Insurance (Non-Domestic Insurance Business) Regulations 2009

[2nd February 2009] Supplement to Official Gazette 87 S.l. 18of 2008 INSURANCE ACT, 2008 (Act Jl of2008) Insurance (Non-Domestic Insurance Business) . RegulatiGilS,2009 In exercise of the powers conferred by section] 24 'of the Insurance Act. 2008, the Ministerof Financemakesthe following Regulations - .

1. These Regulations may be cited as the Insurance (Non￾Domestic Insurance Business) Regulations,2009.
2. In these Regulations- if "applicant" means a person applying for a licence or registration undertheAct; "$" means the symbol for United States Dollars, the lawful currency of United States of America; "financial year" means the year in respect of which the accounts of a licensed insurer are made up, and where by. reason of an alteration of the date on which the financial year of a licensed insurer terminates, the accounts have. been made up for a lesser period, that lesser period shaH be deemed to be a financial year; "non-domestic insurer" means a person carrying on nOI1- domestic insurance business: . "premium income" means the' net. premium after deducting any premium paid by a non-domestic in,surer for reinsurance.
3. Every applicant for a licence as a non-domestic insurer . shall provide the Authority with the following docll- . ments and information￾Citation Interpretation Particulars of application

Supplement to Official Gazette [2nd February 2009] (a) (b) (c) -OJ the class or classes of non-domestic insurance business which the applicant is seeking to carry on undertheAct; ~ business plan or feasibility study which shall set out details ofthe following- (i) the commercial operations in which the applicant intendsto engage; (ii) the business objectives of the applicant, type and source of business contem￾plated; (iii) the applicant's proposed initial assets, antiCipated assets and liabilities, and estimated income at the end of each of the two years next succeeding the grant ofalicence; . (iv) particulars of the applicant's manage.., mentstructure and staff; (v) the reasons for the selection of Seychelles as a place for the conduct of the applicant's non-domestic insurance business; (vi) the particulars of the applicant's .customer base; a copyof￾the applicant's memorandum and articles, duly authenticated by the registrar of companies in the place of establishment or origin ofthe applicant; (ii) the resolution of the Board of Directors of the applicant, duly authenticated by a

[2nd February 2009] Supplement to Official Gazette 89 (v) Director or the principal officer of the applicant authorising the application for a licence,as an insurerto carry on non￾domestic insurance business under the Act; . (iii) the applicant's certifieate of incorpo￾ration or registration, as the case may be, certified by the registrar of companies in the place of establishment ororigin ofthe applicant; {ivy if the Authority requires such informa￾tion to be furnished,- (aa) the list of all p~rsons, with their addresses and nationalities, who are registered shareholders of the applicant, distinguishing the shareholding of each; (bb) the listof all persons,with their addresses and nationalities, who are beneficial owners of shares of the applicant, not being registered shareholders, distinguishing the. shares of each such beneficialowner; and . (cc) two or more references veri￾fying the financial good standing of each such share￾holder or beneficial owner; if the Authotjty requires such infor￾mation to be furnished, the annual accounts of the applicant and the annual accounts of the applicant's holding, parent and associated companies for the two years immediately preceding thy

90 Supplement to Official Gazette [2nd February 2009] {vi} (vii) (viii) application. such accounts to be duly audited and certified to the satisfaction of theAuthority; if the Authority requires such informa￾tion to be furnished. a statement in writing in a form acceptable to the Authority fromth~authority responsible for the supervision of insurance-in the place inwhich the applicant or its parent company is incorporated, that -such - authority is aware of the intended application; , t if the Authority requires such information to be furnished, a statement in writing satisfactory' to the Authority evidenci':lgthat the board of directors or governing body of the applicant, and the persons responsible forthe management of the applicant, are sufficiently experienced and knowledgeable in the business of insurance; three references, one of which shall be financial in nature from a reputable international financial institution in respect of all the persons who are directors, managers or senior officers of the applicant. 4.( I) Every applicant for a licence as a non-domestic insurer shall satisfy theAuthority that- (i) (a) the paid-up capital of the applicant - ' if the applicant proposes to carry' on general insurance business or long term insurance business or both general and long term insurance business, isat least

[2nd February 2009] Supplement to Official Gazette 91 $100,000 or its equivalent in a currency that is fully convertible to 'other internationally accepted currency; (ii) if the applicant proposes to carry on solely reinsurance business, is at least $50,000 or its equivalent in a currency that is fully convertible to other internationallyacceptedcurrency; ") (b) if the applicant proposes to carry on solely captive insurance business, is at least $25,000 or its equivalent in a currency that, is fully convertible to other internationallyaccepted currency; 'the sum of money specified iri paragraph (a)(i), (ii) and (iii) is maintained in an account of the￾applicant with a bank licensed under the Financial InstitutionsAct of Seychelles to carry on banking business, as evidenced by a certificate of such bank, at the time when the application is made and at such other time as m'aythen be requiredbytheAuthority. (iii) (2) Notwithstanding subregulation (1), the Authority may having regard to the extel1t and volume of non-domestic . insurance business that the applicant proposes to carryon, specify a lesser amount of paid~up capital, provided the applicant provides an adequate guarantee on such terms and conditions as may be acceptable to the Authority. Checkcap or act 5.( 1) Unless the Authority otherwise determines, the margin of Margin(1f solvency to be maintained by a noncdomestic insurer carrying on -solvency general insurance business is as follows- (a) at any time in its first financial year, the value of its assets exceeds the amount of its liabilities by $125,000; (b) at any time after the expiration of the first

