The Insurance Act

INSURANCE I
THE INSURANCE ACT
ARRANGEMENT OF SECTIONS
PART 1 Preliinimuy

Short title.
Intnterpretation.
Application of Act.
Commission rffponsible for administration ofAct.
Registers.
PART U. Repiation of Insurance Compwiar
Registration
Only bodies corporate to carry on insmce business.
Registratim of bodies corporate canying on insurance business.
Restrictions regarding registrStion.
Share capital and deposit required for registration.
Application for registratim
Conditions for registration.
Certificate of registration.
Notification ofchmge in particulars specifid in application.
Suspension ofregistration.
Grounds for cancellation ofregistration.
Implemmtation of pmposal to rehe or cancel regkhtion.
Summary cancellation ofregistration.
IS. Effect of cancellation of registfatioa.
Display and surrrndu ofre@atim certificate.

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20. Contracts with non-registered companies.
21. Amountand fnm ofdeposit bycompanies
Invatment off& of Imurame companies
22. Investment of funds.
23. Prohibitiw relating to loans.
Adminislrative and Aceounring Requirements for Ins-e Companies
24. Maintenance of principal office and appointment of principal
25. Maimtmauce and separation of funds.
26. Reparation of annd accounts, etc.
representative.
27. Groupaccounts.
28. Audit of accounts of registaed msura.
29. Keeping of recards by insurers.
30. Annual investigations into hand pasition of insu~~~ carrying on
long tam busmess.
3 1. Amalgamation and lrausk.
32. Regulatiw of waldling mm after traosfer OT amalgamtim.
33. Application by PRSOOS affected by scheme.
34. Effect of decisions ofCcmmission and appeals.
35. vesting by Mister.
Cwpome Goveme, Appointmet8 qf.4todirors ondAehrmy
36. Duty of care of direaas and seniar officers.
37. Appointment of auditca.
38. Resignation ofanditor.
39. Accesstoinformation.
40. Auditor’s report
41. Auditor’s right to attend, requisition meetings.
42. Report by Commission.
p’hcinclurimdlhirpge ~rauUlonrsdby LN IILRWZ]

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43. Amendment of financial statements and repatS.
44. Appointment of actuary.
45. Resignation, etc., ofactuary.
1nves:igaiom by the Commission
46. Commission may demand information.
47. Power to make investigations.
48. Power to obtain information.
49. hby on premises.
50. Action on completion of investigatioa.
Winding Up
51. Windingup.
52. Petition fa winding up.
53. Margin of solvency.
54. Transfer of insurance business.
55. Local treatment in foreign winding up.
56. Supplemmtal provisioas as to winding up.
57. Ascatarmn ' ent of value of liabilities under policies.
58. Reduction of contracts as altmative to winding up.
59. Application of deposits.
60. Guarantd mmpanies.
PART 111. Associations of Ude~iters
6 I. Associations of undesmiters to be registered.
62. Application for registration undu this Part.
63. Conditions fm registration.
64. Documents and information to be firnrished to Commission.
65. Suspension of regi-tion.
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66. Grounds for cancellation of registration.
67. Implementation of proposal to refuse to register or to cancel
68. Effect of cancellation of association’s regisbation on insclrance
69. Deposits by associations of undmwiters.
registration.
ContractS.
PART lV. Registratim of Inswame Intermediaries
70. Registration of insurance intermediaries
71. Application for registration.
72. General restrictim an registration.
73. Conditions for registration.
74. Certificate of registration.
75. Suspension of regisbxtion.
76. Grounds for cancellation ofremation
77. Impleme~tatim proposal to refuse to regista OT to cancel registration.
78. Summary cancellation of registration under this Part.
79. Information to be supplied to Commission.
80. Production of certificate ofregistration.
81. Display and surrmdaof regktratirm certificate.
Miscellmreous Provisions Relating to Inswame Intermediarks
82. Agents, etc.
83. Fraudulent representations.
84. Liability for unlawhl contracts.
85. Compcnsstim to lmaumorircd person for placing or negotiating
86. Rebating.
87. Bonaf& salaried employees.
88. Returns by insurers.
89. Returns by regidaed brokers and agents.
insurance.
[The ~ncbrial of hs page 13 aullinninl by L N I121WJoo? 1

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PART V. Long-tern Insurm Business
Isnre OfPoIicies
90. Rates of premium.
9 1. Notice regarding proof of age.
92. Rocedure whae comprmy declines to aooept pf.
93. Mis-statanent of age and nan-avoidance ofpolicy.
94. Provisions relating to state of health of insurd.
95. Minors.
96. insurable interests.
Designation of beneficiaries or Legal Personal Represenfuive
97. Designation of beneficiaries generally.
98. Irrevocable designation of beneficiaries.
99. Alteratim or revocation of designation on don of marriage.
100. Insured person entitled to dividends
101. Cimunstances in which insurance promds not part of insured
person’s estate, etc.
102. Presumption ofbust negatived.
103. Appoinlment oftrustee.
104. Beneficiary -ing insued pason.
105. Right to enforce payment of pmceeds.
106. Power of group life insured to sue insura.
Pmteclion of Policies
107. Interest of insured protected in certain cases.
Paid-up Policies, Surrender Values und Non-Fmfeitzm
108. Paid-up policies.

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109. Sumadet ofpolicies.
110. Notice in respect of long tenn insurance policies by insurer.
1 1 I. Insured's right of cancellation.
1 12. Nm-forfeiture of ordinary policies in certain case3 of non-payments I 13 Treahnent of debts on grant of paid-up policies. of premiums. Payment ofPoIicy Moneys
114. Death ofpolicyholder not being life insured.
11 5. Unclaimed moneys.
Muldisation
11 6. Conversion into mutual companies and vice versa.
PART VI. Reserves and Divikd
117. Resmes.
118. Dividend not to impair.
PART VII. Generailnsurame
119. Application ofthis Part.
120. Disclosure of pro rata condition of average.
121. Thirdpartyrights.
PART VI11. Mirceiheou
122. Insurance mnhibutcry fund.
123. Insudsduty ofcarereagents.
124. Register to be kept.
125. Replament of lost life policy.
126. Em of suicide or capital pmishntent on life policy.
127. Liability limitation for war void.
128. Offences by company not to invalidate policies.
129. Local dicies governed by Jamaican laws.

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130. Payment of moneys in specified currency.
131. PowatopaymoneyintoCollrt.
132. Payment without probate or administration in certain Cases.
133. Structured settlements.
134. Approval required for notice offering share for subscription.
135. Publication ofauthorized subscribed and paid-up capital.
136. Inspection of documents.
137. Documents to be admitted in evidence.
138. Authority to sign documents.
139. Printing of documents.
140. Appeal.
141. Gazetting ofregisb-ation, etc.
142. Restriction on use of insurance tams
143. Extmsion of time hits.
144. Regulations.
145. Exemptions.
146. Misleadingadvertimmt.
147. offences.
148. General pmalties.

