intends to cover, b. the actuarial assumptions the captive insurance company intends to apply, notably the standards for the calculation of the rates and the technical provisions,
c. an explanation concerning the leading principles in the field of
reinsurance, d. insight in the presence of the solvency margin required pursuant to Section 8, first paragraph, and an estimation of the financial assets to cover the solvency margin, and e. a five-year financial projection, including an estimate of the solvency margin and liquidity position.
An applicant incorporated outside Aruba, shall be authorized to
conduct the insurance business in the country it is incorporated.
The Bank shall decide on the model of the application form.
Section 5
Without prejudice to Section 7 of the State Ordinance, the Bank
shall grant a captive insurance company a license, provided it is evident to it that the following conditions are met:
a. the day-to-day management of the captive insurance company is determined by at least one natural person who resides in Aruba; b. the captive insurance company disposes of a solvency margin as meant in Section 8;
A license shall only be granted for the conduct of the business
of a captive insurance company in one of the groups mentioned in
Section 2, first paragraph.
In the event that the day-to-day management of the captive
insurance company is determined by a representative, the Sections 7, first paragraph, subs c and d, and 17 of the State Ordinance shall apply mutates mutandis to the representative.
A captive insurance company shall keep the financial
administration of the insurance business conducted by it at its office in Aruba, and shall preserve there any and all business documents concerning this insurance business during a period of at least ten years. § 3. Special supervision regulations
Section 6
Each year, a captive insurance company shall submit its
financial statements to the Bank within six months after the end of the financial year.
The financial statements of a captive insurance company
domiciled outside Aruba concern the entire enterprise, wherever it is conducted.
The financial statements of a captive insurance company shall
be provided with a declaration stating that the information therein presents a true and fair view, signed by an auditor.
Each year, a captive insurance company shall submit an
actuarial report to the Bank, provided with an actuary’s certificate within six months after the end of the financial year.
The Bank may decide on the model, the contents and the bases
of the financial statements and the actuarial report.

Section 7
Pursuant to Section 13 of the State Ordinance, a captive insurance company shall maintain adequate technical provisions, fully covered by assets.
Section 8

A captive insurance company shall dispose of a solvency
margin of:

in case of a pure captive insurance company, at least Afls.
300,000.=;
in case of an association captive insurance company, at least Afls.
500,000.=;
in case of a rent-a-captive insurance company, at least Afls.
1,000,000.=;
in the case of other captive insurance companies, a minimum
solvency margin to be fixed by the Bank, which will vary between Afls. 300,000.= and Afls. 1,000,000.=.

The Bank may prescribe an additional solvency margin based
on the type, the magnitude and the nature of the risks a captive insurance company insures or reinsures.
The solvency margin may be maintained in the form of cash or
an irrevocable guarantee issued by a bank established in Aruba, which is in the possession of a license as meant in Section 4 or 24 of the State Ordinance Supervision Credit System (AB 1998, No. 16).
Section 9
In the event that a captive insurance company no longer
disposes of the minimum solvency margin required pursuant to Section 8, or in the event the Bank perceives other signs that endanger or might endanger the solvency of a captive insurance company in its judgment, it shall submit a financing plan to the Bank for approval within a term to

be fixed by the Bank, which plan shall indicate in what way and within what term the solvency margin will be brought back to the level required.
2. Section 15 of the State Ordinance shall not apply to captive
insurance companies.
Section 10
Without prejudice to Section 8 of the State Ordinance, the Bank may withdraw the license of a captive insurance company, if the solvency margin has not been brought back to the level required within the term approved by the Bank pursuant to Section 9. § 4. Compensation of expenses
Section 11
An entity applying for a license as a captive insurance company, shall pay the Bank a compensation in the amount of Afls. 1,000.= for processing its application.
Section 12

The charges meant in Section 30 of the State Ordinance which
have to be paid by a captive insurance company, relate to the various activities carried out by the Bank in pursuance of this State Decree, and shall be charged by the Bank to the captive insurance company in question each year. The charges shall not exceed Afls. 3,000.= and shall be paid within a term to be fixed by the Bank.
Payment of the charges meant in the first paragraph shall be
due for the first time after the end of the first full financial year following the issue of the license.