92 Supplement to Official Gazette [2nd February 2009] financial year, the value of its assets exceeds its liabilities- (i) (ii) (iii) by $125,000, where the net premium income of the non-domestic insurer in the preceding financial year did not exceed $750,000; l by 1/5 of the net premium income for the preceding financial year, where the premium income exceeded $750,000, but did not exceed $5,000,000; by the aggregate of $1,000,000 and 10 per cent of the amount by which the net premium income in that financial year exceeded $5,000,000, where the net premium income for the year exceeded $5,000,000. (2) A non-domestic insurer carrying on long term insurance business has the margin of solvency required by the Act, if the amount of its liabilities under contracts of insurance entered into does not exceed the amount of its long term insurance fund as . certified by a qualified actuary in accordance with regulations made forthe purposeofthissubregulation. (3) UnlesstheAuthority otherwise determines, the margin of solvencyto be"maintained-atalltimesby a non-domesticinsurer carrying on reinsurance business,shall not be lessthan- (a) its paid-up capital; or (b) 20 per cent of the net premium income for the preceding year in respect of the general business ofthat insurer, whichever isthe highest.

[2nd February 2009J Supplement to Official Gazette 93 (4) The margin of solvency of a non-domestic captive insurershall be itspaid-up capital. (5) If the margin of solvency of a non-domestic insurer falls below the amount required by the foregoing subregulations, the non-domestic insurershall - ' (a) submit to the Authority within 30 days of the deficiency becoming known, or such longer period as the Authority may permit, its short￾term financial scheme' to make good the deficiency and shall, if the Authority considers the scheme inadequate,proposemodificationsto it~and (b) within the time limit specified.by the Authority in that behalf, implement the scheme as approved by theAuthority. 6. Withoutthe prior written consent of theAuthority, a non￾domestic insurershall not open an office, acquire or establish any subsidiary o~tside Seychelles. 7. .A non-domestic insurershall not act on behalf of another non-domestic ,nsurer as an insurance manager or a principal insurance representative, unless such' first-mentioned non￾domestic insurer has been approved by the Authority to carry on business as an insurance manager or a principal insurance representative. asthe case may be. 8. A non-domestic insurer, or an approved insurance manager or a principal insurance representative shall not advertise or publish, in any form, information which is untrue or which islikelyto mislead person~in relatiorrtothe written laws of Seychelles. 9.( 1) Notwithstanding anything in any other 'written law, a non-domestic insurershall not at any time issue bearer shares nor shall it at any time be authorised to do so by its memorandum or Office etc. outside Seychelles Non-domestic insurer acting as insurance manager or principal insurance representative Untrue and misleading information Prohibition on issue of bearer shares

94 Supplement to Official qazette [2nd February 2009] Notification of change Directions of Authority in absence of prescribed procedure Non-applicability of certain provi￾sions of the Act Letterheads and stationer) . Notitication of irregularities by clients. articles, or other instrument defining its constitution. (2) Notwithstanding anything in any other written law, a company which is, or shall become, directly or indirectly, the registered or beneficial owner.of any share or shares in a non￾domestic insurer shall not have issued or issue at any time, nor have the powerto issue,Imybearershares. . 10. If any changeshalloccurin the informationgivenby a non-domestic. insur~r at the time after its application, the particulars of such change shall be notified by the non-domestic insurer within 30 days of its occurrence, or its first becoming known to the non-domestic insurer. 11. Whenever anything is required or allowed to be done under the Act and these regulations and no form or procedure is prescribed forso doing, application may be made inwriting to the Authority for directions as to doing the same and anything done in . accordance with such directions shall be deemed to have been properly done in compliance with the Act or these regulations, as the case may be. 12. The provisions ofsections 20, 27, 88 and 89 oftheAct are not applicable to a non-domestic insurer. 13. Every non-domestic insurer shall indicate clearly on its letterhead, stationery and other documents containing its narne that it is licensed under the Actas a non-domestic insurer. as well as itslicencenumber. 14. If at any time a non-domestic insurer. an insurance nianager or a principal insurance representative has cause to believe that a client ofthe non-domestic insurer is conducting the business affairs of the client or is likely to conduct them, either contrary to a written law of Seychelles or in a manner which is. or may be detrimental to the. reputation or standing of the nOI1- domestic insurer or of Seychelles. the non-domestic insurer, insurance manager or principal insurance representative shall forthwith notify the Authority and furnish full particl!I~'s thereof.

[2nd February 2009] Supplement to Official Gazette 95 15. Where a non-domestic insurer does not satisfy the Authority that the insurer hasthe necessary insuranceexpertise at all times in its management structure and personnel, a professional insurance managershall be appointed to manage the affairs of the insurer. MADE this 30th day of Januaq, 2009. DANNY FAURE MINISTER OF FINANCE I Applicant's lack of msurance expertise