Insurance (Participating Account) Regulations 2020

LEGAL NOTICE NO. 379 REPUBLIC OF TRINIDAD AND TOBAGO THE INSURANCE ACT, 2018 REGULATIONS MADE BY THE MINISTER UNDER SECTION 279 OF THE INSURANCE ACT AND SUBJECT TO NEGATIVE RESOLUTION OF PARLIAMENT THE INSURANCE (PARTICIPATING ACCOUNT) REGULATIONS, 2020

1. These Regulations may be cited as the Insurance (Participating Account) Regulations, 2020.

2. In these Regulations– “Act” means the Insurance Act, 2018; “dividend or bonus policy” means the participating policy dividend or bonus policy established by the board of directors pursuant to regulation 3.

3. In the case of an insurer that issues participating policies, its board of directors shall within six months after commencement of these Regulations, establish a policy consistent with the provisions of the Articles of Incorporation, Continuance or Amendment, Bye-Laws, other constituent documents, and rules of the insurer and this Act and Regulations– (a) for determining the dividends and bonuses to be paid to the participating policyholders; and (b) with respect to the operation of each of the participating accounts maintained pursuant to section 43 of the Act.

4. The board of directors of an insurer shall review annually the policy required under regulation 3.

5. An insurer shall credit to or debit from a participating account, that portion of the investment income or losses of the insurer for a financial year, including accrued capital gains or losses, whether or not realized, that is determined in accordance with a method that is– (a) in the written opinion of the appointed actuary of the insurer, fair and equitable to the participating policyholders; (b) approved by resolution of the board of directors, after considering the written opinion of the appointed actuary; and (c) not disallowed by the Inspector under subregulation 7(2), on the ground that it is not fair and equitable to the participating policyholders, within sixty business days after receiving all of the information submitted pursuant to regulation 7. Legal Supplement Part B–Vol. 59, No. 202–3rd December, 2020 1633 Citation Board to establish policy Interpretation Act No. 4 of 2018 Board to review policy Allocation of income to participating account

6. An insurer shall debit from a participating account, that portion of the expenses, including taxes, of the insurer for a financial year that is determined in accordance with a method that is– (a) in the written opinion of the appointed actuary, fair and equitable to the participating policyholders; (b) approved by resolution of the directors, after considering the written opinion of the appointed actuary; and (c) not disallowed by the Inspector, on the ground that it is not fair and equitable to the participating policyholders, within sixty business days after the Inspector receives all of the information submitted pursuant to regulation 7.

7. (1) An insurer shall submit to the Inspector– (a) a copy of the resolutions referred to in subregulations 5(b) and 6(b); (b) a copy of the written opinion of the appointed actuary referred to in subregulations 5(a) and 6(a); and (c) any other information relevant to the allocation method requested by the Inspector, within thirty business days after the approval of the resolutions. (2) Where the Inspector disallows methods pursuant to subregulations 5(c) and 6(c), he may specify an alternate method which, in his opinion, is fair and equitable to the participating policyholders of the insurer.

8. (1) The appointed actuary of an insurer shall report annually in writing to the board of directors and state his opinion on the fairness and equity of the method used by the insurer for allocating its investment income, losses and expenses, including taxes to a participating account maintained pursuant to section 43 of the Act. (2) The board of directors of an insurer shall review annually the opinion of the appointed actuary submitted in accordance with subregulation 8(1) and shall act pursuant to regulations 5 and 6 accordingly.

9. These Regulations shall come into operation on 1st January,

Dated this 6th day of November, 2020. C. IMBERT Minister of Finance Allocation of expenses to participating account Filing of allocation method for participating account Review of allocation method for participating account 1634 Insurance (Participating Account) Regulations, 2020 Commence￾ment PRINTED AND PUBLISHED BY THE GOVERNMENT PRINTER, CARONI REPUBLIC OF TRINIDAD AND TOBAGO–2020