Insurance Regulations 2001

INSURANCE
THE INSURANCE REGULATIONS 2001
ARRANGEMENT OF REGULATIONS
PART I. Preliminary
Citation.
Interpretation.
PART 11. Classes of Insurance Business
Classes of general insurance business.
Classes of long-term insurance business.
PART 111. Register
Register.
PART IV. Registration of Insurers
Applications for registration as life or general insurer and conditions imposed on registration. Certificate of registration. Deposit required to carry on business. Value at which securities received. Title to securities. Interest on deposits. Substitution of securities. Return of deposit on ceasing to do business.
PART V. Assets
Minimum required.
Applicability.
Nature of assets to be deposited.
Registered foreign insurers.
Reduction due to reinsurance.
Additional reductions.
Letter of credit in lieu.
Application to registered foreign insurers.
Gain or loss from disposition of assets.
Restrictions on vesting.
[The inclusion of this page is aulhorized by L.N. 33NZOOS]

INSURANCE
Restrictions on borrowing.
Required assets, general insurer.
Required assets, life insurer.
Uncommitted reserve of mutual company.
PART VI. Solvency
General Insurance
Minimum asset.
Long term insurance
Minimum continuing capital and surplus requirements (MCCSR). Segregated funds reporting. Annual financial statement of life insurer. Quarterly financial statement of life insurer. Annual financial statement of general insurers. Quarterly financial statement of general insurers. Capital and bonding requirements for brokers and corporate agent. Records of agents and brokers. Amalgamation and transfer.
PART VII. Investment
Application and interpretation.
Determination of earnings.
Investment and lending policy.
Interest bearing securities property.
Limits on investment requirement.
Records of investments.
Approval.
Capital investment requirement.
Public obligations.
Corporate obligation.
Preferred or guaranteed stocks.
Evidence of due diligence.
Trustees' or receivers' obligations.
Equipment trust obligations.
Mortgage loans.
Property value limitations.
Encumbrance.
Property appraisal and insurance.
Security agreements.
[The Inclusion of this page is authorized by L N 33AIZOOS1

INSURANCE
Real property.
Disposal of real property.
Foreign securities.
Policy loans.
Savings and share accounts.
Ordinary shares.
Unit trusts or collective investment schemes.
Secured loans.
Other investments.
Hedging transactions.
Segregated funds.
Allowable investments in Corporations.
Prohibited investments.
Underwriting and repurchase agreements.
Disposal of ineligible property and securities.
Investments of foreign insurers.
PART VIII. Corporate Governance, Appointment of Auditors and
Actuary, Establishment of Conduct, Investment and Loan and Audit Committees, Responsibilities of Auditors Establishment of audit committee. Establishment of conduct review committee. Establishment of loan committee. Qualifications of actuary. Form of actuary's report. Actuarial regulations. Qualifications of auditor. Appointment of auditor for subsidiary. Conduct review committee. Restrictions on self-dealing as a fiduciary. Certain related party transactions permitted. Conduct review committee's power to approve other transactions. Proper transaction. Disclosure by related parties.
PART IX. Aspect of Standard Accounting Practice
General Insurance Companies
Interpretation.
[The Inclusion of this paBe i@ authorized by L.N. 33N200SI

INSURANCE
Unearned premiums.
Unexpired risks provision.
Unpaid claims.
Facultative reinsurance.
Other standards of standard accounting practice.
Life Insurance Companies
Actuarial liabilities.
Accounting for Life Insurance Portfolio Investments Valuation Equities. Accounting for reinsurance. Accounting for premiums. Accounting for benefits and claims. Accounting for commissions. Accounting for superannuation funds (deposit administration funds). Segregated funds accounting. Responsibilities of the appointed actuary and external auditors. Provisions for future policy benefits (Life Assurance Fund or Actuarial Liabilities). Other standards of standard accounting practice. Investment and Loan Committee. Commission's powers over investment and lending policy.
PART X. Association of Underwriters
Application for registration of association of underwriters. Certificate of Registration. Deposits by association of underwriters. Further deposit if below market value. Return of deposit on ceasing to do business.
PART XI. Registration of Insurance Intermediaries
General.
Qualifications of intermediaries.
Application for registration of insurance broker.
Application for registration as facultative placement broker. Application for registration as reinsurance broker. Application for registration as sales representative. [The Inclusion of this page is authorized by L.N. 33A/ZOOS]

ZNSURA NCE
Application for registration as agent.
Application for registration as an adjuster.
Application for registration as managing general agent.
Certificates of registration of broker, facultative placement broker, reinsurance broker, sales representatives, agent, adjuster and managing general agent. Termination of agent and sales representative.
PART XII. Duties of Insurer and Agent .
Insurer's duty products.
Replacement of life insurance contracts.
Duties of agent.
Duties of insurer.
The contract.
Material facts.
Changes in occupation.
Relation of earnings to insurance.
Termination by insured.
Termination by insurer.
Insurer to furnish forms.
Notice and proof of claim.
Rights of examination.
When moneys payable other than for loss of time.
When loss of income and loss of use benefits payable.
Notice, application for benefits.
Certificates, examinations.
Payment of claims, refusal to pay.
Repayment to insurer.
Limitation of actions.
Unfair trade practices.
PART MU. Unregistered Insurers
Purpose.
Placement of insurance business.
Facultative insurance placements.
Facultative placement broker.
Withdrawal of eligibility as a facultative placement insurer. [The inclusion of this page is authorized by L.N. 33An0053

I7VSUR4 NCE
Actions against eligible facultative placement insurers transacting~ facultative placement business. Duty to file evidence of insurance and affidavits. Evidence of the insurance. Evidence of insurance negotiated. Facultative placement broker's duty to notify policyholder. Effect of payment to facultative placement broker. Facultative placement brokers may accept business from other producer. Records of facultative placement licensee. Reports summary of exported business.
PART XIV. Miscellaneous Provisions
Non-forfeiture of ordinary policies in certain cases of non-payments of premiums. Unclaimed moneys. Conversion into mutual companies and vice versa. Register to be kept. Power to collect statistics. Notice of appeal. Amending erroneous statements or documents. Fees. SCHEDULES Classes of Insurance Business. Register of Insurance Companies. Application for Registration of Insurance Companies. Certificate of Registration for Company. The Minimum Asset Test (MAT). The Minimum Continuing Capital and Surplus Requirement (MCCSR). Segregated Funds Report. Annual Statements for Life and Health Insurers. Quarterly Financial Statements for Life and Health Insurers. Annual Statements for General Insurers. Quarterly Statements for General Insurers. Auditor's Certificate for Brokers, Corporate Agents. [The inclusion of this page is authorized by L.N. 33A120051

Actmy's Report.
Application for Registration of Association of Underwriters. Application for Registration of Insurance Brokers, Sales Representatives, Loss Adjusters and Insurance Agents. Certificates of Regisnation for Intermediary. Register of Brokers and Loss Adjusters. Register of Agents and Managing General Agents. Register of Sales Representatives and Insurance Consultants Fees. Termination of Agents and Sales Representatives Life ~nsurance disclo- ~orm Notice to Insured on the Nature and Effect of the Pro Rata Condition of Average (Average Clause). [The incllaion of this pap is authorired by L.N. In0061

INSURANCE
THE INSURANCE ACT
REGULATIONS
(under section 144)
L.N 201/2001
Made by the Commissioner with the approval of the Minister on the B~D~OO~ 19Al2005 31st day ofDecember, 2001)

1. These Regulations may be cited as the Insurance Regulations, 200 1.
   2.--(I) In these Regulations, unless the context otherwise requires- Intapretation. "accident insurance" means insurance against injury or death as a result of an accident or which provides for fixed pecuniary benefits or benefits in the nature of indemnity or both; "accidental death and dismemberment (AD &D)" means a rider on life insurance policies that- (a) increases the sum insured if the policyholder dles in an accident; and (h) stipulates other sums that might be payable in the case of the insured losing a limb or some vital body member; "acquisition costs" means, with respect to- (a) life insurance, costs incurred in the acquisition of new insurance policies and annuity contracts, including only those costs that vary with and are primarily related to the acquisition of the policies and contracts, such as commissions, certain underwriting and policy issue costs and medical fees; (b) general insurance, all expenses incurred in relation to the production of new and renewal business, including specifically identifiable and allocated expenses relating to commissions, bonuses, allowances and other compensation paid to agents and brokers; "actual premium (gross premium)" means the premium stipulated in the policy or any premium subsequently agreed on by the policyholder and the life insurance company, as a consequence of additional coverage; "actuarial liabilities" means the present value of estimated policy benefits and costs less the present value of future premiums (with the elements being adjusted for provision for adverse deviations) and are a measure of the amounts which, [The inclusion of this page is authorized by L.N. 18d20081

THE INSURANCE REGULATIONS. 2001 premiums and investment income, will be resiirexi by the life insurance company in order to discharge its obligations der the insurance policy and annuity contracts and to pay expenses related to the administration of those policies and contract; "additional reserves" means the net reserves in relation to a class of insurance business; "aircraft insurance" means insurance against- (a) liability arising out of- (i) bodily injury to, or the death of, a person; or (ii) the loss of, or damage to, property, caused by an air￾craft or the use or operation thereof; or (b) the loss of, or damage to, an aircraft; "amortized cost method means an accounting method in which the historical cost of a fixed-tern investment is adjusted systematically during the investment period toward the amount expected to be realized at maturity, adjustments are reflected in income; "amortized value" means the carrying value of the investment at any point during the investment period to maturity; "a~uities" means contracts whereby, in retum for one or more premiums paid to the insurer, the insurer pays a sum or a series of sums to the insured in the future; "assuming company" means a reinsurer that- (a) receives reinsurance premiums in a reinsurance trans￾action; and (b) is obligated to reimburse the ceding company for claims made according to the terms and conditions of the re￾insurance contract; "boiler insurance" means insurance against liability arising out of- (a) bodily injury to, or the death of, a person; or (b) the loss of, or damage to, property, caused by the explosion or rupture of, or.accident to, pressure vessels of any class and pipes, engines and machinery connected therewith or operated thereby; "bond or contract guarantee" means a guarantee coming within the class of fidelity insurance and surety insurance; "calculated valuation premium" means a premium which- (a) does not include marketing overhead expense or a specific profit margin; [The inclusion of this page is authorized by L.N. 18*120081

THE INSURANCE REGULATIONS, 2001
(b) is calculated using the valuation assumptions as at the date the policy takes effect; "cash surrender value" means the value that is payable to the policyholder if the policy is surrendered; "cash value deficiency" means the absolute difference in cases where the policy liability is greater than the cash surrender value of the policy; "ceding" means the transfer of all or part of the risks of insurance by one insurer to another; "civil commotion insurance" means insurance against the loss of, or damage to, property caused by bombardment, invasion, insurrection, mutiny, civil war, civil commotion, riot, the act of a foreign enemy, hostilities or warlike operations (whether or not war is declared), revolution, rebellion, conspiracy, usurped power or military, naval or air force operations, vandalism or malicious mischief; "claims adjustment expenses" means fees paid to professionals in relation to the settlement of claims including costs of a similar nature directly associated with the settling of claims; "claims incurred but not reported (IBNR)" means claims that have been incurred prior to or during the accounting period, but have not been reported to the insurance company at the end of its financial year; "claims outstanding" means the amount set aside at the end of the financial year of an insurance company to meet- (a) claims under contracts of insurance in respect of incidents occuning before the end of that financial year which have not been paid (including claims in respect of which the amounts have not been determined and claims arising out of incidents which have not been notified to the company); and (b) expenses likely to be incurred in connection with the settlement of such claims; "commissions-overriding7' means commissions paid to life insurance agency managers, based on agreed percentages of commissions earned by agents under supervision; "commissions-commuted" means payments made on the termination of an agent's contract when future commissions, on premiums still to be collected, are computed on an agreed formula and paid in a lump sum to the agent; [The inclusion of this page is authorized by L.N. 33A120051

THE INSURANCE REGULATIONS, 2001
"contractor's all risk insurance" means insurance against loss incurred as a result of fire and other specified perils in respect of both temporary and permanent works while in the course of construction and until handed over by the contractor to the employer; "credit insurance" means insurance against loss to a person who has granted credit where the loss is the result of the insolvency or default of the person to whom credit is given but does not include insurance coming within the class of mortgage insurance; "crops insurance" means insurance against loss of or damage to crops resulting from fire, windstorm, drought, flooding, disease and other perils; "death claims" means the sum insured under the life insurance policy contract together with all other accrued benefits that are payable to the policyholder's beneficiary on the death of the policyholder; "deposits" means amounts collected by life insurance companies on which they pay interest to the policyholders but are not payments for insurance risk nor do they relate to services provided to policyholders; "directors' and officers' liability insurance" means insurance against liability incurred by directors or officers under the Companies Act or otherwise in connection with their duties as directors and officers of companies; "earthquake insurance" means insurance against the loss of, or damage to, property caused by an earthquake; "employers' liability" means- (a) insurance against liability arising out of bodily injury to, or the disability or death of, an employee of the insured occurring as a result of or in the course of the employee's employment; and if included in a contract that provides insurance against liability arising out of such bodily injury, or disability or death, includes insurance coming within the class of accident insurance covering such an employee where the insurance is limited to accidents occurring as a result of or in the course of the employee's employment whether or not liability exists; "endowment policies" means policies that have a defined life span and the sum assured is payable on the death of the policyholder or on the maturity of the policy even if the policyholder is alive; [The inclusion of this page is authorized by L.N. 33N2005]

THE INSUM NCE REGULA TIONS, 2001
"equity investments" means investments with no maturity date or guarantee of a return on or of the investments including ordinary shares, preference shares without fixed redemption date or dates and unit trusts; "explosion insurance" means insurance against the loss of, or damage to, property caused by explosion and includes insurance coming within the class of civil commotion insurance; "falling aircraft" means insurance against the loss of, or damage to, property caused by an aircraft or by an object falling from an aircraft; "fidelity insurance" means insurance- (a) against loss caused by the unfaithid performance of duties by a person in a position of trust; or (b) whereby an insurer undertakes to guarantee the proper fulfillment of the duties of an office including commercial guarantees, bankers', court and government bonds; "fire insurance" means insurance against the loss of, or damage to, property caused by fire, lightning, explosion due to ignition, smoke, and the breakage of or the leakage from a sprinkler or other fire protection equipment system; "fixed-term, fixed-interest investments" means investments such as money market instruments, Government securities, mortgages and preference shares with fixed redemption dates- (a) which are characterized by fixed maturity dates for the repayment of principal where the investor is entitled to a return that accrues over a period of time referred to as the tenor; (b) the interest on which is paid on specific dates, as set out in the terms of the contract and the investor normally has no claims against the investee other than those set out in the contract, unless the terms of the contract are in default; "forgery insurance" means insurance against loss caused by forgery; "general fund" means the main fund of a Life Insurance Company and belongs to both shareholders and policyholders but does not include the assets, liabilities, revenues and expenses of the segregated funds; [The inclusion of this page is authorized by L.N. 33AI20051

THE INSURANCE REGULAlTONS, 2001
"grace period" means the length of time (usually 31 days) after a premium is due and unpaid during which the policy, including all riders, remain in force; "gross premiums" means premiums after deduction of refunds and rebates of premium but before deduction of premiums for reinsurance ceded and commission payable by the company; "group insurance" means insurance whereby the lives or health of a number of persons are insured severally under a single contract ( '\ between an insurer and an employer or other person; 'J "guarantee insurance" means insurance coming within the class of fidelity insurance and surety insurance; "hail insurance" means insurance against the loss of, or damage to, crops on the field or glass in glass houses caused by hail; "health claims" means claims paid under contracts of health insurance where members of a plan are reimbursed, or the medical providers are paid directly by the insurance company where the amount reimbursed or paid is usually a percentage of the total cost of medical services provided under the Health Insurance Plan; "hurricane and windstorm insurance" means insurance against the loss of, or damage to, property caused by windstorm, cyclone, hurricane or tornado; "impact by vehicles insurance" means insurance against the loss of, or damage to, property caused by a vehicle or by an object falling from a vehicle; "inland transportation insurance" means insurance against the loss of, or damage to, property while in transit or during delay incident, but does not include insurance coming within the class of wet marine and transportation insurance except for incidental transit on inland waterways; "investment period" means the period during which the investment is held; "investment reserve" means the aggregate of all reserve accounts for realized and unrealized gains in the different investments; J "lapse" means the termination of an insurance policy resulting from nonpayment of a renewal premium before the end of a grace period; "legal expense insurance" means insurance against the cost incurred by a person or persons for specified legal services, including fees or other costs incurred relative to the provisions of such services; [The inclusion of this page is authorized by L.N. 33N20051

THE INSURANCE REGULA TlONS, 2001
"libel and slander insurance" means insurance against liability in law for damages and claimant's costs and expenses in respect of claims made against the insured for any libel, slander to title of goods, infringement of trademark, registered design, copyright or patent right arising from matter contained in specified publications; "life insurance" means insurance that is payable (a) on the death of a person; (b) on the happening of an event or contingency dependent on human life; (c) at a fixed or determinable future time; or (6) for a term dependent on human life, and, without restricting the generality of the foregoing, includes- (e) insurance whereby an insurer, as part of a contract of life insurance, undertakes to pay an additional amount of insurance money in the event of the death by accident of the person whose. life is insured; and u> insurance whereby an insurer, as part of a contract of life insurance, undertakes to pay insurance money or to provide other benefits in the event that the person whose life is insured becomes disabled as a result of bodily injury or disease; (g) an undertaking to provide an annuity or what would be an annuity except that the periodic payments may be unequal in amount, for a term dependent solely or partly on a human life, and such an undertaking shall be deemed always to have been life insurance; "life insurance contract" means a contract under which a life insurance company accepts an insurance risk by agreeing with the policyholder to make a payment if specified uncertain future event occurs. Life insurance companies, by accepting payments (premiums) for this risk from a large number of persons based on the degree of risk that each insured represents, strive to put themselves in a position to meet all future expenses and claims as they arise; "limited or inherent explosion insurance" means insurance against the loss of, or damage to, property caused by the explosion of dust, gas or other substance, where the explosion arises out of hazards inherent in the business conducted on the premises; [The inclusio~l of this page ir authorized hy I- N. 33A12005]

THE INSURANCE REGULA TIONS, 2001
"Livestock insurance" means insurance against the loss, sickness or death of, or injury to animals, buds or fish; "loss of employment insurance" means insurance against the involuntary loss of employment by a person where the loss of employment benefit is limited to all or part of the debt of the person; "machinery insurance" means insurance against liability arising out of- (a) bodily injury to, or the death of, a person; or (6) the loss of, or damage to, property, or caused by break-down of machinery; "margin for adverse deviations" means the elements in the assumptions used in the calculation of an actuarial liability for possible unfavourable deviations from expected (or most likely) experience; "maturity benefit" means a policy reaching maturity or endowment on the death of the insured or when the cash value becomes equal to the death benefit and the insured is entitled to receive full payment of the full cash value; "measurement uncertainty" means the uncertainty in the determination of the amount at which an item is recognized in financial statements, being uncertainty that exists when there is a variance between the recognized amount and another reasonably possible amount; "minimum asset test" means a requirement that general insurers maintain at least a minimum level of assets, capital and surplus to meet the liabilities of the company; "minimum continuing capital and surplus solvency requirement" means a requirement that life and health insurers maintain at least a minimum level of capital and surplus that reflects the riskiness of their assets and operations; "mortgage insurance" means insurance against loss caused by default on the part of a borrdwer under a loan secured by a mortgage on real property, hypothecation on immovable property or an interest in real or immovable property; "negative reserves" means reserves arising when the policy liability on a policy as calculated on the valuation assumptions is negative; [The inclusion of this page is authorized by I..N. 33N2005]

THE INSURANCE REGULATIONS, 2001
"own damage insurance" means insurance against loss or damage to the motor insured vehicle due to accidental collision, overturning (whether or not due to mechanical breakdown) fire, external explosion, theft, malicious act, flood, hurricane, earthquake or other convulsion of nature, riot and civil commotion; "permanent health insurance" means insurance against risks of the persons insured sustaining injury as the result of an accident or of an accident of a specified class or becoming incapacitated in consequence of disease or of disease of a specified class being contracts that- (a) are expressed to be in effect for a period of not less than five years or without limit of time; and (b) either are not expressed to be terminable by the insurer before the expiration of five years from the taking effect thereof or are expressed to be so terminable before the expiration of that period only in special circumstances therein mentioned; "personal liability insurance" means insurance against the legal liability of the insured and any member of the family of the insured normally residing with him to compensate third parties for any injury, illness, loss of or damage to property arising out of their private activities away from home; "personal property insurance" means insurance against the loss of, or damage to, movable or personal property but does not include insurance coming within the class of aircraft insurance and automobile insurance; "plate glass insurance" means insurance against the loss of, or damage to, plate or other glass; "policy dividends" means annual payments made to policyholders of participating insurance policies where the life insurer distributes a percentage of the profits made on these policies to the policyholders as dividends; "policy loans" means loans to policyholders, secured by the cash surrender value of the life insurance policy; "policy premium method" means a method of computing actuarial liabilities, which uses the 111 amount of the premiums stipulated in the related insurance policies (the actual premiums), and the estimated related expenses and obligations (without arbitrary limitation), such that the net present value of these elements, after providing for adverse deviations, is recognized in income when the policies are issued; [The inclusion of this page is authorized by L.N. 33N20051

THE INSURANCE REGULA TIONS, 2001
"premium" means the gross premium that is receivable from the policyholder on an insurance policy written by an insurer, and include annuity consideration that may be received on a modal basis including monthly, quarterly and annually; "premium-due and outstanding" means a premium that is due and remains unpaid at the end of an accounting period; "premium-first year" means the premium that is receivable in the first year of a new policy; "premium, first modal" means the first premium received for a new policy; "premium gross written" means the gross premium receivable on an insurance policy written by an insurer, net of duties, adjusted for additional or return premium, but before deductions for commissions, brokerage or other acquisition expenses; "premium, net earned" means the net written premium less the movement in the provision of unearned premium reserve during the accounting period; "premium net written" means the gross premium receivable on an insurance policy less premium for reinsurance ceded; "premium-renewal" means.the premium that is receivable subsequent to the first policy year; "premium-single" means the premium that is due under a policy of insurance where the entire premium is payable at inception; "premiums-paid in advance" means premiums paid in one or more payments covering more than one modal period and the premiums remain unearned at the end of the accounting period; "product liability insurance" means insurance against liability incurred by manufacturers, repairers, or retailers arising out of- (a) bodily injury to, or the death of, a person; or (b) of, or damage to, property, caused by products made, sold or distributed by them; "professional indemnity insurance" means insurance against legal liability towards aird parties for injury, loss or damage, arising from a person's own professional negligence, enor or omission or that of his employees; "provision for adverse deviations" means the difference between actuarial liabilities calculated using assumptions with and without specific margins for adverse deviations; [The inclusion of this pap is authorized by L.N. 33N2005J

THE INSURANCE REGULATIONS, 2001 63
"public utility insurance" means insurance against liability arising out of- (a) bodily injury to, or the death of, a person; or (b) the loss of, or damage to, property, happening in connection with the business insured under the policy but does not include insurance coming within the class of aircraft insurance, automobile insurance or employer's liability insurance; "real property insurance" means insurance against the loss of, or damage to, real or immovable property resulting from any cause not specifically mentioned in other classes of insurance covering real or immovable property; "reinsurance" means the assumption by one insurer of all or part of the risks undertaken by another insurer in consideration of a premium where the original insurer remains fully liable to policyholders for the insurance obligations but has recourse to the reinsurer; ''reinsurance, automatic" occurs where the ceding company agrees to reinsure all cases that meet certain defined conditions for amounts as defined in the reinsurance contract; "reinsurance facultative" refers to an arrangement whereby- (a) reinsurance is taken on an individual policy basis; (b) the ceding company is indemnified for a percentage of a specific insurance policy or for losses in excess of its retention with respect to a particular risk; (c) the ceding company makes the offer of reinsurance and the reinsurer has the option to accept or reject the risk and to quote the terms for acceptance; and (6) the terms of the agreement and premiums are agreed on an individual basis; "reinsurance non-proportional (also termed excess or loss)" means reinsurance where the reinsurer, subject to specified limits, indemnifies the ceding company against a claim in excess of specified retention; "reinsurance proportional" means reinsurance where the reinsurer shares on a pro rata basis the claims and premiums of the ceding company; "reinsurance treaty" means a written agreement between the insurer and the reinsurer that specifies the terms and conditions for risks to be submitted for reinsurance being an agreement that usually [The 1nclusto11 of this page is autlwlzed by I..N. 33Al20051

THE INSURANCE REGULATIONS, 20001 involves a class or type of business written, where the ceding insurer continues to perform administrative functions and deals with the policyholders; "retention limit" means the maximum amount of insurance that a life insurance company will retain at its own risk on itldividual lives in various categories of insurance; "retrocession" means the ceding of reinsurance obligation by one reinsurer to others; "segregated funds" means separate funds established for the specific purpose of separating the assets and liabilities of the contract holders such as, policyholders or pension fund clients, from those of the life insurance company where these funds belong to the contract holders and the life insurance company is merely the administrator; "selling expenses" represent the total cost incurred in disposing of investment assets, such as agent's fees, transfer taxes and stamp duty; "settlement date" means the date on which the life insurer assumes the risk insured under a life insurance policy; "sickness and health insurance" means- (a) against loss resulting from the illness or disability of a person other than loss resulting from death; (6) whereby an insurer undertakes to pay a certain sum or sums of money in the event of the illness or disability of a person; or (c) against expenses incurred for vision or dental care laboratory or x-ray services, hospitalization, other than for illness or disability arising out of an accident; "sum assured" means the sum that the life insurance company promises to pay to the policyholder at death or on the maturity of the life insurance policy; "surety insurance" means insurance whereby an insurer undertakes to guarantee- (a) the due performance of a contract or undertaking; or (6) the payment of a penalty or i~dernnity for any default, but does not include insurance coming within the class of credit insurance or mortgage insurance; "superannuation fund (deposit administration fund)" means a pension fund- [The inclusio~i of this page is authonzed by L.N. 33A/2005]

THE INSURANCE REGULATIONS. 2001
(a) that is managed by a life insurance company financed by deposits from contract holders where the assets purchased with the deposits are co-mingled with the assets of the life insurance company and are not segregated for the management in a separate fund; and (b) the insurer pays the pension clients interest on their deposits; "surrender" means the policyholder's termination of the policy contract, not by lapsing, before its maturity date; "surrender privileges" means guaranteed benefits to be paid to a policyholder if the policy is terminated by the policyholder prior to maturity (including cash surrender value); "theft insurance" means insurance against the loss of, or damage to, property caused by theft, wrongful conversion, burglary, house￾breaking, or robbery, and includes insurance against loss caused by forgery; "party insurance" means insurance against legal liability of the insured to pay in respect of death or bodily injury to, or damage to the property of, third parties; "title insurance" means insurance against loss or damage caused by- (a) a defect in the title to real property; (b) the existence of a lien, encumbrance or servitude on real property; (c) a defect in the execution of a mortgage, hypothec or deed of trust in respect of real property; or (d) any other matter affecting the title to real property or the right to the use and enjoyment of real property; "unearned premiums" means the amount set aside as at the end of the financial year of a company out of premiums in respect of risks to be borne by the company after the end of that year under contracts of insurance entered into before the end of that year; "unearned premium review" means the amount set aside out of net premiums at the end of the financial period in respect of risks to be borne by the insurer subsequent to the accounting period under contracts of insurance entered into on or before that date; "unexpired risks provision" is established in cases where the expected value of claims and related expenses, whether reported or unreported, attributable to the unexpired periods of policies in force at the balance sheet date exceeds the related unearned premium reserve, after deduction of any deferred acquisition costs; (The i~~clusion of this page is aull1ori7ed bv I.,N 33Ai20051

THE INSURANCE REGULATIONS, 2001
"unexpired risks" means the amount set aside as at the end of the financial year of a company in addition to unearned premiums, in respect of risks to be borne by the company after the end of that year under contracts of insurance entered into before the end of that year; "unit-linked funds" means separate or segregated funds established by life insurance companies, in conformity with the Act, to manage policyholders' premiums received in respect of the investment portion of a life insurance plan; -'\ , I "unit-linked insurance" means insurance provided by life insurance 'i - ) contracts which includes benefits which are wholly or partly linked to the income from or the value of any group of the company's assets or wholly or partly calculated by reference to the yield from or the value of any descriptions of investments, whether or not investments of those descriptions are held by the company; "units encashment" means the withdrawal of unit values by the holder of a unit-linked life insurance policy; "valuation assumption" means an assumption or estimate of future events such as future death rates and investment income rates which includes a margin for adverse deviations and is used in calculating the actuarial liabilities; "valuation premium (net premium)" means the lesser of the actual premium and the calculated valuation premium; 'L~~l~an~ insurance" means insurance against the loss of, or damage to property resulting from volcano eruption; "water damage insurance" means insurance against the loss of, or damage to, property caused by the escape of water- (a) fiom plumbing, heating or sprinkle or other fire protection equipment or system in building; or (b) fiom any water main or water pipe outside a building; "weather insurance" means insurance against the loss of, or damage to, property caused by rain, hurricane, flood, windstorm, cyclone, tornado, or other climatic conditions but does not include insurance coming within the class of hail insurance; J "wet marine and transportation insurance" means insurance- (a) upon vessels, crafts, hulls and other interests in them or with relation to them; (b) of marine builder's risks, marine war risks and contracts of marine protection and indemnity insurance; [The inclusion or this page is authorized by L.N. 33N20051

THE INSURANCE REGULA TIONS, 2001
(c) freight and disbursements pertaining to a subject of insurance within the scope of this paragraph; and (4 of personal property and interests therein, in the course of exportation from or importation into any country, or in the course of transportation coastwise or on inland waters, including transportation by land, water or air from point of origin to final destination, in connection with any and all risks or perils of navigation, transit or transportation, and while being prepared for and while awaiting shipment, and during any incidental delays, trans-shipment, or reshipment; provided, however, that insurance of personal property and interests therein shall not be considered wet marine and transportation insurance if the property has- (i) been transported solely by land; or (ii) reached its final destination as specified in a bill of lading or other shipping document; or (iii) the insured no longer has an insurable interest in the property.
PART 11-Classes ofInsurance Business
3.--(I) The classes of general insurance business in respect of which izSof registered insurers may engage in Jamaica, are- insurance business, (a) accident insurance business; (b) liability insurance business; (c) marine, aviation and transport insurance business; (d) motor vehicle insurance business; (e) pecuniary loss insurance business; V) property insurance business. (2) The types of cover falling under the various classes of general insurance business pursuant to paragraph (I) are set out in Schedule 1. Schedule I 4.-41) The classes of long-term insurance business in respect of which ~&~~~~ registered insurers may engage in Jamaica, are- (a) industrial life insurance business; (b) ordinary long-term insurance business; (c) sickness and health insurance business. (2) The definition of the classes of long-term insurance business pursuant to paragraph (1) are set out in Schedule 1. [The inclusion of this page is authorized by L.N. 33N2005]

THE INSURANCE REGULA TIONS, 2001
Applicalwn Ibr rcgidrrla>n ah lil'c or gctwrsd Iwwcr iud rundllian, i~~~pusccl on tcgwlrxtot~.
5. Thc Commission shall keep a register of insurance companies in the
form sct out in Schedule 2, in which shall be entered particulars in respect of cvcry insurance company registered under Part I1 of the Act.
PART IV-Registration of Insurers
6.--(I) An application for registration as an insurer shall be made in the for111 sct out in Schedule 3. (2) Whcre the Commission, after appropriate enquiry and the production of such documentary evidence as it may deem appropriate, is satisficd as to the matters specified in paragraph (3) in respect of the applicant, the Commission shall approve the registration of the insurer in rclation to the class of insurance business to which the application relates, cithcr unconditionally, or subject to such conditions as the Commission may rccommend. (3) The matters referred to in paragraph (2) are as follows- (a) the constitutive documents of the applicant permit the carrying on of the insurance business; (h) all applicable requirements of the Act, the regulations and any directive of the Commission have been met by the applicant; (c) the applicant is or will be solvent within the meaning of the Act, these Regulations and any directive of the Commission; (d) the applicant is likely to be able to comply with such of the provisions of the Act; the regulations and any directive of the Commission as are or would be applicable to it; (e) the name of the applicant is not identical with, nor does it so closely resemble the name of another entity as to be likely to confuse or deceive; I \ (f) where applicable, the applicant has made adequate arrangements J for reinsurance of the class of insurance business in which it intends to engage; (g) the person holding or to be appointed to hold the office of managing director; chief executive officer or principal representative of the applicant is of good character and is a fit and proper person to hold that office;

WE INSURANCE REGULATIONS, 2001
(h) the staff which the applicant employs or intends to employ, in relation to any class of insurance to which the application relates, is or will be sufficiently competent and knowledgeable to carry on that business in an efficient manner; (i) a satisfactory business plan in respect of the applicant has been submitted in accordance with these Regulations; fl in the case of a foreign applicant, it- (i) is lawfklly constituted in accordance with the laws of the country in which it is incorporated or otherwise established and has undertaken in that country insurance business of the same nature as that in respect of which it is seeking authorization in Jamaica; (ii) has submitted to the Commission a certificate of good standing issued by the person duly qualified in that jurisdiction to do so; (iii) will appoint a person resident in Jamaica to be its principal representative in Jamaica; and (iv) has submitted to the Commission the curriculum vitae, including details with respect to qualifications, experience in insurance business and references, of the proposed principal representative; (v) there is, in the Commission's opinion, sufficient indication that the business will be conducted in a prudent and sound manner; (k) the applicant has appointed or will appoint an actuary and an auditor, as required by the Act, the regulations or any directive of the Commission; (1) satisfactory arrangements have been made with respect to- (i) depositing assets with the Commission, (ii) vesting assets in trust, as required by the Act, these Regulations or any directive of the Commission; (m) in the case of an insurer which was, prior to the coming into operation of the Act, carrying on insurance business in Jamaica, it conducted such business in a sound and proper manner; and (n) registering the applicant would not be contrary to the public interest. 7.--(1) The certificate of registration of an approved company shall be in zsiz:,Yf the form set out in Schedule 4. Schedule 4. [The inclusiou of this page is ar~thorized by L.N. 33AI2005]

THE INSURANCE REGULA TIONS, 2001
(2) Every approved company shall apply to the Commission within thirty days of its registration or fourteen days of the commencement of operation of any of its branches, agencies, or sub-agencies, as the case may be, for the number of copies of its certificate of registration required for the purpose of display in all its branches, agencies and sub-agencies in accordance with section 12 of the Act. (3) Every application pursuant to paragraph (2) shall- (a) include the name and address of each branch, agency and sub￾agencies as the case may be, and the name and address of the manager or person in charge of each such branch, agency or sub-agency; (b) be accompanied by a receipt from the Commission for payment schedule 20. of the application fee set out in Schedule 20. (4) Any change in any of the particulars included in an application made pursuant to this regulation, shall be reported to the Commission in writing, within thirty days of such change. wo"tqu'"d" 8.--(1) The minimum assets required to be deposited with the canyon business. Commission by a registered insurer from commencement of operations in or from within Jamaica shall be (a) in respect of an entity which proposes to carry on life or sickness and health insurance business, or both, ninety million dollars; (b) in respect of an entity which proposes to carry on general insurance business, forty-five million dollars. (2) The Commission may require the deposit referred to in section 21 of the Act to be increased, either before or after granting the licence, to such amount as it considers necessary and for this purpose the Commission may require a reinsurer that reinsures all or part of the insurer's business to deposit balances owing to the insurer with the Commission. (3) An insurer may voluntarily make a deposit in excess of the amount prescribed by this regulation, but no part of voluntary deposit shall be withdrawn without the sanction of the Commission. Value sl which wuritimreoeived, 9.41) The value of securities deposited shall be estimated at their market value, not exceeding par, at the time they are deposited. (2) If the market value of any securities that have been deposited by an insurer declines below that at the time they were deposited, the Commission may notify the insurer to make such further deposit as will ensure the accepted value of all the securities deposited by the insurer being equal to the amount that is required by the Act to be deposited. (3) If the insurer fails to make such mher deposit within sixty days [The inclusion of this page is authorized by L.N. 33A120051

THE INSURANCE REGULATTONS, 2001 71 after being called upon so to do, the Commission may suspend or cancel the licence of the insurer.
10. The property in any stock, bonds or debentures deposited with the
Commission under the Act or any predecessor thereof is vested in the Commission by virtue of its ofice without any formal transfer while such stock, bonds or debentures form the whole or any part of the deposit required by the Act.
11. So long as the conditions of the Act are satisfied and no notice of any
final judgment against the insurer or order for its winding up, distribution of its assets or administration of its deposit is given to the Commission, the insurer is entitled to receive the interest upon the securities forming the deposit.
12. Where an insurer desires to substitute other approved securities for
securities deposited, the Commission may permit the substitution to be made. 13.-31) An insurer that has ceased to transact business in Jamaica and desires to obtain a return of its deposit- (a) may give written notice to that effect to the Commission; (b) where it gives such notice, shall publish in the Gazette a notice that it has applied to the Commission for the return of its deposit, calling upon all claimants, contingent or actual, who object to the return to file their objections with the Commission on or before a day named in the notice, which shall not be less than three months after its first publication. (2) Upon giving notice to the Commission, the insurer shall file with it a list of all its outstanding contracts of insurance, including contracts in respect of which claims have accrued. (3) After the day named in the notice, if the Commission is satisfied that the insurer has obtained a discharge of all such outstanding contracts, the Commission may direct that the deposit be returned. (4) If the Commission is not satisfied that all such contracts have been discharged, the Commission may direct that a sufficient portion of the deposit be returned to meet the contracts unprovided for and that the remainder of the deposit be retained, and thereafter, from time to time as such contracts lapse or proof is adduced, that they have been satisfied, the Commission may direct fiuther return of a portion of the deposit.
14. The minimum paid up and unencumbered capital, surplus, reserve or
equivalent fimd required of an entity applying to become registered as an Title to securities. Rdum of depasit on ceasing to do business. Minimum required. [The inclusion of this page is authorized by L.N. 33Ai2005]

THE INSURANCE REGULATIONS, 2001 insurer shall be, in respect of an entity which proposes to carry on- (a) life insurance business, one hundred and fifty million dollars; and (6) general insurance business, ninety million dollars. Applicability. 15. Regulation 14 shall not apply to an insurer registered pursuant to the repealed Insurance Act immediately prior to the coming into force of the Act, but shall apply to that insurer in accordance with section 22 of the Act. NalweofasselstO 16. The assets which a registered insurer is required to deposit with the be deposilcd Commission shall consist of- (a) cash; (6) unencumbered securities of, or guaranteed by, the government; (c) other securities, at an accepted value and on the conditions established by the Commission; or (d) any combination of (a) to (c). Registered foreign insurers. 17. Subject to regulations 18 and 19, a registered foreign insurer shall, in respect of the insuring of local risks that fall within the class of life and sickness and health insurance business, vest assets in trust the total value of which when determined on the basis of the market value of those assets, whichever basis produces the greater total value, is at least equal to the total of- (a) the amount of the reserve for actuarial and other policy liabilities of the registered foreign insurer in respect of that class, determined on the same basis as the reserve included in the annual return of the registered foreign insurer; or (b) the total amount of the other liabilities of the registered foreign insurer in respect of that class. Reduction due to reinsurance. 18.-41) Subject to paragraph (2), where a registered foreign insurer is reinsured in whole or in part against risks undertaken or claims payable in respect of a policy or group of policies, the total of the amounts referred to in regulation 17 (a) and (6) may be reduced by subtracting therefrom an amount not exceeding the total of the risk portions thereof that may reasonably be considered to apply to the portion of the risks or claims that is reinsured. (2) Where a reinsurer that is incorporated outside of Jamaica is not authorized under the Act to insure risks, a reduction under paragraph (1) may be made if the Commission has determined, by directive, that- (a) the reinsurer's financial condition is satisfactory and that its operations are conducted in accordance with sound business and financial practices; and (6) security is maintained in Jamaica, in respect of the reinsurer's [The inclusion of this page is authorized by L.N. 33A/2005]

THE TNSURANCE REGULATIONS, 2001 potential liabilities, in an amount, of a nature and under arrangements that the Commission considers to be satisfactory.
19. The total value of assets required under regulation 17 to be vested may
be reduced by-
(a) any assets deposited with the Commission pursuant to section 21 of the Act; (6) any amounts that are receivable from agents and policyholders of the registered local insurer in respect of policies in force, as may be determined by the Commission by directive; and (c) any assets required by a supervisory authority in a foreign jurisdiction to be deposited, vested, pledged, or otherwise dedicated or encumbered in connection with any such business and in connection with risks insured outside Jamaica.
20. The Commission may, by directive, allow a registered foreign insurer
to reduce the total value of assets required to be vested pursuant to regulation 16 by the amount of a letter of credit drawn on a bank, up to a maximum reduction of fifteen per cent of the total value.
21. Regulations 17 to 20 shall apply, mutat@ rnutandis, to the insurance
business in Jamaica of a registered foreign insurer.
22. For the purposes of section 26 of the Act, the gain or loss resulting
from the sale or other disposition during a calendar year, of a registered insurer's assets shall be shown as a separate entry in the registered insurer's annual statement for that calendar year. 23.-41) A registered insurer shall not vest in trust interests in real property in excess of fifteen per cent of the total assets vested in trust. (2) A registered insurer shall not vest in trust equity interest in entities in excess of twenty-five per cent of the total assets vested in trust.
24. Unless the written consent of the Commission is first obtained, a
registered local insurer shall not exercise its borrowing powers if the total of the undischarged amount of moneys borrowed or to be borrowed and secured or to be secured would exceed, in the case of a registered local insurer which engages- (a) only in life insurance business, five per cent; (b) only in property and liability insurance business, five per cent; and (c) in life insurance business and in property and liability insurance business, five per cent, Additional reductions. Lcttcr of credit in licu. Application lo registered foreign insurers. Gain or loss fmm disposition ofasset. Restriclions on vesting. Restrictions on borrowing. of the registered local insurer's total assets. [The inclusion of this page is authorized by L.N. 33N2005]

74
Required assets general insurer.
Required assets life insurer.
Unwdlled reserve of mulunl wmpany.
Minimum asset.
Schedule 5.
THE INSURANCE REGULATIONS, 2001
25. In each year after registration, a company canying on general
insurance business must have required assets in an amount equal to total liabilities plus the minimum amount of capital required to satisfy the solvency requirement set out in Part VI.
26. In each year after registration, a company canying on long-term
insurance business or sickness and health insurance business, or both, must have required assets in an amount equal to total liabilities plus the minimum amount of capital required to satisfy the solvency requirement set out in Part VI.
27. No company shall be registered as a mutual company unless it has
satisfied the minimum solvency standards in accordance with regulation 29. General Insurance 28.-41) In this regulation- "non-admitted assets" means non-liquid assets, the values of which are uncertain and from a solvency point of view, have no value; "foreign exchange reserves" means the net unrealized gains or losses resulting from the holding of foreign assets and liabilities; "liability margins" means additions to total liabilities in relation to premium and claim reserves, written premiums and incurred losses for the past twelve months; "expected claims ratio" in respect of a class of insurance, means the claims ratio that the company expects will apply in respect of policies issued by the company during unexpired terms of those policies; "claims ratio", in respect of a particular period and any policies that fall within a particular class of insurance, means ratio of the claims incurred during that period in respect of those policies, including adjustment expenses incurred in respect of those claims, to the premiums earned during that period in respect of those policies. (2) The minimum asset test shall be filed in accordance with the requirements set out in Schedule 5. (3) A general insurance company is considered to be solvent and adequately capitalized when the available assets are equal to at least one hundred per cent of the required assets. [The inclusion of this page is aull~orized by L.N. 33N20051

THE INSURANCE REGULATIONS, 2001
(4) For the purposes of this regulation- (a) the available assets represent the total assets less adjustment for non-admitted assets; (b) the total assets represent all the assets of the company, including increases in value in assets that are recorded at market value; (c) the assets may be recorded at book value, market value or the lower book and market values; (4 investments shall be recorded in accordance with international accounting standards and accounting standards on investment; (e) on-admitted assets include accounts receivables in arrears, furniture, fixtures, computer hardware and equipment, intangible assets, deferred expenditure, increases in asset values due to unrealized foreign exchange gains, deferred acquisition costs and deferred taxation refunds. (5) The required assets are made up of the following- (a) the total liabilities plus reserves for reinsurance ceded to unlicensed or ineligible reinsurers; (b) a margin for unearned premiums and claims (sickness and accident policies); and (c) the greatest margin of unearned premiums, claims reserves (other than sichess and accident) written premiums and incurred claims. (6) Total liabilities represent the total obligation of the company to creditors, agents and brokers, reinsurers and policyholders. (7) The reserve for reinsurance ceded to ineligible or unlicensed reinsurers who are not registered to operate in Jamaica or who are otherwise ineligible, should be sufficient to cover the losses so reinsured less deposits and letters of credit being held by the company as security from the reinsurer. (8) The margin for accident and sickness policies is 15% of net unpaid claims and adjustment expenses, plus 15% of net unearned premiums. (9) The margin for unearned premiums and outstanding claims reserves (other than accident and sickness policies) is 15% of outsta~1ding claims reserve and adjustment expenses, plus 15% of net unearned premiums. Margin for Premium Written (10) The margin required for premium written is equal to the gross margin less the margin reduction for reinsurance and for the purpose of this paragraph-- lThe inclusion of this page is authorized by L.N. 18~/20081

THE INSURANCE REGUUTIONS, 2001
(a) the gross margin required is-
(i) 15% of gross premiums written during t5e past twelve .months; and (ii) supplementary margin on gross premiums, which is the lesser of 5% of gross premiums written during the past twelve months and $15,000,000.00; (b) the margin reduction for reinsurance is the gross margin multiplied by the reinsurance ratio. Margin for Claims (1 1) The margin required for claims is the gross margin less the margin reduction for reinsurance as follows- (a) 22% of the average annual gross claims incurred during the preceding thuty-six months; and (b) the supplementary margin on gross claims, which is the lesser of 7% of average annual gross claims incurred during the preceding thuty-six months and $15 000,000.00; . (c) the margin reduction for reinsurance is the gross margin multiplied by the reinsurance ratio; (d) the reinsurance ratio is the lower of reinsurance ceded over the past twelve months divided by gross claims incurred over the same period and 70%. Long term insurance ~mim~m 29.-(1) In this regulation￾cahmrmg capital and SU~~IUT "asset default risk means risk of loss resulting from balance sheet requnemetds (MCCSR) default and related loss of income and the loss market value of investments and related reduction of income; "changes in interest rate environment risk tneans the risk of loss resulting from changes in the interest rate environment; "foreign exchange risk" means the risk associated with asset depreciation or liability appreciation arising fiom changes in foreign exchange rates; "interest margin pricing risk" means the risk of interest margin losses with respect to investments and pricing decisions on in-force business; "mortality/morbidity/lapse risks" means the risks that assumptions about morbidity and lapse will be wrong. (2) Minimum continuing capital and surplus requirement shall be Schae 6 filed in accordance with the requirements set out in Schedule 6. [The inclusion of this page is authorized by L.N. 18r\12008]

THE INSURANCE REGULA TIONS, 2001
(3) Long-term insurers shall have available capital equal to at least the minimum capital requirement. (4) Total capital is comprised of two tiers- (a) Tier 1 (the core capital); and (b) Tier 2 (supplementary capital). Tier I (5) Tier 1 (the core capital) shall consist of￾ordinary shareholder's equity, including ordinary shares and retained earnings; qualifying non-cumulative irredeemable preference shares; participating accounts; non-participating accounts (mutual companies); currency translation accounts; realized gains and losses in investment reserves; qualifying minority interests in subsidiaries arising on consolidation from the capital instruments referred to in paragraphs (a) to 0 less goodwill, cash surrender value deficiencies calculated on an aggregate basis, negative reserves calculated on a policy by policy basis and realized gains and losses on investments backing liabilities, in investment reserves. Tier 2 (6) Tier 2 (supplementary capital) shall consist of- (a) preference shares; (b) subordinated .debt; (c) debentures and bonds; (6) minority interest in other life insurance companies; (e) negative reserves; 0 cash surrender value deficiencies; (g) unrealized investment reserves. Tier 2A (7) Tier 2A (hybrid capital) must have the following minimum characteristics- (a) unsecured, subordinated to policyholder and creditor obligations [The illelusion of this page is authorized by L.N. 33A/2005]

THE INSURANCE REGULATIONS, 2001 and hlly paid up; (b) not redeemable at the initiative of the holder; (c) may be redeemable by the issuer after an initial term of five years with the prior consent of the Commission; (4 available to participate in losses without triggering a cessation of ongoing operations or the start of insolvency proceedings; (e) allow interest of dividend payments to be deferred (as with cumulative preference shares) where the profitability of the company would not support payment. Tier 2B (8) Tier 2B (instruments with limited lives) must have the following minimum characteristics- (a) subordination to policyholders and senior creditors; (b) the initial minimum term is greater than five years; (c) may be redeemable by the issuer in the first five years or less, only with the prior consent of the Commission. (9) Failure to meet debt servicing obligations on the Tier 2B debt provided by the parent should not, at any time, result in the parent company being unable to meet its own debt servicing obligations or trigger cross￾default clauses under the covenants of other borrowing agreements of either the subsidiary or the parent. (10)Tier 2 capital instruments must not contain restrictive convenants or default clauses that would allow the holder to trigger acceleration of repayment in circumstances other than the insolvency, bankruptcy or winding-up of the issuer. (1 1) Capital instruments issued in conjunction with a repackaging arrangement that are deemed by the Commission to be an effective amortization are to be treated as limited life instruments subject to theu conforming with the criteria for Tier 2B instruments. (12) All capital instruments must be issued and fully paid for in money or, with the approval of the Commission, in property. Tier C (13) The following items qualify as Tier 2C capital- (a) 75% of the cash surrender value deficiencies on an aggregate basis in year 1,62.5% in year 2 and 50% in year 3; (b) 75% of the negative reserves on a policy by policy basis; [The inclusion of this page is authorized by L.N. 33N2005j

THE INSURANCE REG ULA TIONS, 2001 79
(c) unrealized net gains or losses in investment reserves relating to widely traded stocks, mutual funds and bonds that have been taken into account in the valuation of policy liabilities less expected disposal costs; less unrealized gains or losses relating to investments that back liabilities. Local minorig interest (14) Local minority interests, including subordinated debt issued to independent investors, arising on consolidation may be included in the -\ respective categories, if- ,-- (a) the instruments meet the requirements applicable to that category; and (6) they do not effectively rank equally or ahead of the claims of policyholders and other senior creditors of the insurer due to a parent guarantee or by any other contractual means. (15) If a subsidiary issues capital instruments for the funding of the parent company or if the instruments are substantially in excess of the subsidiary's own capital requirements, the terms and conditions of the issue, and the inter-company transfer must ensure that investors are placed in the same position as if the instrument were issued by the parent company. (16) The sum of Tiers 1 and 2 capital shall be reduced by the following- (a) substantial investments in non-life financial corporations that are controlled by the company; (b) facilities that are treated as capital by unconsolidated subsidiaries and by unconsolidated corporations in which the company has a substantial interest, and, for the purposes of this regulation- (i) any reference to substantial investments is a reference to ownership of at least 25% of the shareholders' equity in another corporation; (ii) no asset default factor will be applied to items that are deducted fiom capital. (17) The amount of capital elements, net of amortization, included in the Tier 2 capital may not exceed 100% of net Tier 1 capital. (18) Limited life instruments, net of amortization, included in Tier 2B shall not exceed a maximum of 50% of net Tier 1 capital. (19) Negative reserves included in Tier 2C may not exceed 33% of net Tier 1 capital. [The inclusion of this page is authorized by L.N. 33N20051

THE INSURANCE REGULATIONS, 2001
(20) Any capital instruments and limited life instruments issued in excess of these limitations will not be counted as capital for the purpose of the risk-based capital adequacy test but they will be taken into account when reviewing the overall strength of the company. Preference Shares (Tier 1) (21) To qualify as Tier 1 instruments, preference shares must be in form and substance- (a) subordinated to policyholders and unsecured creditors; (b) permanent; (c) free qf mandatory fixed charges. Subordination (22) Preference shares must be subordinated to the company's policyholders and unsecured creditors. (23) If preference shares are issued by a subsidiary for the funding of the company and are to qualify for capital (non-controlling interest), the terms and conditions pf the issue, and the inter-company transfer, must ensure that investors are placed in the same position as if the instrument were issued by the company. Permanence (24) To ensue the permanence in nature of preference shares, the following features are prohibited- (a) retraction by holder; (b) obligation of the issuer to redeem the shares; (c) redemption within five years of issuance. (25) Any conversion, other than to ordinary shares of the issuer, or redemption is subject to supervisory approval and- (a) redemption can only be for cash or the equivalent; and (b) conversion privileges cannot be structured to effectively provide either a redemption of or return on the original investment. j Free of Mandatory Fixed Charges (26) Preference shares that are included in Tier 1 capital shall not have the following features- (a) cumulative dividends (dividends influenced by the credit standing of the institution); [The inclusion of ibis pap is authorized by L.N. 33N20051

THE INSUM NCE REGULA TIONS, 2001 81
(b) compensation to preference shareholders other than a dividend; (c) sinking or purchase funds. Hybrid Capital Instruments (Tier 2A) (27) These instruments include- (a) cumulative irredeemable preference shares; (b) qualifying 99 year debenture (irredeemable); (c) qualifying non-controlling interest arising on consolidation from Tier 2 Hybrid capital instruments. (28) To qualify as Tier 2A capital, preference shares should have characteristics similar to those required for Tier 1 capital except that Tier 2A preference shares may be cumulative. (29) Irredeemable bonds meeting the criteria for hybrid capital instruments and having the following characteristics will be eligible for Tier 2A capital￾unsecured, subordinated and fully paid up; not redeemable at the initiative of the holder but they may be redeemed at the initiative of the issuer after an initial term of five years with the prior consent of the Commission; are available to participate in losses while the issuer is still a going concern; must allow the issuer to defer principal and interest payments if the issuer does not report a net profit for the most recent combined four quarters and the issuer eliminates cash dividends on its ordinary and preference shares, but the deferral of interest will not, under any circumstances, be allowed to compound; must not contain provisions for any form of compensation in respect of any unpaid amounts, except subject to prior approval by the Commission; are free from special restrictive covenants or default clauses that would allow the holder to trigger acceleration of repayment in circumstances other than insolvency. Limited Life Instruments (Tier 2B) (30) In contrast to hybrid instruments, limited life instruments are not permanent and include- (a) limited life redeemable preference shares; [The inclusion of his page is authorized by L.N. 33A/2005]

THE INSURANCE REGULA TIONS, 20001
(b) qualifying capital inswnts issued in conjunction with a repackaging arrangement; (c) other debenture and subordinated debt; (4 qualifying non-controlling interest arising on consolidation from Tier 2 limited life instruments. Goodwill (31) Amortized goodwill shall be deducted from gross Tier I Capital. I 1 Non-life financial corporations controlled by company (32) Equity investments in non-life solvency regulated financial companies that are controlled by the company shall be deducted from Tier 1 and Tier 2 capital. Non-life solvency regulated financial corporations include those entities that are engaged in the business of banking, trust and loan business, general insurance business, the business of cooperative credit societies or that is primarily engaged in the business of dealing in securities, including portfolio management and investment counselling. (33) The company shall deduct these investments in controlled non￾life financial corporations based on the equity method of accounting. Where the company has investments in preference shares or debt instruments of the corporation, the amount invested in these instruments shall also be deducted fiom capital if they are classified as capital by the regulator in that corporation's home jurisdiction. (34) Where a facility such as a letter of credit or guarantee is provided by the company, and it is- (a) treated as capital by the non-life financial corporation controlled by the company; (b) available for draw-down in the event of impairment of the corporation's capital; and (c) subordinated to the corporation's customer obligations, the full amount of the facility shall also be deducted from capital. (35) No asset default factor shall be applied to equity investments, 4' letters of credit and guarantees or other facilities provided to controlled non￾life financial corporations where these have been deducted from capital. Investment in preference shares or debt instruments of, or letters of credit provided to, controlled non-life financial corporations that are not deducted from capital will be treated like any other asset in accordance with this guideline. [The lncluslon of rh~s page IS authorlred by L N 33A12005]

THE INSURANCE REGULATIONS, 22001
Amortization
(36) Tier 2 capital components are subject to straight-line amortization in the final five years prior to maturity or the effective dates governing the holders' optional rights to surrender the instruments. As redeemable preference shares and subordinated debentures of the company or non-controlling interest preference shares and qualifying subsidiary debt instruments approach maturity, redemption or surrender, such outstanding r" balances are to be amortized based on the following criteria:
\ Years to Maturity Included in Capital

5 years and over 100%
4 years but less than 5 years 80%
3 years but less than 4 years 60%
2 years but less than 3 years 40%
1 year but less than 2 years 20%
Less than 1 year 0%
(37) Similarly for capital instruments that have sinking funds, amortization of the amount paid into the sinking fund should begin five years before the sinking fund payment is due to be made. Corporation in which the company has made a substantial investment (38) Equity investment in a corporation in which the company has made a substantial investment but does not control, will be deducted from the sum of Tier 1 and Tier 2 capital. (39) Consolidation of life company subsidiaries is limited to local subsidiaries and accordingly- (a) the investment in foreign life company subsidiaries should not be deducted from capital; (b) an asset default factor should be applied to the investment. (40) Where the life insurance company provides a facility such as a letter of credit or guarantee on behalf of the corporation and the facility is- (a) treated as capital by the corporation being available for draw￾down in case of impairment of the corporation's capital; and (6) subordinated to the corporation's customer obligations, the full amount of the facility shall be deducted from capital. (41) No asset default factor shall be applied to facilities that are deducted from capital and investment in preference shares, debt instruments and facilities that are not deducted from capital shall be treated like any other asset. [The hclusio~i of [his page is aull~orized by L.N. 33A120051