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(U) is a registered public accountant as defined in (b) satisfies such requirements as may be
section 2 ofthe Public Accountancy Act; and
prescribed, and includes a firm of such persons; “bond investment business” means the business (not being life insurance business) of issuing bonds or endowment certiiicates by which the company, in return for subscriptions payable at periodic intervals of less than six months, contracts to pay the bond holder a sum at some future date, and includes sinking fund and capital redemption insurance busies; “broker” means any person who- (U) in any manner solicits, negotiates or procures insurance or the renewal or continuance thereof on behalf of insurers or on behalf of agents; or (b) arranges insurance business with such insurers or agents on behalf of prospective policy holders; ‘‘carrying on insurance business in Jamaica” includes, (U) opening or maintainjng a place of business or an office or appointing or using a representative in Jamaica, whether or not such business is being arranged in or s%om Jamaica; (b) the use in Jamaica of any business description or title in any language of the words ‘‘insurance”, “assurance”, “indemnity”, “guarantee”, “under-writing”, “rereinsurance”, “Surety”, “e, or any of their derivatives, or any expression which conmtes or is intended to connote insurance business; and subject to subsection (2)-

INSURANCE
(c) the making in Jamaica of any representation in any document or in any other manner offering, directly or indirectly, to arrange contracts of insurance; “child” in relation to any person includes- (a) a child adopted in pursuance of an order made under the Children (Adoption of) Act; (6) a step-child and any other child wholly or mainly maintained by that person; “class of insurance business” means any class of insurance business specified in section 3 (1); “collector” includes every person, however remunerated, who calls on policy holders for the purpose of receiving premium payable under industrial life policies; “Commission” means the Commission appointed under
section 3 of the Financial Services Commission Act;
“company” means a body corporate which carries on or proposes to carry on insurance business in Jamaica; “control” means the possession by a person of the power to direct or influence the direction of, the management and policies of a person, through the ownership of voting shares or by contract (other than a commercial contract for goods or non-management services) or otherwise, but does not include any such power derived fiom an official position with the person concerned; “Court” means Supreme Court; “document” includes in addition to a document in writing- (4 (b) any photograph; map, Ph graph or drawing;

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(c) any disc, tape, sound track or other device in which sounds or other data are embodied so as to be capable (with or without the aid of some other equipment) of being reproduced therefiom; "eligible facultative placement insurer" means an unregistered insurer with which a registered facultative placement broker may place facultative insurance placements; "equity linked products" means life insurance or annuity products which purport to offer investment benefits that are linked to the performance of certain identifiable investments, whether or not held in separate or segregated funds; "facultative placement broker" means a person registered under this Act to place, with eligible unregistered insurers, insurance on properties, risks or exposures located or to be performed in Jamaica; "foreign company" means a company incorporated outside the area of the Caribbean Community and Common Market; "general insurance business" means insurmce business of any class specified in section 3(1) other than ordinary long term insurance business or industrial lie insurance business; . "grandchild" means, in relation to any person, a child of that person's child; "holding company" has the meaning specified in subsection (6);

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“industrial life insurance business” means the business of effecting and carrying out 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 sent by the insurance company to each policyholder, or to his residence or place of work; “industrial life policy” means a policy in respect of which the premiums are contracted to be received or are usually received by means of collectors, and include+ (a) a policy that has at any time been such a policy; and (b) a paid-up policy (not being a policy expressed to be a non-industrial life policy) granted in lieu of an industrial life policy or of a policy referred to in paragraph (a); ”insurance business’’ means the assumption of the obligations of an insurer in any class of insurance business and includes reinsurance business; “insurance consultant” means a person providing insurance services not falling within any other category, or holding himself out as such; “insurance intermediary“ means an agent (including a managing general agent), broker (including facultative placement broker and reinsurance broker), sales representative, adjuster, insurance consultant, or such other persons carrying on any business connected with insurance as may be prescribed; “insurer” means a company carrying on insurance business and, except where otherwise stated, includes all the members of an association of underwriters which is registered 8s an insurer;

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”liability insurance business“ means the business of effecting and carrying 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 vessels or aircraft or risks incidental to the construction, repair or docking of vessels or aircraft; ”life insurance business“ means the undertaking of liability under policies of insurance upon human life, but does not include industrial life insurance business; “life insurance fund” means the fund to which the receipts of an insurer in respect of his life insurance business are carried and fiom which payments in respect of that business are made; “life insurance policy” means any instrument by which the payment of money is assured on death or the happening of a contingency dependent on human life, or any instrument evidencing a contract which is subject to the payment of premiums for a term dependent on human life, but does not include an instrument by which the payment of money is assured only on accidental death; “life insurer” means a registered insurer carrying on lie insurance business; “local company” means a company incorporated under the Companies Act or under the relevant law of any member state of the Caribbean Community and Common Market; “local policy” means a policy issued, whether in or outside Jamaica, by or on behalf of an insurer, upon an application made in Jamaica to an insurer, broker, sales representative or agent; and-

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(a) includes a life insurance policy issued outside Jamaica at the request of the policyholder, which the policyholder has agreed in writing shall be treated as a local policy for the purposes of this Act; but (b) does not include a life insurance policy made payable, after the date of its issue, outside Jamaica at the request of the policyholder, which the policyholder has agreed in writing shall not be treated as a local policy for the purposes of this Act; “long term business” means insurance business of all or any of the following classes, namely, ordinary long term insurance business and industrial life insurance business and, in reIation to any company, insurance business carried on by the company as incidental only to any such class of business; “managing general agent” means any person (other than an employee of an insurer) who- (U) manages all or part of the insurance business (b) by whatever name called, acts as an agent (i) produces, directly or indirectly, and underwrites an amount of gross direct written premium equal to five per cent or more of the policyholder surplus (as reported in the insurer’s last annual statement) in any one quarter or year; adjusts or pays claims in excess of an amount determined by the Commission; of a foreign insurer; and for such insurer and- (ii) I Ibu ~IICIII\IIW ,#I 111n pp I\ .~IIII~IIIIIUII h) N I 11 ?Ill)? I

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(iii) negotiates reinsurance on behalf of the insurer; but does not include a manager who, pursuant to a contract, manages all or part of the insurer’s insurance operations, is under common control with the insurer and whose compensation is not based on the volume of premiums written; “marine, aviation and transport insurance business” means the business of effecting and carrying out (otherwise than incidentally to some other class of insurance business) contracts of insuran- (a) upon vessels or aircraft, or upon the machinery, tackle, furniture or the equipment of vessels or aircraft; (b) upon goods, merchandise or property of any description whatever on board vessels or aircraff; (c) upon the freight oc or any other interest in or relating to, vessels or aircraft, (dj against damage arising out of or in connection with the use of vessels or aircraft, incIuding third-party risks; (e) against risks incidental to the construction, repair or docking of vessels, including thirdparty risks; v) against transit risks (whether the transit is by sea, inland water, land or air, or partly one and partly another) including risks incidental to the transit insured hm the commencement of the transit to the ultimate destination covered by the insurance, but not including risks the insurance of which is motor vehicle insurance business; or [lk iirlurion ofthir page IS uuthond by L.N. I 12,2002 1