§ 5. Final provision
Section 13

The State Decree shall become effective as of the day after
placement in the Statute Publication Gazette of Aruba.
It may be cited as State Decree Captive insurance companies.
Given in Oranjestad, May 7, 2002
O. Koolman
The Minister of Finance and Economic Affairs,
N.J.J. Swaen
The Minister of Justice,
H.R. Croes

AB 2003 no. 12 CENTRAAL WETTENREGISTER 30 augustus 2007 * ==================================================================== Intitulé : LANDSBESLUIT, houdende algemene maatregelen, ter uitvoering van artikel 31 van de Landsverordening toezicht verzekeringsbedrijf (AB 2000 no. 82) Citeertitel: Landsbesluit vertegenwoordiging verzekeringsbedrijf Vindplaats : AB 2003 no. 12 Wijzigingen: Geen ==================================================================== Artikel 1 In dit landsbesluit wordt verstaan onder:
vertegenwoordiger : degene die door een verzekeraar met zetel in het buitenland is aangesteld om hem in Aruba te vertegenwoordigen in de uitoefening van zijn bevoegdheden en in de naleving van de voorschriften die ingevolge de Landsverordening toezicht verzekeringsbedrijf (AB 2000 no. 82) voor hem gelden; verzekeraar : een verzekeraar als bedoeld in artikel 2, eerste lid; Landsverordening : de Landsverordening toezicht verzekeringsbedrijf. Artikel 2

Indien een verzekeraar met zetel in het buitenland voornemens
is zijn werkzaamheden in Aruba door middel van een vertegenwoordiger uit te oefenen, stelt hij een natuurlijk persoon of rechtspersoon aan, die zijn woonplaats onderscheidenlijk zijn zetel in Aruba heeft. De verzekeraar legt daartoe aan de Bank over de akte van aanstelling van de vertegenwoordiger, alsmede, indien de vertegenwoordiger een natuurlijk persoon is, een uittreksel uit de basisadministratie, en indien de vertegenwoordiger rechtspersoon is, een authentiek afschrift van de akte van oprichting van de rechtspersoon en een uittreksel van diens inschrijving in het handelsregister.
Indien de vertegenwoordiger een rechtspersoon is, wijst hij op
zijn beurt een natuurlijk persoon aan, die in Aruba zijn woonplaats heeft, en die hem bij uitsluiting van ieder ander vertegenwoordigt in de uitoefening van zijn bevoegdheden en in de nakoming van zijn uit de Landsverordening voortvloeiende verplichtingen. Alsdan legt hij de akte van aanstelling van de natuurlijke persoon over aan de Bank. De artikelen 7, onderdelen c en d, en 17 van de Landsverordening zijn van overeenkomstige toepassing.
Als adres van de verzekeraar in Aruba geldt het adres van zijn
vertegenwoordiger.
Artikel 3
De akte van aanstelling, bedoeld in artikel 2, eerste lid, bevat in ieder geval de bepaling dat de vertegenwoordiger ten aanzien
van de uitoefening van het verzekeringsbedrijf vanuit vestigingen in Aruba alle bevoegdheden van de verzekeraar bezit. De vertegenwoordiger maakt daarvan gebruik, in de gevallen waarin de Bank hem dat verzoekt.
De vertegenwoordiger voldoet namens de verzekeraar aan de bij
of krachtens de Landsverordening gestelde voorschriften. Het ontbreken van een vertegenwoordiger of diens in gebreke zijn, ontslaat de desbetreffende verzekeraar niet van de verplichting te voldoen aan deze

AB 2003 no. 12 CENTRAAL WETTENREGISTER 30 augustus 2007 * ==================================================================== voorschriften.
3. Een verzekeraar voert op het adres van zijn vertegenwoordiger
de boekhouding van het bedrijf in Aruba en bewaart aldaar de zakelijke bescheiden met betrekking tot dat bedrijf. Artikel 4

Het ontslag van een vertegenwoordiger gaat niet in, dan nadat
een opvolger is aangesteld en de akten van ontslag van de vertegenwoordiger en de aanstelling van de opvolger aan de Bank zijn overgelegd en deze aan het bestuur van de verzekeraar schriftelijk heeft meegedeeld, dat zij tegen de aanstelling van de opvolger geen bezwaar heeft.
De vertegenwoordiger die heeft bedankt, behoudt die hoedanigheid, totdat de verzekeraar een andere vertegenwoordiger heeft aangesteld en de Bank schriftelijk aan het bestuur van de verzekeraar heeft
meegedeeld, dat zij tegen de aanstelling van de opvolger geen bezwaar heeft. Artikel 5 Een vertegenwoordiger die rechtspersoon is, legt binnen veertien dagen na de totstandkoming daarvan een authentiek afschrift van elke wijziging van zijn statuten aan de Bank over. Artikel 6 Indien een verzekeraar de beschikkingsbevoegdheid van zijn vertegenwoordiger ten aanzien van de waarden, behorende tot het in Aruba uitgeoefende verzekeringsbedrijf, heeft beperkt, brengt hij elke wijziging daarin binnen veertien dagen na de totstandkoming van de wijziging ter kennis van de Bank. Een zelfde verplichting tot kennisgeving rust op de verzekeraar die de beschikkingsbevoegdheid van zijn vertegenwoordiger na diens aanstelling beperkt. Artikel 7
Dit landsbesluit treedt in werking met ingang van de dag na
plaatsing in het Afkondigingsblad van Aruba.
Het kan worden aangehaald als Landsbesluit vertegenwoordiging
verzekeringsbedrijf.