THE INSURANCE REGULATlONS, 2001
Asset Default Risk
(42) The asset default risk shall include the balance sheet risks of life insurers. The component requirement for the balance sheet asset default risk is added to the resulting component requirements for the mortalitylmorbidity risk, lapse risk, interest margin pricing risk, changes in interest rate environment risk and foreign exchange risk to arrive at the capital requirement. (43) The asset default risk covers losses resulting from asset default '\ and related loss of income and the loss of market value of equities and related reduction in income. (44) To compute the component requirement for the asset default risk, a factor shall be applied to the book value (or market value for certain investments) of the company's non-segregated assets. The resulting asset default values shall be added to arrive at the Asset Default Risk Component Requirement. The factors to be applied to the company's non-segregated assets are as follows￾Basic Component Requirement 0% Cash Accrued Investment Income, Receivables from reinsurers Policy Loans Any deductions from capital, including goodwill and substantial investments 15% Book value of miscellaneous items e.g., Premiums due and Outstanding, Agents' Debit balances, Furniture & Fixtures, Receivables etc. Instruments or Investments not specifically identified in the guideline. [The ~lrlusion ol' lhis page is autl~onzed by L.N. 33Ai20051

THE INSURANCE REGUU TIONS, 200l
Bonds/Debentures/Loans (Tenor more than one year) Short Term Securities (Tenor of less than one year) Factor 0% 0.25% 0.25% 2% 15% Rated "A" (or higher) by an internationally recognized credit rating agency Short Term Securities Government Securities Bank certificates of deposit and similar obligations of Jamaican deposit taking institutions Commercial Paper:
Guaranteed by bank
Rated "RY, "A-3" (or higher) by an internationally recognized credit rating agency Other Factor 0% 0% 0.25% I Rated less than "A" and higher than "C" by an internationally recognized credit rating agency I Bonds Government issued or guaranteed Long Term Securities FINSAC Bonds (held to maturity) Commercial bondsldebentures guaranteed by bank Other commercial bondsldebentures (not in default) Bondsldebentures/loans (non-performinglin I default) ------ I Other bondddebentwes not mentioned above. I (45) Companies must use the latest rating assigned to the instrument by an internationally recognized, widely followed (or approved by the Commission) credit rating agency. A company must consistently follow the ratings of one agency. Only where the agency does not rate a particular instrument, the rating of another recognized agency may be used. [The i~iclusio~l of this page is nutliorized by L.N. 33A/?OOS]

THE INSURANCE REGULA TIONS, 2001
Mortgages
(46) The following mortgage rates shall apply￾Residential I 2% for residential mortgages on the outstanding balance, excluding accrued interest, less insured balances and write￾downs. It also applies to second mortgages for the purpose of - acquiring or improving the residential dwelling and the company holds the first mortgage on the dwelling to which the i second mortgage applies. If the mortgage does not meet these criteria, the factor for commercial mortgages will apply; Commercial 8% for commercial mortgages and mortgages secured by undeveloped land (i.e., construction financing), other than land used for agriculture or the production of minerals and a commercial investment property held for leasing; Restructured loans and mortgages 15% for mortgages and loans that have been restructured; 35% for mortgages that are overdue for a period between 90 and 180 days. Non-performing mortgages in excess of 180 days shall be written off. Equity Investment (47) The factors do not apply to investments in corporations controlled by the company or in corporations in which the company has a substantial investment. The factors apply to the market values. Corporations controlled by the Company Factor 10% 15% (48) An accounting consolidation equivalent shall be used for controlling investments in local corporations carrying on a business that the [The iticlus~on of ths page is authorized by L.N. 33A:2005] Stocks Preference Shares Ordinary Shares, Segregated Funds, Mutual Funds and other similar investments ' ,

THE INSURANCE REGULATIONS, 2001 company could carry on directly (such as life insurance, real estate and ancillary business subsidiaries). For those situations the MCCSR rules will be applied to the controlled corporation. The same consolidation principle applies to local subsidiaries of the company whether held directly or indirectly. The subsidiary's MCCSR shall then be added to the parent's MCCSR. The tier limitations (i.e., term Tier 2 may not exceed 50% of Tier 1) shall be applied on a consolidated basis. Corporations controlled by the Treatment Company Treatments

• -
  Non-life Financial ( Deduct investment in corporation from total I I ik;-k$$nsurance Accounting Consolidation Equivalent 1 Foreign Life Subsidiary Equity method; apply asset default factor of 1 15% Corporation Local Commercial Corporation (i.e., ancillary business corporations) Local Real Estate Corporation capital Accounting Consolidation Equivalent Accounting Consolidation Equivalent -L 1 35% I Mining properties (e.g., bauxite and gypsum) I Real Estate Factor 5% 10% c (49) Factors shall apply to the market values gross of any associated mortgage or other debt. Income-producing properties shall be limited to those properties that earn a yield of at least 4% of the market value (net of encumbrances, if any), after all real-estate expenses (including, interest on encumbrances) and taxes have been charged. Real Estate Occupied by the company or a consolidated subsidiary Income producing 15% (50) Properties under development and for which imputed interest is Other capitalized for financial statement are excluded. n [The inclusio~~ or this page is authorized by L N. 33AJ2005)

THE INSURANCE REGULATIONS, 2001
Leases
(5 1) The following rules apply to leases￾Lessee (a) where a life company is the lessee under an operating lease, no capital is required. Under a finance lease, the capital requirement for the asset held on the balance sheet shall be based on the underlying property leased; \ Lessor (b) the capital requirement for financial leases shall be based on the balance sheet asset representing the lease. Non-performing investments (52) The following provisions apply to non-performing investments￾impairment should be recognized in accordance with the Statement of Standard Accounting Practice for Life Insurance Companies. If a loan payment is contractually ninety to one hundred and eighty days in arrears, then the investment is classified as non-performing. If a payment is in excess of one hundred and eighty days overdue then the investment should be written 0% this component is required in addition to the basic component; for bonds and mortgages, the requirements shall become the sum of- (i) factor x (outstanding balance less write-downs); and (ii) 35% x (outstanding non-performing balance) less write￾downs; the non-performing component should not be negative; the calculations shall be based on the separate portfolios of impaired loans, mortgages, bonds, etc. and not on individual investments. Restructured loans and mortgages (53) The default factor is 15% and shall be applied to loans and mortgage loans, at the time of renewal or during the life of the loan or mortgage, when the following conditions apply- (a) the company is aware that the borrower is in financial difficulty; and [The inclusion of this page is authorized by L.N. 33AI20051

THE INSURANCE REGUUTIONS, 2001
(6) the loan to value ration is higher thau 75% (54) The loan or mortgage should be classified as impaired when the lender no longer has reasonable assurance of timely collection of the full amount of principal and interest or payment of principal and interest is outstanding for over 90 days. Mortality/Uorbidity Risk (55) Mortalitylmorbidity risk for life and health insurance is the risk that the assumptions about mortality and morbidity will be wrong. (56) To compute the mortality/morbidity component, a factor is applied to the measure of exposure to risk and the resulting values are added to arrive at the mortality/morbidity risk component. (57) The factors used in deriving the risk component vary by type of business and the measure of the exposure to risk is a follows￾I (before reinsurance ceded) Insurance against Death ( Net amount at risk, i.e., Face value of 1 Risk (including Accidental Death and Dismemberment) Measure of Exposure Annuities involving Life Contingencies Disability Income and Health Insurance, New Claims Risk insurance less policy (actuarial) reserves; even if negative, for both direct and reinsurance acquired business Total liabilities (including any portion which does not involved life contingencies) I Annual earned premiums MortaliQ Risk Disability Income and Health Insurance, Continuing Claims Risk Insurance (including Accidental Death and Dismemberment) Disability income reserves relating to claims of prior years (58) (a) To compute the mortality/morbidity component for life insurance the following factors shall be applied to the net amount at risk- [The Inclusion dl this page Is authorized by L.N. 18dZ008j

WE INSURANCE REGUU TIONS, ZOO1
Type
Participating 1 Group
I I ( Adjustable Life, UL 1 0.00 188
Factor
0.00063
Non-participating
Individual
(b) for participating business without meaningful dividends and participathig adjustable or universal life policies where mortality adjustability is not reasonably flexible, the factors for all other non-participating business should be used. All other Non-participating Group Accidental Death and Dismemberment Group Policies . . (59) In respect to Group Insurance, no component is requiredfor AS0 cases where the insurer has no liability for claims. 0.00125 (60) Deposits in excess of liabilities, excluding the liability for such deposits, may reduce the component requirement on any policy to a minimum of zero. Such deposits mud be￾All other All Individual (a) made by policyholders; 0.0025 0.00125 0.00056 (b) available for claims payment; 'or (c) refundable, net of applications, to policyholders on termination. Qualijied stop-loss arrangements (61) Jf a legally binding agreement exists where a reinsurance company assumes all the claims costs for a block of policies in excess of the expected claim costs on those policies, an adjustment may be made to the ceding company's component requirement. (62) A ceding company may reduce the component requirement on the block of policies covered by a qualiiied arrangement. The reduction can be any amount not exceeding 40% of the basic component requirement held by the ceding company. The ceding company must retain in it's records the assuming company actuary's certification that the assuming company- /The inclusion of this page is authorized by L.N. 18d20081

THE INSURANCE REGUUTIONS, 2001
(a) is legally bound to pay all claims in excess of expected claims; and (b) has included the amount claimed by the ceding company in its MCCSR. Annuities invotving Life Contingencies (63) No adjustment need be made for random statistical fluctuation. (64) The component requirement is 1.25% of the total policy liabilities, including any portion of the policy liability which does not involve life contingencies. Morbidity Risk Personal Accident Disability Waiver and Health Insurance (65) The additional risks associated with non-cancellable guaranteed premium business should be m&ruzed. New Claims Risk (66) The new claims risk component relates to claims arising from thecurrent year's coverage, and includes the risks of incidence and claims continuance. The following factor shall be applied to measure exposure￾Pernutage of Annual Earned Premiums Individual I Group 20% 1 15% Continuing Claims Risk (67) The continuing claims component covers risk of claims continuance arising from coverage provided in prior years. The fhkt L ,r Shall apply to disabled life reserves related to claims. incurred in prior yd, including the portion of the provision for incurred but unreported claims. lThe inclusion of this page is auihorized by L.N. 18d200.91 (68) The following factor shall be applied to the measure of exposure￾Risk Disabled Life Reserve IncurredButNotReportedReserve Factor 0.06 0.10

THE INSURANCE REGULATIONS, 2001
Credits for Reinsurance and Special Policy Holder Arrangements (69) The component requirement shall be calculated as outlined in the provisions relating to insurance mortality (including accidental death and dismemberment). Lapse Risk (70) This component for required capital recognizes the risk that assumptions about lapse rates may be wrong. (71) The lapse risk component shall be calculated for all individual life business by dividing the individual life business into two broad groupings as follows- (a) Group A-policy series for which lower lapses will produce higher net reserves; (b) Group B-policy series for which higher lapses will produce higher net reserves. (72) Determination of the lapse risk shall be as follows- (a) the total net reserves is to be determined using the method for statement liability purposes; (b) the total net reserves is then recalculated for group A (reducing the assumed lapse rate by 10% for all durations) and Group B (increasing the assumed lapse rate by 1 percentage point for all durations) or for participating business with meamgtid dividends and adjustable premium products and where there is reasonable flexibility in adjusting dividend and premium rates, the factors are cut in half. Goup A (the lapse rate is reduced by 5%) and Group B (the lapse rate is increased by half a percentage point); (c) the reserve calculated in step (a) is to be subtracted fkom the reserve calculated in step (b). (73) The lapse risk component may be based on yearend resews or a quarterend selected during the year. If based on the quarterend, the increase in net reserves for each of groups A and B shall be expressed as a percentage and used for all MCCSR calculations for the following twelve months. (74) Companies shall not be expected to make VTP-2 adjustments (as per Canadian methodology) or to modify systems that make automatic mortality adjustments when lapse adjustment change. Interest Margin Pricing Risk Policy Liabilities (75) Interest Margin Pricing Risk for Life, and accident and health !The inclusion of this page is authorized by L.N. 18J20081

THE INSURANCE REGULAl70NS. 2001 insurance is the part of the risk associated with inadequate pricing. (76) Any losses occasioned by past investment and pricing decisions must be reflected in the policy reserves. (77) Losses arising from asset default and changes in the interest rate environment excluded from this risk component. (78) To compute the interest margin pricing component, a factor is applied to the appropriate measure of exposure to risk and the resulting values are summed up to arrive at the interest margin pricing component. (79) The measure of exposure to risk for the interest margin pricing component is the policy liabilities. Companies may take credit (reduce reserves) for business ceded to reinsurers. (80) The factors used in deriving the risk component are as follows￾0.005 All participating (receiving policyholder dividends); and all non participating with adjustable premiums, or (81) No component shall be required for G1C-type deferred annuities where the contract offers renewal only at the rate for new business. Other situations require the 0.005 factor. (82) No component is required for business where there is no repricing risk, such as paid-up business not receiving policyholder dividend, experience refunds, or excess interest credits, including business purchased in the form of annual single premiums, and disabled life reserves. (83) No component is required for business where the policy liabilities are not discounted for interest, such as unearned premiums. Changes in interest rate environment risk Policy Liabilities (84) Changes in the interest rate environment risk are associated with r asset depreciation arising from interest rate shifts. \ (85) To compute the changes in interest rate environment component, a factor shall be applied to the appropriate measure of exposure to risk. The resulting values shall be summed to arrive at the changes in interest rate environment component. (86) The measure of exposure to risk for the interest rate (The i~iclusio~i of lhs page is auhorized by L.N 33A120051

94 THE INSURANCE REGULATIONS, 2001 environment component is the policy liabilities. Companies may take credit for business ceded to reinsurers. (87) The factors used in deriving the risk component are as follows￾Factor ( Product Claims Payable in Instalments (including Disability Waiver) I Varies I Accumulation Funds I (88) For the measure of exposure used in this calculation, policy liabilities should be net of policy loans where- (a) the policy loan rate is variable, and not subject to an upper limit; and (b) there is direct recognition of policy loans by policy in the dividend scale or the crediting of excess interest, and policy loan interest rates based on an index would be considered variable. Accumulation Funds (89) Separate treatment shall be accorded to Accumulation Funds (including all amounts on deposit), deferred annuities, retirement income policies and universal life products. Accumulation funds include claim fluctuation reserves, stabilization reserves and provision for experience rating refunds. (90) The factors used in deriving the risk component vary with the guaranteed term remaining in the exposure measure, and with the plan type, the different types of which are as follows- (a) Type A-Funds may be withdrawn only- (i) with an adjustment to reflect changes in interest rates or asset values since fund receipt; or (ii) by way of an immediate life annuity; or (iii) in instalments over a minimum of five years; or (iv) for amounts not greater than the annual interest credits allowed; (b) Type &Fund withdrawal is defined as for Type A, except that, funds may be withdrawn at the end of the interest guarantee in a single sum, or in instalments over less than five years; [The inclusion of his page is authorized by L.N. 33Al20051

THE INSURANCE REGULATIONS, 2001
(91) The guarantee period is the number of years remaining that an accumulation interest rate in excess of the ultimate reinvestment rate is guaranteed. 0.020 0.020 0.050 0.100 (c) Type C-funds may be withdrawn before the end of the guarantee period in a single sum, or in instalments over less than five years, either￾Guaranteed period remaining greater than or equal to 10 years for Plan Type A and B Guaranteed period remaining greater than 6 months but less than 1 8 months for Plan Type C Guaranteed period remaining greater than 18 months but less than 10 years for Plan Type C Guaranteed period remaining greater than or equal to 10 years for Plan Type C (i) without adjustment to reflect changes in interest rates or asset values since fund receipt; or (ii) subject only to a fixed surrender charge, either in amount or as a percentage of the funds; (92) In the case of group plans, for purposes of distinguishing between Plan types, fund withdrawal does not include- (a) employee withdrawals upon termination of employment, retirement, disability or death; and (b) withdrawals occasioned by adverse aggregate group experience, such as claim fluctuation reserves. (4 the factors used in deriving the risk component for accumulation funds (including all amounts on deposits), deferred annuities, retirement income policies, and universal life products are as follows￾Foreign exchange risk Factor 0.005 0.010 (93) Foreign Exchange Risk is the risk associated with asset Type of Plan Daily interest account being credited with market short term interest, and with interest rate guarantee periods remaining of six months or less Guaranteed period remaining greater than or equal to 10 years for Plan Type of A and B [The inclusion of this page is authonzed by L.N. 33N2005]

THE INSURANCE REGULA TIONS, 2001 depreciation or liability appreciation arising from changes in exchange rates. (94) The component for foreign exchange risk specifically allows for the depreciation of assets denominated in foreign currency when that currency declines in value against the Jamaican dollar, or, for the appreciation of liabilities denominated in a foreign currency when that currency increases in value against the Jamaican dollar. If the assets and the liabilities denominated in a foreign currency are equal, then the foreign exchange risk is eliminated and no additional capital will be required. (95) To calculate the foreign exchange risk component, a factor is applied to the net assets or liabilities denominated in the foreign currency (converted to Jamaican dollars). The resulting values are summed to arrive at the total foreign exchange risk component. (96) The measure of exposure to risk for the foreign exchange component is net assets or liabilities denominated in a currency other than Jaaican dollars excluding assets backing capital and surplus, and assets and liabilities associated with segregated finds. Companies may take credit (reduce liabilities) for business ceded to reinsurers provided that reinsurance claims are payable in the same currency as the liability. Assets Denominated Currency in Foreign Currency (97) The value of assets for each currency (other than Jamaican dollars) should be disclosed. Assets should be valued at book or market value as would normally be reported in the balance sheet of the company. Asset values should be net of any provisions including depreciation. Assets backing surplus and segregated finds should be excluded from the calculation. Liabilities Denominated in Foreign Currency (98) The value of liabilities for each currency (other than Jamaican dollars) should be disclosed, including policy liabilities, debt obligations, and any other liability denominated in a foreign currency. Liabilities should have values in accordance with those reported in the balance sheet of the company. Companies may take credit (reduce liabilities) for business ceded to reinsurers provided that reinsurance claims are payable in the same currency as the liability. Segregated fund liabilities should be excluded from the calculation. Exchange Rate usedfor Conversion to Jamaican Dollars (99) The exchange rate used for each currency should be the Risk weighted average spot selling rate as at the effective date of the MCCSR calculation. If this rate is not available in the currency being reported, then an appropriate rate should be selected (or calculated from other rates) and used. The source of the rate should be disclosed. [The inclusion of this page is authorized by L.N. 33N20051

THE; INSURANCE REGULA TIONS, 2001
Net Assets or Liabilities in Jamaican Dollars (100) The net assets or liabilities in Jamaican dollars shall be the absolute value of the assets minus the liabilities multiplied by the exchange rate for each currency. Factor (101) A factor of 5% shall be applied to the net assets or liabilities to give the required capital for each currency. 30.-41) Where a registered insurer carries on long term business- Segregated reporting. funds (a) the insurer shall maintain an account in respect of that business; and (b) the receipts of that business shall be entered in the account maintained for that business and ,shall be carried to and shall form a separate insurance fund, "segregated fund", with an appropriate name. (2) If any part of the long term business of a registered insurer consists of contractors under which the benefit payable to the policyholders are determined by reference to the value of, or the income from, property of any description, the receipts of that part of that business shall be carried to and shall form a separate part of the fund maintained under paragraph (1) and references in this regulation to any part of the long term business of an insurer or to any part of the fund maintained under that paragraph are references to such a part of that business or to such a part of that fund, as the case may be, as is mentioned in this regulation. (3) Subject to paragraph (4), a registered insurer which carries on long term business shall maintain such accounting and other records as are necessary for identifying- (a) the assets representing the fund maintained by the insurer under paragraph (1) and each part of that fund; and (6) the liabilities attributable to that business and to each part of that business. (4) A registered insurer which carries on long term business and was carrying on that business immediately before the commencement of the Act- (a) shall make arrangements to the satisfaction of the Commission, during the financial year which are attributable to its long term business and to each part of that business; and (b) shall not be subject to paragraph (3) until the day after the end of that financial year. [The inclusion of this page is authorized by L.N. 33A12005j

98 THE INSURANCE REGULATIONSS 2001
(5) The information shall be reported to the Commission on the form schedu~ 7. set out in Schedule 7 as part of the annual statement filed with the Commission. AMlul fuuncial mat or life 31. The annual statements based on the audited financial statements for insum. Scheduk 8. life or sickness and health insurers shall be filed in accordance with the requirements set out in Schedule 8, not later than the 3 1st March in each year, reflecting the financial condition for the preceding calendar year. Qutalyfincial 32. Quarterly statements for life or sickness an@ health insurers shall be nt&mtU oflife insluvx. filed in accordance with the requirements set out in gchedule 9. Scheduk 9. Annual fuuncial Ststnrrnl or 33. The annual statements based on the audited financial statements for gcndinsluvx. general insurers shall be filed in accordance with the requirements set out in Scheduk 10. Schedule 10, not later than the 3 1st March in each year, reflecting the financial condition for the preceding calendar year. Qutaly f~ial stslnnc~ or 34. Quarterly statements for general insurers shall be filed in accordance genenl inaurrrs. with the requirements set out in Schedule 1 1. Scheduk I I. Copild and bondii 3541) Every broker who is a sole proprietor, partnership or corporation, ~uirnnentshr and every corporate agent shall maintain, at all times, an equity capitalization bmkm and ,,,,,. (paid up capital and unimpaired surplus) of not less than an amount equal to the maximum deductible amount of the broker's or agent's errors and omissions and fidelity insurance policies or, in the case of a person who is- (a) a broker, $10 million; or (b) an agent, $5 million, whichever is the greater. (2) Every broker who is a sole proprietor, partnership or corporation, and every corporate agent shall maintain and continue to maintain- (a) errors and omissions insurance with extended coverage for loss resulting from fraudulent acts; or (b) some other form of financial guarantee, in a form approved by the Commission in an amount of at least $30,000,000 in respect of any one occurrence. (3) Every person referred to in paragraph (1) shall maintain fidelity insurance against losses arising from the dishonesty of employees, a proprietor or partners, directors, officers and shareholders in a form approved by the Commission for an amount of at least $30,000,000 in respect of any one occurrence. [The inclusion of this page is authorized by L.N. 33A120051

THE INSURANCE REGULATIONS, 2001
(4) The insurance policies referred to in paragraphs (1) and (2) shall contain an endorsement that stipulates that the Commission must be given written notice by the insurer of any cancellation or non-renewal of such a policy ad that cancellation or non-renewal does not become effective until 30 days after actual receipt of such notice of the Commission. (5) A broker's or corporate agent's certificate of registration as a broker or corporate agent expires on the date of the effective cancellation or non-renewal of an insurance policy unless before the date the insurance is replaced or the broker or corporate agent otherwise satisfies the Commission that the broker or corporate agent is in compliance with paragraphs (1) and (2)- 36.-41) Every registered agent and registered broker shall prepare and maintain in Jamaica and shall make available to the Commission on request bkm. the following- (a) full details of all registered insurers with which it has a business relationship; (b) original accounting records respecting its insurance business in Jamaica; (c) a record of all local policies issued by it on behalf of each registered insurer; (d) a record of the total amount of premiums received on such policies; (e) a copy of its audited financial statements; V) an analysis of premiums payable insurers indicating, inter ah, the number of days such premiums were outstanding; and (g) such other books, vouchers, receipts and documents as are necessary for the purpose of verifying information provided to the Commission pursuant to the Act. (2) Any record required or authorized by the Act to be prepared and maintained by a registered insurer or registered insurance intermediary- (a) may be in a bound or loose-leaf form or in a photographic film form; or (b) may be entered or recorded by any system of mechanical or electronic data processing or any other information storage device that is capable of reproducing any required information in intelligible written form within a reasonable period of time. (3) The Commission may at any time examine the records of a registered insurance intermediary, and the registered insurance intermediary shall facilitate the examination and shall cause such information and produce such records as are in his possession to be made available for examination. [The it~clusion of this page is authorized by L.N. 33AI20051

,THE INSURANCE REGULATIONS, 2001
(4) The annual return for associations of underwriters, brokers and corporate agents shall be filed in accordance with the requirements set out in
Schedule 12. Schedule 12.
Amalgamstion and lransfer. 37.-(1) In this Part- "registered company" means a company duly registered under the Act; "registration" means a certificate of registration granted under the Act; "subsidiary" has the same meaning as in the Companies Act. Amalgamation (2) Where two or more insurance businesses or, as the case may be, one or more insurance businesses and one or more registered companies, propose to amalgamate as an insurance business, a joint application shall be submitted to the Commission, setting out the scheme of the proposed amalgamation and accompanied by the proposed amalgamation agreement setting out the terms and mode of effecting the amalgamation and in particular- (a) the proposed name of the amalgamated insurance business and its proposed registered office; (b) the names of the proposed directors of the amalgamated insurance business; (c) the manner in which the shares of each applicant are to be converted into shares or stock of the amalgamated insurance business; (4 the manner in which any payments are to be made to any dissenting shareholders of an applicant; (e) the proposed documents of incorporation of the amalgamated insurance business; V) details of any other matter necessary to perfect the amalgamation and relevant to the proposed operation of the amalgamated business. (g) the proposed effective date of the amalgamation. (3) With respect to such conversion of shares or stock, and such payment to dissenting shareholders as are contemplated by paragraph (1) (c) and (4, respectively, there shall be no repayment of capital. (4) On the approval by the Commission of an application for amalgamation the existing registration of each applicant shall be deemed to be cancelled. [The inclusion of this page is authorized by L.N. 33Al20051

THE INSURANCE REGULATIONS, 2001 101
(5) The application for amalgamation shall be deemed to be a first application for registration and accordingly, the provisions of section 32 of the Act shall apply to such application. (6) If the shares of one of the applicants are held by or on behalf of another of the applicants, other than shares held in the capacity of a personal representative or by way of security, the proposed amalgamation agreement shall- (a) provide for the cancellation of those shares when the amalgamation becomes effective without any repayment of capital in respect thereot and (b) not contain any provision for the conversion of those shares into shares of the amalgamated insurance business. (7) The directors of each applicant shall submit the proposed amalgamation agreement to a general meeting of shareholders, for approval by special resolution, and notice of that meeting must- (a) set out the terms and conditions of the agreement; (6) unless the Commission otherwise directs in writing be published on at least two occasions in a newspaper in general circulation in Jamaica, the first of such publications being not less than twenty-eight days prior to the meeting, and the second, being not less than fourteen days prior to the meeting; (c) be transmitted to each shareholder in accordance with the provisions of the Companies Act. (8) An amalgamation agreement may provide that, at any time prior to the issue of a certificate of registration to the amalgamated company, the agreement may be terminated by the directors of an applicant notwithstanding that the agreement has been approved by the shareholders of all or any of the applicants. (9) A registered company may amalgamate with one or more wholly-owned subsidiaries registered under the Act by submitting an application in the form of a scheme in accordance with paragraph (1) but shall not be subject to the requirements of paragraph (1) (c) and (e) and paragraph (7) where- (a) the proposed scheme is approved by a resolution of the directors of the licensee and of each amalgamating subsidiary; (b) the resolution provides that- (i) the shares of each amalgamating subsidiary will be cancelled without any repayment of capital in respect thereoc and [The inclusion of this page is authorized by L.N. 33A/2005]

THE INSURANCE REGULA TIONS, 2001
(ii) the memorandum and articles of association of the licensee are to become those of the amalgamated licensee; and (iii) no shares will be issued by the amalgamated licensee in respect of the amalgamation. (10) On the approval by the Commission of an application under paragraph (9), the existing registration of the subsidiaries shall be deemed to be cancelled, and the registrarion of the applicant licensee will continue as that of the amalgamated registered company. (1 1) Where an insurance company and one or more registered i ' companies are wholly-owned subsidiaries of the same holding company, they -/' may amalgamate and continue as an insurance company by submitting a joint application in the form of a scheme in accordance with paragraph (I), but shall not be subject to the requirements of paragraph (1) (c) and (e) and paragraph (7) if- (a) the proposed scheme is approved by a resolution of the directors of each applicant and the directors of the holding company; and (b) the resolutions provide that- (i) the shares of dl applicants, except those of the holding company, will be cancelled without any repayment of capital in respect thereof; (ii) the amalgamated insurance company will adopt the memorandum and articles of association of the insurance company; and (iii) the capital of the applicants whose shares are cancelled will be added to the capital of the insurance company. (12) On the approval of the Commission of an application under paragraph (1 l), the existing certificate of registration of the subsidiaries which are registered shall be deemed to be cancelled and the registration of the holdmg company will continue as that of the amalgamated insurance company. (13) On approval by the Commission of an application under these Regulations for recession of an amalgamation, and existing special permission or concession previously granted by order or otherwise under the Act to any applicant or subsidiary, as the case may be, the amalgamation shall be deemed to be cancelled without prejudice to any transaction already effected in pursuance of the said pemussion or concession. Transfer of business (14) Where an insurance company makes application to the [The inclusion of this page is autliorized by L N. 33Al?005]

THE INSURANCE REGULATIONS, 2001
Commission for approval of a scheme to transfer its business (in whole or in
part) to an insurance company or holding company, or as the case may be, to
a registered company, such application shall be accompanied by a proposed agreement of purchase and sale ("sale agreement") setting out proposed terms and means of effecting the transfer. (15) The consideration for the transfer may be cash or fully paid shares in the transferee, or such other consideration as is provided for in the sales agreement. r\ \ - (16) The directors of the selling registered company shall submit to a meeting of that registered company's shareholders, the proposed sale agreement for approval by special resolution, and notice of that meeting shall- (a) set out the terms and conditions of the agreement; (b) unless the Commission otherwise directs in writing, be published on at least two occasions, in a newspaper in general circulation in Jamaica, the first of such publications being not less than twenty-eight days prior to the meeting, and the second, being not less than fourteen days prior to the meeting; (c) be transmitted to each shareholder in accordance with the provisions of the Companies Act. (17) Where the special resolution so states, the directors of the selling registered company may, subject to the rights of third parties, abandon the sale notwithstanding approval by the shareholders. (18) Where either the selling registered company or purchasing registered company or insurance company or both had previously received, by order or otherwise, a special permission or concession under a provision of the Act, the Commission in considering the application may- (a) take that permission or concession into account and may require such registered company or insurance business to make a proposal for continuation or variation of that permission or concession and to provide relevant particulars; and (b) require such registered company or insurance company to furnish additional information. (19) Where the consideration for the transfer involves the acquisition of effective control of the transferee within the meaning of section 3 1 of the Act, the Commission shall not approve the transfer unless consideration for the transfer is properly satisfied as required by the appropriate regulation. [The ~nclusioa of this page is autlionzed by L.N. 33Ai2005]

THE INSURANCE REGULATIONS. 2001
(20) Where the Commission has approved an agreement or arrangement to amalgamate or transfer the insurance company to which the property or business is transferred it may apply to the Minister on the prescribed form for an order transferring and vesting in the transferee insurance company, in accordance with the agreement or arrangement approved by the Commission, the property or business of the other insurance company.
PART VII-Investment
Application snd inte~pmt~lion. 38.--(I) This Part shall apply to domestic insurers only. (2) In this Part- "fair market value" means the amount that a willing buyer will pay a willing seller when- (a) either party is acting under duress or other extraneous influence; (b) both parties have substantially equal knowledge of the facts and circumstances affecting the transaction; and (c) the seller has had a reasonable period of time to expose the subject of the sale to the market; "fixed charges" includes interest on funded and unfunded debt, amortization of debt discount, and rentals for leased properties; "institution" includes corporations, joint-stock associations, and unit trusts; "net earnings available for fixed charges", in relation to an institution, means net income after deducting operating and maintenance expenses, taxes other than income taxes, depreciation, and depletion, but excludes extraordinary non￾recurring items of income or expense appearing in the regular financial statements of such institution; "obligation" includes bonds, debentures, notes, or other evidence of indebtedness; "value" means fair market value. Delermination of earnings. 39.-41) If net earnings are determined in reliance upon consolidated earnings statements of parent and subsidiary institutions- (a) the net earnings shall be determined after provision for income taxes of subsidiaries and after proper allowance for minority stock interest, if any; and (6) the required coverage of fixed charges shall be computed on a basis including fixed charges and preferred dividends of subsidiaries other than those payable by the subsidiaries to the parent [The i~iclusion of this page is authorized by L N. 33Al20051

THE INSURANCE REGULA TIONS, 2001 105 corporation or to any other of the subsidiaries but if the minority common stock interest in the subsidiary corporation is substantial, the fixed charges and preferred dividends may be apportioned in accordance with the regulations prescribed by the Commission. (2) Paragraph (3) shall have effect in applying the earnings test set out in these Regulations to any such institution, whether or not in legal existence during the entire period of five years next preceding the date of investment by the insurer, which has at any time during the five-year period C acquired substantially all of the assets of any other institution or institutions by purchase, merger, consolidation, or otherwise, or has been reorganized pursuant to bankruptcy law. (3) The earnings of the predecessor or its affiliates, or of the institution so reorganized, available for the interest and dividends for such portion of the five-year period as may have preceded the acquisition or reorganization, may be included in the earnings of the issuing, assuming, or guaranteeing institution for such portion of such period as may be determined in accordance with adjusted or pro foma consolidated earnings statements covering such portion of such period and giving effect to all stock or shares outstanding, and all fixed charges existing, immediately after the acquisition or reorganization. 40.-(1) Insurers shall invest in or loan their fimds on the security of, and :$r;:;d shall hold as assets, only cash or premiums in course of collection or accrued investment income or eligible investments as prescribed in this Part. (2) The eligibility of an investment shall be determined as of the date of its making or acquisition. (3) Any limitation based upon the amount of the insurer's assets shall relate to assets as shown by the insurer's annual statement as of December 3 1 preceding date of investment. (4) Within sixty days of the calendar year following the effective date of these Regulations each domestic insurance company registered in Jamaica shall file with the Commission- (a) a statement, certified by an officer authorized by the board of directors of the company, noting that the company is in compliance with the prohibitions and limitations of the Act and these Regulations; or (b) a plan approved by the company's board of directors- (i) specifying in detail how compliance is to be achieved within a reasonable period not exceeding three (3) years; and (ii) delineating specific goals to be achieved within specified reporting periods not exceeding one year. [The inclusion of this page is authorized by L.N. 33Al20051

THE INSURANCE REGULATIONS, 2001
(5) The Commission shall review each plan filed pursuant to paragraph (4) (b), and shall determine if the plan is reasonable and set goals such that progress may be objectively noted at regularly scheduled intervals, not less frequent than annually. (6) If the Commission determines that- (a) the plan is not reasonable or does not establish specific goals that may be objectively reviewed, the Commission shall disapprove the plan, notify the company of the deficiencies in the plan and give the company a period of time of not greater than thirty days ,to submit a plan which is sufficient to comply with this mandate or have its registration suspended until such a plan is approved; (b) the plan is reasonable and establishes goals that may be objectively reviewed, the Commission shall- (i) approve the plan and so notify the company; and (ii) thereafter, at the periods so specified in the plan, not less frequent than annually, compare the goals established by the plan to the company's achievements and note any deficiency; (c) the company has not successfidly completed the plan within the specified period, not exceeding three years the Comrnission- (i) shall suspend the registration of the company; or (ii) may, upon a showing that the company has acted prudently and that immediate compliance with the plan would be injurious to policyholders, grant an additional period, not exceeding two years for the company to achieve full compliance, and if, at the expiration of the additional time the company has not achieved such compliance, its registration shall be suspended until it is in compliance or revoked as determined by the Commission. lntaost bearing %,,, pmmy, 4 1 .--(I) NO security or other investment shall be eligible for purchase or acquisition under this Part unless it is interest bearing or interest accruing or dividend or income paying, is not then in default in any respect, and the insurer is entitled to receive for its exclusive account and benefit, the interest or income accruing thereon but it may acquire real property as provided in this regulation. (2) No security shall be eligible for purchase at a price above its fair value. (3) No provision of this Part shall prohibit the acquisition by an insurer of other or additional securities or property if it is- - - - - - [The inclusion of this pap is authorized by L.X, 33AI20051

THE INSURANCE REGULATIONS, 2001
(a) received as a dividend or as a lawful distribution of assets; or (b) acquired pursuant to a lawful and bona jide agreement of bulk reinsurance, merger or consolidation. (4) All securities and property held pursuant to this Part must be in the sole and exclusive name of the insurer or its nominee and provide for the exercise of all rights attendant to ownership. 42.41) Except as otherwise expressly limited, an insurer shall not have kzi;,,"nt at any time any combination of investments in or loans upon the security of requirement. c' the obligations, property, and securities of any one person aggregating an amount exceeding five per cent of the insurer's assets. (2) This Part shall not apply to investments in, or loans upon the security of general obligations of the Government of Jamaica nor to investments in foreign securities or include policy loans made pursuant to regulation 60. 43.-41) As respects each investment or loan of the assets of a domestic tzz:
insurer, a written record in permanent form showing the authorization thereof shall be made and signed by an officer of the insurer or by the chairman of the committee authorizing the investment or loan. (2) Investment records, which document the security transactions, are to be maintained in the insurer's principal office in Jamaica. (3) Investments may be maintained in book-entry form if properly recorded with the Central Securities Depository of Jamaica or such other recognized depository as the Commission may determine. 44.41) No investment, loan, sale, or exchange, except a loan upon a life *ppmV"~ insurance policy, shall be made by a domestic insurer unless authorized or approved by its board of directors or by a committee charged by the board of directors, or the by-laws with the duty of making such investment, loan, sale, or exchange. (2) The minutes of any such committee shall be recorded and reports shall be submitted to the board of directors for approval or disapproval.
45. An insurer shall invest and keep invested, its assets aggregating in z:"linvest￾m0unt~- requirement.
(a) in the case of a stock insurer, not less than forty per cent of its minimum required capital; or (b) in the case of a mutual insurer, not less than forty per cent of its required minimum surplus, in cash or investments eligible in accordance with regulation 46 (public obligations). 46.41) An insurer may invest any of its assets in bonds or other evidence ~&i,,n, of debt, not in default as to principal or interest, which are valid and [The inclusion of this page is authorized by L.N. 33A120051

108 THE INSURANCE REGULATIONS, 2001 legally authorized obligations issued, assumed, or guaranteed by the Government of Jamaica, or by any town, parish, municipality, or district thereof, or by any agency of the government, or by any political subdivision thereof or any civil division or public instrumentality of one or more of the foregoing, if, by statutory or other legal requirements applicable thereto, such obligations are payable, as to both principal and interest in the manner specified in paragraph (2). (2) The manner of payment referred to in paragraph (1) is as follows- (a) from taxes levied or required to be levied upon all taxable property of all taxable income within the jurisdiction of the governmental unit; or (b) from adequate special revenues pledged or otherwise appropriated or by law required to be provided for the purpose of such payment, but not including any obligation payable solely out of special assessments on properties benefited by local improvements unless adequate security is evidenced by the secured by an adequate guaranty fund as required by law. (3) In addition to the foregoing, an insurer may make investments in obligations issued or guaranteed by the Inter-American Development Bank, or the International Bank for Reconstruction and Development, Caribbean Development Bank or other multilateral financing body to which Jamaica is a Party. Corporate obligation. 47.--(1) An insurer may invest in obligations issued, assumed, or guaranteed by any solvent institution created or existing under the laws of Jamaica and are qualified under any of the following- (a) obligations which are secured by adequate collateral security and bear fixed interest, if during each of any three, including the last two, of the five fiscal years next preceding the date of acquisition by the insurer, the net earnings of the issuing, assuming, or guaranteeing institution available for its fixed charges, as defined in regulation 38 have been not less than one and one-fourth times the total of its fixed charges for such year; (b) in determining the adequacy of collateral security, not more than one-third of the total value of the ~equired collateral shall consist of stock other than stock meeting the requirements of regulation 48; (c) fixed interest-bearing obligations, other than those described in sub-paragraph (a), if- (i) the net earnings of the issuing, assuming, or guaranteeing institution available for its fixed charges for a period of [The inclusion of this page is authorized by L.N. 33N2/2005]

THE INSURANCE REGULATIONS, 2001 five fiscal years next preceding the date of acquisition by the insurer, have averaged per year not less than one and one-half times its average annual fured charges applicable to the period; and (ii) during the last year of the period, the net earnings have been not less than one and one-half times its fured charges for the year; or (6) adjustment income or other contingent interest obligations, if- (i) the net earnings of the issuing, assuming, or guaranteeing institution available for its fixed charges for a period of five fiscal years next preceding the date of acquisition by the insurer have averaged per year not less than one and one-half times the sum of its annual fixed charges and its average maximum contingent interest applicable to the period; and (ii) during each of the last two years of the period, the net earnings have not been less than one and one-half times the sum of its fixed charges and maximum contingent interest for the year. 48.-(1) An insurer may make investments, in an aggregate amount not exceeding fifteen per cent of its assets, in preferred or guaranteed stocks or stocks. shares, other than ordinary shares, of solvent institutions existing under the laws of Jamaica if all of the prior obligations and prior preferred stocks, if any, of such institution at the date of acquisition by the insurer are eligible as investments under this Part, if the requirements of paragraph (2) are satisfied. (2) The requirements mentioned in paragraph (1) are as follows- (a) the net earnings of the institution available for its fixed charges for a period of five fiscal years next preceding the date of acquisition by the insurer have averaged per year not less than one and one￾half times the sum of its average annual fixed charges, if any, its average annual maximum contingent interest, if any, and its average annual preferred dividend requirements applicable to the period; and (b) during each of the last two years of such period, the net earnings have been not less than one and one-half times the sum of its fixed charges, contingent interest, and preferred dividend requirements for such year, and the reference in sub-paragraph (a) to preferred dividend requirements shall be construed as a reference to cumulative or non-cumulative dividends whether paid or not. [The inclusion of this page is authorized by L.N. 33N2005]

THE INSURANCE REGULATIONS, 2001
Evidence of due diligenoe.
Tmslees' or reseivem' obligations.
Equipment tnrd obligations.
Morrgage loans.
Pmpeny value limitations.
49. The records of the insurer shall contain sufficient documentation to
show that all investments made pursuant to regulations 47 and 48 were made only after thorough due diligence to ensure that the institutions properly qualified for investment pursuant to the earnings test enumerated in those regulations.
50. An insurer may invest an aggregate amount not exceeding two per
cent of its assets, in certificates, notes or other obligations issued by trustees or receivers of institutions existing under the laws of Jamaica, which, or the assets of which, are being administered under the direction of any court having jurisdiction, if the obligation is adequately secured as to principal and interest. 5 1. An insurer may invest an aggregate amount not exceeding ten per cent of its assets, in certificates which are adequately secured, or in other adequately secured instruments, evidencing an interest in transportation equipment wholly or in part within Jamaica and the right to receive determined portions of rental, purchase, or other fixed obligatory payments for the use of such transportation equipment.
52. An insurer may invest in-
(a) promissory notes, bonds or evidence of debt which are secured by first mortgages or deeds of trust on real property located in Jamaica which meet either of the following requirements- (i) improved unencumbered real property; or (ii) unimproved unencumbered real property, only where the real property is to be improved, and the bond or evidence of debt is secured by a first mortgage or deed of trust on the real property and the improvement to be made thereon; (b) security interests in connection therewith pursuant to regulation 56; (c) purchase money mortgages or like securities received by it upon the sale or exchange of real property acquired pursuant to regulation 57; (4 other instruments evidencing debt secured by first mortgages or deeds of trust upon leasehold estates, running for a term of not less than five years beyond the maturity of the loan as made or extended, in improved real property, otherwise unencumbered, and if the mortgage is entitled to be subrogated to all the rights under the leasehold. 53.-41) No mortgage loan or investment therein upon any one parcel of real property shall exceed in amount at the time of acquisition- (a) eighty per cent of the fair value of the property if the property is a [The inclusion of this page is authorized by L.N. 33Al20051

THE NSURANCE REGULATIONS, 2001 111 dwelling house primarily intended for occupancy by one family, and the loan is required to be amortized within not more than thirty years by payment of instalments thereon, at regular intervals not less fkequent than every three months; or (b) seventy-five per cent of the fair value of the property in all other cases. (2) The extent to which a mortgage loan made under regulation 52 is C guaranteed or insured by an agency of Jamaica or an insurer, registered and in good standing with the Commission may be deducted before application of the limitations in paragraph (1). 54.-41) Real property shall not be deemed to be encumbered within the E"""b"". meaning of regulation 52 by reason of- (a) the existence of instruments reserving mineral, oil, timber, or similar rights, rights of way, sewer rights or rights in walls; (b) any liens for taxes or assessments not yet due or liens not delinquent for community recreational facilities or for the maintenance of community facilities; (c) building restrictions or other restrictive covenants common to the community in which the property is located; or (d) liens for service and maintenance of water rights where not delinquent, nor when such real property is subject to lease under which rents or profits are reserved to the owner if in any event the security for the loan or investment is a first lien upon the real property. (2) If under any of the exceptions specified in paragraph (1) there is any sum owing but not due or delinquent, the total amount of such sum shall be deducted from the amount which otherwise might be loaned on the property. (3) The value of any mineral, oil, timber, or similar right reserved shall not be included in the fair value of the property. %.--(I) The fair value of property shall be determined by appraisal by a :;FLlan, competent appraiser at the time of the making or acquiring of a mortgage loan insmce. 0 or investing in a contract for the deed thereon. (2) Buildings and other improvements located on the mortgaged premises shall be kept insured for the benefit of the mortgage against loss or damage from fire in an amount not less than the unpaid balance of the obligation, or the insurable value of the property, whichever is the lesser. (3) The Commission may require new appraisals to be conducted, at the insurer's expense, whenever it is deemed advisable. [The i~~clusion of rllis page is authorized by L.N. 33Ai2005]

THE INSURANCE REGULA TlONS, 2001
Sdy
.grammts. 56.41) In connection with a mortgage loan on the security of real property designed and used as an investment property primarily for residential purposes only acquired pursuant to regulation 52, an insurer may loan or invest an amount not exceeding twenty per cent of the amount loaned or invested in the real property mortgage, on the security of a security agreement for a term of not more than five years representing a first and prior lien, except for taxes not then delinquent, on personal property constituting durable equipment owned by the mortgagor and kept and used in the mortgaged premises. (2) The term durable equipment shall include only- (a) mechanical refrigerators, mechanical laundering machines, air conditioning units, heating and cooking stoves and ranges, mechanical kitchen aids, vacuum cleaners, and fire extinguishing devices; and (b) in the case of apartment houses and hotels, room furniture and furnishings. (3) Prior to acquisition of a security agreement, items of property to be included shall be separately appraised by a competent appraiser and the fair market value thereof determined but no such security agreement shall exceed in amount the same ratio of loan to the value of the property as is applicable to the companion on the real property. Rul properly. 57.41) An insurer other than a life insurer, may own and invest, or have invested in its head office and branch office buildings, any of its assets in aggregate amount not exceeding ten per cent of its assets unless approved by the Commission. (2) A life insurer may own and invest, or have invested in its home office and branch office buildings, any of its assets in aggregate amount not exceeding ten per cent of its assets, of fifty per cent of the excess of its assets over its minimum required capital, other than capital stock of a stock life insurer, whichever is the lesser amount, and, for the purposes of this paragraph, the head office or branch office buildings may be constructed upon leasehold estates. (3) An insurer may invest, in an aggregate amount not exceeding twenty per cent of its assets, in real property acquired for the production of income under the following terms and conditions- (a) the investment in any single parcel of real estate shall not exceed five per cent of its assets; (6) the investment shall produce sufficient income to amortize any loan secured by a mortgage on the real property; (c) if any improvements exist on or are to be constructed on the real property for lease to lessees, the improvements shall remain on the [The ~~~clus~o~i ol' his page IS autllorized by I..N. 33A/?OOS]

THE INSURANCE REGULA TIONS, 2001 property during the period of the lease, with provisions that, when the improvements are put upon the property at the cost of the lessee, at the termination of the lease the ownership of the improvements, free of liens, shall vest in the owner of the real estate; and (4 during the term of the lease the tenant shall- (i) pay all taxes and assessments levied on or against the real estate, including improvement; (ii) keep and maintain the improvements in good repair; and (iii) provide and maintain for the benefit of the lessor fire insurance on the improvements in an amount at least equal to the insurable value of the improvements, or the amount invested by the lessor in the real estate, whichever is less. (4) An insurer may invest an aggregate amount not exceeding ten per cent of its assets, in real property acquired for the purpose of leasing the same to any person for a period of not less than twenty years, or in real property already leased for an unexpired period of not less than fifteen years of an original period of not less than twenty years, under the following terms and conditions- (a) the lessee, at the lessee's own cost shall erect, or have already erected, thereon free of liens a building or other improvements costing an amount at least equal to the value of the real estate exclusive of improvements or if the lease is entered into simultaneously with the purchase of the real estate, the lessor may agree to erect the improvements on the real estate; (6) the improvements shall remain on the property during the period of the lease, with provisions that, when the improvements are put upon the property at the cost of the lessee, at the termination of the lease the ownership of the improvements, free of liens, shall vest in the owner of the real estate; (c) the lessee, during the term of the lease, or the unexpired period of the lease if the property is bought subject to the lease, shall pay to the owner of the real estate rent in such amount as will enable the owner to amortize the investment at or before the normal termination of the lease, or at or before the end of fifty years should the lease, or the unexpired period of the lease, be for a longer period than fifty years; and (4 during the term of the lease the tenant shall pay all taxes and assessments levied on or against the real estate, including [The inclusion of tlr~s page is autllonzed by L.N. 33Ai2005]

THE INSURANCE REGULATIONS, 2001 improvements, shall keep and maintain the improvements in good repair, and shall provide and maintain for the benefit of the lessor fire insurance on the improvements in an amount at least equal to the insurable value of the improvements, or at least equal to the amount invested by the lessor in such real estate, whichever is less. (5) Real property acquired pursuant to paragraph (3) shall not be treated as an investment unless and until the required improvements have been constructed and the lease agreement entered into, and the amount of such real property which shall be treated as an investment shall not exceed the amount actually invested reduced each year in the amounts as will suffice to amortize completely the investment at the normal termination of the lease or at the end of fifty years should the term of the lease, or the unexpired period of the lease, be for a longer period than fifty years. (6) An insurer may own real property acquired in satisfaction or on , account of loans, mortgages, liens, judgments, or other debts previously owing to the insurer in the course of its business, and may invest or have invested in aggregate amount not exceedin three per cent of its assets in other real property, and in the repair, alterat on, furnishing, or improvement thereof, only as follows￾1 other real property requisite for its accommodation in the convenient transaction of its business if approved by the Commission; real property acquired by gift or devi~e; real property acquired in exchange $r real property owned by it, and, if necessary in order to consummate such an exchange, the insurer may put up cash in an amouht not to exceed twenty per cent of the fair value of its real propdrty to be so exchanged, in addition to the property; real property acquired through a lawful merger or consolidation with it of another insurer and not required for the purposes specified in paragraphs (1) and (4) (a); or upon approval of the Commission, in real property and e'kuipment incident to real property, requisite or desirable for the protection or enhancement of the value of other real property owned by the insurer. ('6) The total of all real estate investments authorized by this Part shall not exceed thirty percent of the assets of the insurer. Dkpopo~sl of real PV-'Y. 58.-(1) Real property acquired by an insurer pursuant to regulation 57 (6) (a) shall be disposed of within three years after it has ceased being necessary for the use of the insurer in the transaction of its business. [The inclusion of this page is authorized by L.N. 33N20051

THE IXSURANCE REGULATIONS, 2001 115
(2) Real property acquired by an insurer pursuant to such loans, mortgages, liens, judgments, or other debts, or pursuant to regulation 57(6) (b), (c), (d) and (e) shall, subject to paragraph (3), be disposed of within three years after the date of acquisition. (3) The Commission may extend the time for any such disposal for a definite additional period or periods upon application reasonably showing that forced sale of the property would be against the best interests of the insurer. 0 (4) Any such real property held by the insurer without the Commission's consent beyond the time permitted for its disposal shall not be carried or allowed as an asset. 59.41) An insurer authorized to transact insurance on a branch basis in a zseo, foreign country may invest, in aggregate amount not exceeding its deposit and reserve obligations incurred in such country, in securities of, or in, such country possessing characteristics and of a quality similar to those required pursuant to this Part for investments in Jamaica. (2) An insurer may invest, in an aggregate amount not exceeding twenty per cent of its assets, in addition to any amouht permitted pursuant to paragraph (I), in obligations of governments carrying a credit rating of A, or equivalent, and in obligations which have not been in default during the five years next preceding date of acquisition, and which are otherwise of equal or better quality to like Jamaica securities prescribed in this Part. (3) In addition to the percentage of assets permitted in paragraph (2), an insurer offering contract benefits payable in foreign currency shall invest additional amounts sufficient to cover the reserve liabilities on those contracts in obligations of the foreign country payable in that currency.
60. An insurer may loan upon a life insurance policy, as collateral security, policy bans.
any sum not exceeding the cash surrender value of the policy. 61.41) An insurer may invest or make deposits in checking or savings Savingsand sham eccounts. accounts, under separate certificates of deposit, or in any other form in solvent banks or trust companies. (2) An insurer may make deposits in shares or share draft accounts in 0 solvent Jamaican credit unions. 62.41) After satisfying the requirements of regulation 45, a life insurer Yh,? may invest ten per cent of its assets in ordinary shares in solvent Jamaican corporations listed on a stock exchange approved and regulated by the Commission. (2) A general insurer may invest twenty per cent of its assets in ordinary shares. [The inclusioll of this page is authorized by L.N. 33Al20051

116 THE INSURANCE REGULATIONS, 2001
Unit crusts or mUective investment ackmes.
Other inwtments.
Hedging transactions.
63. An insurer may invest an aggregate not exceeding ten per cent of its
assets in the securities of any open-end management type investment company, collective investment scheme or unit trust registered and in good standing with the Commission, other than one which, as a subsidiary of the insurer, is investment advisor or principal underwriter. 64.41) An insurer may loan its funds upon the pledge of securities or evidences of debt eligible for investment under this Part. (2) As at the date made no such loan shall exceed in amount eighty per cent of the fair value of the collateral pledged, except loans on life insurance policies which may equal the cash surrender value of the policy as provided in regulation 60. (3) The amount so loaned shall be included in the maximum percentage of assets permitted to be invested in the class of securities for evidences of debt pledged or permitted by regulation 42. 65.41) An insurer may loan or invest an aggregate amount not exceeding the lesser of ten per cent of its assets or fifty per cent of its net worth over its minimum required capital, or if a mutual company, fifty per cent of its net worth over its minimum required capital, in loans or investments not otherwise specifically made eligible for investment and not specifically prohibited or made ineligible by this or other provisions of this
Part.
(2) No one investment pursuant to this regulation may exceed one (1) per cent of the insurer's assets. (3) The insurer shall keep a separate record of all investments acquired under this regulation. 66.41) A domestic insurer may effect or maintain bona fide hedging transactions pertaining to securities otherwise eligible for investment under this Part including, but not limited to- (a) financial futures contracts, warrants, options, calls, and other rights to purchase; and (b) puts and other rights to require another person to purchase the securities. (2) For purposes of this regulation, a bonajide hedging transaction means a purchase or sale of a contract, warrant, option, call, put, or right entered into for the purpose of - (a) minimizing interest rate risks in respect of interest obligations on insurance policies or contracts supported by securities held by the insurer; or (b) offsetting changes in the market values or yield rates of securities held or sold by the insurer. [The i~iclusion of this page is authorized by L.N. 33A120051

THE INSURANCE REGULATIONS, 2001
67.-41) A life insurer, after adoption of a resolution by its board of kT directors and certification thereof to the Commission, shall allocate to one or more separate accounts, in accordance with the tenns of a written agreement or a contract on a variable basis, amounts which are paid to the insurer, in connection with a pension, retirement or profit sharing plan, or in connection with a contract on a variable basis, whether on an individual or group basis, and which amounts are to be applied to purchase retirement benefits in fixed or in variable dollar amounts, or both, or to provide benefits in accordance with a contract on a variable basis. (2) The income, if any, and gains or losses realized or unrealized on each account shall be credited to or charged against the amount allocated to the account in accordance with the agreement, without regard to the other income, gains or losses of the insurer. (3) The Commission may prescribe reasonable limitations on charges against and permissible deductions from the investment experience credited to life insurance contracts on a variable basis. (4) Notwithstanding any other provision in the insurer's articles of incorporation or in the Act, the amounts allocated to the accounts and accumulations thereon may be invested and reinvested in any class of loans and investments specified in the agreement, or, with respect to life insurance contracts on a variable basis, as prescribed by the Commission, and the loans and investments shall not be considered in applying any limitation in this
Part.
(5) The Commission, with respect to separate accounts for life insurance on a variable basis, may establish reasonable standards for procedures to be used in changing investment policy and provisions to safeguard the rights of insured persons and beneficiaries. (6) In this regulation, "contract on a variable basis" means a contract issued by an insurer providing for the dollar amount of benefits or other contractual payments, or values thereunder to vary so as to reflect investment results of a segregated portfolio of investments, or of a designated account in which amounts received in connection with the contract have been placed. (7) A life insurer, with respect to any account or any portion thereof, *Y- (a) exercise the voting rights of the stock or shares or interest in accordance with instructions from the persons having the beneficial interests in the account rateably according to their respective interests in the account; or (b) establish a committee for the account, the members of which may be directors or officers or other employees of the insurer, persons having no relationship to the insurer, or any combination thereof, [The inclusion of this page is authorized by L.N. 33N2005]