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(g) against any other risks the insurance of which is customarily undertaken in conjunction with or as incidental to any business referred to in the foregoing paragraphs of this definition; “motor vehicle insurance business” means the business of effecting contracts of insurance against loss OF, or damage to or arising out of or in connection with the use of, motor vehicles, including third-party risks; “mutual company” means a company whose capital is owned by the policyholders of that company and includes a company which has agreed to purchase back or is in the process of purchasing back its sbare capital at a fyred price and is recognized by the Commission as a mutual company; “ordinary life insurance business’’ means insurance whereby an insurer assumes in return for the payment of a sum or sums of money a contingent obligation dependent on human life but does not include industrial life insurance, personal accident, sinking fund or cancellable group life insurance; “ordinary long term insurance bwimess” means business (excluding industrial life insurance business) of any of the following kinds, namely, effecting and carrying out contracts of insm- (U) on human life or contracts to pay annuities on human life; injury or dying as a result of an accident, or of an accident of a specified type; (c) against loss resulting horn the illness or disability of a person other than loss resulting horn death, (d) whereby an insurer undertakes to pay a cettain sum or sums of money in the event of the illness or disability of a person; .. (b) against the risk of the persons insured sustauun g lTheincl“nrmoIihirpagsiraulhon2edby LN 11212W2 I

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(e) against expenses incurred for vision or dental care, laboratory or x-ray services, hospitalization, or other medical or health-care services; v) 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 Series of sums is to become payable to the insured in the future, not king contracts llling within ”pecuniary loss insurance busmess” means the business of effecting and carrying out contracts of insurance against any of the following risks- (a) risks of loss to the persons insuedParagraphs (49 (4. (c), (4 or (d. (i) arising hm the insolvency of their debtors or hm the failure (otherwise than through insolvency) of those debtors to pay their debts whendue; (i) attributable to their incurring unfbreseen expense;and (b) risks not falling within paragraph (a) nor being of such kind that the carrying on ofthe business of effecting and carrying out contracts of insurance against them constitutes the carrying on of some other ckss of insurance business; ”policy” means an insurance policy; ”policyholder” means the person who for the time being has legal title to a policy and includes any person to whom a policy is for the time being assigned; ‘’prescribed securitiis” meaos any securities or class of securities prescribed by regulations made under this Act;

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“principal office” means the place in Jamaica where the insurance business of a company is controlled or “principal representative” means the representative notified to the Commission in accordance with section 24; “property insurance business” means the issue of, or the undertaking of liability under, policies of insurance against loss of or damage to real or personal property of every kind and interests therein, hm any hazard or cause, or against loss consequential upon such loss or damage, not being risks the insurance of which is motor vehicle insurance business or marine, aviation and transport insurance business; “register” means the register of policies referred to in
section 124;
“registered insurance agent” means an insurance agent registered in accordance with Part IV; “registered insurance broker” means an insurance broker registered in accordance with Part IV, “registered insm” means an insurer registered in accordance with Part I1 or Part 111, as the case may require; “reinsurance broker” means any person, other than an officer or employee of a ceding insurer, who solicits, negotiates or places reinsurance or retrocessions on behalf of a ceding insurer without the authority or power to bind reinsurance on behalf of that insurer; “reinsurer” means any registered insurer who is authorized by this Act to assume reinsurance; “sales representative” means an individual employed by an insurer, agent or a broker, to solicit applications for insurance or to negotiate insurance on behalf of that insurer or agent or on behalf of the client or broker, as the case may be, and includes a collector; managed;

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lNSlJRANCE 27
(2) A body corporate incorporated under the Companies Act that carries on any class of insurance business in any other country shall, for the purposes of this Act, be deemed to be a company carrying on such business in Jamaica (3) For the purposes of this Act, the reinsurance of liabilities under insurance policies shall be treated as insurance business of the class and type to which the policies would have belonged if they had been issued by the reinsurer, and all the provisions of this Act apply to such reinsurance except that a company or an association of underwriters carrying on the reinsurance shall not be required to make, in respect of such reinsurance, any deposit as required by section 21 or 69. (4) Part I1 does not apply to associations of underwriters. (5) This Act does not apply to any organization that is registered under any enactment that relates to f?iendly societies, co-operative societies, building societies, trade unions or to any other similar organization.
4. The Commission shall be responsible for the general Comaussmn
mpawble fm
Imnml5aIlon of Ad administration of this Act.
5. The Commission shall cause to be maintained separate Repm
registers of the followin-
(U) companies registered to carry on in Jamaica, the various classes of insurance business specified in
section 3 (1);
(b) association of underwriters;
(c) insurance intermediaries, and such other registers as may be required to be maintained under this Act or as may be prescribed. [The inclumn of Ihis page IS ucithanzed 4v L N 11212002 I

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Only bodies wrplrate to
0” on insurance business.
Registration of bodies mrporare camying on insurmsc bugines Share capital and deposit required fm regimtion.
PART 11. Regulation of Insurance Companies
Re@tration
6. Subject to this Act, no person other than a body corporate
shall carry on insurance business in Jamaica.
7.+1) A body corporate shall not cany on any class of (a) it is registered by the Commission under this Act in respect of that class of insurance business; .and (h) it has insurance business specified in section 3 (1) unless- (i) made the deposit required by section 21; and (ii) filed with the Commission, the names and addresses of persons resident in Jamaica who are authorized to accept on behalf of the body corporate, service of process in legal proceedings. (2) Subsection (1) shall not apply to persons carrying on insurance business pursuant to section 20. (3) Any person who contravenes section 6 or this
section shall be guilty of an offence and liable on summary
conviction in a Resident Magistrate’s Court to a fine not exceeding three million dollars or to imprisonment for a term not exceeding three years or to both such fme and imprisonment.
8. An insurance company shall not be registered under this
Part to cany on both long term and general insurance business
unless such general insurance business consists exclusively of accident insurance business. 9.+1) Subject to subsection (2), no company shall be registered to cany on any class of insurance business, unless-

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(U) it has paid-up capital and surplus of the prescribed amount; and (b) it has deposited with the Commission, the prescribed deposit referred to in section 21. (2) Subsection (1) (a) shall not apply to a mutual company but no company shall be registered as a mutual company unless it has, in relation to policyholders, an uncommitted reserve of the prescribed amount. 10.-(1) An application for registration under this Part shall Awlication be made to the Commission in the prescribed form and shall be ~~im,ion accompanied by evidence of payment of the prescribed fee and by such documents as may be prescribed. (2) The Commission may, upon receipt of an application under this section, request the applicant to furnish such additional information as it may consider relevant to the application. 11.41) The Commission shall act in accordance with Conditionsfor reismion. subsection (2) in relation to an applicant if, after appropriate enquiry or by the production of documentary evidence or both, the Commission is satisfied in respect of the applicant tha- (U) the requirements of sections 6, 9 and 10 have been complied with; (b) the company is solvent under the provisions of
section 53;
(c) the company is liiely to be able to comply with such of the provisions of this Act as would be applicable to it; (6) the company has made adequate arrangements for reinsurance of that class of insurance business or that there is no justification for makiig such arrangements;

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(e) each of the persons managing or controlling the company is a fit and proper person to manage or control such a company; v) the company is able to implement a policy for settlement of claims without undue delay; (g) the name of the company is not identical with or does not so closely resemble the name of an insurance company already registered under this Act as to be likely to deceive; (h) in the case of a foreign company, it- (i) is lawfully constituted in accordance with the laws of the country in which it is incorporated and has undertaken insurance business in that country for at least five years before the date of the application; and (ii) has appointed some person resident in Jamaica to be its principal representative in Jamaica and has informed the Commission in writing of the name and address of that person; and (i) the company has satisfied such other requirements as may be prescribed. (2) The Commission may, either unconditionally or subject to such conditions as it may specify, register the insurance company in respect of the class or classes of insurance business specified in the application and shall notify the applicant accordingly. (3) Where, in relation to all or any of the classes of insurance business specified in the application, the Commission is not satisfied as to one or more of the conditions set out in subsection (l), it shall-