Unofficial translation of the State Ordinance
Supervision Insurance Business (State Decree
Representative Insurance Companies)

IN THE NAME OF THE QUEEN!
THE GOVERNOR of Aruba
Having considered:
that it is desirable with a view to effective supervision of insurance companies, to lay down further rules concerning the appointment of representatives of foreign insurance companies active in or from Aruba; Having regard to:
Section 31 of the State Ordinance Supervision Insurance Business (AB
2000, No. 82);
Having heard the Advisory Council, has decided:
Section 1
For the purposes of this State Decree the following shall be understood by:
representative : the person who has been appointed by an insurer domiciled abroad, to represent him in Aruba in the exercise of his powers, and in the compliance with

the regulations applying to him in pursuance of the State Ordinance Supervision Insurance Business (AB 2000, No. 82); insurer : an insurer as meant in Section 2, first paragraph; State Ordinance : the State Ordinance Supervision Insurance Business.
Section 2

If an insurer domiciled abroad intends to perform his activities
in Aruba by means of a representative, he shall appoint a natural person or legal entity residing or domiciled, respectively, in Aruba. For this purpose, the insurer shall submit the instrument of appointment to the Bank, as well as, if the representative is a natural person, an extract from the personal records database, and if the representative is a legal entity, an authentic transcript of the deed of incorporation of the legal entity and an extract from its registration in the Trade Register.
If the representative is a legal entity, it shall designate, in its
turn, a natural person who resides in Aruba, and who represents it to the exclusion of any other person in the exercise of its powers and in the compliance with its obligations pursuant to the State Ordinance. In that case it shall submit the deed of appointment of the natural person to the Bank. The Sections 7, subs c and d, and 17 of the State Ordinance shall apply mutates mutandis.
The address of its representative shall be deemed the insurer’s
address in Aruba.
Section 3
The deed of appointment meant in Section 2, first paragraph,
shall contain at least the provision that the representative possesses any and all powers of the insurer as regards the conduct of the insurance business from establishments in Aruba. The representative shall make use of it in the cases in which the Bank requests this from him.
The representative shall comply on the insurer’s behalf with the
regulations laid down by or in pursuance of the State Ordinance. The lack of a representative or his being in default shall not release the insurer in question from the obligation to comply with these regulations.
An insurer shall keep the books of the business in Aruba at the
address of his representative, and shall keep the accounting records as regards this business there.
Section 4
The discharge of a representative shall only become effective
after a successor has been appointed and the instruments of discharge of the representative and the appointment of the successor have been submitted to the Bank, and the Bank has informed the Board of the insurer in writing that it has no objection to the appointment of the successor.
The representative who resigned shall keep this capacity until
the insurer has appointed another representative, and the Bank has informed the Board of the insurer in writing that it does not have any objection to the appointment of the successor.
Section 5
A representative that is a legal entity shall submit to the Bank an authentic transcript of each amendment to its Sections of Incorporation within fourteen days after the effectuation thereof.
Section 6
In the event an insurer has restricted the power to dispose of his representative as regards the assets belonging to the insurance business conducted in Aruba, he shall notify the Bank of each change in it within fourteen days after the effectuation of the change. An identical

obligation to notify shall rest on the insurer that restricts his representative’s power to dispose after his appointment.
Section 7

This State Decree shall become effective as of the day after
placement in the Statute Publication Gazette of Aruba.
It may be cited as State Decree Representative Insurance
Companies.
Given in Oranjestad, February 11, 2003
O. Koolman
The Minister of Finance and
Economic Affairs,
N.J.J. Swaen
The Minister of Justice,
H.R. Croes

Prudential Supervision Manual for Insurance Companies

Lineage: In force

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