Personal Liability for Placement of Insurance Business with a Foreign Insurer

CENTRAL BANK OF TRINIDAD & TOBAGO
Eric Williams Plaza, Independence Square, Port of Spain, Trinidad and Tobago Postal Address: P.O. Box 1250 Telephone: (868) 621-CBTT (2288), 235-CBTT (2288); Fax: (868) 612-6396 Email Address: info@central-bank.org.tt Website: www.central-bank.org.tt

December 20, 2022

Circular Letter to:
Insurance Companies Registered under Insurance Act, 2018 Insurance Companies Registered under Insurance Act, 1980 The Association of Trinidad and Tobago Insurance Companies (ATTIC) Trinidad and Tobago Association of Insurance Financial Advisors (TTAIFA) Insurance Brokers Association of Trinidad and Tobago (IBATT)

REF: CB-OIFI-2914/2022

SECTION 115(2) OF THE INSURANCE ACT, 2018
Personal Liability - Placement of insurance business with a foreign insurer

Consequent to the commencement of the Insurance Act, 2018, the Central Bank of Trinidad and Tobago (the Central Bank) refers to the subject at caption and advises that a disclosure form for use by intermediaries when they propose to place insurance business with insurers registered outside of the jurisdiction of Trinidad and Tobago has been developed.

Registered persons are asked to note Section 115 of the Act, which states:

(1) An intermediary is personally liable to a policyholder on all contracts of insurance - (a) made by, or through him directly or indirectly with any company which is not registered in Trinidad and Tobago or elsewhere to carry on insurance business; or (b) unlawfully made by, or through him directly or indirectly with an insurer or foreign insurance company, in the same manner as if the intermediary had been an insurance company. (2) Where an intermediary proposes to place insurance business with a foreign insurance company, the intermediary shall disclose this information to the consumer and receive the signed authorization of the consumer in a form approved by the Central Bank. (3) An intermediary which places business with a foreign insurance company shall comply with such reporting requirements as may be specified by the Central Bank. (4) An intermediary who contravenes subsection (2) or (3) commits an offence and is liable on summary conviction to a fine of one hundred and fifty thousand dollars.

We now append a copy of the said form for your attention. In addition, the form will be posted to the Central Bank’s website at https://www.central-bank.org.tt/core-functions/supervision/insurance-sector/insurance-sector-circular-letters in an electronically fillable format and can be downloaded.

Yours sincerely

Patrick Solomon
PATRICK SOLOMON
INSPECTOR OF FINANCIAL INSTITUTIONS

*

CENTRAL BANK OF
TRINIDAD & TOBAGO

SECTION 115(2) OF THE INSURANCE ACT, 2018
Placement of insurance business (Risk) with an insurer carrying on business outside of the jurisdiction of Trinidad and Tobago (Foreign Insurer)

INTERMEDIARY
NAME AND CERTIFICATE NUMBER:
LOCAL CLIENT'S NAME:
LOCAL CLIENT'S ADDRESS:
TRANSACTION TYPE:	☐ Renewal / ☐ New Business / ☐ Extension / ☐ Public Tender / ☐ Private Tender
RISK TO BE PLACED:
FOREIGN INSURANCE COMPANY/UNDERWRITER:
ADDRESS:
Jurisdiction of Domicile (Not prohibited by AML/CFT sanctions):
Licensed and Regulated by:
Certificate of Registration No.:
Other Due Diligence (e.g. Rating Agency's Grade, Capital, Technical Capacity):
POLICY NUMBER/TYPE:
OTHER POLICY DETAILS:
SUM INSURED:
PREMIUM & CURRENCY:

Intermediary Declaration:

We, (Name of Intermediary)__________________________________________________hereby propose that the risks referred to above be placed with (Name of Foreign Insurance Company/Underwriter)* __________________________________________________ after conducting our due diligence. This proposal can only be varied by written cancellation or presentation of a new form. Company's Name: __________________________________________________________________

Client Declaration:

I/We (Name of Client)of understand that my appointed intermediary (Name of Intermediary)__________________________________ proposes to place the above-mentioned risk with (Name of Foreign Insurance Company/Brokerage) __________________________________________________ which is not registered to conduct insurance business in Trinidad and Tobago.

I agree and instruct (Name of Intermediary)__________________________________to proceed in placing the risks as proposed above. Company's Name: __________________________________________________________________ Signature/Position/Company's Stamp:________________Date:

*Does not include Lloyd's, its agents, cover holders or any of its constituent underwriters.