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NSUMNCE 35
(2) The Commission shall not cancel the registration of FZI insurer under subsection (1) unless the Commission is satisfied that- (a) the insurer has no unpaid claims in respect of the insurer’s contracts of insurance made in Jamaica; (b) all of the insurer’s contracts of insurance made in Jamaica are discharged or expired, or have been transferred or assigned to another registered insurer; and (c) the insurer has no outstanding fees or taxes payable to the Government. 18.-(1) Notwithstanding section 7, upon the cancellation of Effectof rancdlslion of regi4tralion. an insurance company’s registration- (a) the company shall- (i) to such extent and in such manner as the Commission may determine; and (ii) for such period not exceeding one year or such period as the Commission may by order prescribe, carry on business in respect of obligations under contracts of insurance entered into before such cancellation, with a view to meeting those obligations and without undue inconvenience to policyholders, until the Commission is satisfied that it has made suitable arrangements for the discharge of those obligations; (b) the company may not, after the date of notification of cancellation, issue any new policy or enter into any new contract in relation to which registration is required.

36 NSURANCE
(2) Nothing in subsection (1) (a) shall be construed as authorizing the renewal, &er the notification date, of any policy issued before that date, and where any such policy is renewed after that date the company shall be regarded as having issued a new policy in contravention of subsection (1) (b), unless the Commission, in a case of hardship, otherwise permits. (3) Any person who contravenes subsection (1) shall be guilty of an offence and is liable on summary conviction- (U) in the case of a failure to comply with subsection (1) (a), to the penalties specified in section 148; and (b) in the case of a contravention of subsection (1) (b), to the penalties specified in section 7 (3). Dwlayand re~maban mfime 19.41) Every company registered under this Part shall prominently display its registration certificate at its principal ofice, in a part thereof to which the public have access, and a copy thereof shall be similarly displayed at each of its branches in Jamaica. (2) A company whose registration is cancelled shall, on receipt of the notice of such cancellation, forthwith surrender the registration certificate and every copy thereof to the Commission. surrender of (3) Every person who, without lawfd excuse (a) fails to comply with subsection (1) or (2); or (b) displays a registration certificate or any copy thereof which is no longer valid, shall be guilty of an.offence and liable on summary conviction in a Resident Magistrate’s Court- (c) in the case of an offence specified in paragraph (U), to a fme not exceeding five hundred thousand dollars; or (6, in the case of an offence specified in paragraph (b) to a fine not exceeding three million dollars.

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IN.SURANCE 41
(2) The annual statement referred to in subsection (1) shall be certified by the company’s independent auditor and, in the case of long term business, by an sctuary and shall relate (a) in the case of a local company incorporated under the Companies Act, to its business in and outside Jamaica; (b) in the case of a local company incorporated under the relevant law of another member state of the Caribbean Community and Common Market, to its business in Jamaica; and (c) in the case of a foreign company, to its business in Jamaica (3) Where, in the opinion of the Commission, a document hished by a registered insurer under this section is incorrect or incomplete in any respect or is not prepared in accordance with this Act, the Commission may, by notice in writiig, require the company to amend the document or to furnish a correct or complete document or, as the case may be, a document prepared in the prescribed manner. (4) Where an insurer fails to comply with a notice referred to in subsection (3) to the satisfaction of the Commission, the Commission may amend the document in question and notify the insurer of particulars of the amendments or may reject the document. (5) A document amended by the Commission or by a registered insurer under thii section shall be treated as having been submitted to the Commission in its amended form (6) Where a document is rejected by the Commission under subsection (4), the insurer concerned shall be treated as having failed to comply with this section in relation to that document unless and until it has fiunished another document in accordance with the Commission’s directions.

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(7) An insurer which is liable under a local policy shall. at the request of the policyholder, permit him to inspect the audited financial statement in respect of its last preceding fmancial ! sar and if he so requests, furnish him with a copy free of charge. (8) This section shall not apply in the case of an insurer that carries on only a class of insurance business declared exempt for the time being by virtue of section 145. (9) Every person who, without lahl excuse, fails to comply with any requirement of this section commits an offence and is liable on summary conviction in a Resident Magistrate's Court to a fme not exceeding one million dollars. Grwp 27.+1) This section applies where a registered insurer is associated with another registered insurer or with other companies in a group. (2) In addition to the returns required by section 26, the parent company of the group shall prepare in the prescribed form and manner and submit to the Commission, within ninety days after the end of its financial year- (a) a consolidated balance sheet showing at the close of that year the financial position as a group of the parent company and all its subsidiaries; (b) a consolidated profit and loss account showing the profit or loss as a group of the parent company and all its subsidiaries during that year; and (c) such other documents as may be pmribed (3) The balance sheet and prof~ and loss account shall bear a certificate by an independent auditor approved by the Commission as to whether in his opinion it gives a true and fair view of the financial position refed to in subsection (2) (U) or, as the case may be, of the profit and loss referred to in subsection (2) (6). aCC""ntE [The iiiclum~~ 01 ilns page IS uiitli~nlrd by L N I12/2W? ]

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INSURANCE 45
(3) Notwithstanding subsection (I), every registered insurer that carries on long term business shall submit to the Commission an annual report prepared in the prescribed form by an independent actuary indicating the value of its assets and the value of its liabilities. 31.--(1) Subject to section 32, an insurance company Amalgamation and whether or not it has ceased to issue new policies of insurance wnsfn, or to assume fresh liabilities in Jamaica may, with the approval of the Commission in writing, enter into an agreement or arrangement- (U) to amalgamate its property and insurance business (whether in whole or in part) with the property and insurance business of any other insurance company; (b) to transfer its insurance business (in whole or in part) to or have it acquired by another insurance company. (2) An application to the Commission for approval pursuant to subsection (1) shall be presented in the form of a scheme and shall be regulated in accordance with such provisions as may be prescribed. (3) The Commission may approve any tmnsfer, acquisition or amalgamation either unconditionally or subject to such conditions as it may specify in Writhg:. (4) This section applies in respect of the transfer, acquisition or amalgamation of insurance business of companies if- (U) the benefits accruing are kom policies issued and payable in Jamaica; or (6) the policies are subject to the jurisdiction of the courts in Jamaica. (5) Where an amalgamation or transfer takes place, the insurance company as amalgamated or to which business is transferred shall, within thirty days from the date of completion of the amalgamation or transfer or such longer period as the Commission may allow, deposit with the Commissioe - ITlie iiicliision ol ~hv pgt IS n#irlimized br L.N I 12iIWI i

46 INSUM NCE
(a) certified copies of statements of the assets and liabilities of the companies concerned in the amalgamation or transfer, together with a statement of the nature and tern thereof; (6) a certified copy ofthe agreement or deed under which the amalgamation or transfer is effected; (c) a declaration signed by the secretary or manager, if any, and at least two directors of the company that to the best oftheir belief- (i) every payment made or to be made to any person on account of the amalgamation or transfer is therein fully set out; and (ii) no payments other than those set out have been made or are to be made by or with the knowledge of any parties to the amalgamation or transfer. (6) For the purposes of this section and sections 32, 33 (a) the assumption of the obligations of any insurer in any class of business; (b) the assumption of the business of insuring risks or liabilities; (c) the renewal and issuing of documents of renewal of existing insurance and liabilities; or and 34 “insurance business” means (d) the receiving of first, subsequent or renewal premiums, and includes reinsurance. (7) A person who in any statement, agreement, deed or declaration referred to in subsection (5) causes or permits the inclusion of any information which he knows to be false in a material particular or recklessly includes any information which is false in a material particular shall be guilty of an offence.