THE INSURANCE REGULATIONS, 2001 who may be elected to membership by the vote of the persons having the beneficial interests in the account rateably according to their respective interests in the account. (8) The committee referred to in paragraph (7) (b), alone, in conjunction with others, or by delegation to the insurer or any other person, as investment manager or investment adviser, may authorize purchases and sales of investments for the account if, as long as the life insurer or any subsidiary or affiliate of the life insurer is the investment manager or investment adviser of the account, the investments of the account are eligible under this regulation. (9) The investments and liabilities of the account shall at all times be O clearly identifiable and distinguishable from the other investments and liabilities of the insurer. (10) A sale, transfer or exchange of investments shall not be made between any of the separate accounts or between any other investment account of the company and one or more of the separate accounts, except for the purpose of- (a) conducting the business of the account in accordance with paragraph (8); or (b) making adjustments necessitated by the contract for mortality experience adjustment, and then only if the transfers are made by a transfer of cash or securities having a valuation, which can readily be determined in the market place. (1 1) The Commission may- (a) require that, for domestic life insurers, a transfer of cash or investments from a separate account or accounts to the company be approved in advance of the transfer; (b) prescribe reasonable limitations on charges against and permissible deductions from separate accounts for life insurance contracts on a variable basis. AUowabb investmews m 68.-(1) Any domestic insurer, either by itself or in cooperation with one mr~odom. or more persons, may acquire, hold or control voting shares in a corporation or interest in any entity subject to the limitations of this regulation. (2) An insurer shall not make investments, other than those in paragraph (3), that would result in the insurer, or any of its subsidiaries, or any combination of the insurer and its subsidiaries, acquiring, holding or controlling, whether directly or indirectly- (a) more than 10% of the voting shares in a corporation; or (b) more than 10% interest in any entity. (3) Paragraph (2) shall not apply if the insurer directly or indirectly acquires, holds or controls- [The ~nclw~on of 1h1s page IS authonzed by L N 33AI20051

THE INSURANCE REGULATIONS, 2001 119
(a) more than 10% of the voting shares in a corporation that carries on, or more than a 10% interest in another type of entity that carries on, one or more of the following kinds of business- (i) banking; (ii) insurance business; (iii) trust business, deposit business or both; (iv) the business of a broker or underwriter of a dealer in securities; (v) investment counselling; (vi) portfolio management; (vii) data processing; (viii) financial leasing; (ix) factoring; (x) the issue of credit cards and the operation of credit systems connected therewith; (xi) acquiring, holding, maintaining, improving, selling, leasing or managing real estate (excluding land) or leaseholds; (xii) acquiring, holding, maintaining, improving, selling, leasing or managing land or acting as agent in the sale or purchase of land; (xiii) any other financial business as the Commission may determine; (b) subject to first receiving the written consent of the Commission and to any conditions that the Commission may impose, more than 10% of the voting shares in a corporation that carries on a business that is reasonably ancillary to the business of an insurer. (4) Notwithstanding paragraph (3), an insurer shall not invest, directly or indirectly- (a) in a corporation described in that paragraph if the investment would result in the insurer having a total investment, directly or indirectly in all such corporations, except those described in paragraph (3) (a) (i), (ii) and (iii), that exceeds 5% of the insurer's assets; or (6) more than 2% of its assets in corporations described in paragraph (3) (a) (xiii). [The inclusion of this page is authorized by L.N. 33A120051

THE INSURANCE REGULATIONS, 2001
Prohibited inveslmenls
Undermiling and repurchase agreements.
Disposal of ineligible propetty and securities.
(5) If an insurer ceases to control an investment made pursuant to this regulation, it shall dispose of such investment within three years from the time of the cessation of control or within such further times as the Commission may determine, unless at anytime after the investment has been made, the investment has met the requirements for investment under any other regulation in this Part, and the insurer has notified the Commission thereof.
69. In addition to investments excluded under other provisions of this
Part, an insurer shall not invest in or loan its funds upon the security of, or
hold- (-,)
'L/'
(a) issued shares of its own capital stock, except for the purpose of- (i) mutualisation in accordance with section 116 of the Act and; (ii) acquisition to distribute pursuant to a bona j2de employee stock option plan approved by the Commission; (b) any investment or loan ineligible under regulation 42; (c) securities issued by an insolvent corporation; (d) loans to an officer or director or any spouse or child of an officer or director, except policy loans in accordance with regulation 60; (e) any investment or security which is found by the Commission to be designed to evade any prohibitions of this Part.
70. No insurer shall-
(a) participate in the underwriting of the marketing of securities in advance of their issuance or enter into any transaction for such underwriting for the account of such insurer jointly with any other person, but the insurer may subscribe to the securities when issued; or (b) enter into any agreement to withhold from sale any of its property or to repurchase any property sold by it, except repurchase agreements held pursuant to regulation 64. 71.-(1) From and after the compliance transition period referred to in regulation 40(6), any personal property lawfilly acquired by an insurer, which it could not otherwise have invested in or loaned its funds upon at the time of the acquisition, shall be disposed of by the insurer within three years from date of acquisition, unless within such period the security has attained the standard for eligibility. (2) The Commission, upon application and reasonable showing that forced sale of any such property or security would be against the best interests of the insurer, may extend the disposal period for an additional reasonable time. [The inclusion or this page is autliorized by L.N. 33A120051

THE INSURANCE REGULATIONS, 2001
(3) While any such property or security remains so ineligible, it shall not be counted as an asset of the insurer. (4) Any ineligible property or security acquired contrary to this Part by an insurer shall be disposed of forthwith and if the insurer fails to do so within sixty days after being required by the Commission the Commission may revoke or suspend the insurer's registration. (5) For the purposes of paragraph (4), an investment otherwise eligible shall not be deemed ineligible for the reason that it is in excess of the amount permitted under this Part to be invested in the category of investments to which it belongs and any such excess investment shall be disposed of within the time prescribed in paragraph (1).
72. The investments of a foreign insurer shall be as permitted by the laws E:$Ez,
of its domicile, but shall be of a quality substantially as high as those required by this Part for similar funds of like domestic insurers.
PART VIII-Corporate Governance, Appointment of Auditors and Actuary,
Establishment of Conduct, Investment and Loan and Audit Committees, Responsibilities of Auditors 73.--(I) The directors of a registered insurer shall, at their first meeting ~$~~;~;~ following each annual general meeting, appoint an audit committee comprised of not less than three persons, the majority of which shall not be officers or employees of the registered insurer or an associated company. (2) An audit committee shall regulate its own procedure and hold office until the next general meeting. (3) Without prejudice to the relevant provisions of the Companies Act, the audit committee shall review- (a) returns that the registered insurer is required to file with the Commission; (b) reports made by the auditor under the Act and the Companies Act; (c) such other reports, transactions or matters as the Commission may determine. (4) Where under the Companies Act a financial statement or return is required to be approved by the directors of a registered insurer, the approval shall not be given until- (a) the audit committee has reviewed and reported on the statement or return; and (6) that report has been received by the directors. (5) A meeting of the audit committee shall be convened on the request of the auditor, a member of the audit committee or any director, as the [The inclusion ol'this page is authorized by L.N. 33Al2005j

122 THE INSURANCE REGULATIONS, 2001 case may be, to consider any matters which the auditor, member or director believes should be brought to the registered insurer's directors or members. Estab""h"d"f 74.-(1) The directors of a registered insurer shall elect fiom among wndud review w~.itta. themselves a committee consisting of at least three directors, to be known as the conduct review committee. (2) The conduct review committee shall establish written procedures with a view to identifying situations which create potential conflicts of interest and preventing such conflicts. Eub'i"ntof loan wmmittee. 75. The directors of a registered insurer shall, at their first investment and directors' meeting following each annual general meeting, establish a committee to be known as the investment and loan committee consisting of not less than three persons, at least one of whom shall be an officer of the company but the majority of the members shall not be officers or employees of the company or an associated company. QUB'ifieatiorlBof 76.-(1) An actuary is qualified to be appointed in the office of actuary of ww. a registered insurer if he is a fully qualified professional member of an actuarial body accredited by the International Actuarial Association and recognized by the Commission which shall publish an annual list of the Actuarial Associations recognized by it. (2) Where an actuary is qualified only in respect of either life and health insurance business or general insurance business, he shall be qualified to hold the office of actuary only in respect of the business for which he is qualified. (3) The chief executive officer or chief operating officer or a person performing like functions may not be appointed or hold the position of actuary of a company unless authorized in writing by the Commission. (4) An authorization under paragraph (3) shall have effect for such period as is specified therein and shall cease to be in effect on the day so specified, being a date not later than six months after it is issued, and a person appointed or holding the position of actuary pursuant to the authorization shall not hold that position after that day. (5) The chief financial officer or a person performing like fimtions may not be appointed as or hold the position of actuary of a company unless- (a) the audit committee of the company has provided the Commission with a written statement indicating that it is satisfied that the duties of both positions in the company will be adequately performed and that the actuarial duties will be performed in an independent manner; and (6) the appointment or holding of the position is authorized by the Commission, which may be granted subject to such limitations and [The inclus~on of this page 8s authorized by L.N. 33A120051

THE INSURANCE REGULATIONS, 2001 123 conditions as the Commission may specify, including a limitation on the time during which the person referred to in the authorization may hold the position of actuary of the company, but in no event shall the chief financial officer hold the position for longer than six months. (6) The directors of a company may revoke the appointment of the actuary of the company. (7) A company shall, within seven days after the revocation of the C appointment of the actuary of the company, notify the Commission in writing of the revocation, stating the reasons for the revocation. (8) A person ceases to hold office as the actuary of a company when- (a) the person resigns as actuary of the company; (b) the person ceases to be an actuary; (c) the person dies; or (4 the appointment of the person as actuary of the company is revoked by the directors of the company. (9) The resignation of an actuary becomes effective at the time a written resignation is sent to the company or at the time specified in the resignation, whichever is later. (10) Where a vacancy occurs in the office of actuary of a company, the directors shall forthwith notify the Commission of and fill the vacancy. (1 1) An actuary of a company who resigns or whose appointment is revoked shall submit to the directors of the company and the Commission a written statement of the circumstances and reasons why the actuary resigned or why, in the actuary's opinion, the actuary's appointment was revoked. (12) Where an actuary of a company resigns or the appointment of an actuary of a company is revoked, no person shall accept an appointment or consent to be appointed as actuary of the company before requesting and receiving from the former actuary, the written statement referred to in paragraph (ll), but a person may accept an appointment or consent to be appointed as actuary of a company if no reply is received from the former actuary within fifteen days after a request is made. C (13) The actuary of a company shall value- (a) the actuarial and other policy liabilities of the company as at the end of a financial year; and (b) any other matter specified in any direction by the Commission. (14) The actuary's valuation shall be in accordance with generally accepted actuarial practice with such changes as may be determined by the Commission and any additional directions by the Commission. ('The inclusion of this page is authorized by L.N. 33Al20051

THE INSURANCE REGULA TIONS, 2001
Form of nchlary's npod.
Schedule 13.
Actuarial
Reguletwna.
Qunlifrations of auditor.
Appointmen1 of
Auditor for aubeidii.
Conduct Review
Cornmince.
(15) The Commission may appoint an actuary to value the matters referred to in paragraph (13), in relation to a company if the Commission is of the opinion that the appointment is necessary and a person so appointed shall not be an actuary of the company. (16) The expenses incurred in carrying out a valuation under paragraph (13) are payable by the company on being approved in writing by the Commission. (17) On the request of the actuary of a company, the present or former directors, officers, employees or representatives of the company shall, to the extent that they are reasonably able to do so- (a) permit access to such records as are held by the company; and (b) provide such information and explanations as are, in the opinion of the actuary, necessary to enable the actuary to perform the duties of actuary of the company. (18) A person who in good faith makes an oral or written communication under paragraph (17) shall not be liable in any civil action arising from having made the communication.
77. The Actuary's Report shall be in the form set out in Schedule 13.
78. In performing his services, the Actuary shall adhere to and be guided
by the Actuarial Regulations, 2001, and any Guidelines, Technical Papers and Bulletins issued by the Commission.
79. An auditor is qualified to be appointed to the office of auditor of a
registered insurer if he is a fellow in good standing of the Institute of Chartered Accountants of Jamaica.
80. A registered insurer shall-
(a) ensure that its auditor, or one of them if more than one, is also auditor of any of its subsidiaries; or (b) deliver to the Commission a written explanation to the satisfaction of the Commission of why it is unable to ensure that result. 8 1. The Conduct Review Committee shall provide the Commission with a copy of the written procedures adopted pursuant to these Regulations within thirty days aRer the Committee is constituted. 82.-41) In this regulation- "related party" means a person who- (a) is a director or officer of the insurance company or any of its affiliate; (b) is an employee of the insurance company or its affiliate and is a member of a prescribed class of employees; [The inclusion ol'this page is authorized by L.N. 33A120051

THE INSURANCE REGlJUTIONS. 2001 125
(c) owns directly 10% or more of the non-voting shares in the entity, not counting any non-equity shares in he case of a credit union; (4 owns or controls, directly or indirectly, 10% or more of any class of voting shares in the company or in its affiliate, but is not an affiliate of the company; (e) is an affiliate of the company and- (i) is not a wholly owned subsidiary corporation of the company; and (ii) is not an insurance company or extra-territorial corporation that is a holding company that wholly owns the insurance business; (f) is a corporation in which the insurance business or its affiliate owns or controls, directly or indirectly, 10% or more of any class of voting shares; (g) owns or controls, directly or indirectly, a 10% or greater interest in a joint venture in which the insurance business or its affiliate also owns or controls, directly or indirectly, a 10% or greater interest; (h) owns or controls, directly or indirectly, a 10% or greater interest in a partnership in which the entity or its affiliate also owns or controls, directly or indirectly, a 10% or greater interest; (i) is a sole practitioner who is an auditor of the insurance company; G) is actively engaged in auditing the insurance company and is a partner in a partnership that is an auditor of the insurance company; (k) is a director, officer or member of a prescribed class of employees of a corporation that is a related party under sub-paragraph (c) or (4; (I) is a spouse of an individual who is a related party under sub￾paragraph (a), (b), (c) or (d) and occupies the same home as that person; (m) is a relative or an individual or the spouse of an individual who is a related party under sub-paragraph (a), (b), (c) or (4, and occupies the same home as that person; (n) is a corporation in which a person who is a related party under any of sub-paragraphs (a) to (h) and (k) to (m) or under paragraph (2) has or controls, directly or indirectly, more than 50% of the votes that are attached to the outstanding voting shares of the corporation and that may be cast in the election of the directors. (2) A related party includes an individual who, having been a related party under sub-paragraph (1) (a), (b), (c), (4 or (e) of an insurance business ceases to be one under that paragraph, nevertheless continues for the purposes [The inclusion of this page is autllorized by L.N. 33Al7.0051

126 THE INSURANCE REGULATIONS, 2001 of this Part to be a related party of the insurance business for the twelve months commencing on the date the individual ceases to be a related party under sub-paragraph (1). (3) Except as provided in this regulation, an insurance company that holds money as a fiduciary shall not- (a) invest that money in securities issued by the insurance company or by its related party; or (b) use that money in any transaction with any such related party. (4) An insurance company may act as a fiduciary in one or more trusts or estates in which there are securities issued by the insurance company or its related party if the securities were- (a) acquired by the person for whom the financial institution acts as a fiduciary; or (b) held in the trust or estate before the insurance company assumed responsibility as a fiduciary. (5) If an insurance company acts as a fiduciary in one or more trusts or estates in which securities are held that were issued by the insurance company or by its related party, the insurance company shall not sell or vote the securities or refuse an offer for them without first receiving the written approval of the conduct review committee which shall enter the reasons for the sale, vote or refusal in its minutes. (6) The conduct review committee at least annually shall provide a written report to the directors of the insurance company on securities that have been- (a) issued by the insurance company or by its related party; and (b) held in a trust or estate by the insurance business as a fiduciary during its immediately preceding financial year; and the conduct review committee shall, in the report, give the reasons for aDy approvals given or denied under paragraph (5) during that financ@l year. (7) Notwithstanding that paragraph (3) would otherwise prohibit it from doing so, an? insurance company or its related party may carry out an express or a specific permission or a direction that is- (a) made by a court; or (b) contained in an instrument creating a fiduciary duty to putchase or sell securities of the insurance company or of the related party or to enter into a transaction with the insurance company or a related party of the insurance company, as the case may be- [The inclusion of this page is authorized by L.N. 33A120051

THE INSURANCE REGULATIONS, 2001
(i) if the insurance company or related party does so as a fiduciary, to make an investment in a bond, note or other evidence of indebtedness that is issued by the insurance company or by the related party, as the case may be, and for which there is market recognized by the Commission; or (ii) if the insurance company or related party does so as a fiduciary, to make an investment or enter into a transaction in which one or more co-fiduciaries of the insurance company or related party can direct and has or have directed that the investment or transaction be made without the agreement of the insurance company or related party. (8) An insurance company or subsidiary of an insurance company, shall not, directly or indirectly- (a) give insurance business to its related party by way of loan, guarantee, the provision of security or otherwise; or (b) enter into any other transaction with any such related party, other than as permitted under regulation 83. (9) A related party of an insurance company shall not, directly or indirectly- (a) give insurance business to an insurance business by way of loan, guarantee, the provision of security or otherwise; or (b) enter into or carry out a transaction with the insurance company or with its subsidiary. (10) An insurance company or its subsidiary shall not directly or indirectly- (a) enter into or cany out a specific transaction approved under regulation 84 by the conduct review committee of the insurance company for consideration that is materially greater or less than the fair market value specified in an approval given under that regulation by the conduct review committee; or (b) enter into or carry out a transaction in a class of transactions approved under regulation 84 by the conduct review committee of the insurance company that is for a consideration materially greater or less than the fair market value. (11) Whether or not the transaction would otherwise be permitted under regulations 83 and 84 but subject to paragraph (12), an insurance company or its subsidiary, shall not, directly or indirectly, enter into insurance business with a related party of the insurance company that consist of accounts receivable, loans or security instruments including assets subject to an agreement to repurchase if, immediately following the transaction, the aggregate amount that is- [The ~nclus~on ol'this page IS autllonzed by I. N 33Ai20051

THE INSURANCE REGULA TIONS, 2001
(a) outstanding under transactions described in paragraph (3) (a); and (b) due from the related parties to the financial institution, does not exceed 5% of the value of the assets of the insurance company and its subsidiary. (12) Paragraph (6) does not apply in respect of a transaction described in that paragraph that, at the time it is entered into, is a specific transaction or a class of transactions, consented to in writing by the Commission. (13) Whether or not the transaction would otherwise be permitted under regulations 83 or 84 but subject to paragraph (14), an insurance company or related party of an insurance company shall not, during any 12 month period, dispose of, to related parties of the insurance company, assets having an aggregate value in excess of 10% of the value of the assets of the insurance company, as shown in its most recently audited financial statements. (14) Paragraph (13) does not apply in respect of a transaction described in that regulation that, at the time it is entered into, is a specific transaction or a class of transactions, consented to in writing by the Commission. Cerlain related pmiy mns.cliona 83. When otherwise permitted to do so and not prohibited from doing so permitted, by regulation 82, an insurance business or its subsidiary may - (a) pay or confer a salary, fee, stock option, pension, benefit or incentive benefit to a director or officer of the insurance company, or to a person who is in the class of employees prescribed for the purpose of regulation 82 (1 ) (k); (b) provide to related parties of the insurance company, at not less than fair market value, services or products that the insurance company or the subsidiary also provides in the ordinary course of its business to the public or, in the case of a credit union, to its members; (c) if the aggregate amount outstanding under all loans to an insurance company will not exceed the prescribed amount, counting the amount of the intended loan, make a loan to an individual who is a related party of the insurance company under paragraph (1) of the definition of related party in regulation 82; or (4 buy from, or sell to, a related party of the insurance company, for a nominal amount, within the meaning of that regulation, property or services having a fair market value that does not exceed that nominal amount. [The i~iclusioti of Illis page is aurllorized by L.N. 33A12005I

THE INSURANCE REGULATIONS, 2001 129
84.-41) When otherwise permitted to do so and not prohibited from 2z:p doing so by regulation 82, a financial institution or a subsidiary of it may enter p0w-b approve othn into a transaction with a related party of the insurance company if the tmiom. transaction, at the time it is entered into, is - (a) a specific transaction; or (b) in a class of transactions, approved in writing for the purpose of this regulation by the conduct review committee of the insurance company. (2) Subject to paragraphs (3) and (4), the conduct review committee of an insurance company may give written approvals for the purpose of this regulation. (3) The conduct review committee of an insurance company shall not approve a specific transaction or class of transactions for the purpose of. this regulation unless the specific transaction or the class of transactions, as the case may be, meets each of the following requirements- (a) it is not within a class of restricted transactions prescribed for the purposes of this regulation; (b) it does not involve the purchase or sale of an interest in land other than- (i) a leasehold interest; or (ii) a prescribed interest; (c) it does not involve the transfer of a leasehold interest in land, if, on or after transfer any person having a right to occupy the land under the lease has that right for a term, or for successive renewal terms, in excess of 30 years; (d) it does not involve an exchange of one or more security instruments issued by the insurance company or its subsidiary for one or more security instruments issued by a related party of the insurance company at a time when any of the securities exchanged does not trade on a market recognized by the Commission; (e) it is consistent with, or reasonably ancillary to, the usual business of the insurance company or of its subsidiary, as the case may be; (f) it is in the best interests of the insurance company or, if entered into by its subsidiary, in the best interests of both the insurance company and the subsidiary.
85. The conduct review committee shall not approve a specific transaction z,,
for the purposes of this regulation unless satisfied on reasonable grounds- (a) that the transaction will be entered into and carried out for [The inclusion ol'th~s page 1s aulhonzed by L.N. 33A/2005]

THE INSURANCE REGULATIONS, 2001 consideration- (i) paid by the insurance company or by its subsidiary that is not materially greater than the fair market value; or (ii) received by the insurance company or by its subsidiary that is not materially less than the fair market value; and (b) in the case of a transaction involving a loan or loans by the financial institution or its subsidiary, that-- (i) the loan or loans will be secured by a charge on property which property has fair market value that is not less than 100% of the principal amount of the loan or loans and, if a higher percentage than 100% prescribed for the purpose of this paragraph, is not less than that prescribed higher percentage of the principal amount of the loan or loans; and (ii) the property charged as security for the loan or loans is not in the category of low quality assets as that category is defined by regulation, and, if the conduct review committee is satisfied as to the matters set out in paragraph (a) or (b) or both, as applicable, it shall specify in the approval the amount that constitutes the fair market value for the purposes of paragraph (a) or (6) or both, as applicable. Disclosure by related parties. 86.-(1) A related party of an insurance company who, directly or indirectly, is interested in a transaction or proposed transaction with the insurance company or with its subsidiary for which, under the Act- (a) approval of the conduct review kommittee of the insurance company; or (b) the consent of the Commission, is required, shill disclose in writing to the directors of the insurance company the nature and extent of the related party's interest in the transaction. (2) Notwithstanding paragraph (I), if an individual (the "first individual") is directly or indirectly interested in the transaction described in that paragraph and is a related party of the insurance company only because of being a relative of- (a) an individual (the "second individual"); or (b) the spouse of the second individual, who is a related party under regulation 82 and who occupies the same home as the fust individual, as set out in that regulation, then- [The inclusion of this page is authorized by L.N. 33,4/2005]

THE INSURANCE REGULATIONS, 2001
(i) paragraph (1) does not apply to the first individual; and (ii) the second individual must disclose in writing to the directors of the insurance company the nature and extent of the first individual's knowledge. (3) A person who is a director or officer of a financial institution, and- (a) is also a director or officer of; or (b) owns or controls, directly or indirectly, 50% or more of the votes that are attached to the outstanding voting shares, in, a corporation that is interested in a transaction or proposed transaction with the insurance company or with its subsidiary, shall disclose in writing to the directors of the insurance business that person's relationship with the interested corporation and the nature and extent of the interested corporation's interest in the transaction or proposed transaction. (4) The disclosure to the directors of the insurance business that is required by paragraph (I), (2) or (3) shall be entered in the minutes of the directors of the insurance company. (5) If the person who is required by paragraph (I), (2) or (3) to make a disclosure to the directors of the insurance company is a director of the insurance company or of a subsidiary of an insurance company- (a) that person shall make the disclosure at the first meeting of the directors of the insurance company after the matter requiring disclosure becomes known to that person; (6) if a meeting described in sub-paragraphs (i) to (iv) occurs at the same time as or after the matter requiring disclosure becomes known to that person, then- (i) that person shall also make the disclosure at the meeting of the directors at which the transaction or proposed transaction is first considered; (ii) if that person or the interested corporation of which that person is a director, was not, at that first meeting, interested in the proposed transaction, that person shall also make the disclosure at the first meeting of the directors after that person or corporation becomes interested; (iii) if that person becomes interested, or becomes a director of an interested corporation after the transaction is proposed or entered into, that person shall also make the disclosure at the first meeting after becoming interested or become a director; or [The inclusion of this page is authorized by L.N. 33A/2005]

THE INSURANCE REGULATIONS, 2001
(iv) if a person who is interested or is a director of a corporation that is interested in the transaction or proposed transaction later becomes a director of the insurance company, that person shall also make the disclosure at the first meeting afier becoming a director of the insurance company. (6) If the person who is required under paragraph (I), (2) or (3) to make a disclosure to the directors of an insurance company is not a director of the insurance company or of its subsidiary, that person shall make the disclosure immediately afier the interest requiring disclosure becomes known to that person, whether or not the insurance company has already proposed or entered into the transaction at that time. (7) If a person who is interested in a transaction or proposed transaction becomes a related party of the insurance company afier the transaction is proposed or entered into by the insurance business, that person shall make the disclosure required under paragraph (I), (2) or (3) immediately afier the interest requiring disclosure becomes known to that person. (8) A director required to make a disclosure under paragraph (I), (2) or (3) shall not- (a) take part in the discussion or vote on any resolution to approve a transaction in relation to which the disclosure is required; (b) be present at any meeting of the directors while the directors are dealing with the matter; or (c) influence or attempt in any way to influence the voting on any resolution to approve a transaction in relation to which the disclosure is required.
PART IX-Aspect of the Standard Accounting Practice
General Insurance Companies lnlerprelation. 87. In these Regulations - "time apportionment method" means a method whereby each premium is apportioned over the period that it covers whereby the unearned premiums reserve is the aggregate of the unearned premiums, calculated on a pro-rata basis, in respect of the unexpired periods of the respective insurance policies at the end of the financial period; "1124th method" means the method - (a) whereby unearned premium reserve at the end of the financial period is the aggregate of the unearned premiums calculated on a monthly pro-rata basis, in respect of the unexpired periods of the insurance policies at that date; and [The i~iclusio~i of this page is authorized by L.N. 33Al2005]

THE INSURANCE REGULA TIONS, 2001
(b) used for insurance policies that have a term of one year and assumes that the average date of issue of all policies written during one month is the middle of the month; "V365th method" is a refinement of the 1124th method and those methods are normally not applicable to insurance policies with terms less than or exceeding one year. 88.41) Unearned premiums at the end of the accounting period shall be m, computed using one of the prescribed methods and accounted for as an unearned premium reserve. (2) Unearned premium reserve for all categories of risks, except marine and transportation, shall be computed as follows- (a) in the case of premiums that normally cover a period of risk of one year, the V24th or V365th method shall be used; (b) for policies extending coverage over a period of more or less than twelve months, the time apportionment method shall be used unless the number of such policies and their impact are not material. (3) In the case of marine and transportation insurance, the unearned premium reserve shall be maintained at 100% of net premiums in respect of trip risks not terminated in accordance with the Act. 89.41) An unexpired risks provision, where applicable, shall be ~,V;~~,risks determined for each class of business and shall be accounted for as a premium reserve in addition to the unearned premiums reserve. (2) An assessment of the need for an unexpired risks provision shall be made for each grouping of business which is managed together and unexpired risks surpluses and deficits within such a grouping shall offset each other. (3) The potential requirement for an unexpired risks provision shall be assessed on the basis of information available as at the balance sheet date and for the purposes of this paragraph- (a) claims occurring after the balance sheet date in relation to the unexpired period of policies in force shall not be taken into account in making the assessment; (b) where material, post balance sheet claims shall be disclosed in the notes to the financial statements, together with an estimate of their financial effect. (4) In computing the expected value of future claims in relation to the unexpired periods of risk on policies in force at the balance sheet date, the future investment arising on investments supporting the unearned provision [The inclusion of this page is autllorized by L.N. 33Al20051

134 THE INSURANCE REGULA TIONS, 2001 and the existing unexpired risks provision shall be taken into account. The investment income shall be that expected to be earned by the investments held until the hture claims are settled. Disclosure (5) The following are to be disclosed- (a) the policy employed in the determination of the unearned premium reserve and the unexpired risks provision; (b) the gross unearned premiums and the reinsurance ceded either on the face of the income statement or as a note to the financial statements; (c) the unearned premium reserve and the unexpired risks reserve for each class of insurance business at the end of the financial period; (4 acquisition costs that have been set off against gross written premium before the computation of the unearned premium reserve; (e) investment assets supporting unearned premium reserve. Unpa~d cla~ms 90.-41) General insurance companies shall maintain reserves for amounts estimated to provide for the expenses of loss adjustment on settlement of all claims, incurred on or prior to the end of the accounting period, whether the claims are reported or unreported, once they are unpaid at the end of the accounting period and the general insurer faces liability. (2) Unpaid claims shall be grouped into two types, namely- (a) reported; and (b) incurred but not reported (IBWR). (3) In accounting for the provision for unpaid claims that have been reported, the case basis and the paid/loss pattern shall be used. (4) IBWR claims shall be computed in accordance with these Regulations. (5) Claims/loss provisions, salvage realization and claims recoveries, other than reinsurance recoveries, shall be accounted for as and when received unless the realization can be determined with reasonable certainty. Disclosure (6) The following shall be disclosed- (a) the method used in computing the provision for claims that have been incurred and reported but not yet settled; (b) post balance sheet claims that are material and their financial effect, in the context of the company's operation; [The inclusion of this page is authorized by L N. 33A/2005]

THE INSURQNCE REGULATIONS, 2001
(c) the gross claims payable and the amount recoverable fkom the reinsurers. 9 1 .--(I) Reinsurance recoverable shall be treated in a manner consistent Lzz, with the liabilities that relate to the underlying reinsurance contracts and the assumptions used in estimating reinsurance recoverable shall be consistent with the assumptions used in estimating the related liabilities. (2) The following provisions shall apply in relation to premiums- (a) unearned premium balance shall not be reduced by reinsurance premiums paid to re-insurers; (b) the amounts of premiums ceded and the reinsurance recoveries shall be reported in the financial statements as separate items and may be deducted respectively from premiums earned and claims and incurred costs; (c) premiums ceded for reinsurance but remain unpaid at the reporting date shall be treated in the financial statements as liabilities. (3) Changes in amounts of estimated reinsurance recoverable on outstanding claims shall be treated as an increase or a reduction of gross claims liabilities and loss expenses incurred in the same accounting period. (4) Reinsurance recoverable on paid claims shall be reported as an assetin the balance sheet. (5) Reinsurance recoverable on unpaid claims and incurred but not reported claims and loss adjustment expenses shall be set off against the liability for gross claims and loss adjustment expenses but if the amounts paid are subject to adjustment that can be reasonably estimated, the basis for allocation shall be the estimated amount. (6) Inward commission, which is deducted kern reinsurance premium payable by the ceding company shall be deferred over the life of the insurance contract to which it relates. Disclosure (7) The following shall be disclosed - (a) the nature and significance of reinsurance and retrocession transaction entered into during the accounting period; (6) a statement that insurance ceded does not relieve the ceding company of its primary obligation to the policy holder; (c) premiums from direct business, reinsurance assumed and reinsurance ceded, on both a written and an earned basis; (4 the accounting policies governing income recognition on reinsurance transactions:
[The ~nclus~on of th~s page is authorized by L.K. 33.4 2005)

THE INSURANCE REGULATIONS, 2001
(e) the amount of significant concentrations of reinsurance coverage (20% more) including the credit risk associated with reinsurance receivables and prepaid reinsurance premiums for individual reinsurers and the extent to which there is reliance on reinsurers for settlement of claims; V) the amount of earned premiums ceded and reinsurance recoveries recognized as separate line items in the income statement or in the notes to the financial statements. OU"-'Or standard 92. The standards stated in these Regulations supplement other standards -uti.s of standard accounting practice which also apply to the general insurance prsetice. companies unless they are specifically exempted in a standard. Life Insurance Companies Actvarial Libilitiea. 93.--(1) The actuarial liabilities of Life and Health Insurance companies shall be computed using the policy premium met)lod in accordance with the following general principles and the specific' policy premium actuarial principles- (a) the actuarial liabilities shall be computed on a going concern basis that recognizes the degree of risk inherent in the obligations; (b) the actuarial liabilities shall include only a limited and reasonable provision for adverse deviations; (c) all acquisition costs, without arbitrary limitation, shall be incorporated into the computation of the actuarial liabilities, with the calculation of the actuarial liabilities being made over the full term of the policy; (d) the costs entering into the computation of the actuarial liabilities shall include policyholder dividends and experience refunds but related expenses and direct taxes such as premium taxes shall be excluded; (e) surrender privileges and policy lapses shall be accounted for in a manner similar to other policy benefits by applying normal actuarial techniques including discounting for the probability of occurrence. (2) The effects of changes in the valuation assumptions shall be accounted for as a change in accounting estimates and not a change in accounting policy and the effect of a change in accounting estimates is to be accounted for in- (a) the period of the change, if the change affects the financial results of that period only; or (b) the period of the change and applicable future periods, if the [The inclusion of this page is authorized by L.N. 33A12005)

THE INSURANCE REGULATIONS, 2001 change affects the financial results of both current and future periods. (3) Any excess or deficiency of the present value of actual premiums over the present value of assumed future benefits and costs, after providing for the provision for adverse deviations, shall be treated as income when the policies are issued and for the purposes of this paragraph- (a) actuarial liabilities during an accounting period shall be reflected in income of that period; (b) gains and losses arising subsequent to the date of issue as a result of differences between the actual experience and the assumed experience within the actuarial liabilities (including provision for adverse deviations) shall be treated as income when they occur. (4) Actuarial liabilities shall be based on all the relevant underlying factors including assumed adverse deviations and accordingly, all future policy benefits and expenses shall be provided for in the actuarial liabilities, offset by the recognition of the full amount of future premiums payable. (5) Any excess of the actual premiums over valuation premiums represents income arising from the successful sale of a product priced so as to more than cover all future benefits and expenses including the provision for adverse deviations and that income shall be recognized at the time of sale, being the time at which the related policy benefits and expenses and provision for adverse deviations initially enter into the determination of .the actuarial liabilities. (6) Actuarial liabilities and reported revenues and expenses of a ceding life insurance company shall be adjusted to reflect all the costs and revenues or re-insurance ceded transactions and retrocessions, and- (a) such adjustments shall include a reduction in the provision for adverse deviations to give recognition to the impact of the transfer of risks to the reinsuring company; and (b) the effect of the adjustments shall be reported in the period in which the risks are transferred. Disclosure (7) The following shall be disclosed- (a) the responsibilities of the appointed actuary; (b) the composition of actuarial liabilities and related assets which includes- (i) the composition of actuarial liabilities by major lines of business; [The inclusion of this page is autllorizcd by L.K. 33A/ZOOS]

THE INSURANCE REGULATIONS, 2001
(ii) the types of investments that support each major line of business, as well as capital and surplus; (c) the nature of actuarial liabilities to convey that- (i) actuarial liabilities represent the amounts which, together with estimated future premiums and investment income, will be sufficient to pay estimated future benefits, including policyholder dividends, and expenses; (ii) actuarial liabilities include additional amounts to provide for possible adverse deviation from best estimate assumptions and those amounts vary based on the degree of uncertainty in the assumptions; and (iii) many of the estimates used in the actuarial valuation relate to events that may occur many years into the future and are subject to revision at subsequent measurement dates; (4 the nature of the measurement uncertainty inherent in the computation of actuarial liabilities to describe in general terms- (i) the major factors (such as future policy claims and benefits, future dividtnds, future investment yields, etc.) taken into account in the computation of actuarial liabilities and the major assumptions made relative to these factors; (ii) the major sources of data used and key elements of methodologies applied in the computation of actuarial liabilities (such as estimate of mortality using tables developed from historical experience of the industry, amended based on studies conducted regularly of the company's own experience); and (iii) the manner in which measurement uncertainty is allowed for in the actuarial valuation process, including the establishment of margins for adverse deviations; (e) changes in actuarial liabilities including- (i) those resulting from changes in actuarial assumptions and changes in the provision for adverse deviation, by major cause; and (ii) an explanation provided for each major change; V) negative reserves; (g) credit risk including- (i) the extent to which expected future investment yields have been reduced by provisions for credit losses: and [The inclusion of this page is authorized by L.N. 33A/2005]

THE INSURA N~E REGULA TIONS, 2001 139
(ii) the amount of any additional provisions for cyclical credit losses included in the computation of actuarial liabilities; (h) reinsurance risk including- (i) the extent to which actuarial liabilities have been reduced or increased as a result of reinsurance ceded arrangements; (ii) amounts recoverable from reinsurers in respect of claims already incurred to be presented as reinsurance claims receivable on the balance sheet; (iii) the amounts of significant concentrations of reinsurance coverage with any one reinsurer or group of reinsurers; (iv) the nature and significance of reinsurance and retrocession transactions entered into during the period; (i) other risks, including information on the nature and extent of other significant risks to which a company is exposed. Accounting for Life Insurance Portfolio Investments Valuation 94.-31) Equity portfolio investments held by life insurance enterprises E4ui'ic" shall be carried in the balance sheet at market value as follows-- (a) the market values for quoted ordinary and preference shares should be taken as the "last sale" price quoted by the Stock Exchange on the valuation date or on the trading date just prior to the valuation date; (6) unquoted ordinary and preference shares and other financial assets whose fair value cannot be reliably measured shall be valued at the lower of cost and net realizable value; (c) units held in unit trusts shall be valued at the bid price on the valuation date. Fixed Term, Fixed-Interest Securities (2)Fixed Term, Fixed-Interest Securities are divided into two categories as follows- (a) short term; and (b) long term. (3) Short term securities include- (a) bank deposits; (6) certificates of deposits; (c) reverse repurchase agreements; p~~ -- ~ [The inclusion of this page is authorized by L.N. 33A!?00S]

THE INSURANCE REGULATIONS, 2001
(d) short term loans (one year and under); (e) treasury bills and other money market instruments, and the foregoing instruments (except treasury bills) shall be recorded at the lower of cost and net realizable value. (4) Treasury bills are government securities that are normally issued at a discount whereby the cost to the company is the discounted price, which shall be recorded as the value of the security on date of purchase and valuations subsequent to the purchase date shall be recorded at the amortized value. (5) Long term securities, including government bonds such as local registered stocks, corporate bonds, mortgages and preference shares with fixed redemption dates, shall be carried in the balance sheet at the amortized value and any premium or discount arising on purchase of these investments should be amortized to income over the period to maturity. (6) Purchases of securities in the market place shall be recognized either at the trade date or the settlement date with recognition of any value changes between trade and settlement dates if the settlement date accounting is used. (7) Transaction costs shall be included in the initial measurement of all financial instruments. (8) Investment properties shall be carried at market value less allowances for selling expenses. (9) Market values shall be determined by qualified, independent valuators. (10) All real estate properties, held as investments, shall be valued at least once per year but valuations shall be done more frequently where market conditions indicate that the carrying values of the assets are materially different fiom values on the market. (11) Purchased mortgages shall be recorded at the lower of amortized value and the realizable value of the security. (12) Policy loans shall be carried at cost less a provision for the excess of loans over cash surrender values. (13) Short term loans shall be carried at cost less provisions for loans in arrears but if a non-performing loan is secured, the carrying value should not be greater than the realizable value of the security. (14) The following provisions apply in relation to interest income from investments- (a) such income shall be recorded on the accrual basis; [The inclusio~i of this page is authorized by L.N. 33A120051

THE INSURANCE REGULATIONS, 2001
(b) interest shall not be accrued if there is default in payment over a period of at least 90 dsYs; (c) where interest is in arrears for six months and over, a provision shall be made in the accounts for 100% of the principal amount in arrears. Purchases cum div, cum interest (15) Whenever purchases are made cum income, the dividend or interest receivable shall not be classified with the purchased investment but as income receivable. Changes in Value (16) On a change in market value, the carrying value of the affected investment asset shall be adjusted in the month of the change and the recording of the change in value shall not be spread over a number of months. (17) Realized gains and losses arising on the sale of investments shall be taken directly to the Statement of Operations. (18) Unrealized gains and losses arising from stating investments at market values shall be taken to investment reserves and not directly to the Statement of Operations. (19) Net unrealized gains shall be transferred from the investment reserve to the Statement of Operations at the rate of- (a) 25% in the case of quoted equities on the reducing balance; and (b) 10% in the case of real estate properties on the reducing balance. (20) Where revaluation losses are in excess of the credit balance in an investment category in the investment reserves, the net loss in total, is to be transferred to the Statement of Operations. (21) Foreign exchange gains and losses are not to be included in investment reserves but shall be treated in accordance with Statement of Standard Accounting Practice No. 3.16. Disclosure (22) The following shall be disclosed- (a) the policy adopted in accounting for realized gain; (b) the movement in investment reserves balances for each category of investments; (c) the values at which each category of investment is carried and the basis of valuation and in cases where appraisals are used to --- -- [The inclwion of this page is authorized by L.N. 33A/Z005]

THE INSURANCE REGULATlONS, ZOO1 establish carrying values, the frequency of the appraisals; (d) in the case of non-performing loans, including mortgages, where provisions have been made for losses, the original value of the loans and the provisions; (e) the provision against rental income for rental in arrears; u> a statement of net income from each investment portfolio type; (g) the assets and liabilities of the segregated funds in a note where a life insurance company manages investments in segregated funds. Accounting for reinsurance. 95.-(1) Reinsurance transactions include only those which involve a transfer of risk being transactions which are in substance a form of financing that is not covered by this statement. (2) Reinsurance may be on- (a) a facultative basis; or (b) an automatic basis. (3) In formulating its rules for accepting applications for insurance, a company has a choice of three areas of action- (a) retaining; (b) reinsuring; or (c) declining the risks presented, and the company may accept the risk in total and reinsure the amount in excess of its limit or decline the extra risk. Premiums (4) Reinsurance premium paid by a ceding company shall be treated as expense in the books of the ceding company and may be netted against the ceding company's gross premium income in the financial statements. (5) In the books of the assuming company, the premium received from the ceding company shall be treated as premium income. (6) Due but unpaid reinsurance premiums shall be classified with liabilities by the ceding company while the assuming company accounts for this as a receivable. Claims (7) The ceding company- (a) shall claim reimbursement of the reinsured portion of death claims from the assuming company; (6) shall set up the death claim liability and expense as soon as the death is reported; [The inclusio~~ of this page is authorized by L.N. 33AI20051

THE INSURANCE REGULA TIONS, 2001 143
(c) may net the reinsured portion of the claim that is due from the assuming company against the death claim expense and the death claims liability in the financial statements. (8) In the books of the assuming company, the claim shall be recorded as a liability immediately on being advised by the ceding company and the expense shall be recognized in the accounting period of the claim. Actuarial Liabilities (7 (9) Actuarial liabilities and reported income and expenses of a L, ceding life insurance company shall be adjusted to reflect all the costs and revenues of reinsurance-ceded transactions. (10) Such adjustments are to include a reduction in the provision for adverse deviations to give recognition to the impact of the transfer of risks to the assuming company. (11) Reinsurance risks assumed are similar in substance to new business and shall be accounted for as such by the assuming company, with the actuarial liabilities being valued using the policy premium method. Disclosure (12) The following shall be disclosed- (a) the nature and significance of reinsurance and retrocession transactions entered into during the accounting period; (6) a statement that insurance ceded does not relieve the ceding company of its primary obligation to the policyholder; (c) a statement of the accounting policies governing income recognition on reinsurance transaction which shall be included in a note to the financial statements; (4 the amount of significant concentrations of reinsurance coverage, including the credit risk associated with reinsurance receivables and prepaid reinsurance premiums for individual reinsurers and the extent to which there is reliance on reinsurers for settlement of claims; (e) the amount of earned premiums ceded and reinsurance recoveries recognized as separate line items in the income statement or in the notes to the financial statements; V) the retention limits or maximum exposure on insurance policies in the different categories of individual life, group life, annuities and group health. 96.41) Premiums for life insurance collected in cash on daily basis shall E;;2 lor [The inclusion of this page is authorized by L.N. 33A/ZOOS]

THE INSURANCE REGULATIONS, 2001 be immediately taken to income. (2) At the end of the accounting period or at shorter intervals when financial statements are being prepared, all due and outstanding premiums shall be accounted for as income. (3) In all cases where amount received represent a combination of premiums and investment deposits- (a) the portion that represents the investment deposits shall be treated as liability in the accounts and not premium income; (b) deposits transferred to a segregated fund shall be included in the fund's income statement. (4) Premium Income that is reversed on lapsed policies shall be recognized in the Statement of Operations at the time of the reversal. (5) Premiums that are billed monthly for group health and personal accident insurance shall be recognized as income in the month to which the billing relates. (6) Expenses incurred in settling non-forfeiture options, such as net paid up insurance and premium waivers shall be recognized as policy expenses and premium income. (7) Bonus addition option for dividends shall be accounted for as dividend expense and premiums. (8) Premiums paid in advance shall be included in liabilities as premiums paid in advance. Provisions for Uncollectibles (9) To reduce the risk of overstating income, the insurer shall make an adequate provision for lapses based on the advice of the actuary. (10) The premium receivables for group and personal accident insurance shall be aged and a provision made for doubtful collections. (1 1) Premiums that are due and outstanding for ninety days and over shall be provided for in full. Disclosure (12) The following shall be disclosed- (a) the policy adopted by the life insurance company in determining premium income together with the amounts provided for lapses; (b) the amount provided for uncollectible group health, group life and personal accident premiums; [The inclusion of this page is authorized by L.N. 33A/2005]

THE INSURQNCE REGULATIONS. 2001
(c) the gross premium income and reinsurance premiums deducted for each line of business where premium income is shown net of reinsurance premiums in the financial statements. 97.41) Life insurance claims and benefits expenses shall be recognized when they are incurred even though they are not yet paid. CK~. (2) Unit encashrnents shall be treated as expenses in the segregated fund that held the units. (3) Policy dividends shall be expensed on the date that the company declares the dividend. (4) Maturities shall be expensed on the date that the payment is due, that is, on the maturity date of the policy. (5) The expense shall be recognized in the month that the policy contract is surrendered. (6) The sum of health claims received but not yet paid shall be recognized in the financial statements and allocated to the accounting period to which they belong. (7) All claims shall be booked in total to expenses in the month that the claims were reported and- (a) if there is a double indemnity or other riders on the policy and there is doubt as to the applicability of the riders to the claim, the sum insured plus the sum for the riders shall be charged to expense until fkther information is received; (b) the claim shall be charged to expenses even where an opinion is being sought from the courts as to the validity of the death claim; (c) if the courts subsequently rule the claim invalid, then the charge to expense shall be reversed; (d) if the court's decision is in a subsequent accounting period the claim shall be reversed in the subsequent period. (8) Interest that accrues to outstanding death claims (death claims payable) shall be expensed to death claims. (9) In the cases of death and health klaims that have been incurred but not reported to the insurance company at the end of its financial year, the liability shall be estimated (based on the advice of the actuary) and recorded in the accounting period. Disclosure (10) The following shall be disclosed- (a) the company's policies concerning its treatment of all categories of claims; [The i~iclusion of this page is authorized by L.N. 33A120051

THE INSURANCE REGULATIONS, 2001
(b) whether there are claims being contested in the courts, the amount of claim and the legal counsel's opinion as to the likely outcome of each case; (c) where death claims and death claims payable are stated net of amounts recoverable from reinsurance in the financial statements, the gross death claims and reinsurance recoverable. Accoun1in8 for commiesions. 98.41) Commissions are policy expenses and shall be recorded in the accounting period to which the corresponding premiums relate and bonuses shall be recorded in the accounting period when payments are due. (2) Commissions that are paid in full at the beginning of the policy year, such as first year Commissions, shall be recorded in the current accounting period but the prepaid portion shall be deferred and expensed in the appropriate accounting period. (3) The following provisions shall apply in relation to the contracts of some agents that provide for the life insurance company to pay them, at the end of their contract period, commuted commission, which is based on future premium collections- (a) the commissions, when they are paid, shall be included in the Statement of Operation in the period of payment; (b) if the company has incurred an obligation to commute an agent's commission at the balance sheet date, then the obligation shall be recognized in the balance sheet as a liability for commissions due to agents. (4) Commissions recovered on lapsed policies shall be included in the Statement of Operation at the time of recovery. Accounling for superannuation 99.41) A record shall be maintained of pension client's deposits and at funds (deposit all times there shall be available￾adrninistralion funds). (a) up to date information on the deposit balances for each pension client including the interest credited; (6) information for each pension fund member, where the company is contractually engaged to maintain the contribution record of pension fund members (such as.employees). (2) Withdrawal from the funds for pension payments or refund of deposits shall be accounted for as a reduction in the Deposit Administration Fund. Disclosure (3) The following shall be disclosed- (a) the company's policy for dealing with Deposit Administration Funds; [The inclusion of this page is authorized by L.N. 33A120051

THE INSURANCE REGULATIONS, 2001 147
(6) in the financial statements, the value of the fund, and in a note, the average interest rate paid during the year and the rate paid at year￾end; (c) the interest paid during the year in the financial statements or in a note; (6) the number of pension clients. 100.-41) The financial records of the segregated funds shall be EZg"" maintained separately from those of the life insurance company's general fund .~.mti.g. and the financial statements of the policyholder's segregated funds shall not be combined with the financial statements of the life insurance company's general fund. (2) The financial statements of the Pension Plan Segregated Funds and the Policyholder's Segregated Funds shall be maintained separately and shall not be combined with each other. (3) Investments of the segregated funds shall be carried at market value in the balance sheet, while realized and unrealized gains and losses on investments shall be accounted for in the income statement in the current accounting period. (4) Deposits received from policyholders shall be included in the income statement. (5) Deposits and withdrawals of funds in the Pension Plan Segregated Funds shall be included statement. Disclosure (6) The following shall be disclosed- (a) Investments by the life insurance company in the segregated funds and vice versa in the financial statements of the life insurance company and the Segregated Funds; (6) Inter-find loans and loans made to or received from the life insurance company in the financial statements of the company and the Segregated Funds; (c) the basis of valuation and in cases where appraisals are used to establish carrying values, the frequency of the appraisals; (6) a schedule of investments, showing cost and market values by portfolio type and, in the case of non-performing loans where provisions have been made for losses, the original value of the loans less the provisions; (e) the provision against rental income for rental in arrears; u> the income from each portfolio type. [The i~~clusion of this page is authorized by L.N. 33Al20051

148 THE INSURANCE REGULA TIONS. 2001
R~neibililies of the ppoinlcd 101.-41) In carrying out an annual valuation of the company's policy =twmd liabilities in accordance with accepted actuarial practice and regulatory exta~l auditon. requirements and report thereon to the policyholders and shareholders, the actuary may rely on the work of the external auditors. Reinsurance Ceded (2) Provision for future policy benefits (life assurance fund or policy liabilities), premiums and policy benefits are stated net of amounts ceded to, and recoverable from, reinsurers. Amounts recovera\lZ from reinsurers are estimated in a manner consistent with the policy liability associated with the (-) reinsured policy. (3) Reinsurance ceded does not discharge the company's liability as the primary insurer. (4) The retention limits or maximum exposure on insurance policies are as follows￾xxo 1 xxoo $ $ Individual Life Policies Group Life Group Health Pmvisions for Fulun Policy 102.-(1) Policy Liabilities Benefits (Life Assurance Fund or Actunrial Liabilities) Balance at the beginning of the year Increase/(decrease) in provision Foreign Exchange adjustment Balance at the end of the Year (2) Provision for Future Policy Benefits has been calculated using the Policy Premium Method. Provision for Future Liabilities represents the present value of estimated policy benefits and costs less the present value of \ [The inclusion of this page is authorized by L.N. 33A/1005] Accounting Year xxo 1 A similar disclosure is to be made for the previous year. \ -1 Thousands of Dollars Individual Life Group Annuities Products and Pension

THE INSURANCE REGULA TIONS, 2001 future premiums adjusted by a provision for adverse deviation. These amounts, together with future premiums and investment income, will be required by the company to pay future outstanding claims and future benefits, dividends and expenses on insurance and annuity contracts. The process of calculating policy liabilities necessarily involves the use of estimates concerning such factors as mortality, morbidity rates, future investment yields, future expense levels and rates of surrender; consequently, policy liabilities include reasonable provisions for adverse deviations from those estimates. As the probability of deviation from estimates declines, these provisions will be included in future income to the extent not required. Investment Assets Supporting Policy Liabilities 1 Y/E XXO I 1 Individual I Life Corporate Fixed Mortgages Fixed Deposits purchase Agreements Group Life and Health Policy Assumptions (4) The nature and method of determining the significant assumptions made by the company in the computation of policy liabilities are described in the following paragraphs. In all cases, the assumptions are supplemented by the use of margins for adverse deviation. Policy Claims and Benefits Annuities and Pensions (a) Estimates of the amounts and timing of future claims and benefit payments are based on both company and industry experience over extended periods. Although the pattern of claims and benefit payments may be close to that indicated by past experience some deviation in that pattern is probable. Share￾holders' Total Reinsurance

• -
  [The ~~iclu~on of th~s page IS authorized by L N 33Al2005) XXOI Grand

THE INSURANCE REGULATIONS, 2001
Investment Income
(6) The computation of policy liabilities takes into account projected net investment income on assets supporting policy liabilities and income expected to be earned or forgone on reinvestment or financing of mismatched cash flows. Uncertainties exist with respect to the projections of interest rates and the magnihide of credit losses from asset defaults. The company accounts for such uncertainties by incorporating provisions for credit losses into projections of investment income in addition to the allowances for depreciation in the carrying values of invested assets. r '1 2 Policy Maintenance Expense (c) Amounts are included in policy liabilities to provide for the costs of administering policies in force and include the costs of premium collection, adjudication and processing of claims, periodic actuarial calculations, preparation and mailing of policy statements and related indirect expenses and overhead. The process of forecasting expenses requires estimates to be made of such factors as the rate of salary increases, productivity changes, business volumes and indirect tax rates. Estimates of future policy maintenance expenses are based on the company's experience. Policyholder Dividends (d) Policy liabilities include the present value of estimated amounts of future policyholder dividends based on current dividend scales and expected future income attributable to participating policies. Sensitivity to Assumption Changes (5) The assumptions that are most susceptible to change in the near term are policy lapse rates and future investment yields. Policy lapse Rates (a) The policy lapse rate assumption for lapse-supported policies has been decreased by a margin of a 5%. On average, over the last five years, policy lapse rates on lapse-supported policies have been less than the rates expected in the computation of policy liabilities. For lapse-supported policies in force at December 31, XXO1, each 0.1% decrease in the ultimate lapse rate would increase policy liabilities by $rnm (XXOO $m). i (6) The policy lapse assumption for non-lapse-supported policies has been increased by a margin of 0.5%. On average, over the last five years, policy lapse rates on non-lapse-supported policies have been greater than the rates expected in the computation of the policy liabilities. For non-lapse-supported policies in force at December [The inclusion of this page is authorized by L.N. 33A12005]

THE INSUWNCE REGULATIONS, 2001 151
31, XXO1, each 0.1% increase in the ultimate lapse rate would increase policy liabilities by $m (XXOO, $m). Interest Rate Risk (c) Based on the projected cash flows of the company as at December 3 1, XXO1, the approximate impact of an immediate 1% increase in the general level of interest rates would reduce the value of the assets backing the policy liabilities by $dd and reduce the value of policy liabilities by $xx. Conversely, the impact of an immediate decrease would increase the value of the assets backing the policy liabilities by $dd and increase the value of the policy liabilities by $xx. Changes in Policy Liabilities (6) Changes in policy liabilities during the year, were caused by the following business activities and changes in actuarial assumptions:
[The ~nclus~on ofllus page IS authorized by L N 33N20051

152 THE INSURANCE REGULATIONS, 2001 other standards Of 103. The standards stated in these Regulations supplement other standards standard mmli.~ of standard accounting practice which also apply to the life insurance practice. companies unless they are specifically exempted in a standard. Investment and Loan Committee. 104.-(1) An insurance business and any subsidiary of the insurance business institution shall adhere to prudent standards in making investment and lending decisions, in giving guarantees and committing itself to other financial obligations, in writing down the value of investments and loans on its books and in managing its investments and loans. (2) The investment and loan committee of an insurance business shall- (a) recommend to the directors of the insurance business for their approval, a written investment and lending policy that, for the insurance business and its subsidiaries, if any, the committee considers to be consistent with the prudent standards required under paragraph (1); and (b) as the committee or the directors consider necessary, and at least annually, review the investment and lending policy and recommend amendments that the committee considers to be necessary or desirable. (3) If the directors of the insurance business receive a recommendation under paragraph (2), the insurance business, consistently with the requirements of paragraph (I), shall- (a) adopt the recommendations and establish the recommended policy, or the recommended amendments to that policy as part of the investment and lending policy of the insurance business and of its subsidiaries, if any; or (b) make changes to the proposed policy or to the proposed amended policy that it considers to be necessary or desirable, and establish the policy, with those changes, as the investment and lending policy of the insurance business and of its subsidiaries, if any. (4) An insurance business shall ensure that the investment and lending policy established under regulation 104 (2) (a)- (a) comprehensively deals with the management and diversification of the insurance business investment and loan portfolio, together with that of any subsidiary of the insurance business; (b) contains everything reasonably necessary to ensure that it is consistent with prudent standards; and (c) without limiting the generality of sub-paragraph (a) or (b), includes- [The inclusio~l of this page is authorized by L.N. 33AI20051

THE INSURANCE REGUU TIONS, 2001
(i) the powers and duties of any committees or officers to whom the power to make investments or loans is delegated from the directors and any conditions to which the delegations are subject; (ii) an upper limit on the amount of money in the aggregate that the insurance business and its subsidiaries may- (A) lend under all loans; and (B) commit under all guarantees or other financial obligations to any combination of one person and that person's associates; (iii) an upper percentage limit to be used in determining the amount that the insurance business or its subsidiaries may lend on the security of a mortgage of land to be calculated by subtracting, from the specified percentage of the fair market value of the land at the time the money is lent, the amount of indebtedness under any prior or equally ranking security that encumbers the land, except in cases which- (A) the loan secured by the mortgage is approved or insured under the￾Act; or (B) the excess is guaranteed or insured through an agency of the Government or is insured by a policy of mortgage insurance issued by an insurer authorized to carry on business under the Act, or licensed or registered or otherwise authorized to carry on insurance business under the Insurance Act; and (iv) provisions dealing with prescribed matters. (5) An Insurance company shall file with the Commission a copy of the investment and lending policy established under paragraph (4). 105.-41) If- Commission's powers over investmenl and (a) the Commission believes on reasonable grounds that the lendingpolicy. investment and lending policy established under regulation 104 (2) (a) is inconsistent with prudent standards; (b) the investment and lending policy is not comprehensive; or (c) the investment and lending policy does not comply with the investment regulations, the Commission may order the directors of the insurance company to review immediately the investment and lending policy in accordance with regulation 104 (2) (b), taking into account the matters specified in the Commission's order. [The inclusion of this page is authorized by L.N. 33N2005]

