Dispensation Requirements

May 31, 2004

The Principal Officers
All Life Assurers

Cc: LAAN Secretariat

Dear Sir/Madam;

DISPENSATION REQUIREMENTS IN TERMS OF SECTION 3 OF THE LONG-TERM INSURANCE ACT NO. 5 OF 1998

Following the Namfisa – Laan meeting held on March 16, 2004, the Chairperson indicated that Namfisa was working on establishing guidelines that must be followed by life offices dispensing reinsurance premiums to foreign assurers or reinsurers. Herewith, please find a template on the procedure to be followed when applying for reinsurance dispensation by the Registrar. Proposed inputs/amendments (where necessary) must reach the Registrar by not later than July 16, 2004.

All applications for reinsurance dispensation should contain the following information:

A. Reinsurance Dispensation

1. Name of dispensing Assurer/Reinsurer
2. Risk type and scope of cover
3. Type of reinsurance: Treaty……or Facultative………
4. Name of the insurer/reinsurer accepting the business
5. Motivation for dispensation request
6. Copies of quotes from foreign insurer/reinsurer
7. Written proof from local reinsurer stating that they will not meet the terms indicated by foreign insurer/reinsurer
8. Where the risk was placed previously? (if applicable)
9. Total Premium leaving Namibia (N$)

Please, take note that no Captive Insurance/Reinsurance arrangement will be considered for dispensation purposes.

P.O. Box 21250 Windhoek NAMIBIA 154 Independence Avenue 8th Floor, Sanlam Centre Tel: (+264 61) 290 5000 Fax: (+264 61) 256303 E-Mail: info@namfisa.com.na

*

All applications should be addressed to the Registrar – Life Assurance Companies, but to save time it may be delivered to the LAAN Dispensation Committee (once established) at their offices in Windhoek. It is also important to state that the LAAN Dispensation Committee can be considered as a viable vehicle in an advisory capacity to Namfisa. Please, take note of the following:
i. That this exercise should be completed at least 14 working days prior to the effective/renewal date.
ii. That it is illegal to place any risks outside Namibia without proper written authorization by the Registrar.

We trust that you shall find the above in order and therefore await your comments and inputs to enable us to finalize these guidelines.

Yours Faithfully,

Marcelina Gaoses
Deputy Registrar (GM): Provident Institutions
FOR REGISTRAR: LONG -TERM INSURANCE