Regulatory Alerts2008-01-01
Guidelines on Contingency Plan for Insurers
The Financial Services Commission issued these February 2008 guidelines to establish a standardized framework for insurers whose solvency or capital requirement ratios fall below statutory minimums. Insurers must submit a detailed contingency plan outlining the causes of shortfall, planned capital infusion, projected financial statements, and specific management actions to restore compliance. The document mandates quarterly monitoring reports comparing actual performance against projections, with non-compliance exposing licensees to regulatory directions and potential criminal sanctions.
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