154
Application for registration of associationof undewriten.
THE INSURANCE REGULATIONS, 2001
PART X-Association of Underwriters
106.-41) An Application for registration as an association of underwriters shall be made in the form as in Schedule 14 and where the Commission, after appropriate enquiry and the production of such documentary evidence as it may deem appropriate, is satisfied in respect of the applicant that￾the constitutive documents of the applicant permit the carrying on of the insurance business; all applicable requirements of the Act, these Regulations and any directive of the Commission have been met by the applicant; the applicant is or will be solvent within the meaning of the Act, these Regulations and any directive of the Commission; the applicant is likely to be able to comply with such of the provisions of the Act, these Regulations and any directive of the Commission as are or would be applicable to it; the name of the applicant is not identical with, nor does it so closely resemble the name of another entity as to be likely to confuse or deceive; where applicable, the applicant has made adequate arrangements for reinsurance of the class of insurance business in which it intends to engage; the person holding or to be appointed to hold the office of managing director; chief executive officer or principal representative of the applicant is of good character and is a fit and proper person to hold that office; (h) the staff which the applicant employs intends to employ in relation to any class of insurance in respect of which the application is made is or will be suficiently compet'ent and knowledgeable to carry on that business in an efficient manner; (i) a satisfactory business plan in respect of the applicant has been submitted in accordance with these Regulations; (j) in the case of a foreign applicant, it- (i) is lawfully constituted in accordance with the laws of the country in which it is incorporated or otherwise established and has undertaken in that country insurance business of the same nature as that in respect of which it is seeking authorization in Jamaica; [The inclusion of his page is authorized by L.N. 33N20051

THE INSURANCE REGULATIONS, 2001
(ii) has submitted to the Commission a certificate of good standing issued by the person duly qualified in that jurisdiction to do so; (iii) will appoint a person resident in Jamaica to be its principal representative in Jamaica; and (iv) has submitted to the Commission the curriculum vitae, including details with respect to qualifications, experience in insurance business and references, of the proposed principal representative; (v) there is, in its opinion, sufficient indication that the business will be conducted in a prudent and sound manner; (k) the applicant has or will have appointed an actuary and an auditor, as required by the Act, these Regulations or any directive of the Commission; (I) satisfactory arrangements have been made with respect to - (i) depositing assets with the Commission, (ii) vesting assets in trust, as required by the Act, these Regulations or any directive of the Commission; (m) in the case of an association of underwriters which was, prior to the coming into operation of the Act, canying on insurance business in Jamaica, it conducted such business in a sound and proper manner; and (n) registering the applicant would not be contrary to the public interest, the Commission shall approve the registration of the association of underwriters in relation to the class of insurance business in respect of which the application was made, either unconditionally, or subject to such conditions as the Commission may recommend. 107.-41) The certificate of registration of an approved company shall be ~~~~~~~,';~,f in the form set out in Schedule 14. (2) Every approved company shall apply to the Commission within fourteen days of its registration or of the commencement of operation of any of its branches, agencies, or sub-agencies, as the case may be, for the number of copies of its certificate of registration required for the purpose of display in all its branches, agencies and sub-agencies in accordance with section 12 of the Act. (3) Every application pursuant to paragraph (2) shall include the name and address of each branch, agency and sub-agencies as the case may be, and the name and address of the manager or person in charge of each such [The inclusion of this page is authorized by L.N. 33N2005]

THE hVSURANCE REGULA l7ONS. 2001 branch, agency or sub-agency. (4) Every application for a copy of a certificate of registration shall be accompanied by a receipt from the Commission for payment of the application fee in respect of each certificate and where the application is for more than one copy of such certificate, the receipt from the Commission shall be for an amount calculated according to the number of copies required. (5) Any change in any of the particulars included in an application made pursuant to this regulation, shall be reported to the Commission in writing, within fourteen days of such change. Dcposita by apaocialion or 108.--(1) The minimum assets required to be deposited with the ul~dermi-. Commission by an association of underwriters which proposes to carry on insurance business shall be - (a) in respect of an entity which proposes to carry on life or sickness and health insurance business, ninety million dollars; (6) in respect of an entity which proposes to carry on general insurance business forty-five million dollars. Increase in amount of deposit (2) The Commission may require the deposit referred to in paragraph (1) to be increased, either before or after granting the licence, to such amount as it considers necessary and for this purpose the Commission may require a reinsurer that reinsures all or part of the insurer's business to deposit balances owing to the association of underwriters with the Commission. Excess deposit (3) An association of underwriters may voluntarily make a deposit in excess of the amount prescribed by this regulation, but no part of a voluntary deposit shall be withdrawn without the sanction of the Commission. Value at which securities received (4) The value of such securities shall be estimated at their market value, not exceeding par, at the time they are deposited. below F*h"d~si'if market 109.-(1) If the market value of any securities that have been deposited value. by an association of underwriters declines below that at which they were deposited, the Commission may notify the association of underwriters to make such further deposit as will ensure the accepted value of all the securities deposited by the insurer being equal to the amount that is required by these Regulations to be deposited. [The illclusion of this page is authorized by L.N. 33N20051

THE INSURANCE REGULAl70NSS 2001
Failure to makefirther deposit
(2) On failure to make such further deposit within sixty days after being called upon so to do, the Commission may suspend or cancel the licence of the association of underwriters. Titles to securities (3) The property in any stock, bonds or debentures deposited with the Commission under this regulation or any predecessor thereof is vested in the Commission by virtue of his office without any formal transfer while such stock, bonds or debentures form the whole or any part of the deposit required by these Regulations. Interest upon deposits (4) So long as the conditions of these Regulations are satisfied and no notice of any final judgment against the association of underwriters or order for its winding up or for the distribution of its assets or for administration of its deposit is given to the Minister, the insurer is entitled to receive the interest upon the securities forming the deposit. Substitution of securities (5) Where an association of underwriters desires to substitute other approved securities for securities deposited, the Commission may permit the substitution to be made. 110.--(I) An association of underwriters that has ceased to transact ~~~,~~ business in Jamaica and desires to obtain a return of its deposit may give c-htodo business. written notice to that effect to the Commission and shall publish in the Gazette a notice that it has applied to the Commission for the return of its deposit, calling upon all claimants, contingent or actual, who object to the return to file their objections with the Commission on or before a day named in the notice, which shall not be less than three months after the first publication of it. Filing list of all outstanding contracts (2) Upon giving notice to the Commission, the insurer shall file a list of all its outstanding contracts of insurance, including contracts in respect of which claims have accrued. Return of deposit on proof of discharge of contracts (3) After the day named in the notice, if the Commission is satisfied that the insurer has obtained a discharge of all such outstanding contracts, the Commission may direct that the deposit be returned. [The inclusion or this page is authorized by L.N. j3~120051

THE INSURANCE REGULA TIONS, 2001
Return ofpart of deposit
(4) If the Commission is not satisfied that all such contracts have been discharged, the Commission may direct that a sufficient deposit be returned to meet the contracts unprovided for and thereafter, from time to time as such contracts lapse or proof is adduced, that they have been satisfied, further return of the deposit may be directed.
PART XI-Registration of Insurance Intermediaries
Gcd. scheduk 15. 11 1.-41) An application for registration as an intermediary shall be made in the form set out in Schedule 15 and where the Commission, after appropriate enquiry and by the production of such documentary evidence as it may deem appropriate, is satisfied in respect of the applicant that￾all applicable requirements of the Act, these Regulations and any directive of the Commission have been complied with; the applicant is not disqualified for registration under section 72 of the Act; the applicant is likely to be able to comply with such of the provisions of the Act, these Regulations and any directive of the Commission as are or would be applicable to it; the applicant is sufficiently competent and knowledgeable to carry on business as an insurance intermediary in respect of the relevant class of insurance; in the case of an applicant who was, prior to the coming into operation of the Act, carrying on business in Jamaica as an insurance intermediary, he conducted such business in a sound and proper manner; having regard to the knowledge and competence of the applicant and such staff as the applicant may employ, the applicant is, in relation to any class of insurance business in respect of which the application is made, capable of carrying on business efficiently as an insurance intermediary; where the applicant is a natural person, he is of good character and is otherwise a fit and proper person to be an insurance intermediary; each of the persons, if any, with whom the applicant is or is to be associated, whether as a partner or otherwise, in the business of insurance intermediation is a fit and proper person to carry on insurance business; [The inclusion of this page is authorized by L.N. 33Al20051

THE INSURANCE REGULA TIONS, 2001
(i) where the applicant is a body of persons whether incorporated or not- (i) each of the persons managing or controlling the applicant or, each of the partners or members, as the case may be, is fit and proper to be an insurance intermediary, and (ii) having regard to the knowledge and competence of the persons managing the applicant or of the partners and such other staff as the applicant may employ, it is, in relation to any class of insurance business in respect of which the application is made, capable of carrying on business efficiently as an insurance intermediary; (j) where the applicant or any of the employees of the applicant is required by regulations or directive of the Commission to pass any examination, they have passed such examination; and (k) the registering of the applicant would not be contrary to the public interest, the Commission shall, either unconditionally or subject to such conditions as it may specify, register the applicant as an insurance intermediary in respect of such class of insurance as it shall specify, and shall notify the applicant in writing accordingly. (2) Where, in relation to any or all of the classes of insurance business in respect of which the application is made, the Commission is not satisfied as to one or more of the conditions set out in paragraph (I), the Commission shall notify the applicant in writing that it proposes to refise to register the applicant in respect of one or more of the classes of insurance business for which application was made, giving the reasons for so doing, and notifying the applicant of his right pursuant to section 140 of the Act to appeal to the Appeal Tribunal.
112. For the purposes of section 73 of the Act, the educational and
experience qualification for an applicant for certificates for insurance brokers, facultative placement brokers, re-insurance brokers, sales representatives, agents, adjusters, insu&nce consultants and managing general agents shall be as prescribed by the Commission. 113.--(I) Every application for registration as an insurance broker under
Part IV of the Act shall be made in the form set out in the Schedule 15.
(2) Every application for registration as a broker shall be accompanied- (a) by a receipt from the Commission for payment of the relevant application fee; and Qualifutions of inlet￾diaries. Applicalion for regidration of hurancc bmka. Scheduk 15. [The inclusion of this page is authorized by L.N. 33A120051

THE INSURANCE REGULATIONS, 2001
(b) where the applicant is a body of persons or a partnership, by the latest balance sheet and profit and loss account of the applicant, which shall, in the case of a broker to whom permission has not been granted under paragraph (3), include the latest audited balance sheet and profit and loss account and be accompanied by the latest monthly statement; (c) where the applicant has operated as an insurance broker in Jamaica immediately before the commencement of these Regulations, a certificate from the insurance companies and agents to which he provided services, indicating that they are satisfied with the applicant's competence and method of conduct of business and the ethical standards maintained by him in the performance of his work as an insurance broker; (d) where the applicant has not operated as an insurance broker in Jamaica immediately before the commencement of these Regulations, evidence that he has satisfied the requirements of regulation 1 12. (3) An application pursuant to paragraph (1) shall be made within sixty days of the date of the receipt by the applicant of notification that he has satisfied the requirements of regulation 112, if not made within that period, it shall be accompanied by a receipt from the Commission for payment of the additional fee prescribed under Schedule 20. (4) Where the Commission has reasonable cause to believe that, in relation to insurance business of a relevant class, any person is employed, or carrying on business, as a broker although his application for registration for such class has not been finalized, then, without prejudice to any other action which may be taken against that person under section 70 (2) of the Act, the Commission may, by notice in writing, to that person- (a) require him, within such time as may be specified in the notice, either- (i) to cease his activities as a broker or agent aforesaid; or (ii) to take such steps as may be necessary on his part to enable completion of his registration in the appropriate class; and (b) direct his attention to the provisions of section 72 of the Act. Application for registfulltion 05 114.-41) Every application for registration as a facultative placement facultative placement broker. broker under Part IV of the Act shall be made in the form set out in Schedule Seheduk IS. 15 and shall be accompanied by- (a) a receipt from the Commission for payment of the application fee; and [The inclusion of this page is authorized by L.N. 33A12005]

THE INSURANCE REGULA TXONS, 2001 161
(b) where the applicant is a body of persons or a partnership, by the applicant's latest balance sheet and profit and loss account which shall, in the case of a broker who has not been notified under paragraph (3), be accompanied by the latest monthly statement; (c) where the applicant has operated as a facultative placement broker in Jamaica immediately before the commencement of these Regulations, a certificate from the insurance company to which he provided services, indicating that such company is satisfied with the competence and method of conduct of business of the applicant and the ethical standards maintained by him in the performance of his work as a facultative placement broker; and (6) where the applicant has not operated as a facultative placement broker in Jamaica immediately before such commencement, evidence that he has satisfied the requirements of regulation 112. (2) An application pursuant to paragraph (1) shall be made within sixty days of the date of the receipt by the applicant of notification that he has satisfied the requirements of regulation 112 and, if not made within that period, it shall be accompanied by a receipt from the Commission for payment of the additional fee prescribed under Schedule 20. Schedule 20. (3) Where the Commission has reasonable cause to believe that, in relation to insurance business of a relevant class, any person is employed, or carrying on business, as a facultative placement broker although his application for registration for such class has not been finalized, then, without prejudice to any other action which may be taken against that person under
section 70 (2) of the Act, the Commission may, by notice in writing, to that
person-
(a) require him, within such time as may be specified in the notice, either- (i) to cease his activities as a facultative placement broker aforesaid; or (ii) to take such steps as may be necessary on his part to enable completion of his registration in the appropriate class; and (b) direct his attention to the provisions of section 72 of the Act. 115.-41) Every application for registration as a reinsurance broker under z::::,"'' Part IV of the Act shall be made in the form set out in Schedule 15 and shall reinsurance broker. be accompanied by- (a) a receipt fiom the Commission for paymen1 of the application fee; and [The inclusion of this page is authorized by L.N. 33AU0051

THE INSURANCE REGULATIONS, 2001
(6) where the applicant was employed as a reinsurance broker in Jamaica immediately before the commencement of these Regulations, a certificate from the insurance company or agent by which he is employed, indicating that such company or agent is satisfied with the competence and method of conduct of business of the applicant and the ethical standards maintained by him in the performance of his work as a salesman; and (c) where the applicant was not employed as a reinsurance broker in Jamaica immediately before such commencement, evidence that he has satisfied the requirements of regulation 112. (2) An application pursuant to paragraph (1) shall be made within sixty days of the date of the receipt by the applicant of notification that he has satisfied the requirements of regulation 112 and, if not made within that period, it shall be accompanied by a receipt from the Commission for Schedule 20. payment of the additional fee prescribed under Schedule 20. (3) Where the Commission has reasonable cause to believe that, in relation to insurance business of a relevant class, any person is employed, or carrying on business, as a reinsurance broker although his application for registration for such class has not been finalized, then, without prejudice to any other action which may be taken against that person under section 70 (2) of the Act, the Commission may, by notice in writing, to that person- (a) require him, within such time as may be specified in the notice, either- (i) to cease his activities as a reinsurance broker aforesaid; or (ii) to take such steps as may be necessary on his part to enable completion of his registration in the appropriate class; and (b) direct his attention to the provisions of section 72 of the Act. Application for registration US 116.-41) Every application for registration as a sales representative under sale9 representative.
Part IV of the Act shall be in the form set out in Schedule 15 and shall be
accompanied by-
(a) a receipt from the Commission for payment of the application fee; and (b) where the applicant was employed as a salesman in Jamaica immediately before the commencement of these Regulations, a certificate from the insurance company or agent by which he is employed, indicating that such company or agent is satisfied with the competence and method of conduct of business of the applicant and the ethical standards maintained by him in the performance of his work as a sales representative; and [The inclusion of this page is authorized by L.N. 33Al20051

THE INSURANCE REGULA TIONS, 20001 163
(c) where the applicant was not employed as a salesman in Jamaica immediately before such commencement, evidence that he has satisfied the requirements of regulation 1 12. (2) An application pursuant to paragraph (1) shall be made within sixty days of the date of the receipt by the applicant of notification that he has satisfied the requirements of regulation 107 and, if not made within that period, it shall be accompanied by a receipt from the Commission for payment of the additional fee prescribed under Schedule 20. (r ' (3) Where the Commission has reasonable cause to believe that, in relation to insurance business of a relevant class, any person is employed, or carrying on business, as a sales representative although his application for registration for such class has not been finalized, then, without prejudice to any other action which may be taken against that person under section'70 (2) of the Act, the Commission may, by notice in writing, to that person require him, within such time as may be specified in the notice, either- (a) to cease his activities as a sales representative aforesaid; or (6) to take such steps as may be necessary on his part to enable completion of his registration in the appropriate class; and (c) direct his attention to the provisions of section 72 of the Act. 117.-41) Every application for registration as an agent under Part IV of t$:,"tk,"F the Act shall be made in the form set out in Schedule 15 and shall be ~B-I. accompanied by- (a) a receipt from the Commission for payment of the application fee; and (b) where the applicant was employed as an agent in Jamaica immediately before the commencement of these Regulations, a certificate from the insurance company by which he is employed, indicating that such company is satisfied with the competence and method of conduct of business of the applicant and the ethical standards maintained by him in the performance of his work as an agent; and (c) where the applicant was not employed as a general agent in Jamaica immediately before such commencement, evidence that he has satisfied the requirements of regulation 1 12. (2) An application pursuant to paragraph (1) shall be made within sixty days of the date of the receipt by the applicant of notification that he has satisfied the requirements of regulation 112 and, if not made within that period, it shall be accompanied by a receipt from the Commission for payment of the additional fee prescribed under Schedule 20. [The incluion of this page 1s authorized by L.N. 33N200S]

THE INSURANCE REGULA TIONS, 2001
(3) Where the Commission has reasonable cause to believe that, in relation to insurance business of a relevant class, any person is employed, or carrying on business, as an agent although his application for registration for such class has not been finalized, then, without prejudice to any other action which may be taken against that person under section 70 (2) of the Act, the Commission may, by notice in writing, to that person- (a) require him, within such time as may be specified in the notice, either- (i) to cease his activities as an agent aforesaid; or (ii) to take such steps as may be necessary on his part to enable completion of his registration in the appropriate class; and (b) direct his attention to the provisions of section 72 of the Act. Application for registration as an 118.-+I) Every application for registration as an adjuster under P&t IV adjuster. of the Act shall be made in the form set out in Schedule 15 and shall be accompanied by- (a) a receipt from the Commission for payment of the application fee; and (b) where the applicant was employed as an adjuster in Jamaica immediately before the commencement of these regulations, a certificate from the insurance company or companies by which he is employed, indicating that such company or companies are satisfied with the competence and method of conduct of business of the applicant and the ethical standards maintained by him in the performance of work as an adjuster; and (c) where the applicant was not employed as an adjuster in Jamaica immediately before such commencement, evidence that he has satisfied the requirements of regulation 112. (2) An application pursuant to paragraph (1) shall be made within sixty days of the date of the receipt by the applicant of notification that he has satisfied the requirements of regulation 107 and, if not made within that period, it shall be accompanied by a receipt from the Commission for payment of the additional fee prescribed under Schedule 20. (3) Where the Commission has reasonable cause to believe that, in relation to insurance business of a relevant class, any person is employed, or carrying on business, as an adjuster although his application for registration for such class has not been finalized, then, without prejudice to any other action which may be taken against that person under section 70 (2) of the Act, the Commission may, by notice in writing, to that person- (a) require him, within such time as may be specified in the notice, either- [The inclusion of this page is authorized by L.N. 33AI20051

THE INSURPNCE REGULATIONS, 2001
(i) to cease his activities as an adjuster aforesaid; or (ii) to take such steps as may be necessary on his part to enable completion of his registration in the appropriate class; and (b) direct his attention to the provision of section 72 of the Act. 119.--(I) Every application for registration as a managing general agent $izEP' under Part IV of the Act shall be made in the form set out in Schedule 15 and managing general agent. shall be accompanied by- (a) a receipt from the Commission for payment of the application fee; and (b) where the applicant was employed as a managing general agent in Jamaica immediately before the commencement of these Regulations, a certificate fiom the insurance company by which he is employed, indicating that such company is satisfied with the competence and method of conduct of business of the applicant and the ethical standards maintained by him in the performance of his work as a salesman; and (c) where the applicant was not employed as a managing general agent in Jamaica immediately before such commencement, evidence that he has satisfied the requirements of regulation 112. (2) An application pursuant to paragraph (1) shall be made within sixty days of the date of the receipt by the applicant of notification that he has satisfied the requirements of regulation 112 and, if not made within that period, it shall be accompanied by a receipt from the Commission for payment of the additional fee prescribed under Schedule 20. (3) Where the Commission has reasonable cause to believe that, in relation to insurance business of a relevant class, any person is employed, or carrying on business, as a managing general agent although his application for registration for such class has not been finalized, then, without prejudice to any other action which may be taken against that person under section 70 (2) of the Act, the Commission may, by notice in writing, to that person- (a) require him, within such times as may be specified in the notice, either- (i) to cease his activities as a managing general agent aforesaid; or (ii) to take such steps as may be necessary on his part to enable completion of his registration in the appropriate class; and (b) direct his attention to the provisions of section 72 of the Act. [The inclusion of this page is authorized by L.N. 33AI20051

Militates of regisvslwn of bmka, fncultalive plncemed bmka, reinsuranoe bmka, sale8 represenlalive, agenr, ndjusler and mannging general agent. Termination of agent or sales represenlalive. THE INSURANCE REGULA TIONS, 2001 120.41) The certificate of registration of a broker, facultative placement broker, reinsurance broker, sales representative, agent, adjuster and managing general agent shall be in the form set out in Schedule 16. (2) Every person registered as a broker, facultative placement broker, reinsurance broker, sales representative, agent, adjuster and managing general agent shall apply to the Commission within fourteen days of his registration, or fourteen days of the commencement of operation of any such branch, as the case may be, for the number of copies of his certificate of registration required for the purpose of display in each of his branches in ,--. accordance with section 19 of the Act. I.&' (3) Every application pursuant to paragraph (2) shall include the name and address of each branch, and the name and address of the manager or person in charge of such branch. (4) Every application for a copy of a certificate of registration shall be accompanied by a receipt from the Commission for payment of the application fee, which shall be as prescribed in Schedule 20. Where the application is for more than one copy of such certificate, the receipt from the Commission shall be for an amount calculated according to the number of copies required. (5) Any change in any of the particulars included in an application made pursuant to this regulation, shall be reported to the Commission in writing, within thirty days of any such change.
121. The termination of agents and sales representatives shall be in the
form set out in Schedule 2 1.
PART XII-Duties of Insurer and Agent
Insurer's duty
P~~UC~S. 122. Every registered insurer shall take such steps as are reasonably necessary to ensure that- (a) policies issued by the insurer provide fair value to policy holders and do not contain provisions which are likely to imperil the insurer's financial position; and (b) new policies are developed in accordance with standards of sound business and financial practices. 1 Replaoernenl of 'd life insurance 123.41) In this Regulation- conlmcts. "replacement of a contract of life insurance" means a transaction whereby life insurance is purchased in a single contract or in several related contracts by a person from an insurer and as a consequence of the transaction one or more contracts of the insurance are- [The inclusion of this page is authorized by L.N. 33A/2005]

THE INSURANCE REGULATIONS, 2001
(a) rescinded, lapsed or surrendered;
(b) changed to paid-up insurance or continued as extended term insurance or under automatic premium loan; (c) changed in any manner so as to effect a reduction in benefits; (6) changed so that cash values in excess of 50 per cent of the tabular cash value of the insurance contract are released; or (e) subjected to borrowing of any policy loan values whether in a single loan or under a schedule of borrowing over a period of time whereby an amount in excess of 50 per cent of the tabular cash value is borrowed on one or more contracts of life insurance, but does not include a transaction where - (i) a new contract of life insurance is made with an insurer with whom the person has an existing contract of life insurance in furtherance of a contractual conversion privilege exercised by the person; (ii) a contract is replaced by an annuity; or (iii) contract is replaced by group insurance; "working day" means a day other than Saturday, Sunday or a public holiday. (2) The form for the replacement of a life insurance contract shall be as set out in Schedule 22. 124.-41) Every agent for an insurer shall, upon receiving an application Du'ie"ca~ent~ for a contract of insurance- (a) obtain as part of the application, a statement by the applicant that sets out whether or not replacement of a contract of life insurance. is intended; (b) forward to the insurer with the application a statement by the agent that sets out whether or not replacement of a contract of life insurance is intended. (2) Where replacement of a contract of life insurance is intended, the agent shall- (a) prior to accepting an application for a contract of insurance- (i) obtain fiom the applicant a list of all life insurance contracts intended to be replaced; (ii) complete, sign, review with the applicant and leave with the applicant a disclosure statement in the form as set out in Schedule 22 respecting each contract of life insurance intended to be replaced; and [The inclusiou of this page is authorized by L.N. 33Al20051

THE INSURANCE REGULATIONS, 2001
(iii) obtain on each completed disclosure statement referred to in sub-paragraph (ii), the signature of the applicant and the signature of the life insured, if other than the applicant, attesting to the receipt of the completed disclosure statement; (b) within three working days from the date of receiving the application for the contract of insurance, forward to every insurer whose contract is intended to be replaced, a copy of the completed disclosure statement as presented to and signed by the applicant without the information reported under the column entitled "Proposed Replacement Policy"; (c) where there is borrowing on an existing contract of insurance involved in the transaction, caution the applicant that it is not usually advisable to borrow against policy loan values beyond the expected ability or intention of the applicant to repay; (d) forward to each insurer requested to issue a new life insurance contract- (i) an application for a contract of insurance; (ii) a copy of the completed disclosure statement as presented to and signed by the applicant, (iii) a copy of all written proposals presented to the applicant by the agent during the solicitation of the application for a contract of insurance; (iv) all written directions received from the applicant; and (e) deliver each new contract of life insurance to the applicant as soon as is practical in the circumstances after receiving it from the insurer, unless contrary written directions have been received from the applicant. Duli of inewer. 125. Every insurer shall- (a) where the insurer receives an application that discloses that replacement of a contract of life insurance is intended, ensure that a duly completed copy of Schedule 22 is filed with the application; (b) maintain in its principal office or place of business in Jamaica for at least three years, copies of all material forwarded by its agent under this regulation; (c) upon receiving and approving an application for a new contract of life insurance, issue the new contract of life insurance as soon as is practical in the circumstances; [The inclusion of this page is authorized by L.N. 33Al20051

THE INSURANCEREGULATIONS. 2001 169 provide such information as is neoessq- to other insurers or Ts￾their agents for purposes of completing the Twenty-second
Schedule as soon as is practicable in the circumstances afler
receiving a request for such information; and upon providing information under sub-paragraph (d), make a winen record of the information and maintain the record for at least three yean. 126.-41) The application, the policy, any document attached to the mFcm policy when issued, and any amendment to the contract agreed upon in writing after the policy is issued constitute the entire contract, and no agent has authority to change the contract or waive any of its provisions. Waiver (2) The insurer shall be deemed not to have waived any condition of the contract, either in whole or in pa unless the waiver is clearly expressed in writing signed by the insurer. Copy of application (3) The insurer shall, upon request, furnish to the insured or to a claimant under the contract a copy of the application. Contracts cantainingpro rata condition of average (4) Where- (a) in the case of a new contract of insurance, it is proposed to include a pro rota condition of average in the contract; or (b) in the case of the renewal of a contract of insurance, contains a pro rata condition of average, except where the contract is renewed on similar tams and conditions as the expired contraq ~ncllvrion of this pa- is authorired by LN 1120061

the insurer shall, before the insured enters into the contract and before the renewal of the contract notify the insured in writing of the nature and effect T~~~~ of the condition in the fonn set out in the Twenty-third Schedule. %h&. ~., .. . - .'.- -:
(5) Where a contract of insurance was entered into prior to the 23rd of August, 2004, the insurer shall- (a) before the first renewal of the contract after the 23rd day of August, 2004, notify the insured in writing of thc naturc and eflect of the pro rata condition of avcrage in the form set out in the Twenty-third Schedule; and (h) in the twelve-month period following the 23rd day of August, 2004, publish quarterly in a daily newspaper circulated in Jamaica, a notice slating the nature and effect of any pro rata condition of average contained in any contract of insurance or any class of contract of insurance offered by that insurer in such form as the Commissioner shall approve prior to publication. uatolal kt, 127. No statementmade by the insured or person insured at the time of application for the contract shall be used in defence of a claim or to avoid the contract unless it is contained 'in the application or any other written statements or answers furnished as evidence of inmbility. IThc inclwion of his prigs is nuthmized by L.N. lnW6]

128:(1) If after the contract is issued the person insured engages for :;%:, compensation in an occupation that is classified'by the insurer as more hazardous than that stated in the contract, the liability under the contract is limited to the amount that the premium paid nauld ha~e purchased for the more hazardous occupation according to the limitsi classification of risks, and premium rates in use by the insurer at the time the person insured engaged in the more hazardous occupation. (2) If the person insured changes his occupation from that stated in the contract to an occupation classified by the insurer as less hazardous and the insurer is so advised in writing_ the insurer shall either- (a) reduce the premium rate: or (6) issue a policy for the unequed term of this contract at the lower rate of premium applicable to the less hazardous occupation according to the limits, classification of risks. and premium rates used by the insurer at the date of receipt or ad\lce of the change in occupation, and shall refund / to the insured the amount by which the unearned premium on this contract exceeds the premium at the lower rate for the unespired tenn.
129. 'When the benefits for loss of time payable hereunder. either alone mtimof
+wm or together with benefits for loss of time under another contract including a mm. contract of group accident insurance or group sicloless insurance, or both and a life insurance contract providing disability insurance, exceed the money value of the time of the person insured, the insurer is liable only for that proportion of the benefitsfor loss of time stated in this policy that the money value of the time of the person insured bears to the aggregate of the benefits for loss time payable under all such contracts, and the excess premium, if any, paid by the hsured shall be returned to him by the insurer.
130. The insured may terminate the contract at any time by giving 1-
written notice of termination to the insurer by registered post to its principal bYd office, or by delivery thereof to an authorized agent of the insurer, and the insurer shall upon surrender of this policy refund the amount of premium paid in excess of the short rate premium calculated to the date of receipt of such notice according to the table in use by the insurer at the time of termination.

~mnhyti~n 131.41) The insuiu may terminate the contract at any time by giving bykm. written notice of termination to the insured and by refunding concurrently with the giving of notice the amount of premium paid in excess of the pro rata premium for the expired time. (2) The notice of termination may be delivered to the insured, or it may be sent by registered post to the latest address of the insured on the records of the insurer. a (3) Where the notice of termination is (a) delivered to the insured, five days' notice of termination shall be given; b) psted to the insured, ten days' notice of termination shall be given, beginning on the day following the date of mailing of notice. 1-m fmm& 132.+1) An insurer, immediately upon receipt of a request, and in my rm event not later than fifteen days afler receipt of notice of a claim, shall furnish to the insured or person to whom the insurance money is payable, forms upon which to make the proof of loss required under the contract. If the claimant has not received the forms within that time, the claimant may submit the claim in the form of a written statement of the cause of the loss. accident, sickness or disability giving rise to the claim and of the extent of the claim. (2) The furnishing by an insurer of forms to make proof of loss shall not be taken to constitute an admission by the insurer that a valid contract is in force or that the loss in question falls within the insurance provided by the contract. [The incluion of this page is authorired by L.N. 1/2W6]

THE INSURANCE REGULA lTONS, 2001 171
133.-(1) The insured or a person insured, or a beneficiary entitled to ;270zhEdkim make a claim, or the agent of any of them, shall- (a) give written notice of claim to the insurer- (i) by delivery thereof, or by sending it by registered post to the principal office of the insurer; or (ii) by delivery thereof to an authorized agent of the insurer not later than 30 days from the date a claim arises under the contract on account of an accident, sickness or disability; (b) within 90 days from the date a claim arises under the contract on account of a loss, accident, sickness 04 disability, furnish to the insurer such proof as is reasonably possible in the circumstances of the happening of the loss or accident or the commencement of the sickness or disability, and the claim occasioned thereby, the right of the claimant to receive payment, his age, and the age of the beneficiary if relevant; and (c) if so required by the insurer, furnish a satisfactory certificate as to the cause or nature of the loss, accident, sickness or disability for which claim may be made under the contract and as to duration of such disability. Failure to give notice or proof (2) Failure to give notice of claim or furnish proof of claim within the time specified in paragraph (1) does not invalidate the claim if the notice or proof is given or furnished as soon as reasonably possible, and in no event later than one year from the date of the accident or the date a claim arises under the contract on account of sickness or disability if it is shown that it was not reasonably possible to give notice or hish proof within the time so specified. 134.-(1) As a condition precedent to recovery of insurance moneys Rtz;;6n, under this contract- (a) in the case of accident and sickness, the claimant shall afford to the insurer an opportunity to examine the person insured when and so often as it reasonably requires while the claim hereunder is pending; (b) in the case of death of the person insured, the insurer may require a post mortem; and (c) after loss or damage to insured property, the insurer has an immediate right of access and entry by accredited agents sufficient to enable them to survey and examine the property, and to make an estimate of the loss or damage, and, after the insured has secured [The inclusion of this page is authorized by L.N. 33N20051

When moneys payable 0th than lor lorn ol time.
When loss ol income and loss of use benefits payable.
Notice, application for benefits.
Cerliticales, examinations.
THE INSURANCE REGULA TIONS, 2001 the property, a fiuther right of access and entry sufficient to enable them to make appraisement or estimate of the loss or damage, but the insurer is not entitled to the control or possession of the insured property, and without the consent of the insurer, there can be no abandonment to it of the insured property. 135.41) Payment of claims shall be made with unavoidable delay if- (a) the insured event has been proved; (b) liability under the policy has been agreed; (c) the amount payable by the insurer agreed; and (d) the entitlement of the claimant to receive payment has been established. (2) All moneys payable under the contract, other than benefits for loss of time, shall be paid by the insurer within thirty days after it has received proof of claim. (3) When the payment of claim is delayed more than two months, the insurer shall pay interest on the cash sum due. (4) The two month period runs from the date of the happening of the insured event and interest shall be calculated at a relevant market rate from the end of the two month period until the actual date of the payment.
136. The initial benefits for loss of time shall be paid by the insurer within
30 days after it has received proof of claim, and payment shall be made thereafter in accordance with the terms of the contract but not less frequently than once in each succeeding sixty days while the insurer remains liable for the payments if the person insured when required to do so hishes before payment proof of continuing disability. 137.41) The insured person or the person otherwise entitled to make a claim, shall- (a) give initial notice of a claim to the insurer, in writing, within thirty days from the date of becoming eligible for benefits, or as soon as practicable thereafter; and (b) hish to the insurer within ninety days of the giving of the notice under sub-paragraph (a) a completed application for statutory benefits in respect of the resulting loss. (2) A failure to comply with a time limit set out in paragraph (1) does not invalidate a claim if the claimant has a reasonable excuse and so long as there is compliance within two years of becoming eligible for benefits. 138.41) Unless waived by the insurer, where the insured person is the [The inclusion of this page IS authorized by L.N. 33Al20051

THE lNSURANCE REGULATIONS, 2201 173 victim of an accident, the insured person or the person otherwise entitled to make a claim under regulation 137 shall furnish a certificate by a qualified medical practitioner or psychological advisor of the insured person's choice as to the cause and nature of the injury for which the claim is made, an estimate of the duration of the disability caused by the accident and a treatment plan. (2) In respect of claims under regulation 137 and where the insured is the victim of an accident, the insurer may, on reasonable notice, require c' an examination of the insured person by a qualified medical practitioner, psychological advisor, or chiropractor as often as it reasonably requires, and require an autopsy of a deceased insured person in accordance with the law relating to autopsies. (3) The insurer shall pay the reasonable cost of examinations under paragraph (1) if the cost is not payable under any insurqce plan or law or under any other plan or law. (4) The insurer shall pay the cost of all certificates under paragraph (1) and for all examinations and certificates under paragraph (2). Pa~nt of claims, to pay, 139.-41) Amounts payable under regulations 137 and 138 are overdue if- (a) they are not mailed or otherwise delivered by the insurer within- (i) thirty days after it has received a completed application for statutory benefits; or (ii) ten days after it has received a completed application for statutory benefits; or (b) the insurer fails to make a payment required by paragraph (2). (2) Payments under regulations 137 and 138 shall be mailed or otherwise delivered at least once every second week while the insurer remains liable to the insured person. (3) The insurer shall pay interest on overdue payments from the date they become overdue at a relevant market rate per month. (4) Paragraph (3) does not apply if the insurer prepays benefits owing. P (5) Notwithstanding paragraphs (1) and (2), a payment is not .- overdue if, at the time it would have become payable, the certificate required by regulation 138(1) has not been received by the insurer, six weeks have passed since the insurer received the completed application for statutory benefits and the insurer has not waived the requirement that the certificate be supplied. (6) If paragraph (5) applies, the payment becomes overdue if the amount payable is not mailed or otherwise delivered by the insurer within ten days after the insurer has received the certificate. [The inclusion of this page is authorized by L.N. 33N20051

THE INSURANCE REGULATIONS, 2001
(7) If the insurer refuses to pay an amount claimed in an application for statutory benefits, the insurer shall forthwith give written notice to the insured person giving reasons for the refusal. 140.-41) A person shall repay to the insurer any benefit received under regulations 137,138 and 139 that is paid to the person through error or fraud. (2) A person shall repay to the insurer any benefit received under regulations 137, 138 and 139 that is paid to that person if the person or the person in respect of whom the payment was made was disqualified from payment under regulation 137 (1). (3) A person shall repay to the insurer any benefit received under regulation 137 to the extent of any payments received by the person that are deductible from benefits under paragraph (1) or (2). (4) The insurer may charge interest from the day the amount owing to the insurer under this regulation is determined at the bank rate on that day. (5) In paragraph (4), "bank rate" means the bank rate established by the Bank of Jamaica as the minimum rate at which the Bank of Jamaica makes short term advances to banks.
141. An action or proceeding against the insurer for the recovery of a
claim under the contract shall not be commenced more than fifteen years after the date the insurance money became payable or would have become payable if it had been a valid claim. IN.--( 1) In this Part- "insured" means the party named on a policy or certificate as the individual with legal rights to the benefits provided by such policy; "insurer" means any- (a) person, reciprocal exchange, company, underwriting group or association, and any other legal entity engaged in the business of insurance or of providing insurance in whatever capacity; (b) medical service plans, hospital service plans, health maintenance organizations, prepaid limited health care service plans, dental, optometry and other similar health service plans, being entities that are engaged in the business of insurance. "person" means any natural or artificial entity, including but not limited to, individuals, partnerships, associations, trusts or corporations; "policy" or "certificate" means any contract of insurance, indemnity, medical, health or hospital service, surety ship, or annuity issued, proposed for issuance, or intended for issuance by any insurer; Repayments to insurer. Limitation of actions. Unbi Usde pranices. [The i~iclusion of this page is authorized by L.N. 33AIZ005)

THE INSURANCE REGU. TIONS, 2001 175
"producer" means a person who solicits, negotiates, effects, procures, delivers, renews, continues or binds policies of insurance for risks residing, located or to be performed in Jamaica. Unfair Trade Practices Prohibited (2) It is an unfair trade practice for any insurer to commit any practice defined in paragraph (3) if-- (a) it is committed flagrantly and in conscious disregard of the Act or these Regulations; or (6) it has been committed with such frequency to indicate a general business practice to engage in that type of conduct. (3) Any of the following practices, if committed in violation of paragraph (2), are unfair trade practices in the business of insurance- (a) making, issuing, circulating, or causing to be made, issued or circulated, any estimate, illustration, circular or statement, sales presentation, omission or comparison that- (i) misrepresents the benefits, advantages, conditions or terms of any policy; or (ii) misrepresents the dividends or share of the surplus to be received on any policy; or (iii) makes a false or misleading statement as to the dividends or share of surplus previously paid on any policy; or (iv) is misleading or is a misrepresentation as to the financial condition of any insurer, or as to the legal reserve system upon which any life insurer operates; or (v) uses any name or title of any policy or class of policies misrepresenting the true nature thereof; or (vi) is a misrepresentation, including any intentional misquote of premium rate, for the purpose of inducing or tending to induce the purchase, lapse, forfeiture, exchange; (vii) conversion or surrender of any policy; or (viii) is a misrepresentation for the purpose of effecting a pledge or assignment of or effecting a loan against any policy; or (ix) represents any policy as being shares of stock; (b) making, publishing, disseminating, circulating or placing before the public, or causing, directly or indirectly to be made, published, [The mclusion of this page is authorized by L.N. 33AI20051

THE INSURANCE REGULAiTONS, 2001 disseminated, circulated, or placed before the public, in a newspaper, magazine or other publication, or in the form of a notice, circular, pamphlet, letter or poster, or over any radio or television station, or through the Internet or in any other way, an advertisement, announcement or statement containing any assertion, representation or statement with respect to the business of insurance or with respect to any insurer in +e conduct of its insurance business, which is untrue, deceptive or misleading; (c) making, publishing, disseminating, or circulating, directly or indirectly, or aiding, abetting or encouraging the making, publishing, disseminating or circulating of any oral or written statement or any pamphlet, circular, article or literature which is false, or maliciously critical of or derogatory to the financial condition of any insurer, and is calculated to harm such insurer; (d) entering into any agreement to commit, or by any concerted action committing any act of boycott, coercion or intimidation resulting in or tending to result in unreasonable restraint of, or monopoly in, the business of insurance; (e) knowingly filing with any supervisory or other public official, any false material statement of fact as to the financial condition of an insurer or knowingly making, publishing, disseminating, circulating or delivering such a statement to any person, or placing it before the public, or knowingly causing it, di~ectly or indirectly, to be made, published, disseminated, circulated, delivered to any person, or place before the public;
0) knowingly making any false entry of a material fact in any book,
report or statement of any insurer or knowingly omitting to make a true entry of any material fact pertaining to the business of such insurer in any book, report or statement of such insurer, or knowingly making any false material statement to any insurance regulatory official; (g) issuing or delivering or permitting agents, officers or employees to issue or deliver, agency company stock or other capital stock, or benefit certificates or shares in any corporation, or securities or any special or advisory board contracts or other contracts of any kind promising returns and profits as an inducement to purchase insurance; (h) making or permitting any unfair discrimination between individuals of the same class and equal expectation of life in the rates charged for any life insurance policy or annuity or in the dividends or other benefits payable thereon, or in any other of the terms and conditions of such policy; [The inclusiori of this page 1s authorized by L N. 33N20051

TUE INSURANCE REGULATJONS, 2001 177 making or permitting any unfair discrimination between individuals of the same class and of essentially the same hazard in the amount of premium, policy fees or rates charged for any accident or health insurance policy or in the benefits payable thereunder, or in any of the terms or conditions of such policy, or in any other manner; making or permitting any unfair discrimination between individuals or risks of the same class and of essentially the same hazard by refusing to insure, refusing to renew, cancelling or limiting the amount of insurance coverage on a property or casualty risk solely because of the geographic location of the risk, unless such action is the result of the application of sound underwriting and actuarial principles related to actual or reasonably anticipated loss experience; making or permitting any unfair discrimination between individuals or risks of the same class and of essentially the same hazards by refusing to insure, refusing to renew, cancelling or limiting the amount of insurance coverage on the residential property risk, or the personal property contained therein, solely because of the age of the residential property; refusing to insure, refusing to continue to insure, or limiting the amount of coverage available to an individual because of the sex, marital status, race, religion or national origin of the individual, so however, that nothing in this paragraph shall prohibit an insurer from taking marital status into account for the purpose of defining persons eligible for dependent benefits or shall prohibit or limit the operation of fraternal benefit societies; (m) terminate, or modify coverage or refuse to issue or refuse to renew any property or casualty policy solely because the applicant or insured or any employee of either is mentally or physically impaired :
Provided that this sub-paragraph shall not- (i) apply to accident and health insurance sold by a casualty insurer; and (ii) be interpreted to modify any other provision of law relating to the termination, modification, issuance or renewal of any insurance policy or contract; (n) refusing to insure solely because another insurer has refused to write a policy, or has cancelled or has refused to renew an existing policy in which that person was the named insured but nothing [The inclusion of this page is authorized by L.N. 33Al2005)

THE INSURANCE REGULATIONS, 2001 herein contained shall prevent the termination of an excess insurance policy on account of the failure of the insured to maintain any required underlying insurance; (0) as otherwise expressly provided by law-knowingly- (i) permitting or offering to make or making any life insurance policy or annuity, or accident and health insurance or other insurance, or agreement as to such contract other than as plainly expressed in the policy issued thereon; (ii) paying or allowing, or giving or offering to pay, allow, or give, directly or indirectly, as inducement to such policy, any rebate of premiums payable on the policy, or any special favour or advantage in the dividends or other benefits thereon, or any valuable consideration, or inducement whatever not specified in the policy; or (iii) giving, selling, or purchasing or offering to give, sell or purchase as inducement to such policy or annuity or in connection therewith, any stocks, bonds or other securities of any insurance company or other corporation, association or partnership, or any dividends or profits accrued thereon, or any other thing of value not specified in the policy; (p) failure by an insurer to maintain, for at least the current calendar year and the two preceding years, its books, records, documents and other business records in such an order that data regarding complaints, claims, rating, underwriting and marketing are accessible and retrievable for examination by the Commission; (q) failure by any insurer to maintain a complete record of all the complaints it received since the date of its last examination under the Financial Services Commission Act; (r) making false or fraudulent statements or representations on or relative to an application for a policy, for the purpose of obtaining a fee, commission, money or other benefit fiom any provider or individual person; (s) an insurance producer- (i) holding himself out, directly or indirectly, to the public as a "financial planner", "investment adviser", "consultant", "financial counselor", or any other specialist engaged in the business of giving financial planning or advice relating to investments, insurance, real estate, tax matters or trust and estate matters when such person is in fact engaged only in the sale of ~olicies:
[The inclusion of this page is authorized by L.N. 33A120051

THE INSURANCE REGULATIONS, 2001 179
(ii) engaging in the business of financial planning without disclosing to the client prior to the execution of the agreement mentioned in sub-paragraph (iii), or solicitation of the sale of a product or service that- (A) the insurance producer is also an insurance salesperson; and (B) a commission for the sale of an insurance product will be received in addition to a fee for financial planning, if such is the case. (iii) charging fees other than commissions for financial planning by insurance producer, unless such fees are based upon a written agreement, signed by the party to .be charged in advance of the performance of the services under the agreement- (A) a copy of which shall be retained by the producer for not less than three years and a copy given to the party to be charged at the time the agreement is signed by the party; (B) which shall state the services for which the fee is to be charged, the amount of the fee to be charged or how it will be determined or calculated and that the client is under no obligation to purchase any insurance product through the insurance agent, broker or consultant after completion of services; and (C) a copy of which shall be available at the Commission's request; (t) failure of a company issuing property and casually insurance to provide the following loss information for the three previous policy years to the first named insured within thirty days of receipt of the first named insured's written request, that is to say information- (i) on all claims, date and description of occurrence, and total amount of payments; and (ii) as to the date and description of any occurrence not included in sub-paragraph (i). (4) Nothing in pamgraph (3) (0) shall be construed as including within the definition of discrimination or rebates any of the following practices-- [The inclusion of !his page is authorized by L.N. 33N2005]

THE INSURANCE REGULATIONS, 2001
(a) in the case of life insurance policies or annuities, paying bonuses to policyholders or otherwise abating their premiums in whole or in
part out of surplus accumulated fiom non-participating insurance,
provided that any such bonuses or abatement of premiums shall be fair and equitable to policyholders and for the best interests of the company and its policyholders; (6) in the case of life insurance policies issued on the industrial debit plan, making allowance to policyholders who have continuously for a specified period made premium payments directly to an office of the insurer in an amount that fairly represents the saving in J collection expenses; (c) readjusting the rate of premium for a group insurance policy based on the loss or expense thereunder, at the end of the first or any subsequent policy year of insurance thereunder, which may be made retroactive only for such policy year. (5) For the purposes of paragraph (3) (1)- (a) a first named insured may, in writing, require a prospective insurer to provide such detailed loss information (other than loss reserve information) in addition to that required under sub-paragraph (i) of that paragraph as may be reasonably required to underwrite the same line or class of insurance; (6) the insurer shall provide information as soon as possible, but in no event later than twenty days of receipt of the written request; (c) no prospective insurer may refuse to insure an applicant solely because the prospective insurer is unable to obtain loss reserve information. (6) Information provided under paragraph (5) (a) shall not be subject to discovery by any party other than the insured, the insurer, and the prospective insurer. (7) No insurer shall offer more than one group policy of insurance through any person unless such person is licensed but this prohibition shall not apply to employer and employee relationships, nor to any such enrolments. '\ ' i (8) No person may require as a condition precedent to the lending of money or extension of credit, or any renewal thereof, that the person to whom such money or credit is extended or whose obligation a creditor is to acquire or finance, negotiate any policy or renewal thereof through a particular insurer or group of insurers or agent or broker or group of agents or brokers. (9) No person who lends money or extends credit may- [The inclusion of this page is authorized by L.N. 33A120051

THE INSURANCE REGULA TIONS, 2001 181
(a) solicit insurance for 'the protection of real property, afier a person indicates interest in securing a first mortgage credit extension, until such person has received a commitment in writing from the lender as to a loan or credit extension; (b) unreasonably reject a policy hished by the borrower for the protection of the property securing the credit; (c) require that any borrower, mortgagor, purchaser, insurer, broker or agent pay a separate charge, in connection with the handling of any policy required as security for a loan on real estate, or pay a separate charge to substitute the policy of one insurer for that of another (other than the interest that may be charged on premium loans or premium advancements in accordance with the terms of the loan or credit document); (6) use or disclose, without the prioi written consent of the borrower, mortgagor or purchaser taken at a time other than the making of the loan or extension of credit, information relative to a policy which is required by the credit transaction, for the purpose of replacing such insurance; (e) require any procedures or conditions of duly licensed agents, brokers or insurers not customarily required of those agents, brokers or insurers affiliated or in any way connected with the person who lends money or extends credit. (10) A rejection referred to in paragraph (9) (b) shall not be deemed unreasonable if it is based on reasonable standards, uniformly applied, relating to the extent of coverage required and the financial soundness of the insurer. Such standards shall not discriminate against any particular type of insurer, nor shall such standards call for rejection of a policy because it contains coverage in addition to that required in the credit transaction. (11) Every person who lends money or extends credit and who solicits insurance on real and personal property shall explain to the borrower in writing that the insurance related to such credit extension may be purchased from an insurer or agent of the borrower's choice, subject only to the lender's right to reject a given insurer or agent as provided in paragraph (9) (6). The C requirement for a commitment shall not apply in cases where the premium for the required insurance is to be financed as part of the loan or extension of credit involving personal property transactions.
PART XU--Unregistered Insurers
P~W. 143.-41) This regulation shall be liberally construed and applied to promote its underlying purposes which include- [The inclusion of this page is authorized by L.N. 33A/2005]

THE INSURANCE REGULATIONS, 2001
(a) protecting persons seeking insurance in Jamaica; (b) permitting facultative insurance placements to be placed with reputable and financially sound unregistered insurers and exported from Jamaica pursuant to the Act; (c) establishing a system of regulation which will permit orderly access to facultative insurance placements in Jamaica and encourage registered insurers to provide new and innovative types of insurance available to consumers in Jamaica; (d) providing a system through which persons may purchase insurance other than facultative insurance placements, from unregistered insurers pursuant to the Act; (e) protecting revenues of Jamaica; and (f) providing a system pursuant to the Act which subjects unregistered insurance activities in Jamaica to the jurisdiction of the Commission and courts in suits by or on behalf of Jamaica. (2) The provisions of this regulation shall not operate to prohibit employees, officers, directors or partners of a business entity from acting in the capacity of an insurance manager or buyer in placing insurance on behalf of the employer, provided that the person's compensation is not based on buying insurance. 144.-51) An insurer shall not engage in the transaction of insurance unless registered in Jamaica or exempted by these Regulations or the Act. A business. person shall not engage in a transaction of insurance or shall in Jamaica directly or indirectly act as agent for, or otherwise represent or aid on behalf of another, an unregistered insurer in- (a) solicitation, negotiation, procurement or effectuation of insurance, or renewals thereof; (b) forwarding of applications, or delivery of policies or contracts or inspection of risks; (c) fixing of rates, or investigation or adjustment of claims or losses; or (4 collection or forwarding of premiums, or in any other manner represent or assist the unregistered insurer in the transaction of insurance. (3) A person who represents or aids an unregistered insurer in contravention of this regulation shall be subject to the penalties set out in
section 148 of the Act.
(4) No insurance contract entered into in contravention of this [The i~lclusion of this page is authorized by L.N. 33.4/2005]

THE INSURANCE REGULATIONS, 2001 183 regulation shall preclude the policyholder from enforcing his rights under the contract in accordance with the terms and provisions of the contract of insurance and the laws of Jamaica, to the same degree those rights would have been enforceable had the contract been lawfully procured. (5) If the unregistered insurer fails to pay a claim or loss within the provisions of the insurance contract and the laws of Jamaica, a person who assisted or in any manner aided directly or indirectly in the procurement of the insurance contract, shall be liable to the policyholder for the full amount under the provisions of the insurance contract. (6) Paragraph (3) shall not apply to a person in regard to a policyholder who independently procures insurance as provided under paragraph (20). (7) This regulation shall not apply to a person, registered as an agent or broker in Jamaica who, for a fee and pursuant to a written agreement, is engaged solely to offer to the policyholder advice, counsel or opinion, or service with respect to the benefits, advantages or disadvantages promised under any proposed or in-force policy of icsurance if the person does not, directly or indirectly, participate in the solicitation, negotiation or procurement of insurance on behalf of the policyholder, (8) This regulation shall not apply to a person acting in material compliance with the insurance laws of Jamaica in the placement of the types of insurance specified in sub-paragraphs (a), (b), (c), (d) and (e j (a) insurance as provided in regulation 144 and for the purposes of this sub-paragraph, a licensee shall be deemed to be in material compliance with the insurance laws of Jamaica, unless the licensee contravened paragraph (e) that proximately caused loss to the policyholder; (6) transactions for which registration is not required of an insurer under the insurance laws of Jamaica; (c) reinsurance provided that, unless the Commission waives the requirements of this sub-paragraph- (i) the reinsurer is authorized to do an insurance or reinsurance business by its domiciliary jurisdiction and is authorized to write the type of reinsurance in its domiciliary jurisdiction; and (ii) the reinsurer satisfies all legal requirements for such reinsurance in Jamaica; (d) the property and operation of aircraft engaged in foreign commerce, wet marine and transportation insurance; me inclusion of this page is authorzed by L.N. 33.4'20051

THE INSURANCE REGULATIONS, 2001
(e) transactions subsequent to issuance of policy not covering properties, risks or exposures located, or to be performed in Jamaica at the time of issuance, and lawfblly solicited, written or delivered outside Jamaica. 145.--(1) Facetive insurance placements may be placed by a F= facultative placement licensee if- p!ncements (a) each insurer is an eligible facultative placement insurer; (b) each insurer is authorized to write the class or type of insurance in its domiciliary jurisdiction; (c) the full amount or type of insurance cannot be obtained from insurers who are registered to do business in Jamaica; (d) the type of insurance is one included on a list promulgated by the Commission deeming the class or type of coverage eligible for export without a diligent search; and (e) all other requirements of the Act are met. (2) The full amount or type of insurance may be procured from eligible facultative placement insurers, provided that a diligent search is made among the insurers who are registered to transact and are actually writing the particular type of insurance in Jamaica if any are writing it. 146.--(1) A facultative placement broker shall not place coverage with an iZ'2; unregistered insurer, unless, at the time of placement, that broker has broka. determined that the unregistered insurer - (a) meets the fit and proper criteria as defined under the Act; and (b) has capital and surplus or its equivalent under the laws of its domiciliary jurisdiction which equals the greater of - (i) the minimum capital and surplus requirements under the Act; or (ii) an amount as prescribed by regulation 23, in the case of a general insurer or regulation 24 in the case of a long term insurer. (2) The requirements of paragraph (1) (a) may be satisfied by an insurer possessing less than the minimum capital and surplus upon an affirmative finding of acceptability by the Commission, based upon such factors as-- (a) quality of management, capital and surplus of any parent company; (b) company underwriting profit and investment income trends; [The inclusio~l of this page is authorized by L N. 33A/2005]

THE INSURANCE REG[JLA TIONS, 2001
(c) market availability and company record and reputation within the industry, but in no event shall the Commission make an affirmative finding of acceptability when the unregistered insurer's capital and surplus is less than a prescribed amount. (3) In the case of an Association of Underwriters - (a) the syndicates of the exchange shall maintain under terms acceptable to the Commission capital and surplus, or its equivalent under the laws of its domiciliary jurisdiction, of not less than or such amount as may be prescribed; and (b) the exchange shall maintain under terms acceptable to the Commission not less than fifty per cent of the policyholder surplus of each syndicate in a custodial account accessible to the exchange or its domiciliary regulator in the event of insolvency or impairment of the individual syndicate; and (c) in addition, each individual syndicate to be eligible to accept facultative insurance placements from Jamaica shall meet any of the following requirements - (i) for insurance exchanges which maintain funds in an amount of not less than or such amount as may be prescribed for the protection of all exchange policyholders, the syndicate shall maintain under terms acceptable to the Commission minimum capital and surplus, or its equivalent under the laws of the domiciliary jurisdiction, of not less than or such amount as may be prescribed; or (ii) for insurance exchanges which do not maintain funds in an amount of not less than or such amount as may be prescribed for the protection of all exchange policyholders, the syndicate shall maintain under terms acceptable to the Commission minimum capital and surplus, or its equivalent under the laws of its domiciliary jurisdiction, of not less than the minimum capital and surplus requirements under the laws of its domiciliary jurisdiction or such amount as is specified in these Regulations; or (iii) in the case of a group of incorporated insurers under common administration, which has continuously transacted an insurance business for at least three years- (A)the group shall maintain an aggregate policyholders' surplus of such amount as may be prescribed; and -- [The inclusion of this page is authorized by L.N 33Al2005)