INSURANCE 47
32. Where an application is made to the Commission for the Regulation of
c0"molll"g approval of any transaction arrangement or agreement under interest after
section 3 1, after transfer or by virtue of which effective control mansfa or amalgam- of the applicant company would be acquired by another person allon
or company, the Commission shall not give approval unless it is satisfied that such person or each of the persons managing or controlling such other company is a fit and proper person to manage or control the insurance company as amalgamated or to which the whole or part of its business is transferred or acquired. 33.+1) Any person who is likely to be affected by a *ppllratlon by persons proposed scheme may, within thirty days of publication of the aredd by prescribed notice or, as the case may be, service upon him of scheme such notice, make an application to the Commission in respect of any matter related to the scheme. (2) The Commission shall, upon receipt of an application under subsection (I), fix a date for the hearing by it of the application and shall- ' (a) in writing inform the applicant of the date of the hearing; and (b) not less than fourteen days before the hearing, publish a notice of the application and the date of the hearing in the Gazette and at least three times in a daily newspaper published in Jamaica. (3) The following persons are entitled, either in person or by their legal representatives, to be heard at the hearing- (a) the applicant; (b) every company that is interested in the application; and (c) any person who, in the opinion of the Commission, is likely to be affected, and the Commission may, in dealing with the application, hear such evidence as it deems necessary.

48 INSURANCE
(4) The Commission shall not approve a scheme unles- (a) the provisions of section 32 are complied with; (b) subject to paragraph (c), a number of policyholders representing not less than one-tenth of the total amount assured in any one portfolio involved in the scheme do not dissent therefkom; or (c) in the case of a group policy, a number of policyholders representing not less than one-quarter of the total group in any one portfolio to which the scheme relates, do not dissent therefiom; or (4 it is satisfied that- (i) the continuing insurer is incorporated in (ii) the acquisition, amalgamation or transfer is Jamaica; or not detrimental to the policyholders. (5) Notwithstadhg subsection (4), the Commission may refuse to approve a scheme where a number less than that indicated in subsection (4) dissents therefiom, if- (a) in its opinion, the circumstances of the case so (b) it is satisfied that a proposed amalgamation will be require; or detrimental to the policyholders. (6) All expenses incurred by the Commission in obtaining any report on the scheme, including the report of any actuary, shall be defiayed by the companies concerned and any moneys due as a result of those expenses may be recovered fiom those companies by the Commission in a Resident Magistrate’s Court as a civil debt due to the Crown notwithstanding any limitation as to amounts recoverable under the Judicature (Resident Magistrates) Act.

INSUMNCE 49
(7) For the purposes of subsection (4j, “group policy” means a policy of insurance, not being a policy that operates in favour of a fainily, whereby the lives of a number of persons are insured severally under a single contract between an insurer and an employer or other person.
34.41 j Subject to subsection (2), a scheme approved by the Effect of
decisions of Commission is binding on the companies affected by it, and on commission all shareholders, members and policyholders and has effect andappeals notwithstanding anythg contained in- (a) any policy or any instrument constituting the (6) any rules or by-laws of the companies, companies; or and the directors of those companies shall cause a copy of the scheme as approved to be filed with the Registrar of Companies. (2) An appeal from a decision of the Commission approving or disapproving a scheme may be made to the Appeal Tribunal within fifteen days of the decision. 35.41) Where the Commission has approved an agreement Vesfingby Minister or arrangement referred to in section 31, the Minister upon application by the insurance company to which the property or business is transferred (hereinafter referred to as “the transferee insurance company”) may, if he thinks fit, make an order transferring to 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 (hereinafter referred to as “the transferor insurance company”) which is the subject of the agreement or (U) the property or business which is the subject of the agreement or arrangement shall vest in the transferee insurance company without kther conveyance, assignment and assurance; and arrangement, and thereup-

50 NSURANCE
(b) without prejudice to paragraph (U), the transferor insurance company shall, if requested by the transferee insurance company, execute such formal and separate conveyances, assignments and assurances as are reasonably required by the transferee insurance company in conformity with the agreement or arrangement. - (2) A transfer or vesting effected by an order under subsection (1) shall not- (U) operate as a breach of covenant or condition against ahenation; (6) give rise to any forfeiture; (c) invalidate or discharge any contract or security; or (4 except as provided in subsection (l), affect any interest in or relating to the property transferred. (3) The transfer to and vesting in the transferee insurance company of any property or business pursuant to this
section shall, if the Minister so states in the order, not be subject
to the provisions ofthe Stamp Duty Act or the Transfer Tax Act. Corporate Governance, Appointment of Auditor and Actuary
36. For the purpose of discharging his duty to act honestly
and in good faith with a view to the best interests of an insurance company, a director or senior officer thereof shall take into account the interests of the c~mpany’s policyholders. outyofcarc ~ffi~er~ of directm and Senlrn Appoimmcnt 37.41) Every registered insurer, agent and broker shall appoint an auditor and shall forthwith notify the Commission ofof auhtor.

INSURANCE
(a) the auditor’s appointment or the auditor’s resignation; (b) the removal of the auditor and the reasons therefor; (c) any other occurrence that causes a vacancy in the (2) Where, to the knowledge of the. Commission, there is a vacancy in the office of auditor under subsection (l), the Commission shall by notice in writing to the registered insurer, agent or broker, require the insurer, agent or broker to appoint an auditor by the date specified in the notice. (3) Where a registered insurer, agent or broker fails to appoint an auditor by the date specified in the notice under subsection (2 j (a) the Commission shall appoint an auditor to hold office until the close of the next annual general meeting and the insurer, agent or broker shall pay the auditor so appointed, remuneration at such rate as the Commission shall direct; and (b) the insurer, agent or broker shall not mve the auditor before the expiration of his term of office. and office of auditor. (4) A registered insurer, agent or broker shall- (a) ensure that its auditors or one of its auditors is also the auditor of any of its subsidiaries; (b) where it is unable to ensure that result, deliver to the Commission, a written explanation to the satisfaction of the Commission, of the reasons therefor. (5) The Commission may require an insurance company to appoint, in such circumstances as may be prescribed, an additional auditor to hold office for a term specified by the Commission. (6) The insurance company shall pay to the additional auditor so appointed, remuneration at a rate specified by the Commission. 51

