Judgments Against Insurance Companies

CENTRAL BANK OF TRINIDAD & TOBAGO
Eric Williams Plaza, Independence Square, Port-of-Spain, Trinidad, Trinidad and Tobago Postal Address: P.O. Box 1250 Telephone: (868) 625-4835; 4921; 5028; Fax: (868) 627-4696 E-Mail Address: info@central-bank.org.tt Website: www.central-bank.org.tt

May 9, 2011

CIRCULAR LETTER TO ALL INSURANCE COMPANIES

REF: CB-OIFI-985/2011

Judgments against Insurance Companies
Re. Section 25(5)(f) of the Insurance Act, Chap. 84:01

The Central Bank of Trinidad and Tobago (Central Bank) wishes to remind all insurance companies (insurers) that pursuant to section 25(5)(f) of the Insurance Act Chap. 84:01 (the Act), the Board of the Central Bank may cancel the registration of a company where:-

"a final judgment obtained against the company in any court and from which no appeal is pending remains unsatisfied for at least two months."

Further, where insurers have entered into arrangements to settle judgments, the Central Bank wishes to remind insurers that such arrangements must be consistent with the timeframe specified in this Section.

The Central Bank therefore requires any insurance company in contravention of this Section to take immediate steps to rectify the situation. Such steps should include the submission of a letter to the undersigned no later than June 15, 2011 advising of the steps that the insurer intends to take to urgently settle all outstanding judgments.

Please be guided accordingly.

Yours sincerely

[Signature]

Carl Hiralal
Inspector of Financial Institutions