THE INSURANCE REGULA lTONS, 2001
(B) the group shall maintain in trust a surplus in such amount as may be set forth in prescribed regulations; which shall be available for the benefit of Jamaican facultative placement policyholders of any member of the group; and (C) each insurer shall individually maintain capital and surplus of not less than or such amount as may be prescribed per company; (D) the trust funds shall satisfy the requirements of ,- a Standard Trust Agreement approved by the 'i Commission and shall be maintained in an irrevocable trust account in Jamaica in a qualified financial services institution, and shall consist of cash, securities, letters of credit or investments of substantially the same character and quality as those which are eligible investments for the capital and statutory reserves of registered insurers to write like classes of insurance in Jamaica; (E) each member of the group shall make available to the Commission an annual certification of the member's solvency by the member's domiciliary regulator and its independent public accountant; or (F) except for an underwriting association or plan complying with sub-paragraph (B) or (C), an insurer shall satisfy the capital and surplus requirements of paragraph (2) (a) and shall have in force a trust fund of not less than the greater of- (aa) five million dollars; (bb) 30% of the Jamaica facultative placement gross liabilities, excluding aviation, wet marine and transportation insurance liabilities, where- (aaa) the liabilities are maintained in an irrevocable trust account in Jamaica in a qualified financial services institution, on behalf of Jamaica policyholders consisting of cash, [The iiiclusion of this page is autllorized by L.N. 33A/2005]

THE INSURANCE REGULATIONS, 2001 securities, letters of credit or other investments of substantially the same character and quality as those which are eligible investments pursuant to
section 23 of the Act. The trust fbnd,
which shall be included in any calculation of capital and surplus or its equivalent, shall satisfy the requirements of the Standard Trust Agreement approved by the Commission; (bbb) the insurer may reques approval from the Commission to use the trust fbnd to pay valid facultative placement claims; provided, however, that the balance of the trust fund is never less than the greater of five million dollars or thirty per cent of the insurer's Jamaica facultative placement gross liabilities, excluding aviation, wet marine and transportation insurance liabilities; and (ccc) an insurer or group of insurers covering risk located or to be performed in Jamaiqa at the effective date of this law shall have two years from the date of enactment to meet the requirements of sub-paragraph (D), as follows￾Year Following Enactment Trust Fund Requirement 1 15% of Jamaica facultative placement liabilities, excluding aviation, wet marine and transportation insurance. 2 30% of Jamaica facultative placement liabilities, excluding aviation, wet marine and transportation insurance. (3) The Commission may waive the requirements of sub-paragraph (D) or may be satisfied by an insurer's possessing less than the trust fbnd amount specified in that paragraph upon an affirmative finding of acceptability by the Commission if the Commission is satisfied that the [The inclusion of this page is authorized by L.N. 33AI20051

THE INSURANCE REGULA TIONS, 2001 placement of insurance with the insurer is necessary and will not be detrimental to the public and the policyholder. In determining whether business may be placed with the insurer, the Commission may consider such factors as- (a) the interests of the public and policyholders; (6) the length of time the insurer has been authorized in its domicile and elsewhere; (c) unavailability of particular coverages from registered insurers or unregistered insurers meeting the requirements of this regulation; (4 the size of the company as measured by its assets, capital and surplus, reserves, premium writings, insurance in force or other appropriate criteria; (e) the class of business the company writes, its net exposure and the extent to which the company's business is diversified among several lines of insurance and geographic locations; u> the past and projected trend in the size of the company's capital and surplus considering such factors as premium growth, operating history, loss and expense ratios, or other appropriate criteria; and (g) whether the insurer has caused to be provided to the Commission a copy of its current annual statement certified by the insurer's actuary and an actuarial opinion as to the adequacy of, and methodology used to determine the insurer's loss reserves. (4) The statement shall be provided at the same time it is provided to the insurer's domicile, but in no event more than eight months after the close of the period reported upon, and shall be certified as a true and correct copy by an accounting or auditing firm licensed in the jurisdiction of the insurer's domicile and certified by a senior officer of the unregistered insurer as a true and correct copy of the statement filed with the regulatory authority in the domicile of the unregistered insurer. (5) In the case of an association of underwriters, the statement may be an aggregate combined statement of all underwriting syndicates operating during the period reported. (6) Insurance procured under this regulation shall be valid and enforceable as to all parties. 1
147. If at any time the Commission has reason to believe that a facultative 2lg;f: placement insurer- ~acultative
plscemnl
(a) is in unsound financial condition or has acted in an untrustworthy i.iumC manner; (b) no longer meets standards set out in sections 73 and 75 of the Act; [The inclusiol~ of this page is authorized by L.N 33A/2005]

THE INSURANCE REGULA TIONS, 2001
Aclions againsl eligible facultative placement insurers transacting facultative Ddy lo tile evidence of insurance and afidavils. Evidence ofthe Insurance. (c) has wilfully violated the laws of Jamaica; or (4 does not conduct a proper claims practice, the Commission may declare it ineligible and shall promptly mail notice of all such declarations to each facultative placement broker. 148.-(1) An' eligible facultative placement insurer may be sued upon a cause of action arising in Jamaica under a facultative insurance placements contract made by it or evidence of insurance issued or delivered by the facultative placement broker. (2) A policy issued by the eligible facultative placement insurer shall contain a provision stating the substance of this regulation and designating the person to whom the Commission shall mail process. (3) The remedies provided in this regulation are in addition to any other methods provided by law for service of process upon insurers.
149. Within thirty days after the placing of any facultative insurance
placements, each producing broker shall execute and each facultative placement broker shall execute where appropriate, and file a written report regarding the insurance which shall be kept confidential by the Commission, including the following- (a) the name and address of the policyholder; (b) the identity of the insurer or insurers; (c) a description of the subject and location of the risk; (d) the amount of premium charged for the insurance; (e) such other pertinent information as the Commission may reasonably require; and (f) affidavit on a standardized formi promulgated by the Commission as to the diligent efforts to place the coverage with registered insurers, if required by this regulation, and the results of that effort and affirming that the policyholder was expressly advised in writing prior to placement of the insurance that- (i) the facultative placement insurer with whom the insurance was to be placed is not registered in Jamaica and is not subject to its supervision; and (ii) in the event of the insolvency of the facultative placement insurer, claims may have to be pursued in other jurisdictions. 150.-(1) Upon placing facultative insurance placements, the facultative placement broker shall promptly deliver to the policyholder or the producing

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(The inclusion of this page IS authonzed by L.N. 33N20051

THE INSURANCE REGULATIONS, 2001 broker the policy, or if the policy is not then available, a certificate as described in paragraph (3, cover note, binder or other evidence of insurance. (2) The certificate described in paragraph (5), cover note, binder or other evidence of insurance shall be executed by the facultative placement licensee and shall show- (a) the description and location of the subject of the insurance; (b) coverages, including any material limitations other than those in standard forms; (c) general description of the coverages of the insurance, the premium and rate charged and taxes to be collected from the policyholder; and (d) the name and address of the policyholder and facultative placement insurer or insurers and proportion of the entire risk assumed by each, and the name of the facultative placement broker and the registration number. (3) A facultative placement broker shall not issue or deliver any evidence of insurance or purport to insure or represent that insurance will be or has been written by any eligible facultative placement insurer, or an unregistered insurer, unless the broker has authority from the insurer to cause the risk to be insured, or has received information from the insurer in the regular course of business that the insurance has been granted. (4) If, after delivery of any evidence of insurance, there is any change in the identity of the insurers, or the proportion of the risk assumed by any insurer, or any other material change in coverage as stated in the facultative placement broker's original evidence of insurance, or in any other material as to the insurance coverage so evidenced, the broker shall within seven days deliver to the policyholder or the original producing broker an appropriate substitute for, or endorsement of the original document, accurately showing the current status of the coverage and the insurers responsible for the coverage. (5) As soon as reasonably possible after the placement of the insurance, the facultative placement broker shall deliver a copy of the policy or, if not available, a certificate of insurance to the policyholder or producing broker to replace any evidence of insurance previously issued and each certificate or policy of insurance shall contain or have attached a complete record of all policy insuring agreements, conditions, exclusions, clauses, endorsements or any other material facts that would regularly be included in the policy. (6) A facultative placement broker who fails to comply with the requirements of this subsection shall be subject to the penalties provided in the Act. (The inclusion of this page is authorized by L.N. 33A/2005]

THE INSURANCE REGULATIONS, 2001
Evidmce of insurnnce negotiated.
Facultative
Placement boker's to nolily C ~yholder.
Effect ofppiment to facullath :
placemen1 hroker.
Facultative placemenl brokers may accept business hm other producer. Rewrds of facultative placement licensee. 15 1. Every evidence of insurance negotiated, placed or procured under the facultative placement provisions of these Regulations, issued by the facultative placement licensee shall bear the name of the licensee and the following legend in bold, ten point type: "This is evidence of insurance procured and developed under the facultative placement provisions in the insurance laws of Jamaica. The insurer(s) are not regulated by the Commission". 152.-(1) No contract of insurance placed by a facultative placement broker under the Act shall be binding upon the policyholder and no premium charged shall be due and payable until the facultative placement broker or the producing broker has notified the policyholder in writing, in a form acceptable to the Commission, a copy of which shall be maintained by the broker or the producing broker with the records of the contract and available for possible examination, that- (a) the insurer with which the broker places the insurance is not registered with the Commission and is not subject to its supervision; and (b) in the event of the insolvency of the facultative placement broker, losses may have to be pursued in other jurisdictions. (2) Nothing herein contained shall nullify any agreement by any insurer to provide insurance.
153. A payment of premium to a facultative placement broker acting for a
person other than itself in procuring, continuing or renewing any policy of insurance procured under regulation 154 shall be deemed to be payment to the insurer, whatever conditions or stipulations may be inserted in the policy or contract notwithstanding.
154. A facultative placement broker may originate facultative insurance
placements or accept such insurance from any other producing broker duly registered as to the class of insurance involved, and the facultative placement broker may compensate the producing broker for the business. 155.-(1) Each facultative placement broker shall keep in Jamaica a fill and true record of each facultative insurance placements contract placed by or through the broker, including a copy of the policy, certificate, cover note or other evidence of insurance showing each of the following items applicable- (a) amount of the insurance, risks and perils insured; (6) brief description of the property insured and its location; (c) gross premium charged; (4 any return premium paid; (e) rate of premium charged upon the several items of property; [The inclusion of this page is authorized by L.N. 33A120051

THE INSURANCE REGULATIONS, 2001 u> effective date and terms of the contract; (g) name and address of the policyholder; (h) name and address of the insurer; (i) amount of tax and other sums to be collected from the policyholder;
6) identity of the producing broker, any confirming correspondence
from the insurer or its representative, and the application. (2) The record of each contract shall be maintained and available for examination by the Commission for a period not less than five years following termination of the contract. (3) In lieu of maintaining offices in Jamaica, each non-resident facultative placement broker shall make available to the Commission any and all records that the Commission deems necessary for examination.
156. On or before the end of the month following the end of each quarter,
each facultative placement broker shall file with the Commission, on forms expofled business. prescribed by the Commission, a verified report in duplicate of all facultative insurance placements transacted during the preceding period, showing- (a) aggregate gross premiums written; (b) aggregate return premiums; (c) amount of aggregate tax remitted to Jamaica.
PART XIV-Miscellaneous Provisions
157.-41) A policy is not liable to be forfeited only because of the non- :;zEw payment of a premium (the overduepremium) if- policies in certain cases of (a) at least 3 years' premiums have been paid on the policy; and non-payments of premiums. (b) the surrender value of the policy exceeds the total of- (i) the amount of the overdue premium; and (ii) the total of any other amounts owed to the company under, or secured by, the policy. (2) For purposes of paragraph (1) (b), the surrender value of the policy is to be worked out as at the day immediately before the day on which the overdue premium falls due. (3) Until the overdue premium is paid, the company may charge interest on it on terms not less favourable to the policy owner than such terms (if any) as are prescribed in these Regulations. - - - [The inclusion of this page is authorized by L.N. 33A120051

THE INSURANCE REGULATIONS, 2001
(4) The overdue premium and any unpaid interest charged on it are taken, for the purposes of the Act, to be a debt owing to the company under the policy. (5) A life company may only forfeit a policy because of the non￾payment of a premium if- (a) the company has given the policy owner a written notice- (i) setting out the amount of the premium and the day on which it became, or will become, due; and C:; (ii) stating that the policy will be forfeited at the end of 28 days after the giving of the notice or 28 days after the day on which the premium became, or will become,. due, whichever is the later if the amount due to the company has not been paid; and (6) at least 28 days have elapsed since- (i) the day on which the notice was given; or (ii) the day on which the premium became due; whichever is the later. UKLM 158. The statement of all unclaimed moneys in the possession or under the wncya. control of the company shall be delivered to the Commission on March 31 of each year in respect of December 3 1 of the preceding year. Conmion inlo muld companies 159. The plan for the conversion of the company into a mutual company &-,- shall be done in accordance with the conditions prescribed by the Commission. R+tuto bckm 160.-41) The register of policies to be kept by a company at its principal ofiice in Jamaica in accordance with section 124 of the Act shall contain- (a) the name of each policyholder; (b) the date on which each policy became effective and the number thereof; (c) the relevant class of insurance for which each policy was issued; (4 the extent to 'which each policy became effective and the number thereof; (e) the date of renewal of each renewable policy and, in the case of a policy relating to long-term business the anniversary date and the date of final payment, if any, a copy of the loan agreement in respect of any loan made by the insurance company on the security of the policy, the loan outstanding on the policy and the interest rate applicable to each policy loan; [The inclusion of this page is authorized by L.N. 33N2005]

THE INSURANCE REGULAnONS, 2001
(j) where any claim has been made against any policy, the nature, amount and date of the claim whether payment was made and if not, the reason for the failure or refusal; (g) the policies in respect of which there is default in the payment of premiums, and whether the default has been brought to the attention of the policy holder; (h) as respects any local policy which ceased to have force within the preceding three years, the name of the policy holder, the reason for termination and the date of termination; (i) as respects any local policy, a list of the persons to whom cover note books have been issued, the number of cover note books so issued, the serial numbers of such cover hote books and the class of insurance business to which each such cover note book relates;
0) particulars of the stock of cover note books not issued in respect of
each class of insurance business, including the serial numbers of such cover note books; (k) a list of the completed cover note books returned to the company, showing the class of insurance business to which each retiuned book relates, the serial number of each such book and the date on which it was received by the company; (I) a list of all the persons authorized in writing by the insurance company to sign or effectuate cover note books on behalf of the company, so, however, that the list shall be maintained in the form of a register; (m) a list of all binding authorities issued by the insurance company to any broker in respect of each class of insurance business; (n) all accounting and financial details including vouchers, cash book, journal, registers and such other books of account or records as may be necessary to ascertain the financial position of the company in Jamaica in relation to policies issued in Jamaica by it. (2) An insurance company carrying on long-term business in Jamaica shall maintain the particulars specified in paragraph (1) (j) for a period of not less than three years if the claim is not disputed, or, if the claim is disputed, until the dispute has been determined. \ (3) An insurance company carrying on general business in Jamaica ' / shall maintain the particulars specified in paragraph (1) (f)- (a) in the case of any claim relating to death or personal injury, for a period of not less than seven years; (b) in any other case, for a period of not less than three years if the claim is not disputed, or if the claim is disputed, until the dispute has been determined. [The inclusion of this page is authorized by L N. 33A/2005]

THE INSURANCE REGULATIONS, 2001
(4) Where a claim is made in respect of any insurance policy, the company which issued the policy shall maintain at its principal office in Jamaica, id addition to the particulars specified in paragraph (I), the following- (a) full particulars of all investigations and reports relating to such claim; (b) the revised amount reserved semi-annually against each such claim until the claim is settled, abandoned, becomes statute-barred or becomes incapable of payment for any reason; (c) a list compiled on a monthly basis of all claims reported during the month, the claim number and the date thereof, the nature of the claim and the amount reserved against each such clah, the amount, if any, paid in respect thereof and the amount, if any, to be recovered from reinsurers; and (4 a list compiled on a monthly basis of all claims reported prior to that month which remain unpaid at that date, the date of every such claim, the nature of each claim, the amount originally reserved with respect thereto, the revised, amount reserved (if any), and the date the amount was reserved, the amount if any, actually paid in respect of each claim and the amount to be recovered from reinsurers. (5) Notwithstanding the provisions of paragraph (4), a company need not maintain at its principal office in Jamaica, particulars of claims made (a) where such particulars are maintained by an agent or sub-agent of that company in Jamaica and such agent or sub-agent, as the case may be, is empowered to settle such claims; or (b) where such particulars are maintained by an organization operating in relation to pooling arrangements and settlement of the claim concerned are effected by that organization; or (c) where the claims concerned arise out of marine, aviation and transport insurance business and settlement of same is effected on behalf of the company by another insurance company or settling agent outside of Jamaica. 0 Power to eollecl S~ISI~CS. 161.-41) The statistics to be collected by the Commission in relation to insurance business shall be as prescribed from time to time by the Commission. (2) Every company shall hish to the Commission such pdculars as are specified in paragraph (1) in the form prescribed for the purpose of enabling the Commission to collect statistics for a period as established by the Commission. [The inclusion of this page is authorized by L.N. 33A/2005]

THE INSURANCE REG ULA TIONS. 2001
162.-(1) Every appeal to the Appeal Tribunal shall be brought by notice ~~~~Or in writing in accordance with section 140 of the Act. (2) There shall be paid to the Commission in respect of every such appeal, the fee set out in Schedule 20 and the receipt evidencing payment of the fee shall be attached to the request for appeal. (3) Every memorandum setting out the grounds for request of appeal shall- (a) set out the name and address of the appellant; (b) state the grounds of appeal; (c) be accompanied by copies of any documents on which the (2 appellant relies in support of the appeal, and a copy of the memorandum, together with copies of the documents referred to in paragraph (c) (if any) shall be served on the Commission, within the thirty day period mentioned in section 140 of the Act. (4) The Commission shall, not more than twenty-one days after service on it of the documents referred to in paragraph (3), transmit to the Appeal Tribunal, as the case may require, a written statement of the reasons for the decision in respect of which the appeal is brought and of the respects (if any) in which it controverts the contents of any documents of which copies had been served on it. (5) The Appeal Tribunal may require the appellant or the Commission to furnish in writing within a specified time such further particulars as may be specified in such requirement. (6) The Appeal Tribunal, if it appears necessary so to do, may give the appellant and the Commission and their respective witnesses (if any) an opportunity to appear at a hearing and be heard on matters arising out of the documents referred to in paragraph (3). (7) An appellant may be represented at a hearing referred to in paragraph (6) by any person authorized in writing by him in that behalf. (8) A record of the evidence given by each witness at a hearing shall be made and shall be signed by the Chairman of the Appeal Tribunal, who shall mark, date and initial all documents produced at the hearing and attach such documents to the other papers pertaining to the appeal. (9) Subject to the provisions of the Act and of this regulation the , - procedure at a hearing shall be such as may be determined by the Appeal Tribunal. 163.-(1) Where it appears to the Commission that any statement or document furnished pursuant to the Act, these Regulations or any directive of ~~",",:ssor the Commission by a registered insurer, a registered insurance erroneous [The inclusion of this pap is authorized by L.N. 33A120051

THE INSURANCE REGU. TIONS. 2001 intermediary or any other person is any way incomplete, inaccurate, misleading, or otherwise fails to comply with any requirement of the Act, hese Regulations or any directive of the Commission, the Commission may, after considering any explanation made by or on behalf of the person hishing the statement or document, require, by notice in writing, that the registered insurer, the registered insurance intermediary, or the person filing or completing such statement amend the document or hish a correct or complete document or, as the case may be, a document prepared in accorpance with the Act, these Regulations or any directive of the Commission, within such time as the Commission may specify. (2) Where a registered insurer, a registered insurance intermediary or the person filing or completing such statement fails to comply with a notice referred to in paragraph (I), within the time specified, to the satisfaction of the Commission, the Commission may reject the document or may amend the document, giving the registered insurer, registered insurance intermediary or person filing or completing such statement particulars of the amendments. (3) A document amended by the Commission pursuant to this regulation shall be treated as having been submitted to the Commission in its amended form. (4) Where a document furnished by a registered insurer, a registered insurance intermediary or any other person has been rejected by the Commission pursuant to paragraph (2), the registered insurer, registered insurance intermediary or such person shall be treated as having failed to comply with this regulation in relation to that document unless and until it has hished another document in accordance with the directive of the Commission. Fees. 164. The fees to be paid in respect of the various provisions of the Act are as set out in Schedule 20. [The inclusion of this page is authorized by L.i'i. 33N20051

THE INSURANCE REGULATIONS, 2001
FIRST SCHEDULE (Regulations 3 and 4)
CLASSES OF INSURANCE BUSINESS
Classes Definitions - - 1. Accident Insurance Business The business of effecting and carrying out contracts of insurance (excluding contracts falling within paragraph (c) of the defmition of "ordinary long-term insurance business") against risks of the persons insured sustaining injury or dying as the result of an accident, or of an accident of a specified class, which provides for fixed pecuniary benefits or benefits in the nature of an indemnity (or both).
2. Liability Insurance Business The business of effecting and cartying
out contracts of insurance against risks of the persons insured incurring liabilities to third parties, not being risks arising out of, or in connection with the use of, motor vehicles or out of, or in connection with the use of, vessels or aircrafl or risks incidental to the construction, repair or docking of vessels or aircraft.
3. Marine Aviation and Transport The business of effecting and carrying
out contracts of insurance-
(a) upon vessels or aircraft or upon the machinery, tackle, hniture or equipment of vessels or airmatt; (b) upon goods, merchandise or property of any description whatever on board of vessels or aircraft; (c) upon fight of, or any other interest in or relating to, vessels or ahaft; (4 agaYlst damage arising out of, or in connection with, the use of vessels, or aha4 including third-patty risk, (e) against risks incidental to the construction, repair or docking of vessels, including third-party risks, [The inclusion of this page is authorized by L.N. 33A120051

Classes

THE lNSURQNCE REGULATIONS, 2001
FIRST SCHEDULE, contd.
Definitions -
V)againsttransitrkks(whetherthe transit is by sea, inland water, land or air, or partly one and pady &a), inchding risks incidental to the transit immd fhm the commen~em~lt of the bansit to he ultimate destination covered by the insuranins or (g) against any other risks insurance against which is cusZomarily undatlken in amjunction with, or as incidental to, the und-g of suchbusinessasfallswifhinthis deiinition by vittue of any of the &going paragraphs.
4. Motor Vehicle Insurance Business The business of effecting and carrying
out contracts of insurance against loss of, or damage to, or arising out of or in connection with the use of, motor vehicles, inclusive of third-party risks but exclusive of transit risks.
5. Pecuniary Loss Insurance Business The business of effecting and carrying
out contracts of insurance against any of the following risks, namely- (a) risks of loss tot he person^ arising finm the insolvency of debtots of theirs or fhm the failure (ohwise than through insolvency) of debtors of theirs to pay their deb& when due; (b) risks of loss to the persons insured arising finm their having to perform contracts of guarantee entered into by them; (c) risks of loss to the persons insured athibutable to their incutring domen expense; and (d) risks neither falling within any of the foregoing paragraphs nor being of a kind such that carrying on of he busiiess effecting and carrying out contmcts of insuranceagainstmemconstituta [The inclusion of this page is authorized by L.N. 33A12005]

THE INSURANCE REGULATIONS, 2001
FIRST SCHEDULE, contd.
Classes

Definitions - the canying on of insurance business of some other class and; excludes risks of loss to the pasons insllred attributable to intmuptions of the canying on of business canied on by them or to reductions of the scope of business so canied on. Property Insurance Business The business of effecting and carrying out contracts of insurance against risks of loss of, or damage to, real or personal property, not being risks of a kind such that the business of effecting and carrying out contracts of insurance against them constitutes marine, aviation and transport insurance business or motor vehicle insurance business and includes risks of loss to the persons insured attributable to interruptions of the carrying on of business carried on by them or to reductions of the scope of business so carried on. Industrial Insurance Business The business of effecting and carrying out contracts of insurance upon human life, premiums in respect of which are payable at intervals of less than two months in each case and are contracted to be received or are usually received, by means of collectors. Ordinary Long-Tern Insurance The business (excluding industrial Business insurance business) of any of the following kinds, namely effecting and carrying out contracts of insurance- (a) on human life or contracts to pay annuities on human life; (b) against the risk of the persons insllred sustaining injury or dying as a result of an accident, or of an accident of a specific type; (c) against loss resulting hm the illness or disability of a pason other than loss resulting hm d@h. [The inclusion of this page is authorized by L.N. 33A12005]

THE INSURANCE REGULATIONS, 2001
Classes

FIRST SCHEDULE, contd.
Definitions
9. Sickness and Health Insurance
Business
(d) whereby an insurer undertakes to payamtainsumorsumsof money in the event of the illness or disability of a person; (e) against expenm in& for vision or dental care, laboratory or x-ray services, hospitalization, and all other medical or healthcare services whatsoever, or VJ whether effected by the issue of policies, bonds or endowment certificates or otherwise whereby, in return for one or more premiums paid to the insurer, a sum or a saies of sums is to become payable to the insured in the hbm, not being contracts falling within para& (4, (b), (4 or (4. The business of any of the following kinds, namely, effecting and carrying out contracts of insurance-- (a) against loss resulting from the illness or disability of a person other than loss mlting hm death, (b) whaeby an insurer undertakes to payacertainsumorsumsof money in the event of the illness or disability of a person; or (c) against expema in& for vision or dental care, labaatory or x-ray services, hospitalization, other than for illness or disability arising out of an accident [The inclusion of this page is authorized by L.N. 33AI2005)

THE IhGURANCE REGULATIONS, 2001
(Regulation 5)
REGISTER OF INSURANCE COMPANIES
[The inclusion of this page is authorized by L.N. 33A/2005]

THE INSURANCE &GULATIONS, 2001
THIRD SCHEDULE
(Regulation 6)
APPLICATION FOR REGISTRATION OF INSURANCE COMPANIES Application by an Insurance Company for registration under Part I1 of the Act to cany on in Jamaica insurance business of a relevant class or relevant classes A-PARTICULARS OF COMPANY BUSINESS AND REGISTRATION REQUIRED Name of Company. Full address of the principal office of the company in Jamaica where service of notice may be effected. Date and place of incorporation. The name of the principal officer of the company in Jamaica. Summary of main objects of company (attach statement where necessary). The authorized and paid-up capital. If paid-up capital will be increased before registration under the Act give details. The amount by which the assets of the company exceed liabilities (including all contingent or prospective liabilities but not liabilities in respect of share capital). The relevant class or classes of insurance business which the company carries on (a) in Jamaica and (b) elsewhere at the present time and the amount of business undertaken outside Jamaica. Particulars of any business other than insurance business which the company carries on at present or proposes to carry on anywhere, indicating how such other business will be separated from the insurance business. The class or classes of insurance business for which registration is sought. Has the company been refused permission to cany on such class (or any, and if so, which, of such classes) of insurance business in any other country? If the company intends to limit its activities to insuring only some of the risks of the class or classes of business for which registration is being sought:
particulars of the risks to be insured.
Does the company cany on any class of long term business with any class of general business in (a) Jamaica (b) elsewhere? If yes, state classes involved. If in addition to ordinary long-term business the company at present carries on in Jamaica any class of general business other than accident insurance business the transitional period required before cessation of ordinary long-term classes or general classes, is:
(a) if cessation is of the ordinary long-term classes, then 5 years:or (b) if cessation is of the general classes, 3 years. (The inclwioii of this page is authorized by L.N. 33A/2005]

THE INSURANCE REGULATIONS, 2001
THIRD SCHEDULE, contd.
13. Is the company carrying on business in Jamaica as a broker? State whether or not
the company's directors have or propose to hold any beneficial ownership in any insurance brokerage business in Jamaica: full details should be given. %BUSINESS PLAN
14. The estimated amount of premium income (both gross and net of reinsurance)
during each of the next three years in respect of each class of insurance business which the company will carry on set out hereunder:
Gross Net of Reinsurance
Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 $$$$$$ (a) fiom direct insurance in Jamaica (b) from direct insurance elsewhere (c) from reinsurance accepted in Jamaica (4 fiom reinsurances accepted elsewhere (e) Total (a) to (4.
15. Audited Financial Statements for the past three years.
16. The amount (if any) by which it is intended to increase the paid-up capital of the
company during the next three years.
17. The sum expected to be spent during each of the next three years on new
premises, ofice equipment, motor vehicles, etc.
18. The sum expected to be spent during each of the next three years on advertising
or other methods of promoting business.
19. For each and every class of insurance business to be carried on by the company
in Jamaica during the next three years:
(a) The method or methods by which the policies will be marketed (e.g. by the company's own organization, by brokers, salesmen, agents, or by all methods). (b) If more than one method is proposed under (a) the expected proportions to be marketed by each method. (c) The rates of commission which will be paid to the categories indicated at (a) above; and (4 The extent to which and the conditions under which any of the categories at (a) will have binding authority to commit the company.
20. Where an overseas company operates or proposes to operate in Jamaica through
the medium of a local agent or agents a summary of the main arrangements pertaining to the agency agreement(s) and the extent and system of supervision and control to be exercised by the principal. (Attach statement if necessary). [The incluion of this page is authorized by L.N. 33Ai20051

THE INSURANCE REGULATTONS, 2001
THIRD SCHEDULE, contd.
21. Where the company proposes to operate in Jamaica on a Branch basis details of
the organization and structure of the Branch arrangements. (Attach statement if necessary).
22. The way in which the settlement of claims will be handled (e.g., by the
company, by outside loss adjusters or assessors or by other persons with authority to settle claims).
23. The company's policy and practice or proposed policy and practice relating to
the settlement of claims. (Attach statement where necessary).
24. Particulars of any association which exists between any of the brokers, agents,
loss adjusters or assessors and any director pf the company, any director it is proposed at present to appoint, any person having a majority shareholding in the company or any other person on whose directions the directors of the company or any of them act or will act.
25. The name or names of the company's agent, or agents in Jamaica, their address
or addresses and the classes of insurance business for which they will be responsible.
26. In respect of each class of business for which registration is being sought:
(a) The proposed premium rates before deduction of commission. (b) The percentage of premiums (net of reinsurance) which claims are expected to form and any other relevant information on which premium rates are based. (c) The percentage of premium (net of reinsurance) which management expenses are expected to form. (d) The proposed selection of risks; and (e) Attach copies of the standard forms of policies. Where applications for registration to carry on industrial insurance business or ordinary long-term insurance business are being made the information requested at (b) and (c) need not be given but the company should provide a statement of the actuarial bases of the premium rates and, in the case of equity-linked business the proportion of premiums to be invested in or related to the hnd. Applicants should also supply a certificate by an actuary stating that he considers that premium rates are satisfactory in the light of the information disclosed in the application and that the proposed amount of capital is adequate to support the amount of business. C-REINSURANCE CEDED
27. The nature and extent of the existing or proposed reinsurance arrangements for
each class of business indicating clearly the amount of the applicant company's retention in each case. (Attach supporting statement, reinsurance treaties, etc.). [The inclusion of this page is authorized by L.N. 33N20051

THE INSURANCE REGULATIONS, 2001
THIRD SCHEDULE, contd.
28. Names of the insurance companies or associations of underwriters which will
reinsure each class of the company's business and the amount which will be reinsured by each. (Attach supporting statement, if necessary). .- D-CONTROL OF COMPANY
29. In respect of (i) *each of the promoters of the company, (ii) each of the present
directors of the company, (iii) any directors it is proposed to appoint (iv) any other persons in accordance with whose directions the directors of the company or any of them act or will act and (v) each person who at the present time, either has an interest in or it is proposed at present will have an interest in, shares of the company having a nominal value of 10% or more of the company's total share and which cany voting rights- (a) Full names (including any previous name or names by which known). (b) Address. (c) Nationality (indicating whether by birth or acquired by registration or naturalization). (d) Date of birth. (e) Place of birth. V) Present occupation, previous occupations, organizations to which employed during last ten years and reasons for leaving. (g) Particulars (including date and place) of any convictions for offences involving fraud or dishonesty in Jamaica or elsewhere. (h) Whether the person has been adjudicated bankrupt during the last ten years and particulars of any company with which the person was associated during the last ten years and which was compulsorily wound up whilst he was associated with it. If adjudicated a bankrupt, state whether or not the person has been discharged and if so, when. (i) Percentage of share capital of company in which the person has an interest at present or will have an interest. (j) Other directorships (if any) held at present and former directorships held during the last ten years; and (k) Names of any other companies in which the person is entitled to exercise or control the exercise of one-third or more of the voting power at a general meeting. [*The information about the promoters of the company specified above is only required where the officers of the company have not yet been appointed.]
30. In respect of the company's actuary and each of the persons who will be in
charge of one or more of the following departments of the company, viz., fire, accident, life, marine, aviation, claims, agency, investment, accounting and underwriting, by whatever title he may be known- [The inclusion of this page is authorized by L.N. 33A/2005]

THE INSURANCE REGULATIONS, 2001
THIRD SCHEDULE, contd.
(a) Full names (including any previous name or names by which known):
(b) Address:
(c) Date of birth:
(d) Place of birth:
(e) Position held in applicant company:
0) Qualifications and experience:
(g) Present occupation, previous occupations, organizations to which employed during last ten years and reasons for leaving:
(h) Particulars (including date and place) of any convictions for offences involving fiaud or dishonesty in Jamaica and elsewhere. (If the company's actuary is a consulting actuary the name of the partnership to which he belongs, together with any directorships he holds at present and any former directorships held during the last ten years must be stated). E-INVESTMENTS AND BROKERS
31. A list of the investments under suitable headings at present held by the
company, the value of each investment at the end of the last financial year and the method of valuation.
32. The categories of investments in which the insurance funds in respect of the
business for which registration is being sought will be held and the approximate proportions in each category. If it is intended that any of the insurance funds will be invested in currencies other than Jamaican dollars, the approximate percentage of each fund which will be invested in each currency should be given.
33. Details of (a) any unpaid loans which the company has made, and (b) any loans
which the company proposes to make to any officer of the company and any proposed loans to or investments in an associate company or any company in which any officer of or other person controlling the applicant company is entitled to exercise, or control the exercise of onethird or more of the voting power at any general meeting of the company. I
34. The place or places at which the documents of title in respect of the company's
present investments are held and the names of the persons authorized to deal with such, the place or places at which it is proposed to hold the documents of title in respect of the company's present and future investments and particulars of any of the documents which are or will be held outside Jamaica.
35. The names qd addresses of all banks in which the company has accounts at
present or intends to have accounts.
[The inclusion of this page is authorized by L.N. 33.4/2005]

THE INSURANCE REGULATIONS, 2001
THIRD SCHEDULE, contd.
F-FINANCIAL YEAR AND AUDITORS
36. The date on which the company's financial year will end; if other than
December 3 1 the approval of the Commission is required.
37. The name, address and qualifications of each of the company's auditors, both in
Jamaica and elsewhere.
G-DOCUMENTATION
38. The above application is hereby accompanied by the following￾Certified copies of the Memorandum and Articles of Association,
or charter, or Act of incorporation or other instrument constituting the company. Certified copies of the latest audited Balance Sheet, Profit and Loss Accounts and Revenue Accounts and the aforementioned Financial Statements over the previous three financial years of the company. Certified copies of the latest annual report. Specimens of all categories of insurance policies issuable by the applicant in respect of all classes of insurance business to be undertaken in Jamaica. Latest actuarial report of the company where it proposes to undertake or has undertaken any class of long-term business in Jamaica. Original receipt from the Financial Services Commission evidencing payment of registration fee. A certificate signed by the Chairman, a Director and Chief Financial Officer of the company stating that the company has fulfilled the capital and solvency requirements indicated at sections 9 and 53 of the Act. (Where the company undertakes any class of long-term business along with general business the certificate should also be signed by an actuary). A detailed memorandum indicating the organization of the company andlor its agency, agencies in Jamaica. The memorandum should be signed by the Chairman of the Board of Directors, a Director and the Secretary of the company and should include therein statements pertaining to the experience and qualifications of existing staff or proposed staff in Jamaica whether of the applicant company, its agency or agencies. [The inclusion of this page is autho~ized by L.N. 33N2M)S]

THE INSURANCE REGULATIONS, 2001
THIRD SCHEDULE, contd.
APPLICATION AND CERTIFICATE OF TRUTH AND CORRECTNESS We hereby apply on behalf of ................................................... (Insurance Company) for registration under Part I1 of the Insurance Act, to carry on in Jamaica insurance business of the class or classes indicated at regulations 3 and 4. We certify that to the best of our knowledge and belief all the information given in this application and contained in supporting statements and documentation submitted is true and correct. Name (Print)
........................................
Director
........................................ Director ........................................ General Manager or Secretary ........................................ Principal Officer in Jamaica
Date.. ................................. 20.. ....
[The inclusion of this page is authorized by L.N. 33N20051

THE INSURANCE REGULA TIONS, 2001
FOURTH SCHEDULE
THE INSURANCE ACT
Certificate of Registration for Company
Certificate of Registration No. .........................................................
Date of Certificate .......................................................................
This is to certify that ..................................................................... (Name of company)
Whose principal office in Jamaica is situated at .....................................
....................................................................... has been registered (address ofprincipal office) to carry on in Jamaica the following classes of insurance business￾1. 2. 3. 4. 5. 6. Etc. The registration of the company is subject to the following conditions:
1.
2.
3.
4.
Etc.
(See attachment where above space is inadequate) Dated this .............................. ,....day of.. .............. 2001.
.............................................
The Financial Services Commission
[The inclusion of this page is authorized by L.N. 33N2005]

THE INSURANCE REGULATIONS, 2001
FtFTH SCHEDULE
Insurance Co.
Insurer
Reference
THE MINIMUM ASSET TEST
(MAT)
~ssets Available for Test Purposes
'otal assets ....................... ......................................................... 01
'lus: Excess of Market Value over Book Value ............................ 02
.............................................................................................. 03
,ess: Non-admilred Assets ...................................................... 04
Investment Assets: Excess book value over market value ... 05 F~teign Exchange Reserve .................... ....................... Of
Ieferred Policy Acquisition Expenses .......................................... 97
....................................................................................................... 28
issets Available for Test Purposes ............................................. 35
issets Required for Test Purposes rotat Liabilities ............................................................................... 4( 'lus: Reserve for Reinsurance Ceded to Ineligible/Unlicensed Insurers..4? Margin required for Accident and Sickness policies ............... 4( Margin required for policies other than Accident and Sickness (the greatest of page 30.1 1. lines 29, 39 and 49) .................... 4' ................................................................................................ 4:
Unearned Commission adjustment ........................................ 5
............................................................................................. 5:
(Regulation 28)
Assets Required for Test Purposes .......................................... 69
Excess of Assets Available Over Arrets Required for
Test Purposes (line 39 minus line 69) ............................................ 89
Year
Line 89 as a % of line 69 .................................................................
Next Page is 30.1 1
0

[The lnclution of thii psse b authorid by L.N. 331/20051 0 I I

Insurance Co.
Insurer
Reference
TI-IR INSl/RANCR RRGlII.ATIONS. 2001
FIFTH SCHEDULE, contd.
30.1 1
MINIMUM ASSET TEST (con~inued)
CALCULATION OF MARGINS AND REINSURANCE RATIO Kcinsurancc ratio :Accident and Sickwss claims are cxclutlcd liom the calculation) 3ross claims incurred during preceding 12 months
:page 60.20, line 89 minus line 70, column 08+09) ....................................... 01
Portion of line ol in respect of reinsurance ceded during preceding I2 months (page 60.20, line 89 minus line 70, column 10) ........................ 0; Reinsurance Ratio: lesser of (line 02Iline 01 x 100) and 70% ..................... 0' Margills rcquircd for Ted1 I'urliosc~s' (a) Accident ant1 Sickncss Policjes Margin on claims (I 5% of net unpaid claims and adjustment expenses other than those in respect of instalmcnt claims) ...... I( Plus: Margin on uncarned premiums (15% of net unearned premiums other than those in respect of non-cancellable policies or, il'applicablc, pagc 30.30, line 70, column 06) ... I Margin required for Accidcnt and Slckncss Policies .................... I' (b) I'olicics ellicr ilia^^ Accidcul and Sickncss Policics (I) Unpaid Claims and uncarncd Premiums (Nct) Margin on claims (15% ol'unpaid claims and adjustnxnt expenses) 21 Plus: Margin on unearned premiums (15% of unearned
premiums or, if applicable, page 30.30, line 69, column 06) ........... 2
Lxccss ol' "llcquircd Coverage" over "Rcscrvc" for Reinsurance Ceded to Unregistered Insurers (page 70.30,
line 89 + 95, column 16 minus eolumn 15) ................. ................. 2
Year
Current Prior
Y car Ycar
(01 ) (02) -
[The Inclus,on of lhk page Is authorized by L N. 331/2005] [The Inclusion of this page is authorized by L.N. 33N20051

THE INSUM NCE REGULA TIONS, 2001
FIFTH SCHEDULE, conrd.
THE MINIMUM ASSET TEST, conrd.
30.1 1. conrd.
Insurance Co. lnsurer
Reference i0.20
klargin required for Unpaid Claims and Unearned Premiums ........... 29
(ii) Premiums Written
Basic margin (1 5% of gross premiums written during preceding
12 months) ................... .................................................................. 30
Plus: Supplementary margin on gross premiums (lesser of 5% of gross premiums written during preceding 12 months and $1 5,000,000) .......................... .............................................. 3:l
Gross margin ........................................................................................... 32
Less: Margin reduction for reinsurance
(Gross margin x Reinsurance Ratio) ......................................... 33
Margin required for Premiums Written .......................................... 39
(iii) Claims Insured
Basic margin (22% of average annual gross claims incurred
during preceding 36 months) .............................. .......................... 40
Plus: Supplementary margin (lesser of 7% of average annual gross claims incurred during preceding 36 months and
$15,000,000) ...................................................................... 41
Gross Margin .............................. ............................................... 42
Less: Margin reduction for reinsurance
(Gross margin x Reinsurance Ratio) .......................................... 43
Margin required for Claims Incurred ............................................ 4
Year
Current Prior
[The Inclusion of this page ip authorucd by L.N. 331/2005]

THE INSURANCE REGULATIONS. 2001
Jnsurance Co.
TENTH SCHEDULE, contd.
30.15
RESERVES REQUIRED
($'OOO)
Nowadnutted Assets
Receivables from Agents and Brokers in arrears ........................ ........... 01
Premiums receivable from Policyholders in arrears ............. ........ 02
Instalment Premiums in arrears .. ............. 03
Less: Total amount deducted from the foregoing items as
Allowance for Doubtful Accounts ..................................................... 04
Other Assets ............................................................. 05
Computer Hardware adjustment ................................................................. 06
Deferred Income Tax Debits ....................................................................... 07
Less: Admitted Deferred Income Tax Debits ........... .......... 08
Total Nan-admitted Assets .......................................................................... 19
Investment Assets: Excess book value over market value ........ 20
Foreign Exchange Reserve ........ . 21 E??
Total Investment and Foreign Exchange Reserves ......................................... 29
Reserve for Reinsurance Ceded to Unlicensed or ineligible Insurers
(page 70.30. line 89 + 95. column 15) .... ..... 32
Additional Policy Provisions ...................................................... 34
........................................................................ 35
TOTAL RESERVES REQUIRED ............................................................... 89
DEFERRED POLICY ACQUISITION EXPENSES and UNEARNED COMMISSION ADJUSTMENT (saoo0) Deferred Policy Acqulsitio~~ Expenses
Deferred Commissions ........................................................... 90
Deferred Premiums Taxes .. ...... ...... ...... . ..... .. ... .. .. . . . ... .9 1
Deferred Acquisition Expenses (other) ...... ....... 92
Total Deferred Policy Acquisition Expenses ................................................ 94
Less: Unearned Commissions . ............. 95
Net Deferred Policy Acquisftion Expenses adjustment (where positlve) .. 96
Unearned Commission adjustment (the lesser of line 94 and 95) ................... 99
Year
FSC-G-2001
Next Page is 30.30 me lncluion of this page ia auhorizcd by L.N. 33AROOS]

THE INSURANCE REGULA TIONS. 2001
SIXTH SCHEDULE
(Regulation 29)
THE MINIMUM CONTINUING CAPITAL AND SURPLUS REQUIREMENT (MCCSR) [The Inclusion of thu pqe is aulhorid by L.N. 33AQOOS1

MCCSR Form
THE INSURANCE REGULA TIONS, 2001
SIXTH SCHEDULE, contd.
MCCSR RATIO CALCULATIONS
SUMMARY PAGE
[The Inclusion of this pqe is authorized by L.N. 33A12005) Capital Capital Required :
Asset Default Risk
Mortality Risk
Morbidity Risk
1
2
3

THE INSURANCE REGULATIONS, 2001
MCCSR Form SIXTH SCHEDULE, conrd.
CAPITAL ELEMENTS

• -
  pa&ipaGg Account
  Non-paticipatmg account (mutual companies) Non-cumulative perpetual/inedeemable preference shares Adiusted Investment Reserves (realized) -Real Estate Ordinary Share I Adi&ted' Investment Reserves (realized) - Stocks I Retained Earnings I CUIT~& %inslation Account Deduct: Goodwill Cash surrender value deficiencies calculated on in aggregate basis I I 1 -~ - - - - -- - Other Negative Reserves Adiusted ' Investment Reserves (realized) -Real Estate and I I Oualifvine Minoritv Interests Gross Tier 1 Capital Net Tier 1 Capital gsg:ggBgg$4$@@ :,:.:.:, :.:.X.I :.:. x.:.:.:.:.~+:.X.: ...,... x.:.:.,. .:...s+ Stocks backing liabilities Preference Shares I Subordinated debt I -- - - Other debentures 1 Minority Interest Gross Tier 2A Capital I I Tier 2B-Limited Life Instruments Subordinated debt Other debentures Minority interest I Gross Tier 2B Capital I E@ [me Incluswa of thir page is auf)mired by L.N. 33Al20051

THE INSURANCE REGULATIONS, 2001
SIXTH SCHEDULE, contd.
CAPITAL ELEMENTS, contd.
33% of Net Tier 1 Capital (line C)
Negative reserves allowed for capital lesser of H and J or zero if negative Cash surrender vdue deficiencies on an aggregate basis x 75%2 Adiusted' Investment Reserves (unrealized) - Real Estate and Stocks Tier 2C -Other Capital Items Negative Reserves x 75%2 I Less: Adjusted' Investment Reserves (unredized) -Real Estate and I I sw>$g$s$-
::, g&~~$$~~~g~~~~ a. ,, ,:% ..., .. .".. .,, .. ,. ,, , ,..... . . .......
1 andstocks backing liabilities 1 I I
Other (specify) R I
Deduct: Investments in non-life financial corporations controlled by the company Substantial investments in corporations I Adjusted means net of disposition costs and any taxes payable (actual or assumed). Use 62.5% in year 2 and 50% in year 3 P Q Inclusion of he page is authorized by L.N. 33AIu)OJl

THE INSURANCE REGULATIONS, 22001
MCCSR Form
SIXTH SCHEDULE, contd.
ASSET DEFAULT (C-1) RISK
Assets' Balance
A
Cash
I Smritia issued or guaranteed by the Govem￾ment of Jamaica at amortized value I Adjustment for Collateral1 Guarantee B 0 Investment Income-due and accrued Policy Loans Receivables: Reinsurela Other commercial paper 1 I 0 1 15% 1 0 Other (specify) 0 Net Assets (A-B) C 0 Bank czrtificates of deposit Commercial paper guaranteed by bank deposit Commercial paper rated "R3". "A-3" or higher I - - Bonds rated "A or higher 01 2%1 0 Bonds rated less than "A and higher than "C" I 01 8%I 0 Factor D 0% 0% 0% 0 Securities issued or guaranteed by the Govem￾ulent of Jamaica at amortized value FINSAC bonds @eld to maturity) Co~rmercial bondsldebenturs guaranteed by bank deuosit Capital Required (0) B 0 Orher (specify) Sbtotsl Bods/DebeturenlLoas 0.25% 0.25% 2% 0 Other conmrercial bonduldebentures Bondddebennires/loans (non-perfonningl in default2) 0% 0% 0.25% 0 15% 35% 0 0

THE INSIJRANCE REGULATIONS, 2001
SIX~H SCHI~JLE, contd.
ASSET DEFAULT C-1 RISK, contd.
Adjustment Capital for Collatcmll Net Assets Required 1 "lye 1 Charlee 1 (A;") /Fa? 1 ""'1 1 Mortgages First mortgage on residential units 0 2% 0 Commercial mortgages 0 8% 0 Restn~ctured loans and mortgages 0 15% 0 Non-perform in^ mortgagesZ 0 35% 0 Ordinary Shams Muh~al Funds, Segregated Funds, Unit T~sts Lessee: financial leases (insert appropriate factor for the asset leased) 0 0 Cornpaqy occupied 0 5% 0 Incomr. producing Mining propelties - ' All assets are net of provisions and depreciation =Between 90 to 180 days overdue. This factor is in addition to the factor for performing assets. ' Valued using the equity method of accounting Foreign Life Subsidiaries' Other (specify and hert appropriate factor) - Total Capital Required for Asset Default Risk 1% lnclurion of this pgc IS authorized by L.N. 33AROD.51 0 10% 35% 0 0 15% 0

THE INSURANCE REGULATIONS, 2001
SIXTH SCHEDULE, contd.
MORTALITY RISK
[The Inclusion of this page is authorized by L.N. 33An0051

MORBIDITY RISK
Annual Earned

! Form LAPSE RISK
Net Actuarial Recalculated Net Capital Required Reserves Actuarial Reserves (6-4 ~isk- actor I A I B I C Individual Life IA. Participating and Adjustabi~ 1- A I Premium seres t
6. Other policy series IGroup A ( - -, I
Total Capital Required for Lapse Ri,.. I

WCSR Form
FOREJGN EXCHANGE RISK
Exchange Rate
Assets (backing used for liabiris) Liabilities conversion to I Net Assets or I &nominated in denomhatedin I Liabilities in JS Currency I - I nr~50 350 I I OOSO 0.050 Total Capital Required for Foreign Exchange Risk
Page 1 W 1

WCCSR Form
CHANGES IN INTEREST RATE ENVIRONMENT RISK Risk Factor A Lie B Health Insurance other than Universal Life B. Endowment Insurance other than Universal Life ID Accumulation Funds I I 1
C. Single premium immediate annuities
Disability claims payable in installments Policy Liabilities A I I
0.010 I (
0.010 I f
I
-. ~- -~ - - -.
Factor
B
0.020
0.030
Daily interest, or 6 months remaining
<to years for types A B B

= 18 months < 10 years for type C
= 10 years for types A 8 B
= 10 years for type C
= 6 months < 18 months for type C
E Other (specify fy 8nsert factor)
Capital
Required (AXE)
C
I t
7
1 0.005
0.010
0.050
0 020
0.100
0.020
( t
C
( t
Total Capital Required for interest Rate Environment Risk (I

THE INSURANCE RECULA TIONS, 2001
Next page: 2.000
SEVENTH SCHEDULE
(Regulation 30)
SEGREGATED FUNDS REPORT
0.001 insurer Year
LIST OF SEGREGATED FUNDS
[The inclusion of this page ip authorized by L.N. 33A/2M)5] 00 1 002 003 004 Total Assets Covering Policies issued in Jamaica Ja. Dollars ($) (04) Fund I.D. # (01) Name of Fund (02) Total Assets in Fund Ja. Dollars ($) (03) ----

THE INSURANCE REGULATIONS. 2001
Insurer
SEVENTH SCHEDULE. contd . 0.003 Year
ASSETS AT MARKET VALUE (TOTAL FUNDS)
Ja . Dollars ($)
Current Prior Year
(01)
C' Cash 001 .................................................................. I
Receivables for Investments Sold ..................... 004
Investment Income Due and Accrued ............... 006
Receivable from Contractholders ...................... 008
Other Receivables ............................................ 010
Short Term Investments .......................... ... 014
Bonds and Debentures ...................................... 018
Mortgage Loans ............................................ 020
Other Loans ....................................................... 024
Preferred Shares .................................... .... ........ 028
Common Shares ............................................ 030
Segregated Fund or Mutual Fund Units ............ 035
Real Estate ................................................. 038
Other lnvestrnents ............................................. 042
Other Assets .................................................. 044
Assets before Adjustment ............................... 046
Less: lnterfund Adjustment ............................... 048
TOTAL ASSETS ............................................. 049
LIABILITIES AND CONTRACTHOLDERS' EQUITY (TOTAL FUNDS) Ja . Dollars ($)
Payable for Investments Purchased .................. 052
Payable to Contractholders ............................. 054
Management Fees Payable .............................. 058
Other Fees and Expenses Payable ..................... 060
Other Liabilities .............................................. 068
Total Liabilities ............................................... 069
Contractholders' Equity ................................... 075
Total Liabilities and Equity ............................ 099
Next page: 3.000
[The Inclusion of this page is authorired by L.N. 33A/2005]

THE INSUR.4 NCE REG ULA TIONS. 2001
SEVENTH SCHEDULE. ~0ntd
0.007
Year
STATEMENT OF OPERATIONS (TOTAL FUNDS)
Ja . Dollars ($)
Dividend Income ............................................ 001
Interest: . Bonds and Debentures ................ 010

• Mortgages ................................... 020
• Loans ........................................... 025
  Net Rental Income ............................................ 030
  Realized Gains (Losses) .................................. 035
  Unrealized Gains (Losses) ................................ 040
  Other Revenue .................................................. 045
  Total Revenue Before Adjustment ................. 046
  Less: lnterfund Adjustment ...................... 047
  Total Revenue .................................................. 049
  Management Fees ............................................. 055
  lnvestment Advisory Fees ................................. 060
  Custodian Fees ................................................ 065
  Investment Dealer Fees ..................................... 070
  Audit. Legal and Other Fees ............................. 075
  Fil~ng and License Fees ..................................... 080
  Other Expenses ............................................... 085
  Total Expenses ................................................. 089
  Net Income ................................................... 099
  Next page: 4.000
  [The Inclusion of this page is arthorizcd by L.N 33A/2005]

Insurer
THE INSURANCE REGULATIONS, 2001
SEVENT~ SCHEDULE, contd,
CONTRACT HOLDERS' EQUITY RECONCILIATION AT YEAR END BY INDIVIDUAL FUND [The Inclusion of this psse is authorized by L.N 331/2005]

THE INSURANCE REGULA TIONS, 2001
SEVENTH SCHEDULE, contd.
0.010 insurer
LIFE INSURER'S EQUITY RECONCILlATlON AT YEAR END BY INDIVIDUAL FUND Year [The Inclusion of this page is authormd by L N 33N20051

INSURANCE
Insurer
SEVENTH SCHEDULE, contd.
0.040
Year
INTERROGATORIES TO SEGREGATED FUND RETURN

1. In respect of all major types of transactions or services entered into between the life
   insurer and the segregated funds, please disclose the nature, total amount for each transaction, the basis of calculation for such an amount and any debt or receivable outstanding at year end for each segregated fund.
2. If the insurer has transferred funds between the general fund and the segregated
   funds for other than initial seed money and liquidity maintenance purposes, disclose how the insurer accounts for all amounts it has transferred to its own segregated funds (speciFy how it values in its general fund the amounts transferred):
   (i) book value; (ii) market value; (iii) amortized to markets values. (Please disclose rate of amortized). [The Inclusion of this page is authol.ized by L N J3A??OOS]

THE INSURANCE REGULA TIONS, 2001
SEVENTH SCHEDULE, contd.
0.041
Insurer Year
INTERROGATORIES TO SEGREGATED FUND RETURN, contd.
3. (a) Does the insurer sell variable policies or contracts out of its general fund which are
matched against units of its segregated funds?
001 Yes: No:
If yes, explain why the policy is held in the general fund.
(b) Are the units against which the general fund variable contracts are matched held in the general fund? 0 l 1 Yes: No; If yes, describe the manner in which the units are valued in the general fund and how the value is matched to the liability. If question 3(b) is answered with a "No", describe how the liability is matched. Next page: 8.000 [The Inclusion of this page is aulhorired by L.N 33A/2OOS]

Insurer Year
INTERROGATORIES TO SEGREGATED FUND RETURN
5. Please dkdose the actuarial reserve amounts held in the general fund for each segregated fund that has a guarantee attached to it
Next page: 9.000

Insurer
THE INSURANCE REGULATIONS, 2001
SEVENTH SCHEDULE, confd.
0.043
Year
INTERROGATORIES TO SEGREGATED FUND RETURN, confd.
6. Does the fund employ off-balance sheet financial contracts such as options, futures,
forward and other derivative transactions?
001 Yes: No: - i
If yes, please provide details by fund outlining the purpose, arrangements and contract amount for all such transactions outstanding at any time during the current year. Also, disclose by type, the income derived from the specified transactions. 7 (a) Has the fund given a security interest on any of its assets, provided a guarantee or arranged for the general fund to give a guarantee on its behalf? 011 Yes: No:
If yes, please provide details outlining the purpose and arrangements for such security interest. (b) Have the contractholders been informed of the fact that off-balance sheet activity and security interest arrangements may be entered into by the funds? 021 Yes: No:
(c) Are contractholders provided with an explanation of such activity for the current year? 022 Yes: No:
8. Will all segregated funds with individual contracts be audited and will financial statements
for the current year of such funds be available to the contractholders? 031 Yes: No:
Next page: none
[The lnclwion of this pagc is authorized by L.N. 33A/2/2005]

INSURANCE
EIGHTH SCHEDULE
(Regulation 3 1)
ANNUAL STATEMENTS FOR LIFE AND HEALTH INSURERS [The Inclusion of ILL pa~c is authorized by LN. 33AIZW5I