52 NSURANCE
Reslgnatllmof auditur
38.--(1) Where an auditor appointed by a registered insurer or a registered insurance intermediary resigns at any time during the currency of his appointment, he shall notify the insurer or intermediary in writing of the reasons for his resignation. (2) The registered insurer or registered insurance intermediary shall deliver a copy of the notice referred to in subsection (1)- (a) to the Commission; and (b) to the new auditor appointed by it. Access to 39. Every director or former director, officer, employee or agent or former officer, employee or agent, of a registered insurer or its subsidiary or holding company or a registered insurance intermediary shall, on the request of the auditorinformation. (a) furnish to the auditor, all information and explanations specified in the request; and (b) grant the auditor access to and copies of, records, documents, books, accounts and vouchers of the insurer and its subsidiaries (if any) or its holding company (if any) or the insurance intermediary, as the auditor considers necessary for the purpose of any examination or report, being information that the auditor is permitted to require under this Act or the Companies Act. Auditor’s 40.-(1) It is the duty of the auditors of a registered insurer or registered insurance intermediary, to report in writing to the chief executive officer of the insurer or intermediary, each director thereof and the Commission, any material transactions or conditions that have come to the auditors’ attention in the ordinary course of the audit, which, in the auditors’ opinion meet one or more of the following criteriareport

INSURANCE 53
(U) any change in accounting policy or any presentation of or any failure to present, facts or figures which, in the opinion of the auditors, has the effect of misrepresenting the financial position of the insurer or intermediary; (6) transactions or conditions giving rise to significant risks or exposures that have the potential to jeopardize the insurer’s or intermediary’s financial viability; (c) transactions or conditions indicating that the insurer or intermediary has significant weaknesses in internal control which render it vulnerable to significant risks or exposures that have the potential to jeopardize the insurer’s or intermediary’s financial viability; (4 transactions of an irregular nature that have a significant or material impact on the insurer’s or intermediary’s financial position; (e) transactions or conditions that contravene the provisions of the Companies Act, the Financial Services Commission Act or this Act or any regulations made thereunder relating to capital adequacy or liquidity requirements or any other provisions of this Act; v) any other transactions or conditions which in the opinion of the auditors, should be included in a report under this section. (2) An auditor who refuses to comply with the provisions of this section shall be guilty of an offence. (3) Where a report is made under subsection (l), it shall be presented at the first meeting of the insurer’s or intermediary’s directors following the date of its receipt by the insurer’s or intermediary’s chief executive officer and shall be incorporated in the minutes of the meeting (4) The report required under subsection (I) shall be made within thirty days after the date on which the relevant transactions or conditions came to the attention of the auditors. I~L II~~~~~~~~ ,,I 11,m* l>,#yt I< ,mt1uw,~c1 Iiv I N I l?’XiU I

54 LVSURANCE
(5) The Commission may require the auditor of a registered insurer or registered insurance intermediary te (a) report to the Commission on the adequacy of the accounting procedures used by that insurer or intermediary; (b) enlarge or extend the scope of an audit; (c) examine and report on information prepared by the insurer or intenmdiary; (d) supply to the Commission additional information relevant to an audit; and (e) apply standards specified by the Commission in addition to generally accepted auditing standards. (6) The auditor shall furnish to the insurer or intermediary a copy of the report referred to in subsection (5) (a) or (c), addressed to the directors. (7) The auditors or former auditors of a registered insurer or registered insurance intermediary shall not be regarded as being in breach of their duty of confidentiality to the insurer or intermediary in consequence of any report made in compliance with subsection (1) or (5). Auditor's 4L-1) An auditor of a registered insurer or registered r'*toauend, Iequls,non insurance intermediary SIAL in relation to matters concerning -P the auditor's functions or on which the auditor has made a report, be entitle& (a) to be given notice of and attend every meeting of the directors or audit committee of the insurer or intermediary, the business of which as notified includes such matters; (b) to requisition the convening of any such meeting. (2) A notice referred to in subsection (1) shall be served in like manner as any other notice that is required for a meeting of the directors or audit committee.

LVSURANCE 55
42. Where the Commission has reasonable grounds to believe RW~ b
that the auditor of a registered insurer or registered insurance Comm'ss'on intermediaq- (a) has failed to perform his duties or to comply with the relevant provisions of this Act; (b) has been a party to the preparation of or has approved a financial statement that does not fairly present the fmancial position ofthe company; (c) is incompetent or is guilty of professional misconduct, the Commission shall forthwith deliver a written report to the company, the Public Accountancy Board and the Institute of Chartered Accountants of Jamaica. 43.+1) The oficers or directors of a registered insurer or Amendment of finurc,al registered insurance intermediary shail- aatemmts (a) note the auditor in writing of any facts that come to and reports (i) could reasonably have been determined before the date of the last annual general meeting; and (ii) if known before that date, would have required a material adjustment to the financial statement presented to that meeting; and (b) forthwith amend the fmancial statement and deliver it to the auditor and the Commission. their attention, which- (2) Where the auditor- (a) becomes aware of the facts referred to in subsection (1) (a), whether by way of the notice referred to in that subsection or otherwise; and (b) considers it necessary to amend the report in respect of the financial statement presented to the last annual general meeting,

56 INSURANCE the auditor shall notify the Commission in writing and amend the report so that it complies with the Companies Act. (3) Where the auditor amends the report, the directors shall send a copy thereof to the members with a statement explaining the effect of the amendment on the financial position and results of the operations of the company or intermediary. bpointment 44.4 1) Every registered insurer shall appoint an actuary and shall notify the Commission in witing of such appointment. ofactuary. (2) Subject to subsection (3), the actuary shall value (a) the actuarial reserves and other policy liabilities of the insurer as at the end of each financial year; and (b) any other matter specified in any direction given by the Commission (3) In relation to a registered insurer carrying on general insurance business, the fiequency of the actuarial valuation under subsection (2) shall Ix as determined by the Commission. (4) The actuarial valuation shall be conducted in accordance with generally accepted actuarial practice and with such directions as may be given by the Commission. (5) The Commission may, if it thinks necessary, appoint an actuary (other than the company’s actuary) to conduct a valuation of the matters referred to in subsection (3) and the expenses of such a valuation, as approved in writing by the Commission, shall be paid by the company. (6) On the request of the actuary, the directors or former directors or officers, employees or representatives of the coqany shall to such extent as is reasonably possible-

INSURANCE 57
(a) grant to the actuary, access to the company’s records; and (b) provide such information and explanations as are, in the actuary’s opinion, necessary to enable him to perform his duties in that capacity. (7) The actuary shall, not less than twenty-one days before the date of the annual general meeting of the Company’s shareholders and policyholders, submit to them a report in the prescribed form on the valuation conducted under this section and on such other matters as may be prescribed. (8) The report referred to in subsection (7) shall state whether, in the actuary’s opinion, the annual financial statement presents fairly the results of the valuation. (9) The actuary shall, at least once in every financial year, meet with the company’s directors or, where the directors so require, with the company’s audit committee, in order to report on the company’s financial position and, if so directed by the Commission, on the company’s expected future financial condition (10) The actuary shall- (a) report in writing to the company’s chief executive officer and chief financial officer on any matters that have come to the actuary’s attention in the course of carrying out his duties, being matters that, in his opinion, have materially adverse effects on the company’s financial condition and require rectification; and (b) forthwith send a copy of that report to the company’s directors and to the Commission. (1 1) Where, in the actuary’s opinion, suitable action is not being taken by the company to rectify the matters referred to in the report under subsection (lO), he shall notify the company’s directors and the Commission accordingly.