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, contd.
JAMAICAN LIFE INSURANCE COMPANIES
FINANCIAL SERVICES COMMISSION ANNUAL RETURN FORM
Table of Contents
FSC Form
Corporate lnformatian
Annual Corporate Information
Other Jurisdictions in which the insurer is Licensed Executive Officers, appointed Actuary and Appointed Auditor Directors Changes of Directors, Executive Officers, Actuary and Auditor Shareholders-By Class of Shares Capital Stock; Contributions to Surplus Corporate Organization Chart Corporate History Assets Liabilities, Policyholders' and Shareholders' Equity Income Statement Statement of Participating Account Statement of Non-Participating Account Statement of Retained Earnings Statement of Change in Financial Position Notes to the Financial Statements Auditor's Report Reconciliation of the Consolidated Financial Statements to the Non-Consolidated Financial Statements Regulatory Capital Segmented Information Summary of Investments-Consolidated Real Estate-Geographic Distribution by Type-Consolidated Insured Mortgage Loans-Summary by Type-Consolidated Uninsured Mortgage Loans-Summary by Type-Consolidated Mortgage Loans- Geographic Distribution-Consolidated Investments-Consolidated (By Group) Substantial Investments Summary of Provisions-Con,solidated [The Inclusion of thie page ie aulhonzed by L.N 33Al2005)

THE INSURANCE REGULATIONS, 2001
EIGHTI-I SCHEDULE, contd.
Table of Contents, contd.
Location of Cash and Invested Assets-Consolidated OSI-L-2000 Actuarial Liabilities Summary-Consolidated Supplementary Actuarial Exhibit-Consolidated Subordinated Debt-Consolidated Basis Other Debt-Consolidated Basis Non-Consolidated Financial Statements Assets Liabilities, Policyholders' and Shareholders' Equity Income Statement Statement of Participating Account Statement of Non-Participating Account 30.040 Statement of Retained Earnings 30.040 Notes on Annual Return Analysis of Income by Line of Business Reconciliation of Funds Allocation of Funds General Interrogatories lnsurance Exhibits Premiums and Commission-Life Policyholder Dividends and Experience rating Refunds-Life Policyholder Benefits Paid and Incurred and Outstanding Claims-Life Health Business FSC Form 20.090 20.091 20.091 20.093-094 20.095 30.010 30.020 30.030 30.040 30.055 30.060-061 30.070 30.070 30.080-084 40.010
40.01 1
40.020
Premiums, Claims, Policyholder Dividends & Experience Rating Refunds 40.030 Claims Liabilities-Other than installment Claims Outstanding Premiums Other Revenue and Expense Exhibits Net Investment Income Other Revenue General expenses and Taxes Additional Insurance Exhibits Movement of Life lnsurance Policies Analysis of Amounts of life Insurance-Effected, in Force and Ceased Gross Amount of Life Insurance Effected Classified by Plan of Policy Gross Amount of Life Insurance in Force Classified by Plan of Policy Gross Amount of Group Life Insurance in Force Classified by Type of Group Covered Movement of Annuities (Gross) Individual and Settlement Annuities Group and Disability Annuities Reinsurance Exhibits [The Inclusion of this pa& is nuthoriad by L.N. 33A/ZOOS]

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, contd.
Table of Contents, contd.
Reinsurance Ceded to Unregistered Companies-Life In Jamaica Business Out of Jamaica Business Reinsurance ceded to Unregistered Companies-Health In Jamaica Business Out of Jamaica Business Reinsurance Ceded Actuarial Liabilities Exhibits Actuarial Liabilities-Summary Other Liabilities Exhibits Other Insurance Policy and Contract Liabilities Accounts Payable Other Liabilities Policy Claims Resisted- Net of Reinsurance Assets Exhibits Summary of lnvestments Summary of Commercial Loans (Consolidated & Non-Consolidated) Capital Gains and Losses on lnvestments lnvestments in Affiliated Corporations Bonds, Debentures, Loans and Shares Investments in Subsidiaries Bonds, Debentures, Loans and Advances Shares Summary of lnvestments in Financial Institutions Sector (non-affiliates) Other lnvested Assets Interests in Joint Ventures Mortgage Loans-Geographic Distribution by Type Insured Mortgage Loans-Summary by Type Uninsured Mortgage Loans-Summary by Type 25 Largest Uninsured Mortgage Loans Real Estate-Geographic Distribution by Type Real Estate Valuation and Amortization of Unrealized Gains and Losses Real Estate-1 5 Largest-Foreclosed Properties Real estate-1 5 Largest-Own use Real Estate-I5 Largest-Investments/Income Producing Summary of Provisions (Write-Downs) Accounts Receivable and Other Assets "In Jamaica Only Exhibits" Non-Consolidated Financial Statements FSC Form [The Inclusion of this page is authorized by L.N. 33N2005]

THE INSURANCE REGULA TIONS, 2001
EIGHTH SCHEDULE, contd.
Table of Contents, cond
Assets
Liabilities
Income Statement r lnsurance Exhibits
Premiums and Commissions-Life
Policyholder Dividends and Experience Rating Refunds-Life Policyholder Benefits Paid and lncurred and Outstanding Claims-Life Health Business Premiums, Claims, Policyholder Dividends and Experience Rating Refunds Claims Liabilities-Other than lnstalment Claims Additional Insurance Exhibits Movement of Life lnsurance Policies Analysis of Amounts of Life Insurance-Effected, in Force and Ceased Gross Amount of Life Insurance Effected Classified by plan of Policy Gross Amount of Life Insurance in Force Classified by Plan of Policy Gross Amount of Group Life lnsurance in Force Classified by Type of Group Covered Movement of Annuities (Gross) Individual and Settlement Annuities Group and Disability Annuities Actuarial Liabilities--Summary FSC Form 83.010 83.020 83.030 [The Inclusion of this page is authorized by L.N. 33A12005]

Insurer
THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, contd.
10.000
. . .
AFFIDAVIT VERIFYING ANNUALRETURN
.--. -
Ycar
We, of the
Of in the Parish of of the
Of in the Parish of
Being and
Respectively of (Hereinafter called
"'l'l~c (:onipanyH) [lo scvcrally makc oath and say as follows:

1. That we are the above described officers of the company.
2. 'hat the attached am1ual returnofthe condition and alhirs ol'the company, togcdlcr
   with the related exhibits, schedules and explanations filed or to be filed as part thereof, is a full and correct statement of all the assets and liabilities as at And of the income and (Duy, Month, Year) expenditures for th~'~ear ended on that day, as respects the business of the company.
3. That all the assets reported in the said annual return and schedules were as
   'I'h absolute property 01' Uie conlpany, licc and clcar lionl any liens and cla~~~~s except as therein stated.
4. That the insurer is in compliance with the applicable insurance Act and
   accompanying regulations.
   Severally sworn to before me in the
   Of in the Parish
   Of this
   Day or 20
   1:sc 200 1
   Next Page is 10.001
   [The Inclusion of this page is authorized by L.N. 33A120051

THE INSURANCE REG ULA TIONS, 2001
El61 1'1'11 SCIIEDUL.E, conrd.
10.010
ANNUAL CORPORATE INFORMATION
Name of Company￾Head Office
Address
Mailing Address
(if different)
Telephone
WWW Address
Email Address
Contact Persons
Corporate Statement Reporting
Name: Name:
Title:
Telephone Telephone
Fax Fax
Date of Last Annual Meeting
Return for the Year ended
(Day, Month, Year)
I
If there is insufficient space for all jurisdictions, please attach a separate page with the additional information. FSC-L-200 1 Next Page is 10.020 OTHER JURISDICTIONS IN WHICH THE INSURER IS LICENSED 7 [The inclusion of this page is authorized by L.N. 33M20051 Other .lurisdiction , (0 1) Name and business address of Principal Officer in Other Jurisdiction (or of attorney for service of process) (02) Specify BrancldAgency (03) Deposits at Par (04)

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, cond

• -- Insurer Year
  EXECUTIVE OFFICERS as at
  I
  [The Inclusion of this page is authorized by L.N. 33,4/2005] , 2 Appointed Actuary Name Mailing Address (if different from company's) Telephone Fax FSC-L-200 1 Next Page is 10.030 Appointed Auditor Firm Partner Address Telephone Fax

THE INSURANCE REGULA TZONS, 2001
EIGHTH SCHEDULE, contd.
10.030
Insurer Year
Ir
DlRECTORS as at
(Year End Date)
Legend Date of Permanent Home Address Citizenship * Appointment (City and Country) (01) (0'4 (03) (04) (05) Chairperson of the Board Chairperson of the Audit Committee Rev~ew Comm~ttee Investment & Loan Committee (4) Member of Investment & Loan Committee (5) Member of Audit Committee (6) Member of Conduct Review Committee c' FSC-L-200 1 Next Page is 10.040 *Legend:
(1) Shareholder Director
(2) Poli~yholder Director
(3) Member of Executive Committee
[The inclusion of this page is authorized by L.N 33N20051

THE INSURANCE REGULA TIONS, 2001
Insurer CHA
EIGHTH SCHEDULE, contd.
,NGES'OF DIRECTORS, EXECUTIVE OFFICERS Year

• ,
  New Appointments Made During the Year
  Retirements, Resignations, and Other Departures from Office Indicate if Chairperson with an asterisk FSC-L-200 1 Changes to Board Committees Next Page is 10.050 Other Directorships (04) Name (0 1) Specify whether Retirement, Resignation or Other Departures (01) (04) Name (01) [The Inclusion of this page is authorlud by L.N. 33A/ZOOS] Title (02) Title (02) Committee * (02) Date of Appointment (03) Last Known Address (City and Country) (03) Last Known Address (City and Country) (03) Specify whether Retirements, Resignation or Other Departures (04)

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, contd
10,050
Insurer Year
SHAREHOLDERS*- BY CLASS OF SHARES
Shareholders-
(-' .-
C'

• Beneficial owners of at least 5% of any class. FSC-L-2001
  next page is 10.05 1
  [The inclusion of this page is aurho~ized by L.N 33A/2005]

THE INSURANCE REGULA TIONS, 2001
EIGHTH SCHEDULE, contd.
10.05 1
Insurer Y eat
SHAREHOLDERS*- BY CLASS OF SHARES
Name of Beneficial
Shareholder
Citizenship or
-for Corporate
Shareholders￾Jurisdiction of lncorporarion (03) Number of Shares held % of Total (05)
Part 2-Preferred Shares
Provide a Description of the Class of Shares:
Next Page is 10.060
020
02 1
022
099
[The Inclmsion of this page is authorized by L.N. 33A/2005] Shares Held by Employees not included above All other Shareholders (Number 1 TOTAL

• Beneficial owners of at least 5% of any class.
  Provide a separate page for each series of preferred shares. F~~-~-2001

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, contd.
10.060
Insurer
Authorized
Number of shares .......................... 001
Amount (JA$000) ......................... 002
Issued
Beginning of Year
I Number of shares .......................... 010
Amount (JA$000) .................................
Calls Received
i Number of shares .......................... 020
I Amount (JA$000) ......................... 021
Shares Issued
Number of shares ...................... 030
~oreign Currency Adjustment 033
Forfeitures or Cancellations
Number of shares .......................... 040
Amount (JA$000) ......................... 041
End of Year
I
Balance Counted w MCCSR Capital*,, 055
Number of shares .......................... 05C Amount (JA$000) ......................... 05 1 CAPITAL STOCK Year Description of Class of Shares [The lnclunion of this prqge ir authorized by L.N. 33A12035j

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, contd
*If remaining period to redemption is 5 years or less, the balance (if qualifying) should be amortized in accordance with the MCCSR rules. CONTRIBUTION TO SURPLUS (JA$000)
Balance at Beginning of Year ..................... 070
Change during Year ................................ 07 1 Balance at

1. Have
   End any shares
   of Year ................................
   been paid for in consideration other
   072 0 than Cash?
   (01) (02)
   If yes, specify the type of consideration given the market value of that consideration, the amount recorded in the books of the company and the number of shares issued. Type of consideration
   Market Value of Consideration .............. 080
   Amount Recorded in the Books ofthe Company ................................. 08 1
   Number of Shares Issued ...................... 082
   Please provide details of changes to surplus i FSC-L-200 1 Next Page is 10.070 [Thc Inclusion of this page is authorized by L.N. 331V20051

THE INSURANCE REGUM TIONS, 2001
EIGHTH SCHEDULE, contd.
10.070
Insurer CORPORATE ORGANIZATION CHART
Year parent, if applicable, and all other affiliated corporations (upstream and downstream), identifying the percentage of beneficial ownership of each. FSC-L-200 1 Next Page is 10.080 (The Inclusion of [his page is authorized by LN. 33N2005)

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, contd.
10.080
Insurer
CORPORATE HISTORY Year
Date of lncorporati~n
If an amalgamated company provide details regarding incorporation of predecessor companies. Date of Registration Date commenced business in Jamaica If mutual company, date when mutualization completed If formerly a mutual company date when dcmutualization completed Instrument of incorporation and amendments, including continuance. (Types of Instruments, Acts of Parliament and Dates) Have any part of the articles of association been enacted, amended or repealed during the year or subsequent thereto, up to the date of completion of this Return 007 Yes No Have copies of all changedadditions to the articles of association been filed with the Office of the Superintendent of Insurance? 008 Yes (If not yet filed, please enclose.) No If stock company, have there been any changes in ownership of voting shares of 5% or more of outstanding shares during the year? 009 Yes If yes, give details: No Have there been any transactions or series of 1ransact;ons with any party or group in any twelve month period ending during the company's last fiscal year that exceeded 10% of the company's total assets? 010 Yes If yes, give details No J FSC-L-200 1 Next Page is 20.0 10 [The lnclus~on of thts page is authorized by L N 33N20051

THE INSURANCE REGULA TIONS, 2001
EIGHTH SCHEDULE, cod
Insurer CONSOLIDATED FINANCIAL STATEMENTS Year Current Year Prior Year Net Actuarial Liabilities
Life Assurance Fund ........................................... 002
Individual Life .................................................... 003 1-1 Policy holder Group Annuity Contracts Funds on
................
Deposit
.............
..............
...........................................
.....
,
........................................
................ .. .............. 004
0
005
10

• I
  Provisions for Policyholder Dividends ................................... 01 1
  Policyholder Amounts on Deposit ...................................... 013
  Other insurance Policy & Connact Liabilities ....................... 014
  Accounts Payable ................................................................. 03 1
  Estate Encumbrances .................................................. 033
  Other Liabilities ..................................................................... 039
  Net Deferred Gains (Losses) on Disposal of
  Portfolio Investments .................................................. 040
  Minority Interest ................................................................... 050
  Subordinated Debt ................................................................. 05 1
  Other Debt .................. ,................ ..... ........................................ 052
  053
  Reserves
  Capital Reserve ...................., .................................... 065
  investment Reserve ................................................... 067
  Total Reserves ................................. .............................. 069

.
Total Liabilities ....................................... .................. 059
[The Inclusion of this page is authorized by L.N. 33N2005) 0 Shareholders' Equity
Share Capital ........................................................... 070
Share Premium .......................................................... 07 1
Retained Earnings ............. ..... ....... ............ .. .......... 072
Currency Translation Account .................................. 072
Total Shareholders' Equity ...................................................... 075
TOTAL LIABILITIES AND EQW ....... ,...... .... , ....... 089
0
Total Liabilities in Sepgated Funds ................................ 099 1-1 FSC-L-2001 next Page is 20.030 0 . 0 0 - 0

THE INSURANCE REGULA TIUNS, 2001
Insurer
EIGHTH SCHEDULE, contd.
20.030
Year
CONSOLIDATED FINANCIAL STATEMENTS
LIFE INSURANCE COMPANY
Revenue
Premium Income ............................... ... .......................... 001
Net Investment Income .......................................................... 002
Other Revenue ......... ...................... .. . . . ................... . 003 019 Current Year (01) Policy Benefits and Expenses
Claims ............................... .. ............................ 020
Annuity Payments ............. ........... ......... 02 1
Policv Surrenders ........................................... 022
Prior Year
(02)
Commissions .......................... ... .................................. 024
Other Sales Expenses ................................................... 025
Bad Debt Expenses.. ...................... .............................. 026
Management Expenses (Segregated Funds) .............. 027
Provisions Increase1 (Decrease) ........................... 028
lnterest on Policyholder Amounts on Deposit ........... 029
Reinsurance Premiums ...................................... 030
035
049
(IncreaseyDecrease in Actuarial Reserve ........................... 050
Transfer (to)lfiom Reserves ............................................. 05 1 Net income Before interest Expense
and Tax. ........................................ , ............................... 059
Interest on Subordinated Debt ........................ 060
Other Interest Expense ...................... ... ................................. 06 1 Net income Before Tax and Extraordinary Items. .............. .. ........................ , 069
Rovision for Taxes .......................................................... 070
Net income (Loss) hm Subsidiaries ............. , ...........,...... 07 1 Net Operating In~e Before Extraordinary Items... 079
Extnodiinary Items net of taxes of. ...................................... 080
Netincome..,., ,... -...- ............ -...- ... ......... - ........... , 089 FSC-L-200 1 Next Page is 20.03 1 [The Inclusion of this p-t is authorized by L.N. 33Ai2005]

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, contd.
Insurer Year CONSOLIDATED FINANCIAL STATEMENTS LIFE INSURANCE COMPANY Current Year Prior Yes I
Interest ................................................................................. 001
Accrual of Discount and Amortization of Premi um..... 003
Dividends ........................................................................... 01 1 Realizd Gains and(Losses) ........................................ 0 13 Mortgage Loans:
Interest ................................................................................. 021
Net Realized Gains and (Losses) ..................................... 023
Real Estate:
Rent & Maintenance income including for Company's Own use ............................................. 03 1
Realized Gains and (Losses)* ......................................... 033
Interest on Overdue Premiums .................................................. 042
Income f?om Derivative Activities ........................................... 043
Income fiom Other Invesbnents .......................................... 044
Less: I
Provisions for losses ........................................................ 050
Write-Downs ..................................................................... 05 1
Gross Investment Income ..................................... ".................
Less:
Investment Expenses (other than Investment Taxes):
Investment Taxes ............................................................. 061
Net Jnvestmentlncomc ................. , ..................................... 079
*Net income (loss) from subsidiaries as reported on the income statement, line 071, is net of the amount included here in respect of real estate owned by subsidiaries. Includes maintenance expenses incurred on real estate. FSC-L-2001 Next Page is 20.032 [The lmkuion of this page is authorized by L.N. 33An0051

THE INSURANCE REGULA TIONS, 22001
EIGHTH SCHEDULE, contd.
Insurer
CONSOLIDATED FINANCIAL STATEMENTS
Year
LIFE INSURANCE COMPANY
Management Fees for Segregated Funds ......................... 00 1 Net Settlement Annuities ................................................... 002 I Current Year (01)
Total Other Revenue ........................................................ 019
Prior Year
(02)
FSC-L-200 1
Next Page is 20.040
[Thc Inclusion of this page is authorized by L.N. 33A/2OO5]

THE INSURANCE REGULA TIONS, 2001
Insurer Year
CONSOLIDATED FINANCIAL STATEMENTS
STATEMENT OF PARTICIPATING ACCOUNT
Share of Net Income (Loss) ...................... 010
Transfer from (to) Retained Earnings ....... 020
End of Year ............................................. 029
.................................... 001
.................................................................. 002
...................................... .. ........................ 003
Mutual Insurance Companies Only
(JASOOO)
1 Current Year Prior Year
Current Year
(03)
Beginning of Year ................................... 030
............................................................. 031
........................................................... 032
Prior Year
(04)
Share of Net Income (Loss) ...................... 040
Transfer from (to) Par Account ................. 05 1
Dividends to Preferred shareholders ......... 052
................................ 059
STATEMENT OF RETAINED EARNINGS
Stock Insurance Companies Only
(JASOOO)
Beginning of Year ..................................... 060
................................................................ 061
........................................................ 062
II
Share of Net Income (Loss) ......................... 070 c' Transfer from (to) Par Account ................... 080
Dividends to Shareholders:
Current Year
(03)
Preferred ............................. .. ................ 08 1
Common .......................................... 082
End of Year ................................................ 089
Prior Year
(04)
FSC-L-200 1
Next Page is 20.045
I I
[The Inclusion of this page is authorized by L.N. 33N20051

THE INSURANCE REGULA TIONS, 2001
EIGHTH SCHEDULE, conrd.
Insurer CONSOLIDATED FINANCIAL STATEMENTS Y enr STATEMENT OF CHANGE IN FINANCIAL POSITION*
................................................................................ 019
Cash provided by (applied to) operations .......................... 029
OPERATIONS
Net Income ............................................................... 001
Adjustments to convert income to a cash basis:
lncrease (decrease) in policy benefit liabilities .......... 004
lncrease (decrease) in policyholders' funds ............... 007
lncrease (decrease) in deferred income taxes ............ 0 10 Other Adjustments ...................................................... 0 13
................................................................................. 016
Sale of lnvestments ......................................................... 033
.......................................................................................... 036
.......................................................................................... 039
Purchase of lnvestments ................................................ 042
Current Year
(01)
.
Cash provided by (applied to) investments ....................... 059
FINANCING ACTIVITIES
Prior Year
(02)
7
lssue of Shares ................................................................. 062
lssue of Debentures ....................... .... ........................ 065
lncrease (Decrease) in Long Term Debt ......................... 068
Redemption of Shares: ................................................. 075 1 Redemption of Debentures ........................ ... .......... 078 I I
Shareholders Dividends .............................................. 08 1 IIbII ...................................................................................... 084
Cash provided by (applied to) Financing Activities....... ... 089
Cash and Short Term Investments at beginning of year ........ 090
Cash and Short Term lnvestments at end of year ............. 099
*This Statement is provided as a guide only. Companies may complete thk page or attach a statement of Change in Financial Position as prepareil for the company's financial statements. FSC-L-200 1 Next Page is 20.055 me Inclusion of this page is authorized by L.N. 33A12005]

THE INSURANCE REGULATIONS, 20001
EIGHTH SCHEDULE, contd
Insurer
CONSOLIDATED FINANCIAL STATEMENTS Year
NOTES TO THE FINANCIAL STATEMENTS *
*If notes to the financial statements are not finalized when filing the statement, please provide draft notes and indicate clearly that they are draft notes. FSC-L-200 1 Next Page is 20.060 [The Inclusion of this page is authorized by L.N. 331/2005]

Insurer
THE INSURANCE REGULA TYONS, 2001
EIGHTH SCHEDULE, coflld.
20.060
CONSOLIDATED FlNANClAL STATEMENTS
AUDITOR'S REPORT
Year
FSC-L-200 1
Next Page is 20.061
[The Inclusion of this pa& u authorized by L.N. 331/2005]

THE INSURANCE REGULA TIONS, 2001
EIGHTH SCHEDULE, contd.
Insurer Year
RECONCLLIATION OF THE CONSOLIDATED FINANCIAL STATEMENTS TO THE NON-CONSOLIDATED FINANCIAL STATEMENTS FSC-L-200 1 Next Page is 20.062 [Thg Inclusion of this pa~c is authod by L.N. JJA/20051

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, contd.
20.062
Insurer
REGULATORY CAPITAL
Year
Assetr (Page 20.10 line 89) ................................................................ 001
Liabilities (Page 20.20 line 69) ................................................... 002
Assetr less Liabilities ........................................................................ 003
The amount of the total deferred realized capital gains less the total deferred realized capital losses from real estate and share transactions of the company or
any other life company controlled by .................................... 004
Non Contmlling Interest ......................................................... 005
Subordinated indebtedness ....................................................... 006
Less:
The amount of consolidated goodwill ............................... . 007 (a) Subordinated indebtedness or a share, issued by the company or a designated entity controlled by the company, that is not:
(i) by its term subordinate in right of payment to all policy liabilities and all other liabilities of the entity that issued the security, other than such liabilities that by their terms, rank equally with or are subordinate to that
subordinated indebtedness or share ........................... 008
(ii) fully paid up ......................... ............................
(b) Subordinated indebtedness or a perferred share, issued by the company or a designated entity conmlled by the company, that:
(i) has an initial term of less than five years ............. 010
(ii) can be redeemed or purchased for cancellation in the first five years after it is issued ............................................................. 0 1 1 TOTAL REGULATORY CAPITAL .................................. 0 12 Prior Year (02) Current Year (0 1) . FSC Next Page is 20.063 [The Inclusion of his page is authorized by L.N. 33N2005]

THE INSURANCE REGULATIONS, 2001

Insurer
EIGHTH SCHEDULE, contd
20.063
Year
REGULATORY CAPITAL
(JAW ( Current Year I Prior Year 1
C Td Regulatory Capital for purposes of subseaion x (i) and section xxx of the I A. (Page xx. line xx) .................................................................. 001 .". Less:
(i) the amount of the excess of the assets of any finan￾cial institution controlled by the company, and of any entity controlled by such a financial institution, over the liabiliries of the financial institution and the
entity .................................................................................
(ii) an amount equal to the total deffered realized capi- !A gain less the total deferred realized capital losses from real estate and share transactions of a fiancial instifu￾institution referred to in subparagraph (i) that is a life
company.. ......................................................................
(iii) subordinated indebtedness issued by a financial imti- -1ution or entity referred to in subparagraph (i), that
are included in the amount ofregulatolv - caoilal included .. in line 01 above ........................ ... ...................................... 004
(d) The amount of investments, other than subordinated indebt￾edness referred to in subparagraph (c) (iii), of the company or a designated entity controlled by the company in a financial institution controlled by the company or in an entity con￾molled by such a financial institution, where the in- vestments are
part ofthe capital of the financial insli￾tution .............................................................................................. 005
(e) The amount of loans, other than subordinated indebtedness referred to in subparagraph (c) (iii), made by the company or by a designated entity controlled by company to an insurance company or securities dealer controlled by the company or to an entity controlled by the company or to an entity conuulled by such an insurance company or securities dealer, where the loans are part
ofthe insurance company or securities dealer ................. ............... 006
(t) The an~oulit of minority interest in a financial institution con￾trolled by the company, or in an entity controlled by such a
financial institution, that is included in the amount of re￾gulatoy capital ofthe company on line 01 above ..................................... 007
C Total Regulatory Capital for purposes of sections xxx,
xxx and xxx .......................................................................................... 008
For the purposes of paragraph (d), capital means (a) in respect of a financial institution that is a company, regulatory capital within the meaning of these Regulations; (b) in respect of any othcr financial institution, an amount that would he treated as capital by a regulatory body that regulates !hut tinancial institution. [The Inclusion of this page is authorized by L N 33N?M)S]

THE INSURANCE REG ULA TZONS, 2001
Insurer Year
PLEDGING ACTIVITY
(JAS000)
and Central Banks .............................. 001
Direct Clearers ........................................ 003
By Activity
Governments. Government Agencies
(a) In Jamaica ....................... .. 005
(b) Outside Jamaica ......................... 006
(a) Exchanges .................................. 008
(b) Over the Counter ....................... 009
In respect of Securities Borrowed ........... 01 1
In respect of Securities Lent ................... 012
Agreements (REPOS) ........................ 01 3
In respect of Real Estate ........................ 014
Other ........................... .................... 039
Unconsolidated
Total ................................................... 049 1 Consolidated Outstanding End of Period (01) LIQUID ASSETS AND AMOUNT PLEDGED Outstanding End of period (03) Maximum Outstanding During the Per~od (02) Maximum Outstanding During the Period (04) Cash ............... ................... ........... 05 1
Short Term Investments ................. 053
Bonds and Debentures ................... 055
Preferred and Common Shar es...... 057 (? Other Liquid kts ....................... 069
Total Liquid Assets .................... 079
FSC-L-2001
Next Page is 20.070
Unconsolidated - Non Pledged
[The Inslurion ofthis page is authorized by L.N. 331/2005] Consolidnted - Non Pledged Total Liquid Assets (01) Total Liquid Assets (04) Liquid Assets Pledged (02) Liquid Assets (03) Liquid Assets Pledged (0s) Liquid Assets (06)

CONSOLIDATED
DERNATlVE INSTRUMENTS RISK PROFILE
OFF BAlANCE SHEET INSTRUMENTS
Interest Rale Conlrack.
Folward rate agreemenis 001
Fulurer mlrads ... 002
swap mntrads ............ 003
Opbons purchased .... 004
Optis rmnen .............. 025
Sub Toyl ....................... 009
Foreign ExcMnge Conlrads: P
Fweign exchange spot G2 and forwadcon (rans..... .021 Futures mwactr ........... 022 I ri
Swap macis .............. 023
Options plchased 024 V) ............ r) Oplims winen ................... 025 I' SubTdal .............. .. ....... 029 TT:
u Qhec C Equity Related .............. 031 rn r
Commodity Related ....... 032
Other 033 0 ............................. SubTotat 039 0 ....................... 3, Tobl 049 R Adjustmen1 for maslei
netling apreemenls ............ 070
1-1 -Net of Adjmlment ....... 008
1 SC-1.-2001
Ned Paw a 20 012

THE LNXJRANCE REGULATIONS. 2001
EIGHTH SCHEDULE. contd . 20.076
WUM Yur
SUMMARY OF INVESTMENTS . CONSOLIDATED
Shod Ten Inveabmnb ....................... 001
Govammnt
Junks ............................ OL'z
CARlCOM ............................ 003
Wna d. ........................... OM
urn stetea 01 America ............. 005
Oth.r ................ 008
MunW . PWic AUw . S'SlOOb
Jsmaica ............................ 010
CARlCOM ............................ 011
Canada ........................... 012
UnlW Stah M America ............. 033
0th~ ........................................... 018
Jrn@ ............................ 020
CARlCOM ............................ 021
Canada ........................... 022
UniW SWss 01 Amen- ............. 023
Wer ................... .. ................ 024
ToOl Bondr and Dmbntum ............ 027
me.0. LoUu .................................. OM Jampica ............. .........;.. ... 035
CARlCOM ............................. 038
QN& ........................... 037
UniW Steta, W America ................. om ............................................ 038
Total Pnhmd Sluma ....................... 041
Comnm Shams
Jamalfo ........................... 042
CARlCOM .................... ....... M3
Tom
Totd Sham ....................................... Wler Equity Invalments ..................... 048
subT0t.l (Umr Q+Q) ..................... 050
Rul Esta(s
~~d~ ............................ 051
CARICOM ............................ Canada ........................... 053
UnW Sata 01 horica ............. 053
Other ............................................ 054
Total Rul E.w .............................. 015
Toc.1 Cqq ud llul Eatam (Lkr W661 059
Wrr toan a md In- mwb gylsr Lma ................................. 081
Wler ........................................... 082
Tat 0th~ Low and
Imr(d Aameu" ., ........ " ..""".- 08s
T&I ........... ....................................... 009
SUPPLEMENTARY EXHIBIT
Frud Tm Bonds L mbclnlures 101 I .......... mvembh Bonds h btentuma ......... 102
Fbod Term PmM S~NIW ................ 103 1 1 I I [The Inclusion of this page is authorized by L.N. 33A120051

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, contd.
[The Inclusion of this page is authorized by L N. 33A/2005]

SNOlSlAOkld aNV SYWWV - 3dAl AB AWWWnS - SNVOl 39VDLWWI a3YnSNl ~~LV~IWSMO~

Ynunr v*.,
CONSOLIDATED
UNINSURED MORTGAGE LOANS - SUMMARY BY TYPE - ARREARS, PR0VISK)NS AND FORECLOSURES IN PROCESS

Year
Comolldlted
MORTGAGE LOANS - GEOGRAPHIC DISTRIBUTION Gnns (Wore Pmvblan#) ~ouUon of prop.* Toul Mulupk Total Provklons) hem Loan Swhic Roridentlel Resldenthl OfWe Retail Stores Industrial Other Mortgages in Amam w 90 day, Provfsions Insured Uninsured (01) (02) (03) (0s) (05) (06) (07) (0s) (0s) (10) (11) , I m%sm 001 Sl. Andrew 002
Olher Parishes 2 1-1 Januiu ...... 019
Ocher ............................... 048
On* Tom .................. 059
FSC-L.mI
Next Page is 20 080
'L,

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, contd
20.080
Year
INVESTMENTS - CONSOLIDATED BASIS
(by Companlem*)
Group Investments
(02) (03) (W) (05) (06) I Inni I
Name of
*Invnbnent. made and Ian8 advancd to Indlvldu8l corporatlonm or a gmup of related compnln when the total 8mounb Invnbd and 8dv8nud excnd8 6% of the compny'a .gully or JAS10,000,000, whichever im gnator. Plea88 pmvlde 8ubtot.h for ..ch gmup If mppllcablm. Indudo Inv88bn8nta In and lmnm to cqntmlllng mhanholden, whmthmr Indlvldu8l8 or corpontlorm. Attach 8 88pnb mchodulm 8hould 8ddlUon8l 8pu b8 ~qulnd. [The inclusion of this page is authorized by L.N. 331/2005] Company Name Bonds and Debentures Stock Mortgage Other Loans Loans and

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, contd.
[The Inclusion of this page is authorized by L.N. 33N20051

CONSOLIDATED
SUMMARY OF PROVlSlONS

Insurer Year
LOCATION OF CASH AND INVESTED ASSETS - CONSOLIDATED (excluding Real Estaie) m 0 x 2 Ln 0 r rn 0 F m 0 FSM-2001 indicate if vested with forelgn regulator Nclt Pe h 20.cm1

THE INSURANCE REGULA TIONS, 2001
Insurer Year
Consolidated
Life lnrurance
ACTUARIAL LIABILITIES - SUMMARY
(JASON)
Par Individual .......... .... ........... 001
Group. ...... .... .... .... ... .. ..... ,002 Subtotal ........................ .. 003
Non-Par Individual. ... ... ................ 004
Group ... ... . ... .. .. .. .... ...... .... 005
Subtotal ................ 006
Total Insurance ............... ............. 009
Annultles
Par Individual .......... .... ..., 01 1
Group .... .......... ................ 012
Subtotal ............ ................ 013
Non-Par Individual .... ................ 014
Group ............ . ................ 015
Subtotal ............ ............... 016
Total Annuities ...........,................... 079
Total Life Actuarial Liabllltles ........ . 029 Health
Individual.. ....... ................ 031
Group .......... .... ................ 032
Total Health Actuarial Liabilities ............. 039
" Propeliy and Casualty Subsidiaries
Supplementary Consolldated Actusrlal Exhlblt Prescribed Annuities ............ ......... 030 1 I FSC-L-2001 Next Pspe 11 20.003 [The Inclusion of this page is authorized by L.N. 33N2005J

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, contd.
20.083 lnaumr Yrr
SUBORDINATED DEBT - CONSOLIDATED
INCLUDED IN MCCBR CAPITAL AT YEAR END
Subordlnatd Bhanholdmr Loan8 luwd by Company:
[The lnclluion of thin page is authorid by L.N. 33AR005) Dabanturn and Other Imnd by Company:
I

THE INSURANCE REGULATIONS, 20001
EIGHTH SCHEDULE, contd.
20.084
SUBORDINATED DEBT -CONSOLIDATED BASIS
NOT INCLUDED IN MCCSR CAPITAL AT YEAR END Yaar (JluOW) Balance Intormt Maturity DaW of Oubtlndlng Accrued. Rate Dab Approval % u MCCSR Ca~bl (U apdllmbla) (01) (02) (03) (04) (0s)
Part I 1
Indlut. lhe told mount of above notad loans, notoa and debentuns that hu tan appmwd as MCCSR upbl but whlch was not lndudod In MCCSR upltll thlr year. 0- [The Inclusion of th'i page b authorized by L.N. 33Ai200S)

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, contd
[The Inclusion of this page is aurhorircd by L N. 33N2005]

THE INSURANCE REGULA TIONS. 2001
EIGHTH SCHEDULE. contd .
30.010
Insurer
NON-CONSOLIDATED FINANCIAL STATEMENTS teference
Page
40.060
70.060
70.02 1
70.029
70.014
70.014
0.01 1-01;
70.060
Year
Cash ........................................................... 002
Acnued Lnvestment Income 007 ......................
Accounts Receivable .................................. 010
lnvestments and Loans:
Fixed Term Investments:
015
Policy Loans ...................................... 020
Other Loans ...................................... 021
Bonds and Debentures:
Fixed Term ........................... 023
Convertible ..................... 024
Other ...................................... 028
Mortgage Loans ............................ 030
Prefered Shares-Fixed Term 031 ..........
Total Fixed Term Investments .................. 039
Real Estate ............................................... 051
Equity Investments:
Preferred Shares ................................... 042
Common Shares ................................... 045
Other Equity Investments ..................... 059
Total Equity Investments ........................ 060
Other Invested Assets ............................. 062
Total Investments and Loans ................. 070
Interests in Related Companies ................. 078
Investments in Subsidiaries .................. 079
Deferred Income Taxes ............................ 080
Goodwill and Other Assets ....................... 081
TOTAL ASSETS .................................... 089
Total Assets in Segegated Funds ............ 099 (1Ll FSC-L-200 1 Next Page is 30.020 [The Inclusion of this page is authorized by L.N 33A/2005]

THE INSURANCE REGUU TIONS, 2001
30.020
Insurer
NON-CONSOLIDATED FINANCIAL STATEMENTS
Year
Net Actuarial Liabilities
Current Year Prior Year
Life Assurance Fund .............................................. 002 I Individual Life .......................................................... 003 I I
Croup ............................................................................. 004
Annuity Contracts ....................................................... 005
Policyholder Funds on Deposit ................................................. 010
Provisions for Policyholder Dividends ................................... 01 1 012
Policyholder Amounts on Deposit ......................................... 013
Other Insurance Policy & Contract Liabilities ........................ 014
Accounts Payable ....................................................................... 03 1
Real Estate Encumbrances .............................................. 033
Other Liabilities ....................................................................... 039
Net Deferred Gains (Losses) on Disposal of
Portfolio Investments .................................................... 040
Minority Interest ......................................................................... 050
Subordinated Debt ...................................................................... 05 1
Other Debt .................................................................................. 052
Total Liabilities ..................................................................... 059
Retained Earnings ......................................................... 072
Cun-encv Translation Account .................................... 072
Keserves
Capital Reserve ............................................................ 065
Investment Reserve ...................................................... 067
Total Reserves. .................................................................. 069
Shareholdem' Equity
Share Capital.. ............................................................... 070
Share Remiurn ............................................................ 071
. - I
TOTAL LIABILITIES AND EQUITY .......... , ................ 089 0 1 0 I Total Liabilities in Segregated Funds ............................... 099 - pc-L-2001 Next Page is 30.030 (The lnclusbn of thi page is authorized by L.N. 33An0051 0 0 I

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, contd.
30.030
Insurer Year
NON-CONSOLIDATED FINANCIAL STATEMENTS
Claims ................................ .. ........ 020
Annuity Payments ....................,.,.,... 02 1
Policy Surrenders ................................. 022
INCOME STATEMENT
Other.. . . .. . . . . .. . . . ... .. . ..... ... .... .... .. .. .... ..... . Expenses Revenue
Premium Income ............................ ...... ...................... 001
002
Other Revenue ..................... ,,......... .. ........................... 003
Total Revepuc ....................................................... 019
Policy Benefits and Expenses
Provisions Increa.se(Decrease) ..... .......................... 028 rn Current Year (01) 0
Commissions ........................................................ 024
Other Sales Expenses ........................................ 025
Bad Debt Expenses ............................ .... ............... 026
Management Expense (Segregated Fund) ............ 027
Interest on Policyholder Amounts on Deposit 029 1-1 1 Prior Year (02) 0 . ' Reinsurance Premiums ............ ,.,............. ...... ....... 030 1-1 Administrative Expenses and Taxes ............................. 035 I Operating Expenses .............................. d I (Increase)/Decrease in Actuarial Reserve .................... 050 1-1 05 1
and Tax. ................... , ............................ , ............ 059
Interest on Subordinated Debt ................................... 060
Other Interest Expense ............................................... 061
Net income Before Tax and Extraodinary Items .............,.-.-. .....,...-. 069
Provision for Taxes ............... ......................................... 070
Net inwme (Loss iiom SubsidiariesJ ......................... 071
Net Operating lnwme Before Extraordinary Items .... 079
Extraord'mary Items net oftaxes of .............................. 080
Net income.. ......................................... 089
(The lncluricn of this peg b euthorized by L.N. 33N200Sj

LOL
Insurer
Reference
30 040
NON-CONSOLDIATED FINANCIAL STATEMENTS
Year
Beginning of Year.. ..................................
......................................................... 002
..................... . ................................. 003
Share of Net Income (Loss) ..................... 010
Transfer from(to) Retained Earnings ........ 020
Transfer from (to) Non-Par Account ......... 021
End of Year ........................................... 029
STATEMENT OF NON-PARTICIPATING ACCOUNT
Mutual Insurance Companies Only n
(JASOOO)
Beginning of Year.. ................................. 030
.......................................................... 031
................................................... 032
Share of Net Income (Loss) .................... 040
Transfer from (to) Par Account. ............... 051
Dividends to Preferred Shareholders ....... 052
End of Year ........................................... 059
STATEMENT OF RETAINED EARNINGS
Stock Insurance Compantes Only
Beginning of Year.. .................................
........................................................... 062
Share of Net Income (Loss) ..................... 070
Transfer from(t0) Par Account 080 ..................
Dividends to Shareholders:
Preferred ............................................ 081
Common ............................................ 082
End of Year ........................................... 089
FSC-L.2001
Nexl Peps Is 30.065
(The lnclvsion of this page is authorized by L.N. 33A/2WS]

Insurer

Year
Premiums
Insurance.. ...........
Amuuhes. ................
Net lnvesment Income .......
NONXONSOUDATED FINANCIAL STATEMENTS
ANAIYSIS OF INCOME BY LINE OF BUSINESS
Total Revenue ............................. Policy 8eneRls and Expenses Z 1 Claims .............................. -030
AnnW Payments .................. 031
Other (Includes Surrenden) .... 032 Q
Net Changes to Pol'icy LiabiWks
0
D h,
Q

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, cond
[The Inclusion of this page is authorized by L.N. 33N20051

THE INSURANCE REGULAiTONS, 2001
EIGHTH SCHEDULE. contd . 30.070 lruumr Year NONCONSOLIDATED FINANCIAL STATEMEMS RECONCILIATION OF FUNDS
Funds at 8.glnnIng of Year ...................... 001
Net Income (horn malysls of income) ......... 002
Incmaw (Docmaw) in:
Actuarial Llabllltias ................................. 010
Slaff Pension and Insurance Funds ....... 011
Provision for Policyholder Dividends
and Experience Rating Refunds ......... ..................
Transfern of Surplus to 0the;~unds
(provide delails ). ................................... 031
Dividends to Shareholders .......................... 032
Total Funda at end of Year .......................
Aduarial Liabilities ...................................... 040
Staff Pension and Insurance Funds ............ 041
Policyholder Amounts on Deposit ................ 042
Provision for Policyholder Dividends
and Experience Rating Refunds ............... 043
Provision for Asset Default ......................... 045
Deferred Income Taxes .............................. 051
.................................................................... 052
.................................................................. 053
Shareholders Capital .................................. 060
Contribubd Surplus ......................... : .......... 061
Retained Earnings .................................... 062
Currency Translation Account ............ ... 063
Total Funds at end of Year ....................... 068
Detalla of Line 31
F9c.L-2001
Next Page 11 30.000
[The Inclusion of this page k authorized by L.N. 33N20051

THE INSURANCE REGULATIONS, 2001
INVESTMENT POLICIES. PORTFOLIO AND LONG TERM INVESTMENTS 1 Does Vln company have pollues wdh resW to (a) I.m#rs and aumonhes? 001 Ye8 No (b) concenlral~on rm1I.9 s Q mOusW. Qeo~raphtc smple enuty. ecc W1 Yes No (c) quallfy 01 tnvesLInenU? 003 Yes NO (a) use o( dmvabws? MY Yss WS Y.. (0) asseVllabdlfy management? No NO - tn esIabbrhtna wowslons and wnUnQ Have lhese poltues down ~nvermenls? been approved by Re Board of Dlmclon OM or a Yes subordinate CnrnmlneE d ths No - Were Board? aU Vie bonds sharer and omsr $ewn(les aned al lstal oti year ye. end over whlch me NO - wmpany has exdustwe control n ma anuel possession of me company or wllh en appmved wstcdm? 0-2 ye. U No. Arnoum (JAS000) No - 11 nd p~eas* expaln 1 Were all olher assea of Re campany aned al nscal year end under the exclusive conmi of Re company' 013 Ym5 n NO. Amount (JASW~) No - lf nor. please describe me orcumstanws and gave me amounls of such assew 1 Am all aurchares and sales of mvsslments of me comoanv . . aoornved bv the Board of Djredm 2 &iiuikrdtate Doer me company engage comm,nee m of me me aavq Board? of lendmg sewnues oii lo yes brokers ' or omer fianual NO - ~nruwons? 016 Yes No nr.~, rota1 Manu value or secumlea LI~ (JASOM) If yes, please pmnde as a1 year end, a list ol me names of all IIuulubons am the total value of sewnbes lenl aM callaleral neld lor each msUtuba, (Sepately aden leners Of KedlI held as 2 oms me company enter mlo agreemena lo sell and repurchase sewnuer (and purchase and rels~~ seamues)7 016 YM NO U Yes. Tobl VsIue (JASOOO) If V~S ~IOase emvde as al vear end a Ids1 of all dnrrlbuons wm xRch mess Vanlams have [Thc Inclusion of Ihls page is authorized by L.N. 33AIZ0051

THE INSURANCE REGULA TIONS, 2001
I11sur~'r Year
NON-CONSOLIDATED FlNANClAL STATEMENTS
GENERAL INTERROGATORIES (contd)
Please indicate the total amount of the indemnity bond (s) pursuant to the protection of securities regulations covering the company against an) loss in respect of the securities of the company and the date up to which the policy coverage is in effect. Coverage (JAP000) 001 Insurer:
Eff'ective Dates
CONTINGENT LIABILITIES
Has thc: company provided a letter (s) of credit against which funds can be drawn by the beneficiary? 011 Yes No If Yes, Amount (JAS.000) If yes, please provide details. Does the company have any material contingent liabilities or contractual obligations or other off-balance sheet liabilities that have not otherwise been disclosed? 021 Yes No If Yes, Amount (JAS000) If yes, please provide details. Has the company guaranteed the liabilities or other transactions (e.g. derivatives) of any other corporations, including subsidiaries? 031 Yes No If Yes, Amount (JAS000) If yes, please provide details. Does the company have any unfunded liabilities in respect of pensions plans? 041 Yes No If Yes, Amount (JAS000) [The Inclusion of this page is authorired by L.N. 331/2005]

THE LVSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, conrd.
30.081. canrd.
Insurer Year
NON-CONSOLIDATED FINANCIAL STATEMENTS
GENERAL INTERROGATORIES, conid.
If yes, please provide the amounts and outline the manner in which the company will fund these liabilities over time -- 3 CREDIT POLICIES-COMMERCIAL LENDING POLICIES
3.1 Does the company have polices with respect to:
(a) concentration limits? e.g. industry, geographic, single entity, etc. 051 Yes No (b) loan limits and authorities? 052 Yes No (c) rating or credit risks? 053 Yes N o (d) establishing provisions for losses? 054 Yes No (e) use of derivatives? 055 Yes No Have these policies been approved by the Board of Directors or a subordinate committee of the Board? 059 Yes No FSC-L-200 1 Next Page is 30.082 [Thc Inclusion of thi page is authorized by L.N, 33Ai2005l

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, contd.
30.082
Insurer Year
NON-CONSOLIDATED FINANCIAL STATEMENTS
GENERAL INTERROGATORIES, contd.
SOURCES OF BUSINESS
4.1. During the period covered by this Return, did any agent, general agent,
broker, sales representative, sales/service organisation or any combination thereof under common control receive credit or commissions for or control a substantial part (more than 20 percent of any major line of business measured on direct premiums) of:
(a) sales or new business? 001 Yes No
(b) renewals? 002 Yes No
If yes, please indentify the individual (s) or organization (s).
4.2 Has the company entered into any networking arrangements with other financial
institutions?
0011 Yes No
If yes, please provide the names and types of products sold through such arrangements. -
4.3 Does the company have written policies with respect to market conduct practices,
including a code of ethical sales practices? 015 Yes No 5 OTHER DISCLOSURE Have any limitations, restrictions, cease and desist orders, appropriations of surplus or other regulatory constraints been placed on the company or been required by another jurisdiction ? 021 Yes No If yes, please provide details. [The Inclusion of (his page is authorized by L.N. 33A/2005]

THE INSURANCE REGULATIONS. 2001
EIGHTH SCHEDULE, contd.
30.082, contd.
Insurer Year
NON-CONSOLIDATED FlNANCIAL STATEMENTS
GENERAL INTERROGATORIES, contd.
5.2 In the last fiscal year, has an), individual been granted stock options, either perferred or
common, that are material (i.e. 5% and over)? 031 Yes No￾If yes, please provide the name of the officer, director or other individual and the details of the options.
5.3 Is the company rated by credit agencies? 041 Yes No
If yes, please provide details of the rating history below:' Rating as December 31, Name of Rating Agency:
(03) (04) (05)

• If rated for items other rhah "claims paying ability"
  please provide these details on a separate page with the purpose of each rating. [Thc lnclus~on of this page is authorized by LN 33N2OOSj

THE INSURANCE REGUM TIONS, 2001
EIGHTH SCHEDULE, contd.
30.083
Insurer Year
NON-CONSOLIDATED FINANCIAL STATEMENTS
5.4 Please provide a description of the methods used in apportioning items of income
and expenditure by fund and line of business.
5.6. Does the insurer sell variable policies or contracts out of its general fund which
are matched against:
(1) other institutions' variable units 061 Yes: No:
(2) other market indexes 062 Yes: No:
5.5 Has the company issued any policies in Jamaica in other than Jamaican Currency?
051 Yes No￾If Yes provide the following; If yes, either instance, provide a detailed explanation of the arrangement including amounts by policy type and how the matched assets are valued in the general fund. 052 053 054 FSC-L-2001 Next Page is 30.Q84 (Thc lnclurwn of rh~r page s aulhorued by L N 33AI20051 Type of Currency (01) (US.) (U.K.1 CAN. Number of Pollcles in Jamaica (02) Jamaican $ Ne 4ctuarial Liabilities (03)

THE INSURANCE REGULATIONS, 2001

• -. - - Insurer Year
  NON-CONSOLIDATED FINANCIAL STATEMENTS
  6 TRANSACTIONS WITH SUBSlDlARlES AND AFFILIATES
  6.1 Have any transactions with subsidiaries and affiliates been referred to the Conduct
  Review Committee during the last year? 001 Yes No If Yes, total Amount (JAS000) If yes, please describe the nature of the transactions and the dollar amounts involved in each of the transactions. -- - -
  6.2 Does the company hwsact directly any non-insurance business, either for subsidiarics
  and atfiliates or tor other third parties? 011 Yes No If Yes, Total Amount (WA000)- If yes, please describe the nature of the service provided and the amount of revenue derived from the non-insurance business from subsidiaries and affiliates and from other third parties. [The Inclusion of this pug= is authorlzcd by L.N. 33AI20051

THE INSURANCE REGULATIONS, 2001
Elcllrrkl SCHEDGI E, cu~irti.
[The Inclusion of this page ia authorized by L.N. 33A/ZOOS]

THE INSURANCE REGULA TIONS, 2001
EIGHTH SCHEDULE, contd.
[The Inclusion of this page is authorized by L.N. 33Al2W51

6W e101
690 ''. ' sw!e13 Wun 10) ws+md 9F ...................................................... ji" ......-......... ..... DEo Yn(eA SplaUnS ........................... r)uauled &W .......... s1uauu*~pu3 puww tCo ............................ me3 41qpsyl LEO .. '. ................ NO sWl3 'ma0 .SWlW3 L)NIaNVlSlflO 620 -"sw!q9-papa3 aounnswu lqol 610 "... .......... pwnw nurq3 WN lO0l LOO 5w ........... snm +uns ........... so0 SIuWkd hnuw Po0 SIUaumopl3 Palnleyl EW sw!q3 lwqeslg zw swlen weaa ~~~uamxx~ swlp13 Weaa sun93 ~~YY~WI am alvd papa3 aaumnsu!ay jo laN 3311 - .SWIVl3 DNIONVlSlllO ONV 'Q3tltlfl3~1 ONV OlVd S1133N38 kt3010HA3llOd

1mumr
ACCIDENT AND SICKNESS BUSINESS DIVIDENDS AND EXPERIENCE RATINGS REFUNDS Direcl I- Rrpbment W1 Amdenla4 Dean and Diynernbermenl . W3 WralCare ......... OM
DeM ..........
Oaer .................... Trnl Did ......... ......... 009
Reimw- Ceded ................. 012
TdNel (Bcneiib on Paid Basir1.019
Chanpe in NH Claim Lirbiliiis
Lnsblrnrnl clam *endOf)nar ............... 020
begi,"'npdpar ........ 02
cutrew/\dj~mnt. ............ az chnge ............................... m OmBr hen I15Wmnl Clm
ptendo()aar..: ...................... 02
atmM)rcar .............. 02 .............. 02
....................... 02
~imr Year .............. 055
R-1 056 FSCI.2ml claim. Ralio 090 Nen Paw. .ow0
...........................

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, contd
[The Inclusion of this page is authorized by L.N. 33A/2005]

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, contd.
NET INVESTMENT INCOME
(JAS000) aonds.
Interest ........................... ..... ................. 001
Amortization of Net Realized
Gains and (Losses) ......................... ...... 003
Equities:
Dib idends ................. .. .................. 01 0 Amortization of Realized and ................... 01 1 Mortgage Loans:
Interest ............................ .... ...................... 020
Amortization of Net Realized
Gains and (Losses) .............................. 023
Real Estate:
Rental Income Including $
for Company's Own use ...................... 030
Amortization of Realized and
Unrealized Gains and (Losses)* ......... 03 I lnterest on Policy Loans ................................ ... . 038 Interest on Deposits and Certificates ..................... 04 I
Interest on Overdue Premiums ............................... 047
Income From Derivative Activities ........................ 048
Income from Other Investments .................. ..... .... 050
Less:
Provision for Losses ..................................... 053
Write-Downs ............................................. 056
Non-Amortizable Capital Gains and (Losses) ............ 060
Gross Investment Income .................................... 069
Less:
Investment Expenses (other than
Invesment Taxes) ....................... 070
Investment Taxes ....................... .. .......................... 079
Net Investment Income ............................................. 089
Net income (loss) from subsidiaries as reported on the incomestatement, page 30.030, line 073 is net of the amount included here in respect of real estate owned by subsidiaries. FSC-L-200 1 Next Page is 40.070 [The lnclus~on of th~s page IS authorized by L N 33N20051

THE INSURANCE REGULATIONS, 2001
Insurer
GENERAL EXPENSES AND TAXES
(EXCLUDING INVESTMENT EXPENSES AND INCOME TAXES) (JAS000)
Rent ........................ ....................................... 020
Year
OTHER REVENUE
(JA$000)
Salaries, Wages and Allowances ............................... 023
Employees' and Agents' Welfare ................................. 026
Management Fces for Segregated Funds ....................... 001
Net Settlemenr Annuities ........................................ 004
Specify Other Revenue Items
............................................................. 005
................................................................... 006
Total Other Revenue ................................................... 019
Professional and Service Fees and Expenses ............... ... 030
Miscellaneous Expenses .............................. .. ............. 039
Stamp Duties ................................................................. 040 Ill I Current 1 Year (01) . ,
Supervision and Examination ........................ .... ........... 043
Licences and Fees ........................................................ 046
Miscellaneous Taxes ...................................................... 050
Total General Expenses and Taxes ............................ 069
FSC-L-200 1
Next Page is 50.010
Prior
Year
(02)
[The Inclusion of this page is authorized by L N 3312/2005]

• . - .....-
  Insurer
  In Force -Beginning 01 Year .................... 001
  New Business. ............ 002
  Reinslakmenls .................. 003
  New Bonus Addilions .............. 004
  Old Increased (net) ..................... 005
  .................................................... 006
  ..................................................
  Total ................................................. 019
  Less Terminated by
  Dealh ................................... 020
  MaturiCy .......................................... 021
  Disability ........................................... 022
  Expiry ............................................... 023
  Surrender ......................................... 024
  Lapse ............................................... 025
  Wtlhdrawal with conversion ............... 026
  Decrease (net) ................................ 027
  .............................................. 028
  Told Terminated.. ....................... 039
  Currency Revaluation ............................... 040
  In Force - End of Year ............................... 049
  'Include Number of Certificates Under Shar FSC-L-2Wl Nez7 Page is 50.020 MOVEMENT OF LIFE INSURANCE POLICIES (GROSS) (JAS000) - Indlvid~ai Group - Total Wntlen Remurance Assumed Wrlllen Remsurancc Assumed Amounl Number of Amount Number of Amount Number 01 Number of Amounl Fiurnber 01 Amounl Poltc~es Polmes Polacres Cen#Rcales' Cert~ficales (061 (OD (08) (09) -& I I Groups Counted on a Pro Rata Basis.

THE INSURANCE REGULA TIONS, 2001
EIGHTH SCHEDULE, contd iNiA #N/A
Insurer Year
ANALYSIS OF AMOUNTS OF LIFE INSURANCE
EFFECTED, IN FORCE AND CEASED
(JA$000)
/ Participating I Non-Participating Total I
Reinsurance Assumed ............ 002
Reinsurance Ceded ................. 003 111 New Effected
Written Business .................... 001
GROSS AMOUNT OF LIFE INSURANCE WRITTEN
CLASSIFIED BY PLAN OF POLICY
(JAS000)
Life .............................................. 030
Traditional .............................. 031
lnterest Sensitive ........................ 032
Equity Linked ........................ 033 0 Tern ........................................... 034
Other ................................ .. ...... 035
Total ............................................. 039
Net ..................... ............. 004
In Force
Written Business ...................... .... Reinsurance Assumed ............ 01 1 Reinsurance Ceded ................ 0 12 Net ................................... .. . 013 Net Amount Ceased
By Death ............................ .... 020
By Maturity ........................... 021
By Lapse ....................... 022
By Surrender ....................... 023
Other .................................... 024
[The Inclusion of this page is autholized by L.N. 33A/22/2005] (05) . -, . - , I I Individual (01) Group (02) Individual (03) Group (04)

THE INSKU NCE REGULA TIONS, 2001
EIGHTH SCHEQULE, contd.
50.020, contd. w- #N/A
Insurer Year
GROSS AMOUNT OF LIFE INSURANCE IN FORCE
CLASSIFIED BY PLAN OF POLICY
(JA%000)
Equiry Linked ........................ 033
'Tzrm ....................................... 034
Life ............................................. 030
Tradit~onal ............. ..,.,,,,. 03 1
Interest Sensitive ..............,.... 032
Orhsr .... . ................ . ....... ............... 035 Ill Total ................................ ... ....... 03911 I 11 lndividual (01) GROSS AMOUNT OF GROUP LIFE INSURANCE IN FORCE CLASSIFIED BY TYPE OF GROUP COVERED (JAS000) Group (02) FSC-L-200 1 Next Page is 50.040 Type of Group Covered E~npioyes. ..... ....... ..... .......... ......... .,, 050 Creditors of Banks, Trust Companies
Finance Companies, Credit Unions, etc ........... 051
h.leriibers of Unions, Associations, erc ............. 052
........................... ........................................... 053
Total ........... . .......... ...................................... 059
[Thc Inclusion of this page is authorized by L N 33A!2005] lndividual (03) Group (04) 1 (09 Toral (03) Group Tzrm (01) Group Perrnanenr (02)

S3IlIflNNV lN3W31113S ONV 1VflOlAlONI
(SSOUE)) S3lllnNNV 40 lN3YY3AOYY
,amrut
VINU -- VlNU ow 0s
C
LZ-HS

SNlA
Insurer ax!?.
Year
MOVEMENT OF ANNUITIES (GROSS'
GROUP AND DISABILITY ANNUITIES
Number of Deferred lmmedlale Number Annual Contracts Number of Account Annual Number Of Annual Payment Cenifcates Vdue Paymnl Cerlkales Payment (01) (02) (03) (04) (05) (06) (07) (081 I I
In Force Beginning . of year ...................... 001
Deporilr ................................................ 003
Wrillen ........................................... 004
Old Revived .............................................. 005
Old Increased (net) .......................................
lnteresl Crediled ........................................... 007
coriedi ................................................. 010
Tcamfers in fmrn Ann& AccounB ............. 012
Total.. ................... 019
Less Ceased By:
Payment ........................................... MI
Surrender ........................................ 022
Other ................................................. 023
Transfers oul d Annuhy Accounts ................ 025
Corredions .................................................. 030
Tolal Ceased ........................... ......-........... 039
Currency Revaluation ................................... 049
In Force. End ot Year .................................. 059
Rehsunnce in Force:
Assumed ........................................... 069
Caded ............................................... 079
Number of Group Annuhy CeMicates in Force it FSU-ZWl .... Nd Ps* b w.o.ms

Name of Asrumha Company r
REINSUR4NCE CEDED TO UNREGISTERED COMPANIES - LIFE' IN .lAH*ICA BUSIMSS Br Block of Reinsured Burinerr

REINSURANCE CEDED TO UNREGISTERED COMPANIES - ACCIDENT AND SICKNESS '

50 o5n
Insurer
REINSURANCE CEDED TO UNREGISTERED COMPANIES - ACCIDENT AND SICKNESS ' WT OF JAUUCA suslrra By Bksk O( Relnrured 8uslncsr Ynr

In Jan~dca Borincsr Ceded
To Reislcrcd Companies ........................... 00
To Unrcyisarcd Companies
Apprmcd by lhc Supcrinlendent ... 00'
No1 Approvcd by Be Supcrinlcndcnl ....... 00
To unrcyislcrcd non-Caricom Cesnpaia
Wilh Sccurity ..................................... 001
Withour Security.. .................... 00' Told Ceded to Unrcqislcred Compania ........... 00' Told ........................................................ 01' Out o( Jamaica Business Ceded
To Regirlcrcd Compania ............................ 021
To umsyirtcred Carican Compania
Approved by lhc Superinrcodent ............. 02
Nci Approved by Ihc Sqerinlcndcm ...... 02:
To Unt&rured Forrim Comoania
Told CcM lo ~nrc~irlovd Compani cr... ...... 02' Total 03' M 059 Yea REINSURANCE CEDED '

THE INSVRA NCE REGULA TIONS, 2001
EIGHTH SCHEDULE, contd.
50.070
Insurer
ACTUARIAL LIABILITIES - SUMMARY Year
(JAS000)
Life
Insurance
Par Individual ..................... 001
Group ............................ 002
Subtotal ...................... ... 003
Non-Par Individual ....................... 004
Group ............................. 005
Subtotal .................. .... 006
Total Insurance ....... ....... . .........,+ ~,009 Annuities Par Individual ..................... .. 01 1
Group .............................. 012
Subtotal ........................... 013
Non-Par Individual ......... ,. ...... ...... 014
Group .............................. 015
Subtotal .......................... 016
Total Annuities ................ , ,,.,.... ....... 019
Total Life Actuarial Liabilities ... 029 Health Individual ..................... 03 1
Group ........................... 032
Total A&S Actuarial Liabilities.. . 039
FSC-L-2001
Next Page is 60.01 1
[The lncluaion of this page is nuthorid by L.N. 33A/2O(M]

THE INSURANCE REGULATIONS. 20001
EIGHTH SCHEDULE. contd .
60.01 1
Insurer Year
OTHER INSURANCE POLICY AND CONTRACT I.IABILITIES (JAS000) Par Non-Par Total Total Current Year Prior Year (01) (02) (03) (04) Outstanding Payments Under
Settlement Annuities ................. 001
Premiums Received
In Advance ............... ......... 002
Policyholder Dividends and
Experience Rating Refunds . Due and Unpaid ....................... 003
Other ......................................... 004
Total .......................................... 00s ACCOUNTS PAYABLE
Overdraft ........................... .....................
Agents and Brokers .............. .................................................... 012
Subsidiaries and Affiliates ............................................................... 013
Other Insurers ............................................................................. 014
Other Payables .............................................................................. 015
Expenses Due and Accrued ........................................................... 016
Reinsurers ............................... ... ................... 017
Slaff/Directon ..................................................... 018
Total ............................................................................................... 019
OTHER LIABILITIES
(JASW
Investment Income Received in Advance ....................................... 022
Accrued Interest on Outstanding Claims .......................................... 023
Dividends to Shareholders Declared and Unpaid ............................. 024
Amounts Received but Not Yet Allocated ............ ................... 025
Fee6 and Other Tame (excl . Income Taxes) .................................... 026
Amounts Due in reepect of Staff Pension Plans ............................... 027
Security Repurchase Transaction6 (Repos) ..................................... 029
other ................................................................................................ 038
Tom .................................................................................................. 039
Fc Inclusion of lhii psec b authorid by L.N. 33N20051

Insurer
POLICY CLAWS RESISTED - NET OF REINSURANCE Year Net Resisted at
~if&lnsuram .......... 001
nnuities .................... 005
ent 8 SianeSS.. 010

THE INSURANCE REGULATIONS. 2001
EIGHTH SCHEDULE, contd.
70.000
Inaum Yur
SUMMARY OF INVESTMENTS'
Amount
Shod Term Investments .... ................. Bonds snd bbniures Govemmnl Jamaica Canada ...... ...... .. . . .. ... . .. ...... . ..... ... . United Kingdom ....... ................ United Sta1.8 of Amdca. .. ... ... Cariwm omu. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . Ornu..................................... Ornu..................................... . Ornu..................................... . , . , , , , . . comu Jmnaica caws ... ...... . .. ... ... ... ... . .. .... .... United Kinpdom Ulllhd SUIas of America.. ... .. Carlsom Ovlar ................. Ovllr....................................Ovllr................................... .Ovllr................................... Ovllr................................... Ovllr....................................Ovllr................................... .Ovllr...................................Ovllr................................... .... Ovllr...................................Ovllr................................... .., .., .,. Tobl Bond8 and Debentuns ............ Mor(glp. Lama ................................. Equllyand Real btab Pmbned Sham6 Jemaicp Ceneda ... ... ... . ..... . ... .. ... ... . . .. . . Unlted Kinpdom ..................... UniW Stales of Amarice ... ... . .. Caribbean Basin ........................ Other ...... ....... ... . . . . .. . . . . . . . . . ... . . . .. Total Pnhmd Shares .............. Common Shms Jamaica Csneda ... .. . . .. ... .. . . . .. ... . . . .. . . . . . . . . . . . Unitad Kingdom UnM Stales of America ......... Csriwm OLar ... ... ... ., , ... Total Common Sharea .............. Total Slum .... ............... .................. Olher Equhy lnv~(mem8................... Sub-To801 (Unm 48448) ...... RaN E* Jameica Canlde ... : ..... .. ... ... c.nld....:...............................c.nld....:.............................. .c.nld....:..............................c.nld....:.............................. ... c.nld....:...............................c.nld....:.............................. .. .... ... . Unlw Klnpdom ........................ Urdted S1.1- d Amalica . . . Car(wm om*. .... . . . . ... . .. . . . . . . . . . . . . . . Om*.................................... . Om*.................................... Om*.................................... . . . . . . . . Tw LquWand -1 mob (~lnr ~80 Other Lorn. end Invested uau Oh.r Lomn .............. ....................... Omw... . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . TWI Othu hns and S~ppm* EIthlbC'
FLrod Tnm Bolldo 6 D.b.ntum .......... CmuWo Eon& 6 Dabmums ........ Flrud Tm R.hmd Sham ................. 103
me lnelusian of this page is authorized by L.N. 33AIZW51

THE INSURANCE REGULATIONS, 2001
70.00 1
Insurer Year
SUMMARY OF COMMERCIAL LOANS
CONSOLIDATED BASIS
(JAS000)
Comnlrrcial Loans Included in:
Bonds and Debentures
Fixed Term ................................................. 00 1
Other ......................... ........................ 002
Toral Bonds and Debentures .......................... 008
Other Fixed Term Investments ......................... 009
Mortgage Loans
Residential ................................................. 010
Non-Residential ................... ............... 01 I Total Mortgage Loans .................................... 0 19
Orller lnvestnients ...................... ................. 020
Other Loans ................................................... 021
Total Commercial Loans ........................................ 038
'Cummcrcirl Lonns as n percent of
Total Assets at Book Value .................................. 039
[Thc lnclus~on of lhi page e aulha~cd by L X 33A?005]

• 11' ratio exceeds 5% provide date of approval by Suprrintrnden't in
  accordance with Sectiu~~ 504 of IA
  Dare Approved 029 11 dd,mm,yy
  SUMMARY OF COMMERCIAL LOANS
  NON-CONSOLIDATED BASIS
  (JAS000)
  Par Vslue I[ (0,)
  Comn~rrcial Loans Included in:
  Bonds and Debenrures i /'
  Fixed Term ............................................ 040 1; Other ..................................................... 041 " Taro1 Bonds and Debz~itures ............................ 048 'I
  UrRer Fixed Tenn Imestments ...................... 049
  \lilngage Loans
  Rssidenrial .......................................... 050 'I Yon-RcsiJcntial ........................................ 05 I Book Value (02) Market Value (03) 1 .1 ll 1' Tot4 Iongage Loam ................................. 059 ! 1 Orher lnvcsrme~m ....................................... 060 I 01lw Loans ............................................... 061 ' FSC-L-200 1 Next Page is 70.003 l.otal Commercial Loans ...................................... .089 "Cummercial Loans as a percent of Totel .Assets at Book 'slue ................................... 099 Yo

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, contd
[The inclusion of this page IS aulhorized by L N 33.4'20051

~ooosvr)
S33NVAaV (INV SNVOl 'S3MIllN3830 'SaNOB - S31MVlalSBnS NI SlN3YYlS3ANI lea^ remnq 110'OL

THE NSURANCE REGULATTONS, 2001
EIGHTH SCHEDULE, contd
[The Inclusion of this page is aulhonzcd by L.N 33AIZW51

THE INSURANCE REGULAl70NSS 2001
Year
SUMMARY OF COMMERCIAL LOANS
CONSOLIDATED BASIS
(JA%000)
Commercial Loans Included in:
Bonds and Debentures
Fixed Tenn ........................................ 001
Other ..... ..... ...... ........ .......... ......... ,... 002
Total Bonds and Debentures ............................. 008
Other Fixed Term lnvestlnents ......................... 009
Mongdge Loans
Residential .................... 010
Non-Residential 01 1
Total Mortgage Loans ................................. ..... 019
Other lrwestments ..................... ....... .. 020 Other Loans ..................................... ... ... 021
Totnl Commercial Loans ........... . ................ ........... 038
'Commrrcia1 Loans as a percent of
Total Assets at Book Vnlue ................................... 03

• If ratio exceeds 5% provide date of approval by Superintendent in
  rccord~nce with Section 504 01 lA
  Date Approved 0291 dd,rnm,yy
  SUMMARY OF COMMERCIAL LOANS
  NON-CONSOLIDATED BASIS
  (JA$000)
  Commercial Loans lncludrd in:
  Bonds and i3ekntures
  Fixed Term ......................... ... .... ........ .. 040 Other .... ........... 04 1 Total Bonds and Debentures ......................,. 048
  Other Fixed Tenn Investments ......................... 049
  Mortgage Loans
  Residential ............................................. 050
  Non-Residential ........ .. .. ..........,.....,.. .,........... 05 1 Total Modgage Loans ..................... ...,... 059 Other Investments ........................................ . 060 t
  Other Loans ............................................... 061
  Totnl Commercial Loans ........................................ 089
  *Commerciul Loans as a percent of
  Total Asset6 at Book Value ................................... 099
  FSC-L-200 1
  Next Page is 70.003
  Po Inclusion of this page is aulhorizcd by L N. 33A/Z005j

(aoosvr) a3ZIlMOMV 03Z11~8Nfl UN aNV 03MM3330 (137llV3Y 13N'(R~l1~3~ SlN3RlS3ANI NOS~SSOI ONV SNIV9 lVlldV3

THE INSURANCE REGULATIONS, 200 1
EIGHTH SCHEDULE, conrd.
[Tk Incluion of this page ia authorized by L.N 33A/2005]

IWIVr)
S33NVAQV QNV SNVOl 'S3YfllN3830 'SONOB - S31YWOIS8nS NI SlN3YUS3ANi -- taaA *Unw )LOO.!

THE INSURANCE REGULAiTONS, 20001
EIGHTH SCHEDULE, contd.
[The Inclusion ofthis page is authorized by L.N. 33N2005]

THE INSURANCE REGULATIONS, 2001
E~HTH SCHEDULE, contd.
[The Inclusion of this page is authorized by L.N. 33A/2005]

INSURANCE
EIGHTH SCHEDULE, contd.
[Tht lneluaion of this page is ahrized by L.N. 33N2M)5]

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, contd.
[The Inclusion of thb pge b nuthorid by L.N. 33A/ZOOS]

Insurer
Location 01 Properly
Jamaiu
KhgsceQ ....................... Wl
St Andrew. .............................
St. Catherine ...................... 003
Clare&. .................. LW
Mancherter .............. ...W S1.Ehakth .................. LW
Westmoreland ............... 007
Pmbnd ......................... 013
31. Thwas ..................... MA
Tnal Jmaica ............. 019
Canada. ............................ 03G
Uniled Kingdom ...................... 040
Uniled Sidles of America ........ CSO
Caribbean Basin .................... 060
Olher .................................... 070
G~nd Total ............................. OM NonConwtiiakd REAL ESTATE - GEOGRAPHK: DISTRIBUTION BY TYPE Gross (Before Provisions) (JASOOOI

REAL ESTAlE - VALUATION AND AMORTIZATION OF UNREALIZED GAINS AND (LOSSES) REAL ESTAlE OWNED BY SUBSIDIAR)ES

Insurer Year
REAL ESTATE - 15 LARGEST - FORECLOSED PROPERTIES W Page is 70.038

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE. contd
[The lnclvsion OfthL pape b authorized by L.N. UAIZWSl

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, contd.
70.080
ACCOUNTS ReCElVABLE AND OTHER ASSETS ccounta Receivable from Subaidlariw md Afflllateq ame of Subaidmy or Amliate Year Amount Due
...................... ... ................... ........................... 006
......................... ................... ....................... .... 008
...................................................................... 007 \ ......................... ................... ... 008 otal Receiveble from
Subaidlarlw and AMIIatee ........................ ..... 019
Wer Accounta Recdvable
Outstanding Premiums ........ ....................... .... 020
Agents' Debit Balances ........ ................... ,....,. 021
Brokers' Balances .............. .. ........................... 022
Reglsered lnaurers 8 Approved Reinsurers ... 023
Other Inaurers.. ............................................. 025
Other Receivables .........,..... ........................... 029
'otal Other Accounts Receivable ......................... 039
GOODWILL ANO OTHER ASSETS
Goodwill .. ................... ........................... 040
Furniture and Equipment (less
accumulated depreciation) ... ........................... 050
Prepaid and Deferred Charge6 .... ... 091
Intangibles (excluding Goodwill).. .......................... 052
Transfer to Company's own Segregated Funds. ... 055 Other (specify)
....... ......................... ............................................. 080
....... .......................................... ......................... 061
................................ ............................................ 082
Total .................................................................. 069
[The Inclusion of this page is author(& by L N 33Al2005)

THE INSURANCE REGUL4 TIONS, 2001
E~GHTH SCHEDULE, contd.
83.010
IN JAMAICA ONLY
NON-CONSOLIDATED FMANCIAL STATEMENTS
ASSETS
(JA$000)
Ca 002
Ac ......................................... 007
Accounts Receivable .............................................. 0 10 lnvestments and Loans:
Fixed Term Investments:
015
Policy Loans ................................ ... ............ 020
Other Loans ........................................................... 02 1 Bonds and Debentures:
Fixed Term ............................................ 023
Convertible ................................................. 024
Other .................................................... 028
Mortgage Loans ............................... ... ................ 030
Preferred Shares-Fixed Term .............................. 03 1
Total Fixed Term Investments .................... . ,....... 039
Equity Investments:
Preferred Shares ................................................ 042
Common Shares .................................................. 045
Real Estate ............................. .... ..................... 05 1
Other Equity Invesments .......................... .... .... 054
Total Equity Investments .............................. 060
Other Invested Assets .............. .............. .... ........ 062
Total Investments and Loans .................................... 070
Interest in Joint Ventures ......................................... 078
Investments in Subsidiaries ..................................... 079
Deferred Income Taxes .............................................. 080
Goodwill and Other Assets ........................................ 081
TOTAL ASSETS ..................................................... 089
Total Assets in Segregated Funds ................ ............... 099
Year
Current Year Prior Year
Note: If B Company does transact any business outside of Jamaica, Pages 83.010 to 85.070 need not be completed but should be marked "NIA" FSC-L-200 1 Next Page is 83.020 me In&i of thb me b autborirrd by L.N. 33CJZ0051

THE INSURANCE REGULATTONS, 2001
Insurer Year
Rrferenc~
Pngr
85.070
85.070
Total Liabilities in Segregated Funds ............... 09911 1 I/ IN JAMAICA ONLY NON-CONSOLIDATED FINANClAL STATEMENTS LIABILITIES (JA$000) FSC-L-2001 Next Page is 83 .O3O Liabilities Net Actuarial Liabilities Under Insurance Policies ............................ .... . 002
Under Annuity Contracts .............. .. .............. 003
Provision for Policyholder Dividends and
............................ 011
Outstanding Claims and Adjustment Expenses ....... 012
Policyholder Amounts on Deposit ....................... 013
Other Insurance Policy & Contract Liabilities ......... 014
Accounts Payable ...................................................... 03 1
Income Taxes Payable ............................................ 032
Mortgage Loans and Other Real Estate Encumbmnces 033
Other Liabilities .................................................................. 039
Net Deferred Gains (Losses) on Disposal of
Portfolio Investments ...................................................... 040
Deferred Income Taxes ....................................................... 049
Subordinated Debt ............................... .... .............................. 050
Other Debt ........................................................................... 052
TOTAL LIABILITIES .......................... ....................... 069
[The Inclusion of lhu page is authorid by L.N 33A12005] - Current Year (01) . . . Prior Year (02)

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, conrd.
83 030
-.-. Insurer Year
IN JAMAICA ONLY
NON-CONSOLIDATED FINANCIAL STATEMENTS lNCOME STATEMENT CJASOOO) 11 Current Year I Prior Year Pevenue 'remums lnsuta Annul O1 03 / Vet lnvestm 10
3ther Revenue.. ................................................ 023
Total Revenue .................................................................... 029
Policy Benefits and Expenses
Pol~cyholder Benefits
Claims. .............................................. 030
Annulty Payments. ....................................... 031
Otner. ............................................... 032
Net Changes to Poky Liabilit~es
Insurance ................................................... 033
Annutties ........................................................ 034
Policyholder Dividends and Experience
Transfer to and (Transfer from) Other Funds ................... 036
Commissions ......................................................... 040
Interest on Policyholder Amounts on Depos~t. ................ 051
General Expenses and Taxes (excl, Income Taxes) ............... 060
Total Benefits and Expanses ........................................... 068
Nat Income Before lncorne Tax
md Extraordinary Items ........................................
I rovision for lncorne Taxes
Deferred ....................................................................
Net Income (Loss) from Subsidiaries ............. .................... 073
Net Operating lncOmeBetoreExtraOrdinary items .............. OBO 1 Exbaordinary Items (net of income taxesof $ OSI-L-MOO) ......... 0% Net Income .......................................................................... W

• 11 I I 1
  [The Inclusion of thus page is authomed by LN 33N20051

AlNO V31WVr NI
010 CO

3311 - SONfl33M 9NIIW 33N3183dX3 ONV SON3OfAIO tlPOlOHA3(10d AlNO V31WMVf' Nl

Year
IN JAMACA ONLY
POLICYHOLDER BENEFrlS PA*? AND INCURRED AND OUTSTANDING CUIMS. - LIFE IYI( of Reinsurance C& POLICTHOLOER EEHEf ITS . - PAID AND INCURRED Cbms &ah Cbms Accidental Death Claims . W2 DsaWly Cbims UdurEdEndo*mrms . . 004
A~rn)rP-Ns .....
hen& Values.... ...
1 Other. ................ - TWI Nd Chins Imlurcd 019 m 0 E ............................ TebI Rimcurance CededElairns .... 029 J 2 OUTSTANDING CUIMS. x
DealhClabnr .........
2 AcdsdA DeaVI Uaim. ............ 031
amaq claim .032
gz .............. 5 c, Mured Endarmenh. ............... 033
Amdy Papmh..
C .....................
SunendR wdre ......... 1 r ............................................... 036 0
Prw& lor UnrepMed Claims 049 0 Y ........
TOUI ................... 059
Out fmm other CompMies on Reinsurea & -8 Conlracrs for Claims Paid .............. 069
'Including ~~~~~~n lor Unrepodcd Claims

n4 n.ln

Year
IN JAMAICA ONLY
ACCIDENT AND SICKNESS BUSINESS
PREMIUMS. CLAIMS. ANDPOLlClHOLDER DIVIDENDS AND EXPERIENCE RATINGS REFUNDS Accldenld DeaUn ad hsrnemberment Medm Care Denlal . .
Renrurance Ceded. ........... 012
Total Nel(8eneliis on Paid BariaI.Ol9 change in NelCtah Liabilitlel Inmment Claim
Al end of FB.. .... 020
At beginning of year,.. ........ 021
To01 Direct Premiums Wmen
FSU-1001 Fim Year ........... iPS5
Ikxl~kwW Renewal 056
Claims Ratio ........................... 090

THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, cod
[The inclusion of this page b authorized by L.N. 33M20051

--
Insurer
IN JAMAICA ONLY
MOVEMENT OF LIFE INSURANCE POLICIES (GROSS) Year . . .. . . . . . .. . . . .. . . . . ... . . . . . . . . .. . . . . . . . . . . . . . . . . . lmlude Number of Certificates Under Shared Omups Counted on a Pro Ram Basis. FSCL-1001 HmP*D I)S.m

THE I1VSU. NCE REGULATIONS, 2001
EIGHTH SCHEDULE, confd.
(15 020
IN JAMAICA ONLY
ANALYSIS OF AMOUNTS OF LlFE INSURANCE
EFFECTED. IN FORCE AND CEASED
IJASOOO)
Panicipatmg Non-Psiiicipalinq Tole1
Indivldunl Group Individual Gmup
(01) (02) (03) (04) (MI . N.w Efl.ct.4 1 I wmen 001 Remsurance Assumed 002 Re~nrurance Cedea 003 Net In Force wrtnen 010 Remsurancc Assumed 01 1 Remsu,ance Ceded 012 Net 013 Net Amount CeamJ By Dean 020 By Maturq 02 1 Other 022 GROSS AMOUNT OF LlFE INSURANCE EFFECTED CLASSIFIED BY PLAN OF POLICY (JASOOOI Psnncipuing . I Non.Pmiicipslinn Tolal lndlvidval 1 Gmup 1 Individual 1 Group
Lile. ........................ 030
Endowment ..................... 031
Term ....................... 032
Oh el .................................. 033
Total .......................................... 038
GROSS AMOUNT OF LlFE INSURANCE IN FORCE
CLA8SIFIED BY PLAN OF POLICY
(JA%OOO)
Patlicipating , I Non-Patiicipathg Total lnd~vidual 1 Grow 1 Individual 1 Grouo
Lile ......................
Endowmonl. ...........
Term ..................
Olher .................... Tom ......................
GROSS AMOUNT OF GROUP LlFE INSURANCE IN FORCE CLASSIFIED BY TYPE OF OROUP COVERED IJASWOI Typa 01 Group Coverad
Emplqsss ....................................................... 050
Creditors 01 Banks. Tlust Companies
Flnanw Companier. Cndil Unions. atc ............ 051
MemWn of Unions. tuuxialions, etc.. ................ 052
......................................................................... 0.53
Total .................................................................... 059
[The Inclusion of this page is authorized by L.N. 33A/2M)S]

Insurer
*NIA - 85 040
IN JAMAICA ONLY
MOVEMENT OF ANNUITIES (GROSS)
INDIVIDUAL AND SETTLEMENT ANNUITIES
PNIA
Year
In Face -Beg. of year ......... Wl 1 I - I
De$ask .................................... ,003 I 1 ~ri~en .................................... CUM 1 I I MdRevived .......................................
Old Increased (nd) .............. ................OM P ................................. lnlerest Cremed 007 conK(i0ns 010
9 ............................................. 4
Tmnrfers m lrm Annufly Accwnts 012 LC ..............
Total.. - ................. 019 0 cn
Less Ceased By. pape"I .......................................... 021 0 2 Suneoder .......................................... 022 C Other ............................................... 023 -6 Transfez wi d Annuity Awunls .............. 025 0
Carredions ................................................ 030
Total Ceased .............................................. 039 F
Currency Revalualim 049 .a ............................
In Force. End of Year 059
Reinunnce In Force:
Asswwd ........................................... 059
Cednl .............................................. 078
FSU--1
NcM Pep h 115.041

#N/A
Year
THE INSURANCE REGULATIONS, 2001
EIGHTH SCHEDULE, contd.
85.041
Insurer
IN JAMAICA ONLY
MOVEMENT OF ANNUITIES (GROSS)
GROUP AND DISABILITY ANNUITIES
(I Group smuirier . \ Disability Annuities
111 Force~lleg. uf year ..................... 001
Deposits ........................................ 003
Wlrtre~l .............. .............................. 004
Old Revived
Old Increased (net) ............................. 006
loteresf Credited ................................. 007
Con'ectiuns .................... ..,,.. .......... 010
l're~lsfers in hum Allnuity Accoull~s ..012 l'urnl 019 Lcss Ceased By:
P~yment .............................. 02 1 Stmender ... ................... .. 022
Other ..................................... 023
Trnnstirs oul of AI~IY ACCOIIII~S ..... 029
Conecliuss ................................ 030
Totnl Ceased ..................................... 039
C~~newy Revalualion .... .................... 049
In Force, End of Year ...................... 059
Reinsurance in Force:
Assumed 069
Ceded .................................... 079
Number of Gmup Anruily Cenificarep in Force if 111e Number Under Shared Groups is Counted on a Pro-Rala Basis:
(02) (05)
Deferred ....... 089 r-1 Immediate ..... 089 -1 FSC-L-2001 Next Page is 85.70 [The lnchrciion of Lim puge im authorized by L.N. 33N2005J

THE INSURANCE REGULA l7ONS. 2001
EIGHTH SCHEDULE. contd .
85.070
Insurer
M JAMAICA ONLY
ACTUARIAL LIABILITIES-SUMMARY
Year
Life
Insurance
Par Individual .............. .... 001
Group .......................... 002
Subtotal ......................... 003
Non-Par Individual ........................ 004
Group .............................. 005
Subtotal ........................... 006
Total Insurance ............................. 009
Annuities
Par Individual ........................ 011
Group .............................. 012
Subtotal .......................... 013
Non-Par Individual ...................... 014
Group ............................ 015
Subtotal .......................... 016
Total Annuities ............................. 019
Total Life Actuarial Liabilities ...... 029
Health
Individual ........................ 031
Group .............................. 032
Total Health Actuarial Liabilities ...... 039
FSC-L-200 1
This is the last page
(Tk Inclwion of this page b authorLcd by L.N. 33AIZM)5]

THE NSURANCE REGULATIONS. 2001
NINTH SCHEDULE
(Regulation 32)
QUARTERLY FINANCIAL STATEMENTS FOR LIFE AND HEALTH INSURERS ......................... .............................. Insurer Quarter NON-CONSOLIDATED FINANCIAL STATEMENTS LIFE INSURANCE COMPANY INCOME STATEMENT (JAQ Revenue
Premium Income .......................................... 001
Net Investment Income ................................... 002
Other Revenue ............................................ 003
Total Revenue .................................................. 019
Policy Benefits and Expenses
Policy Benefits
Claims ................................................... 020
Annuity Payments ........................ .... 021
Policy Surrenders ............................... 022
Other ....................................................... 023
Expenses
Commissions ................................................ 024
Other Sales Expenses .................................... 025
Bad Debt Expenses ..................................... 026
Management Expenses (Segreated Fund ..... 027
Provisions Increase/(Decrease) .................... 028
lnterest on Policyholder Amounts on Deposit 029
Reinswce Premiums ...................................... 030
Adrninismtive Expenses and Taxes .......................... 035
Operating Expenses ................................................. 049
(lncrease)/Decrease in Actuarial Reserve ................. 050
Transfer @)/from Reserves .................................... 051
Net Income Before Interest Expenses
and Tax ......................................................... 059
Interest on Subordinated Debt ................................. 060
Other Interest Expense ....................................... 061
Net lncome Before Tax
and Extraordinary Items ............................ 069 0 Provisions for Taxes ............................................... 070
Net income (Loss) From Subsidiaries ...................... 071
Net Operating Income Before Extraordinary Items, .. 079
Exmiordinary Items net of taxes .................................. 080
Net Income ........................ .. ......................................... 089
[The Inclusion of thi page is aulhoripd by L.N. 33ACL005)

Insurer
THE INSURANCE REGULA DONS, 2001
NINTH SCHEDULE, contd.
Quarter
NON'CONSOLIDATED FINANCIAL STATEMENTS
LIFE INSURANCE COMPANY
OTHER REVENUE STATEMENT
OAS)
Management Fees for Segregated Funds ................... 00 1
Net Settlement Annuities ........................................ 002
Specify Other Revenue Items I
Total Other Revenue ............................................. 019
(The inclusion of ~hir p~c ia authorired by L.N. 33N2005]

THE INSURQNCE REGULATlONS, 2001
NINTH SCHEDULE, contd.
......................... .............................. Insurer Quarter NON-CONSOLIDATED FINANCIAL STATEMENTS LIFE INSURANCE COMPANY NET INVESTMENT INCOME STATEMENT (JAQ r I I (Y-T-D) (Y-T-D) Bonds:
Interest ...................... ......................................... 001
Accrual of Discount and Amortization of Premium ........ 003
Equities
Dividends ................................................................... 01 1
Realized Gains and (Losses) ......................................... 013
Mortgage Loans:
Intetest .................................................................... 021
Net Realized Gains and (Losses) ................................ 023
Real btate:
Rent & Maintenance lncome including . for Company's Own use .......................................... 031
Realized Gains and (Losses)* .......................................
Interest on Policy Loans .................................................. 040
Interest on Deposits and Certificates ...................................... 041
Interest on Overdue Premiums ............................................. 042
Income from Derivative Activities ........................................ 043
Income from Other investments ........................................... 044
Less:
Investments Expenses (other than Investment Taxes) ...... 060
Investments Taxes .................................................. 061
Net Investment Income ...................................................... 079
..
Less:
Provisions for Loss ............................................. 050
Write-Downs .............................................................. 051
Cross Investments Income ................................................. 059
*Net income (loss from subsidiaries as reported on the income statement, line 07 1, is net, of the amount included here in respect of real estate owned by subsidiaries). . . Includes maintenance expenses incurred on real estate. OSI-L (1998) Ilk Inclusion of this pqc is authorircd by L.N. 33AIZOOS)

Insurer
THE INSURANCE REGULATIONS, 20001
NINTH SCHEDULE, contd.
. ...... ,... ................... Quarter NON-CONSOLIDATED FINANCIAL STATEMENTS LIFE INSURANCE COMPANY ADMINISTRATIVE EXPENSES & TAXES STATEMENTS (JAW Rent ....... .. . .... ............................ ........ ........................ 0 10 Salaries, Wages and Allowances ........................... ... 020
Employee's and Agents' Welfare .............................. 023
Professional and Service Fees and Expenses ........... 030
Miscellaneous Expenses ....................................... 035
Smmp Ducy on Policy Contracts ............ ................. 040
Premium Taxes ............................. ..... ............ 050
Supervision and Examination ................................... 060
Licences and Fees ....................................... 070
M~scellaneous Taxes ........................................... 080
Total Adminirtrative Expenses and Tax es....... ".OW OSI-L (1998) p'he inclusion of lhk we b authorizsd bj L.N. 33AIZOOS1

THE INSURANCE REGULA TIONS. 2001
NINTH SCHEDULE, contd.
..,, .. ,... ,. ,... . .... .... ......... . .... .. .....,..,..,.. lnsurer Quarter NON-CONSOLIDATED FINANCIAL STATEMENTS LIFE INSURANCE COMPANY ADMINISTRATIVE EXPENSES & TAXES STATEMENTS (Y-T-D) (Y-T-D) (Y-T-D)
Cash ................................................ 002
Accrued Investment Income ......... . ..... 005
Accounts Receivable .......................... 009
INVESTMENTS & LOANS I 1 1 I
Fixed Term Investments:
Short Term Investments .......................... .. 010 1'1
Policy Loans ........................................... 015
Other Loans ....................................... 01 6 Bonds and Debentures:
Fixed Term ....................................... 020
Convertible ......................................... Other .................................................. 025
Mortgage Loans ...................................... 030
Preferred Shares-Fixed Term ................ 03 1 Total Fixed Term Lnvestments. .............. 039 111 Real Total Other Equity Common Preferred Other Estate Invested Assets Equity lnvestments Equity Investments
................................................
Shares
Shares
Investments
...................................
.....................................
............. ......
.......................
. ....................
..., ...............
040
052
055
060
062
059 l
TOTAL INVESTMENTS & LOANS.. 070
[The lncluaion of thia pnp u nuthorid by L.N. 33A12WSJ
Investments in Related Companies ............ 078
C Investments in Subsidiaries ......................... 079
Fixed Assets .......................................... 080
Statutory Receivables ................................... 081
Other Assets ........................................... 082
TOTAL ASSETS .................................. . 089 1 .
I
Total Assets in Segregated Funds ............... 099 1 I OSI-L (1998)

THE INSURANCE REGULATIONS, 2001
NINTH SCHEDULE, contd.
......................... .............................. lnsurer Quarter NON-CONSOLIDATED FINANCIAL STATEMENTS LIFE INSURANCE COMPANY STATEMENT OF LIABILITIES, POLICYHOLDERS' & SHAREHOLDERS' EQUITY (JAW Policyholder Funds on Deposit ....................... 0 I0 Provisions for Policyholder Dividends ............ 01 1 Outstanding Claims and Adjustments Expenses01 2 Policyholder Amounts on Deposit .................. 01 3 Other Insurance Policy & Contract Liabilities 0 14 Accounts Payable ..................................... 03 1 '~iabilities Net Actuarial Liabilities
Life Assurance Fund ................................. 002
Annuity Contracts .................................... 003
............................ Mortgage Loans and Other Real, Estate Encumbrances 033
Other Liabilities ...................................................... 039
Net Deferred Gains (Losses) on Disposal of
Portfolio Investments ......................... 040
Subordinated Debt .......................................... 050
Other Debt .............................................................. 052
Taxes Payable ........................................................ 053
Total Liabilties ................................................. 059
Current Quarter
W-T-D)
(01)
1
Reserves PrevlPre qtr.
Capital Reserve ................. ............. 065
Investment Reserve ............................. 067
Total Reserve - ............................................ 069
Prior Quarter
(Y-T-D)
(02)
+a
Policyholders' Equity
Participating Account .......................... 06 1 Non-Palticipating Account (Mutual Companies Only) ... 062
Total Policyholders Equity ........................... 065
TOTAL LlABLlTlES AND EQUITY ......... 089 1'1 Total Liabilities in Segregated Funds .................. 099 11 OSI-L (1998) Shareholders' Equity
Capital Stock ....................................... 070
Share Premium ................................... 07 1
Profit/Loss Account ....................... 072
Total Shareholders' Equity ......................... ...... 075
[The Inclusion of thio page is authorized by L.N. 331\120051 - .

THE INSURANCE REGULA TlONS, 2001
NINTH SCHEDULE, contd.
......................... .............................. Insurer Quarter NON-CONSOLIDATED FINANCIAL STATEMENTS LIFE INSURANCE COMPANY INSURANCE IN FORCE SUMMARY (Units) Current Quarter Prior Quarter -1
Balance from Prior Quarter ............................ 001
ADDITIONS
Issue .................................................................... 002
Reinstatements .................................................... 003
Adjustments ........................................................ 004
Total On .............................................................. 009
Net Increase/(Decrease) ................................... 020 1 I I REDUCTIONS
Death ................................................................ 010
Maturities ........................................................... 01 1
Expiries .............................................................. 012
Surrenders ........................................................... 013
Lapses.. ............................................................... 0 14 Conversions ........................................................ 01 5 Total Off. ............................................................ 0 19
Balance at Current Quarter ............................ 029

[The Inclusion of this page is authorized by L.N 33N2005]

THE INSURANCE REGULATIONS, 2001
NINTH SCHEDULE, contd.
......................... .............................. Insurer Quarter NON-CONSOLIDATED FINANCIAL STATEMENTS LIFE INSURANCE COMPANY EARLY WARNING TEST RESULTS & RATIO ANALYSIS Insurance Risk Ratio lnvestment in Real Estate Change in NPW Test of Receivables Return on Investment Earninus Ratio Solvencv Ratio Solvencv M& Current Standard Prior Standard Quarter Met? Quarter Met? Standard Net lnvestment Income Ratio I Change in Ca~ital &Surplus Liauid Profitability Laoses AssetsfTotal & Surrenders Liabilities [The Inclusion 1 of this page b authorized by L.N. 33N200.31

THE INSURANCE REGULATIONS, 2001
NINTH SCHEDULE, contd.
. . . . . . . . . . . . . . . . . . . . . . . . , ............................. Insurer Quarter NOTES TO RATIO ANALYSIS TestIRatio Line Items Insurance Risk Ratio: Current Quarter Prior Quarter Net Premiums Written Capital &Surplus This is a meaure of the company's ability to absorb financial shocks. The higher the ratio ofpremiums surplus, the greater is the potential risk borne by the company in relation to the surplus available to absorb loss variations. It is used only to judge the magnitude of an insurer's exposure to risk through policy issuance in excess of the surplus strain the company may be able to absorb. Investment in Real Estate: Current Quarter Prior Quarter Real Estate Investments Capital & Surplus Measures company's ability to absorb potential financial losses due to real estate investments. Real estate for personal use has not been included in the real estate investments. Change in NPW: Current Quarter Prior Quarter Present Mth NPW-Prior Mth NPW Prior Mth. NPW Significant increases in the volume of net premiums written could indicate the company's adoption of lenient underwriting practices by accepting higher risks at an insufficient price, thus not collecting enough premiums for future claims. Major decreases in premiums may indicate the company's insufficient influx of premium cash to cover present claims liabilities. Test of Receivables: Current Quarter Prior Quarter Account Receivable Capital & Surplus Measures the company's solvency, should receivables become unrecoverable or delayed. Any amount exceeding 100% indicates a potential fmancial strain on the company's operating fun& due to exhaustion of capital and surplus Wing used to compensate for delayed or unrecoverable accounts receivable. Notes to Ratios [The Inclusion of thin page in aulhorized by L.N. 33ARW51

...... . ......... ... .,.,
Insurer
THE INSURANCE REGULATIONS, 2001
NINTH SCHEDULE, contd.
Quarter
NOTES TO RATIO ANALYSIS
Return on Investments: Current Quarter Prior Quarter Investment Income Avg. Investments for last two mths. ROI can help counterbalance poor underwriting. If R01 is lower than industry average, this may indicate that the company is mismanaging assets. Earnings Ratio: Current Quarter Prior Quarter Net Income Capital & Surplus. Determines financial performance of the company by calculating the present rate of return of capital and surplus. Solvency Ratio: Current Quarter Prior Quarter Capital & Surplus Total Liabilities Measures the company's leverage. The higher the ratio, the more the company is able to) absorb financial distress and withstand difficult periods. Solvency Margin Current Quarter Prior Quarter Retained ~arnings-~inimum Reauired Capital 1% Life Reserves + 10% Annuity & Supp. Contracts Reserve + 10% other Premiums Earned This measures the ability of the life insurer to withstand adverse experience in undetwriting or investments. Usingthis ratio, amargin is beingrequired in addition tothe minimum capital required by law. Since the minimum capital requirement is static, it is being supplemented with a measurement that is tied to the degreee of risk to which the insurer is exposed. [The lnclurion of this page is authorized by L.N. 33A/2005]

THE INSURANCE REGULATIONS, 2001
NINTH SCHEDULE, confd.
......... .. .......,...... ... ..... . ................... Insurer Quarter NOTES TO RATIO ANALYSIS I Net Investment Income Ratio: Current Quarter Prior Quarter Net Investment Income Average Cash + Avg. investments This is a more stringent investment return criterion which is being compared to the risk free retun available on BOJ inshumen&. The company is seeking to earn a specified amount of income to pa! expected benefits. Non-performing Investments call into question the safety of the entire invest ment. Change in Capital & Surplus: Current Quarter Prior Quarter Current Period C& S-Prior Period C &S Prior Period Capital & Surplus This objectively measures the performance of management, investment operations and insurance underwriting. It is a fundamental measure of a company's financial condition, indicating trends in an insurer's capital and surplus. Profitability Current Quarter Prior Quarter Net Operatine Income Before Taxes Premium Income This ratio picture a life insurer's success in operating its business. It focuses on the insurer's results from its business operations. Note that a negative value may simply be as a result of short term lossess arising from selling a new product. Likewise, a larger than usual short term profit may mean the insurer does not have the abilitiy to withstand a long term rise in claim costs. Notes of Ratios [The Inelunion of this pqc is authorized by L.N. 33N2W5]

THE INSURANCE REGULATIONS, 2001
NINTH SCHEDULE, contd.
. . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . , . . . . . . . . . . , . . , . . . . . . . . . lnsurer Quarter Lapses Rr Surrenders Current Quarter I Annualized (Lames + Surrenders) Existing + Net New Business Prior Quarter Failure to retain business will eventually lead to net losses from operations because most of the costs associated with the new business are not recoverable. A high value for this ratio suggests people are buying policies which they are later not happy with. Note that lapses and surrenders have been annualized.

TENTH SCHEDULE
(Regulation 33)
ANNUAL STATEMENTS FOR GENERAL INSURERS
[The Inclusion of this page is authorLcd by L.N. 33N7.0051

THE INSURANCE REGULATIONS, 2001
TENTH SCHEDULE, contd.
Insurance Co. lnsurer
10.10 Year
ANNUAL RETURN for the year ended
02 Insurer Insurance Co.
03 Head Office Address
04
05 Mailing Address
06 (if different)
07 Telephone
08 Fax
20 Contact
21 Title
22 Telephone
23 Fax
30 Officers as at (date of filing return) 36 PresidentIChief Executive Officer 37 Citizenship 38 Address 3 9 41 Chief Financial Officer 42 Citizenship 43 Address 44 51 Secretary 52 Citizenship 53 Address 61 External Auditor* 62 Partner 63 Address 64 65 Telephone 66 Fax 72 Actuaryf 73 Address 1 75 Telephone 76 Fax

• An Auditor's Report and an Actuary's Report are Required to be Filed with the Annual Return.
  FSC-6-200 1
  Next Page is 10.15
  (The Inclusion of this page is authorized by L.N. 33A/2005]

THE INSURANCE REGULAl7ONS, 2001
Insurance Co.
Insurer
TENTH SCHEDULE. contd
10.15 Year
DlRECTORS as at:
(Date of filing return)
Chairperson of the Board
Name
Citizenship
Address
Chairperson of the Audit Committee
Name
Citizenship
Address
Chairperson of the Conduct Review Committee Name Citizenship Address Name Citizenship Address Name Citizenship Address Name Citizenship Address -- - - Name Citizenship Address [The Inclusion of this page is authorired by L.N. 33A/2005]

THE INSURANCE REGULATlONS, 2001
TENTH SCHEDULE, contd.
Insurance Co. 10.15, cond
Insurer
0 1 DIRECTORS, confd.
(Date of filing return)
Name
Citizenship
Address
Name
Citizenship
Address
Year
Name
Citizenship
Address
Name
Citizenship
Address
OSlG (Revised 2000)
Next Page is 10.30
[The Inclusion of this pa@ is authorized by L.N. 33Ai20053

THE INSURANCE REGULATIONS, 2001
Insurance Co.
Insurer
DIRECTORS, conrd.
Year
Name
Citizenship
Address
Name
Citizenship
Address
Name
Citizenship
Address
Name
Citizenship
Address
Nnmr
Citizenship
Address
Nnnie
Citizenship
Address
Name
Citizenship
Address
Name
Citizenship
Address
[The Inclusion of thu page io authorired by L.N. 33A12W51

THE INSURANCE REGULATIONS, 2001
TENTH SCHEDULE, confd.
Insurance Co. 10.16, cond
Insurer
DIRECTORS, conrd.
Year
50 Name
5 1 Citizenship
52 Address
5 3
55 Name
56 Citizenship
57 Address
5 8
60 Nme
61 Citizenship
62 Address
63

THE INSURANCE REGULATlONS, 2001
Insurance Co.
Insurer
TENTH SCHEDULE, contd.
10.20 Year
SHARE CAPITAL
~ --~~ / Total ................... , . ................................................................ 09 1 I C SHAREHOLDERS (MAJOR PREFERENCE) [The Inclusion of thk page b authorized by L.N. 33N2005j Class and Full Description (01) Ordinary 01 02 03 Preference 04 -- -
Total ............... ...................... ................................................... 59
Issued
100%
Authorized
Number
(04)
-.
Number
(02)
T
Amount
(03)
5'000
Amount paid
(05)
5'000

Amount unpaid
(06)
S'OOO

THE INSURANCE REGULATIONS, 2001
TENTH SCHEDULE, contd.
Insurance Co.
Insure
Year
SHAREHOLDERS
(MAJOR ORDINARY)
FSC-G-200 1
Next Page is 10.30
[The Inclusion of this page is authorized by L.N 33A120051

THE INSURANCE REGULA TlONS, 2001
TENTH SCHEDULE, conld.
10.30
Insurance Co.
Insurer Year
CORPORATE ORGANIZATION CHART
Complete the following, showing the interrelationships between the insurer, its immediate and ultimate parent, and all other affiliated corporations (upstream and downstream), identifying the r' percentage ownership of each. (See section VI of the Annual Return Instructions) FSC-G-200 1 Next Page is 10.3 1 [The Inclusion of this page is authorized by L.N. 33A/ZOOS]

Insurance Co. lnsurer
THE INSURANCE REGULATIONS, 2001
TENTH SCHEDULE, contd.
10.31
2001
Year
[THIS PAGE IS INTENTIONALLY BLANK]
FSC-0-2001
Next Page is 10.40
[The lnclwion of this pqe u authorized by L.N. 33A/2005]

Year
THE INSURANCE REGULA TIONS, 2001
Insurance Co.
Insurer
OTHER INFORMATION
0 1 Date of incorporation ............................................................................. 02 Document incorporating company .............................................................................
03 Country of incorporation ............................................................................. 04 Date of registratior? (if applicable). ........................ .. ............................................ 05 Date of commencement of business .............................................................................
10 Have there been any amendments to the instrument of incorporation since the date of filing the last Annual Return? If yes, give details:
I IYM
20 Have there been any substantial changes in ownership since the date of filing the last Annual Return? n I YYM If yes, give details:
30 indicate the name and percentage of ownership of each corporation in which the insurer held 10% or more of the voting rights as at year-end. If necessary, provide details on an additional page. [The Includon of this p~c is nulhorLed by L.N. 33.4/2005]

THE INSURANCE REGULATIONS, 2001
TENTH SCHEDULE, contd.
10.40, contd.
Insurance Co. Year
Insurer
OTHER INFORMATION, contd.
40 Has the insurer contracted for any management services? 0 YM If yes, give details
Name .......................................................
Address ...................................................
................................................................
Name .......................................................
Address ...................................................
Name .......................................................
Address ...................................................
................................................................
Type of service ........................................
Affiliated 0 y~
Type of service ........................................
Affiliated 0 yy~
Type of service ........................................
Affiliated 0 yp,
FSC-G-2001
Next Page is 10.41
[The lmlusion of this page in authorized by L.N. 33AnW51

THE INSURANCE REGULA TIONS. 2001
TENTH SCHEDULE. contd . lnsurance Co . 10.4 1 Year Insurer OTHER INFORMATION. contd . Maximum net retention of anv one risk for each class of insuranc~ Class of Insurascs Policy Limit (01)
Liability ........................................................................... 01
Property- Personal . Householders ..................... 10
. Other .................................. I I

• Commercial - Fire ....................... ........ 12
• Consequential Loss ............ 13
• Burglary ............................. 14
• Boiler and Machinery ........ I5
• Money ............................ .... 16
• Goods in Transit ................ 17
• Glass ................................ 18
• Engineering ........................ 19
• All Risk .............................. 20
• Other .................................. 21
  Property-Total ........................................................... 29
  Motor Vehicle - private .............................. 30
• commercial ...................... 31
• other .................... .......... 32
  Motor Vehicle-Total .............................. ................. 39
  Pecuniary Loss - - Credit ................................. 57
• Fidelity ...................... ........ 58
• Legal Expenses .................. 59
• SuretyIBonds ..................... 60
• Title .................................... 61
• Mortgage ............................ 62 - Other ..................... ..... 63
  Pecuniary Loss-Total .................................................. 64
  Marine Aviation and
  Transport - Transport ............................ 66
• Aviation ............................. 67
• Marine .............................. 68
  Marine Aviation and
  Transport-Total ........................................................ 69
  Personal Accident and
  Sickness - Travel ................................. 70
  Net retention
  3urrent Year
  (02)
  Prior Year
  (03)
  [The lncluion of this page is authorized by L N 33A/2005]

THE INSURANCE REGULA iTONS, 2001
TENTH .SCHEDULE, contd,
10.4 1. contd
Insurance Co.
Insurer
Year
OTHER INFORMATION, contd.
75 Has the insurer made any significant changes regarding reinsurance arrangements during the year? 76 If Has yes, attach details. the insurer made any portfolio transfer, andlor I commutation reinsurance treaties during If yes, attach details (see Section of the the year? Annual Return I Instruction).
77 Number of policies in force, as at year end (Co-Insurance and Facultative Insurance) ......
Assessable Income information: / c~;;? I Next"" (Estininted) (03) Jamaica registered insurers:
Premium tax .................... ......................... 80
All insurers:
Accident and Sickness net premiums written in Jamaica ................... 85
.FSC-G-200 1
Next Page is 10.41A
[The inclusion of this page is authorized by L.N. 33N20051

THE INSURANCE REGULATIONS, 200 I
TENTH SCHEDULE, contd.
Insurance Co.
Insurer
Year
OTHER INFORMATION, contd.
1 Were any of the assets of the insurer pledged as security or lodged as collatoral as of year end? 0 YYM If yes, give details:
I2 .................................................................................................................................
Has the insurer recognized the time value of money in:
establishing provisions for unpaid claims and adjustment expenses? I Yl-N
.................................................................................................................................
.................................................................................................................................
................................................................................................................................. andlor determining deferred policy acquisition expenses and premium deficiencies? If yes to either 10 or 15, please indicate the undiscounted and discounted amounts and provide details of the circumstances. Please ensure that the details include the dollar impact on the Income Statement and Balance Sheet. (In requesting this information, the Regulatory recognizes that the Institute of Chartered Accountants has not taken a position as to the appropriateness of discounting under Generally Accepted Accounting Principles). 20 Does the insurer have any significant dependencies not already disclosed in answer(s) to If yes. previous questions describe these dependencies. or in the Notes i.e. to name of organization, Financial Statements? nature I of dependency, etc. For example. 10% or more of total premium from one source or fundamental operations or systems (claims, computer, policy issuance) being provided by others. This question is nst restricted to related party transactions. [The inclusion of thk page u authorhod by L.N. 33AllWSJ

THE INSURANCE REGULATIONS, 2001
TENTH SCHEDULE, contd.
10.42, cond
Insurance Co. Year
Insurer
OTHER INFORMATION, cond
30 Has the insurer been involved in any transactions relating to derivative instruments (e.g. forwards, futures, swaps or options contracts) or any other off-balance sheet instruments during the year? I yYM 1 3 1 If yes:-were any of these instruments held for other than hedging purposes? I - attach details 0 yYM FSC4-2001 Next Page is 10.50 [The lnclu~ion of this pa~e isauthoM by L.N. 33A120051

Insurance Co.
Insurer
THE INSURANCE REGULA TIONS, 2001
TENTH SCHEDULE, cond
10.50 Year
FOREIGN JIJRISDICTIONS IN WHICH THE INSURER IS LICENSED Jurisdicliou !Z Chief Anent !I Date first linnsed - Jurisdicliom 27 Chd Agent 18 Due fun licaxd Jurildiction I1 ChirFAyent 11 Date first 1icans.d Jurisdiition~ 17 Chd Anent 18 Date first liccnd Jurl~dlcUon 52 ~hdAwt 53 Date fin, liccnwd JurLdicSoo 57 ChiefAyrnl 58 Due firs liconwd JrrLdkl(on 62 Chief AnMt 63 Dam first li~d JurLdle(ior, 67 Chief Anmt 6S Dsefimlicand Julbdlc~loa 12 Chief Ayat 73 Damhntli~d 79 b r)le inrum lieused to UUW buin~) In uy fomyn juridiaim? Ifyu. pl~uc povidadouilson pl(ls90.10 lnclurion of lhii pmge u authorized ly L.N. 33ARWSJ

THE INSURANCE REGULATIONS, 2001
TENTH SCHEDULE, contd.
Insurance Co, 10.60. Year
Insurer
SUMMARY OF SELECTED FINANCIAL DATA FOR FIVE YEARS (SOW
Assets .................................................. 01
Liabilities ........................... ... ......... 02
ves Required ......................................... 03
Assea ~niaus liabililiea minus
Reserved Required
(equals "statutory copital oltd nphts")
Gross premiums written ................................ 05
Net premiu~ns writtetl .................... ... 06
Net premi~tms eonled ................... .. .......... 07
Gross claims incued
(excludiny Accide~~t nud Sickness ................ 08
PROFITABILlTY
Claims ratio
--by tinuncial year ....................... ....... 09
-- by year of ~tndurwritiry ............................. 10

• as a% of net premi~ltns eanlcd .................. 13
  Net iavestn~e~~t income .................................. 14
• as a % of t~rt premium eomed .................. 15
  Invssnncnt yield ............................................ 16
  Not lnco~ne (loss) lirr the year ........................ 17
  RUII~I on equity 8
  FINANCIAL
  Dividends to sltarel~olders ................... ..... I9 Cnpitnl and si~rplus paid durinl:
  the year ....................................................... 20
  ................... i Capitol redeemed duriny the year 21 O T H E R R A T I O S Statutory copital wd sutpl~ts as n % ufand reserves rcquind
  (Line O4/(line 02+03) x 100 ........................... 22
  ............... ll Gross risk rotlo (line OSIline 04) 23 Net risk ratio (line 06lline 04) ................... 24 ! ! ! Agents nud brokers balances and otnounts due ti.om subsidiaries and nfliliotes as a Y/o ot'stautory capital
  and surplus ..................................................... 25
  Claims development as a % OC
  statutory cupitnl and sutplus ........................ 26
  hlINIhIlIL1 ASSET TEST
  Excess ol nssea abailableover nssrrr
  ~.equired for test pulposes ............................. 27
  -as a X ol usseu required tbr lsrt
  purposes ........................................................ 28
  %
  . %
  FSC-42-200 1
  Next Page is 10.70
  (Tk Inclusion of this page is authorized by LN 33A/2003] % % % % % , % % % % %, % % %

buranca
Insurer
THE INSUM NCE REGULA UONS, 2001
TklWH SCYIEDULE, contd
10.70
Year
AUDITOR'S REPORT
FSC-G-200 1
Next Page is 10.80

Insurance Co. lnsurer
THE INSURANCE REGULATIONS, 2001
Year
ACTUARY'S REPORT
FSC-G-200 1
Next Page is 20.10
[The Inclusion of thin page is authodzed by L N. 33N2003)

THE INSURANCE REGULA TIONS, 2001
TENTH SCHEDULE, contd. ln~urance Co. 20.10 Insurer Year . Reference
Page
50.10
40.20
40.30+.35
40.60
40.50
40.40+.45
40.70
40.80
40.10
50.20
50.30
50.40
50.20
60.10
60.30
50.40
40.70
50.50
30.15