58 LVSURANCE
( 12) The actuary shall-
(a) make a report in the prescribed form on the value of the company's actuarial reserves and other policy liabilities and on the company's future financial condition; and (b) confm that the instructions pertaining to the capital requirements have been followed. (13) The company shall submit the report required under subsection (1 1) to the Commission. (14) Any oral or written statement made by an actuary or former actuary of a registered insurer pursuant to this section shall be protected by qualified privilege. (15) Any actuary or former actuary of a company who in good faith makes an oral or written statement pursuant to subsection (9), (10) or (12) or section 45 shall not be liable to any civil action as a consequence of making such statement. Resignation. 45.+ 1) %?E?- etc.. of actuary. (a) an actuary appointed by a registered insurer resigns; or insurer, (b) the actuary's appointment is terminated by the he shall notify in writing the Commission, the directors of the insurer and the newly appointed actuary thereof of the reasons therefor or, where paragraph (b) applies, the reasons therefor to the best of his knowledge. (2) The registered insurer shall notify the Commission of the resignation or termination referred to in subsection (1). Investigatiom by the Commission Commission 46. The Commission may demand fiomy demand l"f0rntlon (Tlir iiicluson dtlm pay 15 aulhonzcd by I N 112~202 I

INSURANCE 59
(a) any local company, information relating to any matter in connection with its insurance business; (6) a foreign company, information relating to any matter in connection with the insurance business carried on by it in Jamaica 47.41) The Commission may investigate the activities ofan powm insurance company where it appears to the Commission that- Efiganon, (a) the company is, or is likely to become, unable to meet its obligations; (b) the company has faded to comply with any of the provisions of sections 25 to 30; (c) the company has not, within a period of one month fiom a date on which the Commission made a written demand for information fiom it, furnished that information to the satisfaction of the Commission; or (d) based on information in the possession of the Commission, an investigation should be carried out into the whole or any part of any class of the company's insurance business. (2) The Commission may authorize such person as it thinks fit to cany out an investigation on its behalf and any person so authorized is hereinafter referred to as the Investigator. (3) Where, upon an investigation, it is found that a breach of this Act has been committed, the cost of the investigation shall be recoverable against the company that committed the breach in a Resident Magistrate's Court as a civil debt due to the Crown, notwithstanding any limitation as to Bmounts recoverable under the Judicature (Resident Magistrates) Act. 48.-(1) In making an investigation under this Part, the Powerto ohsm Commission or the Investigator- lnfrmtatlOn [The incIti6im oilhis page is authorized by L.N. I 1212001 ]

60 NSURANCE
(a) may require the company to produce any of its securities, books, accounts, documents or statistics for inspection and to permit the making of such extracts therefrom as are considered necessary; (b) may examine on oath or affiimation in relation to the company's business, any person who is, or has at any time been, a director, servant or shareholder or an auditor, actuary, officer or agent, of the company, or the holder of a policy issued by the company, or the personal representative of that policyholder or an associated person; and (c) may administer oaths for the purpose of paragraph (b). (2) A person specified in subsection (l)(b) shall produce to the Commission or the Investigator on request, any securities, books, accounts, documents or statistics of the company, including, in the case of an auditor, his working papers (hereinafter referred to as specified information) that are available to him and shall, on request, furnish any information in his possession relating to the company's business. (3) A person so specified who refuses to give information pursuant to a request or knowingly gives any false information in reply to a request made under subsection (2), shall be guilty of an offence and liable on summary conviction before a Resident Magistrate to a fine not exceeding one million dollars or to imprisonment for a term not exceeding one year or to both such fine and imprisonment. Emry on 49.41) If a Resident Magistrate is satisfied on information on oath by the Commission or any person authorized in that behalf by the Commission that there are reasonable grounds for suspecting that there are on any premises any specified information the production of which has been required under
section 48 and which has not been produced in compliance with
that requirement, the Resident Magistrate may act in accordance with subsection (2). pcm1ses

INSUM NCE 61
(2) The Resident Magistrate may issue a warrant authorizing any member of the Constabulary Force, not below the rank of Inspector together with any other persons named in the warrant to- (a) enter and search the premises specified in the information (using such force as is reasonably necessary for the purpose); and (b) seize and remove any securities, books, accounts, documents or statistics appearing to be such specified information as aforesaid, or to take, in relation thereto, any other steps that may appear necessary for preserving them and preventing interference with them. (3) Every warrant issued under subsection (2) shall continue in force until the expiration of the period of one month after the date on which it is issued. (4) Any specified information seized under this section shall be returned to the person kom whose possession it was seized, as soon as practicable and in any case shall not be retained for a period longer than two months or, if within that period crimiil proceedings have been brought in respect ofthe seizure, longer than the conclusion of those proceedings. (5) A constable who executes a warrant issued under this section shall upon the execution of the warrant, prepare a list of the property seized and give a copy thereof to the owner or occupier of the premises who is present at the time of seizure. (6) A person who obstructs any other person in the exercise of a right of entry, search or seizure conferred by virtue of a warrant issued under this section shall be guilty of an offence. %-(I) Upon completion of an investigation under this Part Amon on campletlon of in respect of any company, the Commissiow lnYeEtleaIlwl

63 INSURANCE
(a) shall transmit to the company a summary of the conclusions arrived at as a result of the investigation; and (h) may. without prejudice to any other powers conferred by this Part. issue to the company, directions in writing in accordance with subsection (2). (2) Directions may be issued in respect of any or all classes of insurahce business as the Commission thinks necessary or proper to deal with the situation disclosed in the conclusions referred to in subsection (1) (a) (including, without prejudice to the generality of the foregoing, directions prohibiting or regulating the issue of new policies, the renewal of existing policies or the entering into ofany new contract). (3) No direction issued to a company under this section shall remain in force for more than twelve months, but nothing in this subsection shall be construed as preventing the Commission &om issuing any further directions to the company. Winding Up 51.+ 1) The Court may order the winding up of a company in accordance with the relevant provisions of the Companies Act. iyindw UP. (2) A company may be wound up on a petition of- (a) ten or more policyholders owning policies of an aggregate sum assured that is equivalent to at least twenty per cent of the total sum assured by the company; or (b) the Commission. (3) A petition referred to in subsection (2) shall not be presented except by leave of the Court, and such leave shall not be granted until a prirnafncie case has been established to the satisfaction of the Court and until security for costs has been given for such amount as the Court may think reasonable. I I Ihc ~~~ctc~wn (11 t1w puge is aulhorired by L.N. I12:2W2 ]

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INSURANCE 65
(a) shall order the transferor company to be wound up in conjunction with the transferee company; and (b) may by the same or any subsequent order, appoint the same person to be liquidator for the two companies; and (c) may n&e provision for such other matters as the Court may consider necessary, with a view to the companies being wound up as if they were one company. (3) The commencement of the winding up of the transferee company shall, save as otherwise ordered by the Court, be the commencement of the winding up of the transferor company. (4) In adjusting the rights and liabilities of the members of the several companies between themselves, the Court shall have regard to the constitution of the companies and to the arrangements entered into between the companies, in the same manner as the Court has regard to the rights and liabilities of different classes of contributories in the case of the winding up of a single company, or as near thereto as circumstances admit. (5) Where any company alleged to be a transferor company is not in the process of being wound up at the same time as the transferee company, the Court shall not direct the transferor company to be wound up unless, after hearing all objections (if any) that may be made by or on behalf of the company against its being wound up, the Court is of the opinion that the company is the transferor company as alleged and that the winding up of the company in conjunction with the transferee company is just and equitable. (6) An application may be made in relation to the winding up of any transferor company in conjunction with a transferee company by any creditor of, or person interested in either.