:ash ...................................................................................................... 01
rccrued Investments lncome .................... ..... ............... 02
C
P
I nvesrmenra: I I
Term Deposits expiring in one year or less. ..................... 03 (4 Term Deposits expiring in more than one .............................. ,., 04 Promissory Notes ............................................... ... 05 Government securities:
Jamaica ............................................................................. 06
Others .................... ............................................... ,..... 07
Bonds and Debentures ..............................................4...L...A ........... 08
Unit Trust Funds ................................... ..... .................... . .... 09
Ordinary Shares ..................... .......... . ...... . .... .... .... ..... ........ ...... lo￾Preference Shares ..................... ............................. I I Mortgage Loans .................................................................. I2
leal Estate ................................. ....... .................................. 13
Ither lavestments ...................... ,......... ....... ...................................... 14
rota1 Investments (line 03 to 14) .............. 19
Receivables: I 1
Agents and Brokers .............. ,. .............. ... ......................... 20
Policyholders ........ .. ........ ... ...... . . ,. . . . . . 2 1
lnstalment Premiums ................. .. ........................ 22
Other Insurers, ................... ....... .... ...................... 23
Subsidiaries and Affiliates ............................ .. .............. 25
lncome Taxes ................................. .. ......................... 26
Interest Receivable .................................................. 27
Other Receivables ..................................................... 28
Recoverable from Reihwren:
Unearned Premiums ., ............................................ . . . 30 Unpaid Claims and Adjustment Expenses ................................... 3 1
Othet Recovetables and Unpaid Claims ..... , ........... ...................... 37
Investment in Subsidiaries and Afillates .......................................... 40
Real Estate for Insurer's own use ...................................... ......., ............. ..41
Othet Assets .................... Deferred Policy Acquisition Expenses .......................................... .... , ..... 43
Deferred lncome Takes .......................................... ........................ ........ 44
Total Assets ...,......................................,,.....,...,....,..,.........a ............ ..... 89
FSC-G-2001
Next Pege is 20.20

THE INSURANCE REGULATIONS. 2001
Insurance Co . Insurer
TENTH SCHEDULE. contd .
20.20
Reference
Page
50.20
50.30
50.40
40.70
60.30
60.10
60.30
80.10
50.50
30.15
10.20
20.40
20.40
LIABILITIES. CAPITAL AND SURPLUS
(JO'OOO)
I
(
I f
I
1
I
Year
.. IABILITIES
herdrafts ................................................................................................. 01
.oms and Accrued Interest ..................... .......................................... 02
'ayables:
Agents and Brokers ............................................ ; ....................... 03
Policyholders ................................................................................ 04
Payable to reinsurers ................................................................... 05
Other lnsurcrs ................... ..................................................... 06
Subsidiaries and Affiliates ........................................................... 07
Expenses due and accrued ........................................................................ 08
Encumbrances on Real Estate ................................................................ 09
PROVISIONS
Provision for Corporation Tax-Prior Year ................................. 10
Provision for Corporation Tax-Currgnt Year .......................... 11
Provision for Stamp Duty ......................................................... . 12 INSURANCE LIABILITIES Incurred But not Reported ............................ ... .. 13 Unearned Premium ... .................... ............................ ,..... L5
Unexpired Risk ............................................................. 16
Unpaid Claims 4nd Ajustment Expenses (alaims ouQtanding) .............. 17
Unearned Commission ............................................................... 18
Total lnsuranct Livbiiitius ................................ ,., ..,. ... 19
Other Liabilities ................................................................................... 20
Total Liabilities ..................... , ... , ......... ., ...,.,,,,,,.,....., ........ ....p........... 29
Subordinated Indebtedqess ..................................................................... 30
Deferred Taxes .............................................. ...................................... 31
CAPITAL AND SURPLUS
Reserves Required .............,...... ......................................................... 40
Share Capital ................................................................................ 41
Sham Premium .. ........................................................................... 42
Retained Earnings brought forward ,. ............................... ...,... 44
Cumnt Profib ...................................... ..... .................... 48
Capital Resewas .................................................................... .. .....,.... ... 49
0th~ hewes .............................................................................. 50
Totd CapiUJ, Surplus and R8ffi~sll , ........................ .... ..............,.... 59
TOTAL LIABILITIES . CAPITAL AND SURPLUS ....,............ ....,... 89 FSEO-2001 Next Page is 20.30 [The lnclwion of thL we M authorbd by L.N. 33UfW61

THE INSURANCE REGULATIONS, 2001
TENTH SCHEDULE, contd.
Insurance Co. 20.30 Year
Insurer
PROFlT AND LOSS ACCOUNT
(J $ '000)
I<eference
Page
60.20
00.20
60.20
80.10
80.20
80.20
40.10
INDERWRITING OPERATIONS
Jndcrwriring Revenue
Gross Premium Written ...................... ..,.,.........,... 01 Reinsurance Assumed ........................... ....... ....,.. 02
Reinsurance Ceded .................................................. 03
1
1
I
I
Net Premiums Written ................................................... .. .....,.......... 04
Decrease (increase) in Net Unearned Premiums ......... OS
Net Premiums Earned ...................................... ................................. 06
Service Charge/Customers ......................... ... 07
Other ........................................................................... 08
Total llnderwriting Revenue .......................................................... 09
Net Claims and Adjustment Expenses (Incl. IBNR ...................... 10
Claims Outstanding) hderwriting Expenses Acquisition Expenses:
Commissions .... ........................................... 1 1 Taxes (Stamp Duty) ................ ......... ...... ... 12
Other .......... ........ ......................................... 14
Operating Expenses .................... ......,... ................. 16
Total Claims and Expenses .............................................................. 19
Unexpired Risk Adjustment ........................................ 20
llnderwriting Profit (Loss) ................................... ..,..................... 29
Net lnvfslment Income ...................................................... . 39 l--4-4 . INVESTMENT OPERATIONS
lncome ...................................................................... 32
Realized Gains (Losses) ........................................... 33
Expenses ................................................................... 34
OTHER REVENUE AND EXPENSES
Inconic (Loss) from Ancillary Operations (net of
Expensqs of S ................) .............................. , ............................. 40
Share of Net lncome (Loss) of Subsidiaries and Affiliates .......... 41
Gains (Losses) from Fluctuations in Forcign Exchange Rates ..... 42
Other .................................................................................... 43
. lncome (l,oss) before lncome Taxes and Extraordloary Items ....,.. 49 INCOME TAXES
Current ........................................................................ 50
Deferred ...................................................................... 5 1
Total lncome Taxes ............................... ......... ., . . . ,. . . .......... 59
Extraordinary Items (Net of income Taxes $ .....,...... )........................... 60
NET INCOME (LOSS) FOR THE PERIOD ...,... .............. .. ......,.... 89
FSC-0-2001
Next Pegc is 20.40
[The lnclwion of thu pqe is authorized by L.N. 33N.20031

THE INSURANCE REGULATIONS, 2001
TENTH SCHEDULE, contd.
Insurance Co. 2OAO
Insurer
Reference
Page
20.30
30.15
Year
Balance at begirning of year .............................. ............................ 01
STATEMENT OF RETAINED EARNINGS
Prior period adjustments: .............................................................. 02
Current
Year
(01)
........................ .......................................................................... 03
Adjusted balance at beginning of year ..................................................... 09
Net Income (loss) for the year .................... ... .................... 10
Prior
Year
(02)
Dividends declares to shareholders ....................................... I I
Decrease (increase) in Reserves Required .............................. 12
Decrease (increase) in General and Contingency Reserves ......... 13
Ner increase (decrease) in earned surplus during the year ........... 15
Balance at end ol' year ................................................................... 89
FSC-G-2001
Next Page is 20.32
[The Inclusion of this page is ewhorLcd by L.N 33N2005]

THE INSURANCE REGULATIONS. 20001
TENTH SCHEDULE. cond
Insurance CQ. 20.52 Year
Insurer
STATEMENT OF CASH FLOWS
Cash flows from (used in) operating activities:
Net Income (loss) for the year ..................... ............................................. 01
Adjustment'for:
Decrease (increase) in Investment Income due and accrued ......... 05
Decrease (increase) in Receivables ............................................. 06
Decrease (increase) in Recoverables from Reinsurers. and in
Other Recoverable ..................................................................... 07
Decrease (increase) in Deferred Policy Acquisition Expenses ...... 08
Increase (decrease) Unexpired Risk ........................................ 09
Future (deferred) Income Tsx Expense (Recovery) ...................... 10
Increase (decrease) in Unearned Premiums ....................... .... 12
lncrease (decrease) in Unpaid Claims and Adjustment Expenses . 13
Increase (decrease) in Unearned Cpmmissions (Reinsurance) ...... 14
Increase (decrease) in all other liabilities* .................................... 15
Depreciation ............................................................................... 20
Atnonization of (discount) on investments .................................. 21
Recognized losses (gains) on Investments .................................... 22
....................................................................................................... 28
Net Cash flows from (used in) operating activities ...................................................... 29
Cash flows from (used in) invtsting nctivities:
Tern1 Deposits (purchases) .............................................. 30
proceeds on maturitylsale .......................... 31
Bonds and Drbe~itures (purchases) ....................... ............ 32
proceeds on maturitylsale .......................... 33
Mortgage Loans (purchases) ............................................. 34
proceeds on maturitylsale .......................... 35
Preferred Shams (purchase) ................................................... 36
proceeds on disposition ........................... 37
Commori Shares (purchases) ....................................................... 38
proceeds on sale ......................................... 39
Real Estate (purchases) ................................................................. 40
proceeds on sale ......................................... 41
Other l~ivcstment (purchnses) ........................................................ 42
proceeds 011 sale ......................................... 43
Amortization of premium on Investments ..................................... 50
(l'urcliuse)lsalc of Other Assets and Real Estate for Insurer's own
LICO ................................................................................................. 51
....................................................................................................... 58
Net Cash flows from (used in) investing activities ..................................................... 59
Cash llows I'rom (used in) linnncing activitler:
l~icrease in (repayment ot) borrowed money ..................... 60
lssuc (redemption) of shares ........................................... 61
Dividends to Shareholders ................................................. 62
........................................................................................... 68
Net Cash now5 from (used in) financing activities ....................................................... 69
Net Increase (decrease) in cash and cqsh equivalents (lines 29+59+69) .......................... 79
Cash a~id cash e~uivule~rts at bekinning of year ....................... ............................ 80
Cash a~id cash equivale~rts at end ofear (lines 79+80) .................................................. 89
l~icrease (decrensr) in cush and Cash Equivalents (Line 89-80) ...................................... 90
Cash gnd cnsh equivalents st end ofyenr consist of:
Cash ................................................................................... 91
Cash equivalents ..................... .................................. 92
(Overdrafts) ....................................................................... 93
'Includes Payable to Reinsurers (2020 05 02-2020 Of 01) FSC-G-200 1 Next Page is 20.60 [The lnclus~on of this page Q authorized by L N . 33NZOO5)

Insurance Co,
Insurer
THE INSUM NCE REGULATIONS, 2001
TENTH SCHEDULE, contd.
20.60 Year
NOTES TO FINANCIAL STATEMENTS
FSC-G-200 1
Next Page is 30.10
[Thc bclwion of thb page is authoriacd by LN. 33AIZ005]

THE INSURANCE REGULA TIONS, 20001
Insurance Co.
TENTH SCHEDULE, contd.
30.10
Insurer Year
Reference
20.10.89.01
30.15.19.01
30.1 5.29.01
30.15.94.01
20.20
30.15.32.01
30.1 1.19.01
30.1 1
30.15
MINIMUM ASSET TEST
I
1
4ssets Available for Test Purposes
F! Current Prior rota1 assets ....................................................................................... 0 1
Plus: Excess of Market Value over Book Value ............... ....... 02
................... ..................................................................... 03
Less: Non-admitted Assets ............................................................ 04
Investment Assets: Excess book value over market value ... 05
Foreign Exchange Reserve ............. ......................... 06
Deferred Policy Acquisition Expenses ........................... ...........
............................. ...................................................................... 28
Assets Available for Test Purposes ............................................... 39
Assets Required for Test Purposes
Total Liabilities ............ ...........................................................
Plus: Reserve for Reinsurance Ceded to Ineligible/Unlicensed Insurers.. 43
Margin required for Accident and Sickness policies ............... 46
Margin required for policies other than Accident and Sickness
(the greatest of page 30.1 1, lines 29, 39 and 49); ................... 47
................................................................................................ 48
Unearned Commission adjustment ........................................ ................................................................................................
Assets Required for Test Purposes ................................................
Excess of Assets Available over Assets Required for
Test Purposes (line 39 minus line 69) ........................................ 89
Line 89 as a % of line 69 ...............................................................
. . FSC-G-2001
Next Page is 30.1 1
[The Inclusion of this pnge is sulhorizsd by L.N. 33A/2M)5]

Insurance Co.
Insurer
FIFTH SCHEDULE, contd
30.1 1
Ycar
MINIMUM ASSET TEST (cotttitrued)
CALCULATION OF MARGINS AND REINSURANCE RATIO tcinsurancc ratio Accident and Sickness claims arc excluded from thc calculatio~i) 3oss claims incurred during preceding 12 monlhs
pegc 60.20, line 89 minus linc 70, column 08+09) ...................... .......... 01
'ortion of line ol in respect of reinsurance ceded during preceding
12 months (page 60.20, line 89 minus line 70, column 10) ........................... 02
I4ei11~arn11ee Ralio: lesser of
..........................
(line 02llina 01 x
..
100) and
.......................................
70% ..................... 00
OX ti￾WII~K~IIS wq~~irtd for'rissl l'~~rliost% (ill Acciilc~il ant1 Sick~iess I'OIIC~CS Margin on claims (lSU/u of net unpaid claims and adjustment expanses other than those in rcspect of inslalment claims) ...... I0 Plus: Margin on uncamcd premiums (15% ol' net unearned prcmiums other than those in respect of non-cancellablc pol~cics or, il'applicable, page 30.30. linc 70, column 06) ... I I Margill rcquir~d for Accident nr~d Sickness l'olicier ................. I0 (I>) Policiex otlrcr Illas Accitle~il and Sickness I'olicics (I) IJnpaicl ('laia~s mtl aaear~tccl I'rerui~~~~~r (Ni-t) Margin on claims (15% ol'unpuid cleims and adjustment expcnscs) 20 Plus: Margin on uneamed premiums (1 5% of uneamed
premiums or, if applicable, page 30.30, line 69, column 06) ........... 21
Exccss of "Required Covcrayc" over "Ilcscwc" for Reinsurance Ccdcd to Unregistered Insurers (page 70.30.
line 89 + 95, column 16 minus column IS) .................... ............. 22
[The Inclusion of thb psec M authorired by L.N. 33AnW$]

THE INSURANCE REGULATIONS. ZOO1
TENI'II SCI IEDI II.I!. ~~tt/d.
30.1 1. contd
THE MINIMUM ASSET TEST (contd.)
Calculation of nlargins and reinsurance ratio, co~trd lnsurencc Co. lnsurcr
vlargin required for Unpaid Claims and Unearned Premiums .... 20
(ii) Preiniumr Written
Basic niargin (1 5% of' gross premiums witlen during precedmg
12 montlls) .............. .. .................................................................. 30
Gross n~argin ........................ .......................................................... 32
Less: Margin reduction for reinsurance
(Gross margin x Reinsurance Ratio) ......................... ... .............. 33
Margin requlrod for Premiums Writtfn ............................................. 39
(iii) Claims Insured
Basic margin (22% of average annual gross claims incurred
during preceding 36 months) ............................................................ 40
Plus: Supplementary margin (lesser of 7% of average annual gross clnims incurred during preceding 36 months and $1 5,000,000) I Gross Margin ............................................................................ 4 2 I.ess: Margin rciluct~on lar rclnsurancc
(Gross margin x Reinsurance Ratio) ........................................... 43
Margin required for Claims Incurred ................................ 49
[The Inclusion of chi page m authorired by L.N. 33N2005]

THE INSURANCE REGULATlONS, 201
RESERVES REQUIRED
($'000)
Non-admitted Assets
Receivables fmm Agents and Bmkem in arrears ....................................... 01
Praniums receivable from Policyboldem in arrears .................................. 02
Instalment Pemiums in arrears ........ , ............................. ...... ......... , ........, 03 Less: Total amount deducted fmm the foregoing items as
Allowance for Doubtful Accounts .................................................. 04
Other Assets .. .................................................................................. 05
Computer Hardware adjustment .............................................................. 06
Deferred Income Tax Debits ....................................................................... 07
Year
Less: Admitted Ddd Income Tax Debits ............................................ , I I Total Non-aclmnted Assets ........................... ,.. ........... .. . . .......... . . 19 (04)
Investment Assets: Excess book value over madiet value ........ 20
Foreign Exchange Resuve .................................................... 21
Total Investment and Foreign Exchange Reserves .......................................... 29 ' Reswe for Reinsurance Ceded to Unlicensed or ineligible Inwnus
(page 70.30, line 89 + 95. column 15) ...................................................... 32
Additional Policy Provisions ..................................... ... .............................. 34
................................................................................................................... 35
TOTAL RESERVES REQUIRED ............................................................. 89
DEFERRED POLICY ACQUISITION EXPENSES and UNEARNED COMMISSION ADNS'IMENT (SBcQ0) El Current Prior Defcrrtd Pollcy Acqutsltlon Expenses
Defemd Commissions ...................................................................... 90
Deferred Premiums Taxes ............. , ....................... ... ........................ 91
Defened Acquisition Expenses (other) .......................................... , 92
Total Dsfemd Pollcy Acqulsltlon Expwurcs .......................................... 94
Less: Unearned Cornmiasions ,..., ......... ............ ..................................... ... ... 95 Net Ddemd Polk$ Acqnlsdtlon Expenses adjustment (where posdtlve) .. 96
Unearned Commission adjustment (the lesser of line 94 and 95) ................... 99
FSC-0-2001
Next Page is 30.30

THE INSURANCE REGULATIONS, 2001
TENTH SCHEDULE, contd
[The Inclrsion of this pape u autharircD by L.N. 33N2005J

THE INSURANCE REGULATIONS, 2001
Insurance Co.
Insurer
TENTH SCHEDULE, contd
40.10
Year
SUMMARY OF INVESTMENTS
(J$'OOO)
Gains (Losses)
Term Deposits expiring in one year or less ................. 01
Term Deposits expiring in more than one year ........... 02
Promissory Notes ..................... ............................. 03
Government Securities:
Jamaica .......................................................... ..... 04
Others ...................................................... . ............. 05
Total Government Securities ........................... . ....... 09
Bonds and Debentures
Government
Jamaica ................................... LO Caribbean ............................... I I Other (Specify) ...................... I2
Total Bonds and Debentures .......................... , .,....... 19
Unit Trust Funds ............................................... 29
Shares
Preference
Jamaica ............................................. 30
Others ......................... .. ............... 31
Total Preference Shares ................................... ..... ...... 39
Ordinary
Jamaica ............................................ 40
Others ............................................... 41
Total Ordinary Shares ............................................. 49
Total Shares ................................ ........................................ #..,.,. 59 Mongage Loans ..................................... ... 60 lnvestment in Real Estate ..................................... ... 61
Other Investments ........................... ... ......... 62
Total (lines 01.02,03,09, 19,29,39,49.60,61,62) .. 69 Expenses lnvestment Real Estate ............................ Other direct expenses .............................. Investment ~xbenses (page 80.20, line 89, column 82 Il Net lnvestment Income including Recognized Gains (Losses) (line 69+70, column 03+04, Plus line 7 1 minus lines 80,
Total Fore~gn Pay Securities .............................................. 99
FSC-G-2001
Next Page is 40.20
[The Inclusion of this page ia authorized by L N 33N20051

Insunme Co.
Insurer
40 20
TERM DEPOSITS EXPIRING IS MORE TIjAN OSE YEAR Year I 1 - I
old arm deposits expiring in mom tbreone yerr ................................. ............................................. .......................................................

THE INSURANCE REG ULA TIONS, 2001
TENTH SCHEDULE, contd.

THE INSURANCE REGULA TIONS, 20001
[The lnclus~on of this page a authorized by L N 33Ai2005)

lhsuraWe Co. hrm
MOH?(;M;E LOANS WllOSE IBINC'II'AL AMOUNTS ANL MIL tN MORE THAN 5 YEARS (LONG TERM) Year

THE INSURANCE REGULA TION$, 20001
Insurance Co.
Insurer Year
SUMMARY OF MORTGAGE LOANS
(J$'OOO)
Jamaica 0 1
I
I Other lurisdietionr O2 2
FSC-G-200 1
Next Page is 40.50
Market
Value
(01)
[The Inclusion of this page IS aukhodzed by L N 33N2/2005] Book Value (02)

THE INSURANCE REGULATIONS, 2001
TENTH SCHEDULE, cond
Insurance Co.
Insurer
40.50
Year
PREFERENCE SHARES
(Excluding investments in Subsidiaries and Affiliates) I
Total preferred shares .................................................................................................................... 89
FSC-G-2001
Next Page is 40.60
[The lnclwion ofthis page is authorized by L.N. 33N20051

THE INSURANCE REGULA TIONS, 2001
TENTH SCHEDULE, contd.
Insurance Co.
Insurer 'Year
ORDINARY SHARES
(Excludiiig investments in Subsidiaries and Affiliates)
Basket clause Items ..................................................................... 99
FSC-G-2001
Next Page is 40.70
WhtreIBy
+horn kept
(01)
[The Inclusion of his page lp authorized by L.N. 33N24051 I I 1 I Dtscr~pt~on (02) Number of Shares (03) I Market Value (04) Book Value (05)

THE INSURANCE REGULA TIONS, 2001
TENTH SCHEDULE, contd.
---- Ins~~rance Co.
1 nsurer
Description of Property r￾1 INVESTMENT REAL ESTATE 40.70 Year REAL ESTATE ($'OOO) Year Amount of Actual Market Book Acquired Encurnbrancc Cost Value Value (Gross) (Gross) 1 (Gross) (02) (03) (04) (05) (06) REAL ESTATE FOR OWN USE Total Investment Heal Estarc ...................................... .. 49 FSC-G-2001 Next Page is 40.90 - [The Inclusion of this page is authorized by L.N. 3311/2005]

THE INSURANCE REGULATIONS, 2001
Insurance Co.
Insurer
TENTH SCM~DWLE, contd.
40.90
Year
SUMMARY OF INVESTMENTS AND INSURER'S PORTFOLIO LIMITS Portfolio mix I 1 1 I Insurer's Portfolio I %of Total Limits 1 I Portfolio I (K O~TOW Portfolio) I Value ;;;; 1 ;E Value
Cash and Term Deposits expiring in one year .... 01
Tenq Deposits expiring in more than one year ... 03 Promissory Notes ...................................... .. . 04 Government Securities Jamaica ............. ................................................. Other (specify) Bonds and Debentures
Government and Ciovemment Guaranteed .... 05
Corporate- 09
Other (specify .....,............. ..... ........... 15
Mortgage Loans - residential ........................... 20 - other ....................... ..... . ............... 22 - total ....................................... ....... 29
Preferred shares .......................................... 39
Common shares .... ...... 49
Consumer and Commercial Loans ...................... 50
Investment Real Estate ........................................ 60
Other portfolio investments (specify j ................. 61
............................ ........................................ 62
................................................. 63 +
Total Portfolio .....,....... ....................................... 69
Total Foreign Pay Securities ............................... 75
Total Assets ........................... .................. .......... 79
SbMMARY INVESTMENTS AND PRESCRlBED PORTFOLIO LIMITS I Type of Investment Book Value %of Statutory Portfolio Lmits Total Assets Oh of Total Assets 1 to,, 1 Bo~~~;alue 1 at Book Value Preferred or Guaranteed stocks Fore~gn Secitr~ttes lli~rd Largest 97 5 Second Largest 98 I 1 5 Largest 99 - 5 FSC-(3-200 1 Nest Page is 50.10 [The Inclusion of this page is authorized by L.N. 33M20051

THE INSURANCE REGULATIONS, 2001
TENTH SCHEDULE, cond insurance Co.
Insurer
50.20
Year
RECElVABLE FROMIPAYABLE TO AGENTS AND BROKERS ($'OOO)
...............................................................................
Sub-Total .............................................................. 39
Less: Allowance for Doubtful Accounts ............... 40
Total ................................................................... 49
I Number of Agents and Brokers ................... SO 1 Payable Total (04) Name of Agent or Broker (01) (The lnclurion of this page is authorized by L.N. 33A12005) Receivable In Arrears (02) Total (03)

THE INSURANCE REGULATIONS, 2001
TEXTH SCHEDULE, conld
OTHER RECEIVABLES
Dcscripr~on
(01 )
FSC-G-2001
Next Page is 50.30
[The lnpluaion of this we ip authorirad by L.N 33A/ZM)5]

THE INSURANCE REGULATIONS, 2001
TENTH SCHEDULE, cond
Insurance Co.
Insurer
50.30
Year
RECEIVABLE FROMIPAYABLE TO OTHER INSURERS Payable Total (04) Name of Insurers (01) Licensed ot Eligble - -
tal Licensed or le .................................. .... 49
Total Unlicensed or Ineligible ................................... 79
Less: Allowance for Doubtful Accounts ................... 80
, Totd ...................... . ...,......... ... .............................. 89
FSCO-2001
Next Page is 50.40
Rzcelvable
In Arrears
(02)
Total
(03)

Insurance Co.
Insurer Year
INVESThlENT IN AND AMOUNTS HECEIVARLE FHOWPAYABLE YO SUDS1I)IAHIES ANI) AFFILIATES

THE INSURANCE REGULA TIONS, 2001 lnsurance Co.
Insurer
TENTH SCHEDULE, contd,
50.50
OTHER ASSETS*
Year
Description
(01)
Automobiles .....................................................................................................
Furniture, Fixtures and equipment ......................... ...... . ............................
Leasehold improvements ..........................................................................
Land. Building for office use ...................................... .. ...................................
Computer software ......................................................................................
Computer hardware1Equipment ....................................................................
Intangible assets ...........................................................................................
Prepaid expenses ............................ ,......... .... ......................................................
Formation Expenses ....................... .. ..................................... ,..................
Deferred Expenses ...................................... .. ...................................................
NHT Recoverable .............................................................. ..... ................... .......
Investment Adjustment (where lower of cost or market value not used ...........
Amounts due from related bodies ...........................,.4 ,........ ............................
Assets in entities in Liquidation or facing possible closure .......................
Work-in-Progress ......... .. ......... ..... .... .................................................... , Keymm Insurance ~
Total ........................................................................ 49
Net of depreciation or amortization
[The lnclus~on of [his page Is authorized by L N 33N2005]

THE INSURANCE REGULATIONS, 2001
TENTH SCHEDULE, cond
OTHER LIABILITIES
(9000)
Self-Insured Retention (SIR) portion of unpaid claims 50 I Description (01) (02) FSC-G-2001 Next Page is 60.1 U Total 89 [The lnclur~on of this page IS authorized by L N 33A/Z005] 0

THE INSURANCE REGULATIONS, 2001
TENTH SCHEDULE, contd.
Insurance Co.
Insurer Year
UNEARNED PREMIUMS-TOTAL
Unearned Premiums 1
Class of Insurance Gross Prciums Reinsurance Reinsdranec NII Written assumed Ceded (01 + 02 - 03) (02) (03) (04) I I
Householders . .. .......
Otlw . . . . . . . . . . . . . . . . . . . . . . . . . . Fire ....... ............. ... ...
Cosseque~r~ial Loss ....
Burgla~y ....................
Bailer ad Machinery
Money .................. .... .
Goods in I'ransil .........
Glass ..........................
Engineering ................
All Risk .................... Other ............ ..............
Motor Vehicle - Private ........................... 30

• Co~nmerical ................... 7 1
  -Other 32
  Marine Avlatioll -- Transpon ....................... 66
  -- Avialio~~ ......................... 67
• Maht .... ...................... 68
  .
  . I'euunisry Loss -Credit ............................ 57 - I Marine Aviution and Tru~~qmrt-Total .,....... 69 t
• Fidality .......................... 58
• Legal Expmsr. ............... 59
• S111ety1Bonds ................. 60
  -- Title ..................... ... 61
• Moltgage ..... ; ................. 62
  -other ............................ 63
  Accident and Sickness ,. 70
  TOTAL .......................................................... 89

Re~rocrssiow included in line 89, cohuna 03 ..... 99
.
.
FSC-G-200 1
Next Page is 60.20
[The lllclusion of this page is authorized by L.N. 33/\12005]

. k.ww&". .............. 10
.Ob ................. .. #I

• ir ........................... I1
  . CH La. ........... I3
  .- .................... I*
  -BkldW ....... 13
  .4 ......................... I6
  -GDDBPTI..li ................ 17
  . Ca ........................ 7. I1
  .- .................. w -Mlot ............................ 1
• ................. 21
  -1.d 29

ant mtar a~v~~~ran~'awdun arvan.t ~vmn.w'atvd - nsmrxn ~atusnrav mvsnwu Ti===@ -

insurance Co. insurer
THE NSURANCE REGU. TIONS, 2001
TENTH SCHEDULE, conrd
60.50
Year
ADJUSTMENT EXPENSES-TQTAL
($'OOO)
PAlD ADJUSTMENT EXPENSES
Internal adjustment expenses ...................... ......... ........ .......................... 01
Reinsurance Ceded ........................................ .................................. 02
Net internal adjustment expenses (line 0 1 - 02) ............................ ... ....... 09
External adjus~ment expenses a. Adjusters and Appraisers ............. .. .................................. . . ..... , 10 b. Legal ............................................ ............................... 1 1
c. Other ................................. ....... ....................................... 12
Total (lines 10 + 1 1 + 12) ................................................................ 19
Reinsurance Ceded ...................... ................................................ 20
Net external adjustment expenses (line 19 - 20) ............................ ......... 29
Total (lines 09 + 29) ...................... ......... ...... .............................. 39
UNPAlD ADJUSTMENT EXPENSES
Provision for internal adjustment expenses net of reinsurance-md of year .......... 40
Provisions for external adjustment expenses net of reinsurance-end of year ........ 41
Provision for internal adjustment expenses net of reinsurance-b@nning of year 42 Provision for external adjustment expenses net of reiRslrrance-beginning of year 43
Total (lines 40 + 4 1 - 42 - 43) ................................... ..... ...................... 49
TOTAL NET ADJLTSWVIENT EXPENSES INCURRED (LINE 39 + 49) ........... 59
Net Internal Adjustment Expenses incurred (lines 09 + 40 - 42) ................................ 69
Net External Adjustment Expenses incurred (lines 29 + 4 1 -43) ....,............... ...... .... 79 1 FSC-G-2001 Next Page is 65.10 [The lnclus~on of ~hk page IS aurhonzed by L N 33N200.31

420 THE INSURANCE REGULA TZONS, 2001
Insurance Co.
Insurer
TENTH SCHEDULE, conrd.
Year
ACCIDENT AND SICKNESS INSURANCE-TOTAL, PART A DIRECT PREMIUMS EARNED
Premiums \witten ..................... 01
Unearned prenliums including mid terniinal reserves for non-cancellable policies at
beginning of year ...................................... 02
Uneanied prenliunis including nlid terminal reserves for non-ca~~cellable policies at end
of year ...................................................... 03
Premiums earned (line 0 1 + 02-03) ............. 09
PAYMENTS !VIADE ON DIRECT CLAlMS lNCLUDlNG ADJUSTMENT EXPENSES
Acckknral death and dismemberment ......... 10
Income replaczmznt ..................... ....,... 11
Creditors ........................................... 12
Medical care ........................ .....,....... 13
Tornl pa!.nients .......................................... 19
CALCULATION OF INCURRED CLAlMS
Provision for future payments on direct claims and adjustment expenses ar
beginning of \tar ......................................... 20
........................ ..... .... ..................... .... 21
.................................................. 22
Prov~sion for future payments on direct claims
and adjustment expenses at end of year ....... 27
Claims incurred (line 19-20+21+22+27) .... 29
FSC-G-2001
Next Page is 65.11
[The lnclurion of this page is authorized by L.N. 33N20051

Insurance Co.
Insurer
UNEAIWEDPREMRlMS
AND RESERVES
Unanad Rmium .................. 01
Mid Terminal Rcravs ........... OZ
Tatal Uned Runivls and
R- (line OI+OZ) ................ 09
PROWSIONS HIR FUTURE
PAYMPm ON CWMS AND
ADJUSTMENT EXPENSES
RsponrdCkhrs ... 10
Unrrpmed EqX%es ................ I I
AdjYamat E-. ............. 12
Totd Ckimr Payabk m
Imtalmmr (line loCll+l2) .............. 19
65.1 1
Year
ACCIDENT AND SICKNESS INSURANCE TOTAL--PART B Direct 1 Reinsurance Assumed 1 Reinsurance Coded I FSC-(3-2001 Next Page is 70.10 lndtvidual Non￾Cancellable (09) Graq (10)

THE INSURANCE REGULATIONS, 2001
Insurance Co.
Insurer
TENTH SCHEDULE. contd.
I (~hcrc hclude: Quola Share. Surplus. l~lsre ~nsludc: Quola Sharc. Surplus. I Line oi Durinesr'Clasr orlnrursncc I I TAL ........................................ 89 1 I I Prerninmr Earned I Clams mcurred Owrrear Local Total I 0wms Local Told [The lnclupion of this page in authorized by L.N 33A12W5J

THE INSURANCE REGUAA TIONS, 2001
TENTH SCHEDULE, conrd.
Insurance Co. 70.20
Insurer Year
REINSURANCE CEDED TO LICENSED AND ELIGIBLE INSURERS JAMAICAN BUSINESS Premiums Claims Nmt of assuming insurer incurred (02) Affiliated -
Total Non-affiliated ............... .................................... 69
Total ...................., ............................................ ......... 89
SUMMARY OF REINSURANCE CEDED
(S'OOO)

Toral Affiliated ........................................... .. .......
Jamaican Business ] Total Business
Premiums I Claims 1 Premiums 1 Claims
..................................................
To Licensed or Eligible insurers ............... 97
To Unlicensed or Ineligible insurers ......... 98
Total ..................................................... 99
FSC-G-200 1
Next Ple is 70.30
............. 49
written
(01)
[The lncluaion of this page io authorized by L.N. 33N2005] incurred (02) written (03) incurred (04)

Yeas
REISSVR4NCE CEDED TO UNLICE.SSED .&ND ISELIGIBLE ISSUlEE - TOTAL BUSlXtSS
I Tad NmStluud.. .................. 69
Tad Om dl-- ......................... 79 I .Tad 1- 8-. ...................... M TOTAL BUs13?35 tli w+w& ....................... 19 I lPmuvnr fmd-3 ixud bug no! repmd rn~ludd m lm 89~ahunn 05 ... 99 1

THE INSURANCE REGULA TIONS, 2001
TENTH SCHEDULE, contd.
Insurance Co. 70.40 lnsurer Year
NON-OWNED DEPOSITS AND LETTERS OF CREDIT NON-OWNED DEPOSITS AND LETTERS OF CREDIT PRCJVIDED BY:
I 1 !
Letters of Credit
I
Total Lettors oPCredit held ......................................... 29 1 1 I LETTERS OF CREDIT PROVIDEDI'O: I Expiry Date
1 Total Letters of Credit Prmided .................................................. 89
I I 1
FSC-G-2001
Amount
(011
Ncxr Pagc is 80.10
[The inclusion of his page IS aulhorued by L N 33Ai?0O5]

THE INSURANCE REGULA TIONS, 2001
TENTH SCHEDULE, contd
(The Inclusion of this pnge is authorized by L.N 33A120051

THE INSURANCE REGULA TIONS, 2001
Insurance Co.
Insurer Year
EXPENSES - TOTAL
02
04
Employee Recrumne~ir Cosrs . .... .. ... .. .............. 06
Adve~l~s~ny ........................................................... 08
Ass.;) Expenses (excluding co~mniss~o;is) ............ . 10 Atid11 & Accoui~tawy Au~omobile and travel bank Charges ................. . ....... ........................... I8 Uuildi~iy Repairs illid Mai~i~ena~i~e ......................... .. 20
Bureaus and Associa~ions .... . ............,,. ....... .......... 22
Direcrors relnu~ieratio~~ 24
26
28
Elecnicity ............................................................. 30
EDP and sralislical 32
Funuiure and Equ~p~ne~it .... ........ . ... .. ................... 34
Inspectioar and investiyaos .................................. 36
Rates and Taxes ....... .... .................... ........,...,,.,..... 48
Renl .................................................................... 50
Telephone and other cominu~~icalioli ......................... 52
Travelling-Local 54
56
58
Miscellaneous ...................... 60
..................................................... ............................
62
Ehprllst Clciss~ticiliio~l
FSC-G-2001 '
Next Page is 90.10
[The Inclusion of this page is authorired by L.N. 33U20053 Invesi~neiil Expenses (08) Applicable ro I~isura~se Operarioi~s Acqu~silioli Expeuses Operating Expeilses (04) Decened at End of Year (01) Net llltrmal Adjusiinent Expenses' (06) Aoribiilable to the Year* (02)

THE INSURANCE REGULATIONS, 2001 l~w~rance Co.
Insurer
TENTH SCHEDULE, conrd.
90.10
Year
FOREIGN OPERATIONS
Is the insurer licensed to transact business in any foreign Jurisdiction? ~IYM If yes, please giyc, for each jurisdiction, the date of the licensing, net premiums written, amount of deposits held by regulatory authorities at the end of the year and provide a copy of the latest statutoly annual statement filed with the jurisdiction. Jurisdiction Are any of the insurer's invested assets located outside of Jamaica? 1-1 Y/N If yes, complete the following exhibit:
Date of
Licensing
[The lncl~uion of thin p~ge is aulhorierd by L.N. 33.4/2005] Net Premiums Written Authorities Invested Assets Out of Jamaica (01) Cash ............................ . .......................... 0 1
Term Deposits ...................... .. ................ 02
Bonds and Debentures .................................... 03
Mortgage Loans ............................................. 04
Preferred Shares .................................. ......... 05
Common Shares ....................... ................. 06
Real Estate .................... ................................... 07
Other Investments ............................................ 08
Total ................................................................... 89
Deposits Held by Regulatory
FSCG-200 1
Next Page is 90.15
Market Value at year-end
(02)
Country
(03)

THE INSURANCE REGUU TIM, 2001
Year
SUMMARY OF PREMIUMS AND CLAIMS-OUT OF JAMAICA [The Inclusion of this pago is authorized by L.N 33AI2005j

THE INSURANCE REGULATIONS. 2001
TENTH SCHEDULE. contd .
90.21
Insurance Co . Year
Insurer . . ASSETS-OUT OF JAMAICA
(J%'OOO)
Cash ............................ .. ............................................................................ 01
Accrued Investments Income ...................................................................................... 02
Investments:
Term Deposits expiring in one year or less .......................... ............... 03
Term Desposits expiring in more than one year ....................... ... .... 04
Promissory Notes .............................. .. ................................................ 05
Government securities:
Jamaica ............................................................................................... 06
Others .................... ..................................................................... 07
Bonds and Debentures .......................................................................... 08
Unit Trust Funds ............................................................................ 09
Ordinary Shares ....................................................................................... 10
Preference Sharer ..................... ...................................................... I I
Moltgage Loans .................................................................................... 12
Real Estate ...................... .......................................................... 13
Other Investments ................................................................................. 14
Total Investments (line 03 tu 14) .............................................................................. 19
I<eceivablrs:
Agents and Brokers ......................................................... 20
Policyholders ................................................................ 21
lnstalment Premiums ....................................................... 22
Other Insurers ................ ........................................... 23
Subsidiaries and Affiliates .......... .................................. 25
Income Taxes ............................................................. 26
Interest Receivable ............... ..................................... 27
Other Receivables .......... ........................................... 28
Recuverable Rom Reinsurers:
Unearned Premiums ................................................................................. 30
Unpaid Claims and Adjustmem Expenses ................................. ....... 31
Other Rrcuverables and Lnpaid Claims ............................................................... 37
Investment in Subsidiaries and Affilieres ......................... .................... 40
Real Estate for Insurer's own use .................... ........................................ 41
Other Assets .................... ...................................................................... 42
Deferred Policy Acquizition Expenses ...................... ............................ 43
Deferred Income Taxes .................... ................................................... 44
Total Assets ................................................................................................. 89
FSC-G-2001
Next Page is 90.22
[The lnclus~on of this page is authorized by L N . 33N20051

THE INSURANCE REGULATIONS, 2001 lnrunnce Co.
Insurer
LlABlLlTlES
TENTH SCHEDULE, contd.
90.22
LIABILITIES OUT OF JAMAICA
Overdrafts.. ..................................................................
Loans and Accrued Interest ..............................................
Payables:
Agents and Brokers .....................................................
Policyholders.. ...........................................................
Payable to reinsurers. ...................................................
Other Insurers,.. ........................................................
Subsidiaries and Aftiliates .............................................
Expe~ues due and accrued.. ...............................................
Encumbrances on Real Estate ............................................. PROVISIONS
Provision for Corporation Tax-Prior Year ...........................
Provision for Corporation Tax-Current Year ........................
Provision for Stamp duty. ........................... ............
INSURANCE LIABILITIES:
Unpaid Claims and Adjustment Expenses ...........................
Claims Equalization .....................................................
Uneamed Premium. .....................................................
Unexpired Risk .............................. .................
Claims Outstandittg ........................................................
Unearned Commission ............................ ..............
Total Insurance Liabilities ................. ............
Other Liabilities.. ...........................................................
Tofd Libbilltier ...........................................................
2001
Year
[the lncluslon ofrh~ page is aulhorized by L N 33AI2005J

THE INSURANCE REGULATIONS, 2001
Insurance Co.
Insurer
TENTH SCHEDULE, contd.
90.23
Year
STATEMENT OF INCOME-OUT OF JAMAICA
UNDERWRITING OPERATIONS
Underwriting Revenue
Gross Premium Written ............................................. Reinsurance Assumed.. ........... .. ............................... Reinsurance Ceded .................................................... Net Premiums Written ............................................................. Decrease (increase ) in Net Unearned Premiums ................. Net Premiums Earned ............................................................. Service Charge/Cusromers.. ............... ........................ Other .................................................................... Totnl Underwriting Revenue ..................................................... Net Claims and Adjustment Expenses(lncl.lBNR ............................ Claims Outstanding) Underwritinp Expenses Acquisition Expenses :
Commissions.. ......... .............................. Taxes(Stamp Duty). .................................. Other.. ................................................... Operating Expenses.. ................................................. Tbtal Claims and Expenses ....................................................... Unexpired Risk Adjustmen*
Underwriting Profit (Loss) .......................................................
I Current 1 Prior
Period Period I 0 I (03) I
OSI-G (Revised 2000)
Next P8ge is 00.61
[The lnclueion of this page is authorized by L N. 33A/2005]

THE INSURANCE REGULA TIONS. 2001
TEKTH SCHEDULE. conrd .
Insurance Co . 90.61
Insurer Year
EARNED PREMIUMS-OUT OF JAMAKA r I 1 Ilneamsd Premiums
I'ropeny-Personal . Householders .....................
. Orher .................................

• Fire ..................................
• Consequential Loss ...........
• Burglary ...........................
• Boiler and Machinery ........
• Money ...............................
• Goods in Transit ................
• Glass ..................... .....
• Engineering .......................
• All Risk .............................
• Orher ..................................
  Pruperty-Total ...................... ..................................... 29
  Moror Vehicle . Private ............................... 30
• Commercial ....................... 31
• Other ................................. 32
  1 I
  Pecuniary
  Motur
  Pecuniary
  Marine
  TOTAL
  Marine
  Accident
  Relrocessions
  Vehicle-Totnl
  Aviation
  Aviation
  ...............................................................................
  and Sickness
  Loss￾Loss-Total included and and
  Transpon
  Transport-Total
  ...........................................................
  ..........................................................
  in
  .................................................
  line 89.
  .
  .
  A
  .

-Title
.
.

Credit
Fidelity
SuretyIBonds
Transport
Legal.
Aviation other
Mortgage
Marine column
................................
..................................
Expense
.............................
...............................
...............................
....................
.............................
03
.........................
...........................
.......................
.....................
...................
..........
.
39
99
66
68
60
62
57
63
67
61
69
70
59
64
58
89
.
.
J
FSC-G-200 1
Next Page is 90.62
(me Inclusion of the page is authorired by L.N. 33AC10051

THE INSURANCE REGULA TrONS, 2001
[The Inclusion of this page is authorized by L N 33AI2M)SJ

THE INSURANCE REGULA TIONS, 2001
TENTH SCHEDULE, contd
1 6:: OI?B WZRQ FlZ23 9GC8 Sgatcl
[The lncluion of this page is authorized by L N 33A12005)

THE INSURANCE REGULATIONS, 2001
Insurance Co.
Insurer Year
ADJUSTMENT EXPENSES--OUT OF JAMAICA
PAID ADJUSTMENT EXPENSES
Internal acijustment expenses ...................................................... 01
Reinsurance Ceded ....................,,.,,.,.,.,.,+.... ... ...................... 02
Net internal adjustment expenses (line 01 - 02) ............................................ 09
External adjustment expenses
a. Adjusters and Appraisers ........................ .................. 10
b. Legal .................... I 1
c. Other ........................................................... 12
Total (lines 10 + 1 1 + 12) .. .................. I9
Reinsurance Ceded ........................................................ 20
Net external adjustment expenses (line 19 - 20) ................................ ........ . 29
Total (lines 09 + 29) ........................................................... 39
UNPAID ADJUSTMENT EXPENSES
Provision for intcrnal adjustment expenses nct of reinsurance-end of year .......... 40
Provisions for external adjustment expenses net of reinsurance--end of year ........ 41
Provision for internal adjustment expenses net of reinsurance-beginning of year 42 Provision for mi-rnal adiustment expenses net of reinsurance-beginning of year 43
Total (lines 40 + 4 1 - 42 - 43) ...................................................... 49
TOTAL NET ADJUSTMENT EXPENSES INCURRED (LINE 39 + 49) ........... 59
Net Internal Adjustment Expenses incurred (lines 09 + 40 -42) ................................ 69
Nct External Adjust~nent Expenses incurred (lines 29 + 41 -43) ............................... 79
FSC-G-200 1
Next Page is 90.66
[The Inclusion of this page is authorized by L.N 33N2005]

THE INSURANCE REGULATIONS, 2001
Insurance Co.
Insurer
TENTH SCHEDULE, contd.
90.66
Year
ACCIDENT AND SlCKNESS MSURANCE--OUT OF JAMAICA, PART A DIRECT PREMIUMS EARNED
Premiums written ......................................... 01
Unearned premiums including mid terminal reserves for non-cancellable policies at
beginn~ng of year .................................. 02
Unearned premiums including mid terminal reserves for non-cancellable policies at end
of year ...................................... ......... 03
Premiums carned (line 01 + 02-03) ............. 09
PAYMENTS MADE ON DIRECT CLAIMS
[NCLUDING ADJUSTMENT EXPENSES
Accidental death and disbursement ............. 10
Income replacement ................................. 1 1
Creditors ................... ......................... 12
Medical care ..................................... 13
Total payrr~ents ......................... ... ....... 19
CALCULATION OF INCURRED CLAIMS
Provision tor future payments on direct claims and adjustment expenses at
beginning of year ......................................... 20
13, . Provision for future payments on d"" alms
and adjustment expenses at end of ...... 27
.... 16
Claims incurred (line 19-20+21~2:."' l7 ..... 29 ... 18
Claims ratio (line 29/09) ............... .... 89
Individual
2ancellable
(02)
Individual
Non-Cancellable
(03)
FSC-G-2001
Next Page is 90.67
[The Inclusion of this page is authorized by L.N. 33N2005)

Insurance Co.
Insurer
90.67
ACCIDENT AND SICKNESS INSURANCE TOTAL-PART B UNEARNED PREMUMS AND RESERVES
Unmd Raniurn ..................... 01
Mid Temdnal Raerve. ........... 02
Total Unearned PmRdulrs and
RSM (line Ol-02). ............ 09
PROVISIONS FOR FUTURE
PAYMENTS ON CWMS AND kDNSTMENT EXPENSES flailra Payabk in lmralmnts
Reportd Claim .......................... 10
Unreported Expenses ............... I I
Adjunmnl E- ........ I2 rotal CQm Payabk m mtalmntr (Im 1C+11+12) Cancellable Individual 'anecllabl~ - (08) - Net I o FSC-G-2001 Next Page is 90.70

THE INSURANCE REGULA TIONS, 2001
TENTH SCHEDULE, contd.
[The Inclusion of this page b authorized by L.N. 33N20051

Insurance Co.
Insurer
THE IMWNCE REGULATIONS, 2001
TENTH SCHEDULE, conrd.
90.82
Year
EXPENSES - OUT OF JAMAICA
(SlOOO)
Expense Classificatio~~
alarics ..................................................................... 02
:mployes bcnefils ...................... ................... 04
h~ployee acquisition
08
10
rpcy (excludi~rg commissions) .......................... 12
rutornobile and travel ............................................ 14
rllowance for doubtful accounts ..................... .......... 16
iureruis and Associations 18 hectors relnuneratioll 20 knations 22 3DP and statistical 24
:urniture and Equipment ................... .... .......... 26
iome OWoe overhead ...................... ............. 28
lnspeotions and investiyations ................................... 30
32
34
36
Printing and Stationely ................... ................. ....... 38
Professioal fees
Reyulatoly asscss~nets ..................... ..... .......... 48
Total ......... , ............................................................... 89
Total on line 89 to be lrponed on page 20.30. line 14. able to Inswanoe Operations lxpenses Expenses FSC-G-200 1 Next Page is 100.20 [The Inclusion of this pape is authorized by L.N. 33N20051

THE INSURANCE REGULAiTONS 2001
TENTH SCHEDULE. contd .
Insurance Co . Insurer
100.20 Year
CONSOLIDATED FINANCIAL STATEMENTS.
LIABILITIES. CAPITAL AND SURPLUS Current Prior (JS'OOO) LIABILITIES
Overdrab .............................................................................................. 01
Loans and Accrued Interest .................................................................... 02
Payables:
Agents and Brokers ................................................................... 03
Policyholders ................................................................................ 04
Payable to reinsurers ...................... ................................. 05
Other Insurers ........................... ................................................ 06
Subsidiaries atid Affiliates ......................................................... 07
Expenses due and accrued ........................................................................ 08
Encumbrances on Real Estate .................................................................. 09
PROVISIONS
Provision for Corporation Tax-Prior Year ............................... 10
Provision for Corporation Tax-Current Year ............................... 11
Provision for Stamp Duty ............................................................. 12
INSlIRANCE LIABILITIES
Incurred But Not Reported ............................................... 13
Unearned Premium ................... ................... ........................... 15
Unexpired Risk ...................... ............................................... 16
Unpaid Claims and Adjustment Expenses (claims outstanding ............... 17
Unearned Commission ............................................................................. 18
Total Insurance Liabilities ................................................... 19
Other Liabilities ...................... ........................................................ 20
Total Liabilities ............................................................................. 29
Subordinated Indebtedness .................... .......................................... 30
Deferred Taxes ....................................................................................... 31
CAPITAL & SlIRPLlIS
Reserves Required ..................... .................................................... 40
Share Capital ................................................................................ 41
Share Premium ............................................................................. 42
Retained Earnings brought forward ................................... 44
Current Protits ..................... .................................................. 48
Capital Reserves ........................... ....... .............................................. 49
Other Reserves ...................... ... ........................................................ 50
Total Capital. Surplus and Reserves ........................................................ 59
TOTAL LIABILITIES, CAPITAL AND SURPLUS .......................... 89
[The Inclusion of this page is authorized by L.N. 33N20051

THE INSURANCEREGULATIONS, 2001
Insurance Co . 100.52
Insurer
CONSOLIDATED FINANICAL STATEMENTS
STATEMENT OF CASH FLOWS
Cash flows from (used in) operating activities:
Net Income (loss) for the year .................................................................... 01
Adjustment for:
Decrease (increase) in Investment Income due and accrued ......... 05
Decrease (increase) in Receivables ........... ;........ ...................... 06
Decrease (increase) in Recoverables from Reinsurers. and in
Other Recoverables ....................... ......................................... 07
Decrease (increase) in Deferred Policy Acquisition Expenses ...... 08
Increase (decrease) Unexpired Risk .............................................. 09
Future (deferred) Income Tax Expense (Recovery) ...................... 10
Increase (decrease) in Unearned Premiums ................................... 12
lncrease (decrease) in Unpaid Claims and Adjustment Expenses . 13
Increase (decrease) in Unearned Commissions (Reihsurers) ........ 14
Increase (decrease) in all other liabilities* ...................... ..... 15
Depreciation .............................................................................. 20
Amortization of (discount) on Investments ....................... ...... 21
Recognized losses (gains) on Investments .................................. 22 ...................................................................................................... 28
Net Cash flows from (used in) operating activities .................................. 29
Cash flows from (used in) investing activities:
Term Deposits (purchases) ................................ .... ... 30
proceeds on maturitylsale ......................... 31
Bonds and Debenture (purchases) ........................... ......... 32
proceeds on maturitylsale .......................... 33
Mortgage Loans (purchases) ............................... ........ 34
proceeds on maturitylsale .......................... 35
Preferred Shares (purchases) ....................... ................. 36
proceeds on disposition .............................. 37
Common Shares (purchases) ......................................................... 38
proceeds on sale ........................................ 39
Real Estate (purchases) ............................. ....................... .. 40
proceeds on sale ......................................... 41
Other Investment (purchases) ................................................. 42
proceeds on sale ...................................... 43
Amortization of premium on Investmenu ............................. 50
(Purchase)/sale of Other Assets and Real Estate for Insurer's own use ........................ .. ................................................................. 51 ....................................................................................................... 58
Net Cash flows from (used in) investing activities ................................... 59
Cash flows from (used in) financing activities:
Increase in (repayment of) borrowed money ..................... 60
Issue (redemption) of shares .............................................. 61
Dividends to Shareholders .................................... .... ......... 62 ........................................................................................... 68
Net Cash flows from (used in) Snancing activities .................................. 69
Net Increase (decrease) in cash and cash equivalents (lines 29+59+69) ..... 79
Cash and cash equivalents at beginning of year ........................................ 80
Cash and cash equivalents at end of year (line 79+80) ............................... 89
Increase (decrease) in cash and Cash Equivalents (Line 89-80) .................. 90
Cash and cash equivalents at end of year consist ok
Cnsh .................................................................................. 91
Cash equivalents ................................................................ 92
(Overdrafts) ...................................................................... 93
Year ri Current Prior
[lhc Inclusion of this page is authorized by L N . 33A/2005]

THE INSURANCE REGULA TIONS, 20001
ELEVENTH SCHEDULE (Regulation 34)
QUARTERLY STATEMENTS FOR GENERAL INSURERS ANNUAL RETURN
Table of Contents
Year insurance Co.
Insurer
CONTENTS
Financial Statements
Assets
Liabilities, Capital Surplus and Reserves Statements of lncome Statements of Earned Surplus Ratios Notes to Ratios [The Inclusion of this page is authod by LN. 33A120051

ELEVENTH SCHEDULE. contd .
Insurer Date
ASSETS
(JS. 000)
Cash ........................................................................................... 01
Accrued Invcst~ncnts Incomc .................................................
Invcstlllcnts:
Tcl-nl Dcposil expiring in one ycar or less ......................... 03
'I'crm Lkposits expiring in more than one ycar ..................... 04
Promissory Notes .............................................................. 05
Govenunent securities:
Jamaica ....................................................................
Others ...................................................................... 07
Bonds and Dcbcnturcs ..................................................... 08
Unit Trust Funds ............................................................... 09
Ordinary Shares .............................................................. 10
Preference Shares ..................... ................................... I I
Morlgagc I . o.~t~s .................... .... ................................ 12
Ileal I3tale ....................... .............................................. 13
Other Investments ....................... ................................ 14
lbtal Investments (lille03 to 14) ................................................. I9 Other Recoverables and Unpaid Claims ..................................... 37-1 Receivables:
Agents and Brokers ........................................................ 20
Policy holders ................................................................. 21
lnstalment Premiums .......................................................... 22
Other Insurers ................................................................... 23
Subsidaries and Affiliates ................................................... 25
I~lcornc'lhxcs ................................................................ 26
Interest Rcceivables .................... .................................. 27
Other Receivables ................... ...... .......................... 28
Recovcrahlc from Reinsurers:
Unearned Premiums .......................................................... W
Unpaid Claims and Adjustments Expenses ......................... 31
Investnicnt in Subsidiaries and Affiliates ..................................... 40
Real Estates for Insurer's own use .............................................. 41
Other Assets ...................... .................................................. 42
Defferred Policy Aquisition Expenses ........................................ 43
Defe~~ed IncomeTaxes ....................... .. ................................ 44
TOTALASSETS ......................................................................... 89
.
.
..

.. .-
[The lnclus~on of this page is authorized by LN 33A/2005] .

THE INSURANCE REGULA TIONS. 2001
ELEVENTH SCHEDULE. contd .
Insurer Date
Other Liabilities ............................................................................ 20
Total Liabilities ........................................................................... 29
Subordinated Indebtedness ............................................................ 30
Deferred Taxes ............................................................................. 31
LIABILITIES. CAPITAL AND SURPLUS
(Jrs'OOO)
LlABlLlTlES
Overdrafts ................................................................................... 01
Loans and Accrued Lnterest ..................................................... 02
Payables:
Agents and Brokers ..................................................... 03
Policyholders .................................................................... 04
Payable to reinsurers ........................................................ 05
Other Insurers ................................................................... 06
Subsidiaries and Affiliates .......................................... 07
Expenses due and accrued ......................................................... 08
Encumbrances on Real Estate .................................................... 09
PROVlSlONS
Provision for Corporation Tax-Current Year ...................... 11
Provision for Stamp duty ................................................... 12
INSURANCE LIABILITIES: \
Incurred But Not Reported ............................................ 13
Unearned Premium .................................... ... .................... 15
Unexpired Risk ................................................................. 16
Unpaid Claims and Adjustment Expenses (claims outstanding) ........ 17
CAPITAL & SURPLUS
Reserves Required ........................................................................ 40
Share Capital ...................................................................... 41
Share Premium ................................................................... 42
Unearned Commission ................................................................. 18
Total insurance Liabilities ............................................. 19
Retained Earnings brought fonvard ...................................... 44
Current Prof& .................................................................... 48
#REF!
Capital Reserves .......................................................................... 49
Other Reserves ............................................................................ 50
Total Capital & Surplus & Reserves ........................................ 59
TOTAL LIABILITIES, CAPWAL AND SURPLUS .................. 89