66 INSURANCE
(7) Wher-
(a) an insurance company is a transferee company to one insurance company and a transferor company to some other insurance company; or (b) several insurance companies are each a transferor company to one transferee company, the Court may deal with any number of such companies together or in separate groups, as it thinks most expedient, upon the principles laid down in this section. 55-41) Notwithstanding anything contained in this Act where a company that is registered in a jurisdiction outside Jamaica has a subsidiary in Jamaica and is being wound up in that jurisdiction, the Commission, upon learning of the winding UP- (a) shall investigate whether any policyholders of the subsidiary are likely to suffer loss as a result of the winding up; and (b) may institute proceedws for the protection of those policyholders, and the Court may grant such relief to the policyholders as it thinks fit. hCal watrnent m fwe,gn uindingup (2) Costs awarded to the Commission under subsection (1) may be recovered at the discretion of the Commissioq against the subsidiary or the company that is being wound up. supplemental 56. In any proceedings upon a petition to wind up an to winding up insurance company presented by the Commission under section 52, unless the contrary is proved, evidence that the company was insolvent thirty days before the date of presentation of the petition is evidence that the company continues to be insolvent. 57.-(1) Where an insurance company is being wound up by prorlsloos as ' ~~crtat-nt Of Ilab~hnes yl'ue Of or subject to the supervision of the Court or voluntarilydn policies lllie ~nclurlou of this page 0% wiihurizrd by L N I I EOO? ]

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INSURANCE 75
69.-(1) Subject to this section, an association of Depowtsb underwriters shall not be. registered under this Act to carry on, and shall not cany on, any class of insurance business unless it witer-. has deposited the prescribed amount with the Commission. (2) The Commission may authorize the investment of any deposits made under this section, and the payment of income on cash deposits invested.
PART IV. Registra fion of Insurance Intermediaries
70.-(1) No person shall, in relation to insurance business of Regimtmn of inmrsnce any class specified in section 3 (1) carry on or purport to cany mtamdiaron, business as, or act in the capacity of, an insurance ies. intermediary, unless he is registered under this Part to do so. (2) Any person who contravenes this section shall be guilty of an offence and liable on summary conviction before a Resident Magistrate to a fine not exceeding three million dollars or to imprisonment for a term not exceeding three years or to both such fine and imprisonment. 71.-(1) An application for registration under this Part shall AWII~I~ be made to the Commission in the prescribed form and shall be accompanied by evidence of payment of the prescribed fee and such documents as may be prescribed. (2) The Commission may, upon receipt of the application, request the applicant to &sh such additional information as the Commission may consider relevant to the application. 72.-(1) No person shall be registered under this Part as an G~M~I agent or sales representative of an insurance company unless that company is registered under Part 11 or exempted ffom registration thereunder.

76 INSIJRANCE
(2) No individual shall be registered under this Part as a sales representative of an agent or broker unless the agent or broker by whom he is so employed, being a body corporate, is registered under this Part or, is exempted from registration thereunder. (3) No insurance company and no person carrying on business as an insurer, a sales representative or an agent shall be registered as a broker and no person carrying on business as a oroker shall be registered as a SaleSrepresentative or an agent. (4) No person carrying on business as an adjuster or insurance consultant shall be registered as an agent, a sales representative or a broker. (5) No person, being a body corporate, shall be registered as an agent or a broker unless there exists in respect of that person such minimum capital and bond insurance coverage as the Commission may prescribe. Conditions for registration 73.41) The Commksion shall, if it is satisfied in respect of an applicant that the requirements of subsection (2) are met, register that applicant, either unconditionally or subject to such conditions as it may specify as an insurance intermediary, in respect of such class or classes of insurance business as it shall specify and shall notify the applicant accordingly. (2) The requirements referred to in subsection (1) are as follows- (a) the applicant possesses the prescribed qualifications; (b) the provisions of section 71 have been complied with; (c) section 72 does not apply; (dj the applicant is a fit and proper person to perform his functions under this Act in the capacity specified in the application; 111c1umn of 11181 page 15 iluilioiized by L N I I12001 I

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INSURANCE 81
79.-( 1) Where an agency agreement is terminated, notice in lnfarmationta be supplied to writing in the prescribed form shall forthwith be given to the CO-lVlOn Commission by the agent and the company concerned. registered under this Part is terminated- (2) Where the employment of a sales representative (U) notice in writing in the prescribed form shall forthwith be given to the Commission by the sales representative and his employer; and (b) if the sales representative enters any new employment in that capacity, notice in writing in the prescribed form shall forthwith be given to the Commission by the sales representative and his new employer. (3) The Commission may demand in writing i?om any person registered under this Part or hm his employer or principal, any information relating to any matter in connection with that person's business as an agent or a broker or sales representative, as the ease may be. (4) Any person who contravenes any of the provisions of this section shall be guilty of an offence. 80.-(1) Every individual registered under this Part shall Roduchonof Femficate of produce his certificate of registration for inspection, ifrequested nglSh8llO" to do 90 by the Commission or by any person authorized by the Commission or any person with whom the registered person is deahg in the course of the business for which he is registered. (2) Every person who fails to comply with subsection (1) shall be guilty of an offence. 81.-(1) Eyq bodv coqorakregktered under this Part shall Display and rurrenda of prominently display its registration certificate at its principal regisuation place of business in Jamaica, in a part thereof to which the eatifmte. public has access, and a copy thereof shall be similarly displayed at each of its branches in Jamaica.

82 INSURANCE
(2) A body corporate whose registration is cancelled shall, on receipt of the notice of such cancellation, forthwith surrender the registration certificate and every copy thereof to the Commission. (3) Every person who, without lawful excuse- (a) fails to comply with subsection (1) or (2); or (b) displays a registration certificate or any copy thereof which is no longer valid, shall be guilty of an offence and liable on summary conviction in a Resident Magistrate's Court- (c) in the case of an offence specified in paragraph (a), to a fine not exceeding five hundred thousand dollars; or (6) in the case of an offence specified in paragraph (b), to a fine not exceeding three million dollars. Miscellaneous Provisions relating to Insurance Intermediaries a.-( 1) An agent, a broker or sales representative shall, for the purpose of receiving any premium for a contract of insurance, be deemed to be the insurer's agent and, notwithstanding any conditions or stipulations to the contrary, the registered insurer shall be deemed to have received any premium received by the agent, broker or sales representative. (2) An insurer on whose behalf a broker, agent or sales representative has receive a premium or part thereoc shall accept liability arising under the policy, notwithstanding that the insurer has not received the premium ~m~d~lcnt 83.-(1) Any agent, broker or sales representative who tI0"b re-n8- knowingly procures by kaudulent representation, payment or the obligation for payment of any premium on an insurance policy shall be guilty of an offence. Agents. etc [The inelusion of ibis page is nothonzsd by L.N. 11uZ002 I

INSURANCE 83
(2) Any agent, broker or sales representative who causes an insured person to discontinue any policy of insurance without being satisfied on reasonable grounds that such discontinuance is for the benefit of the insured person, shall be guilty of an offence.
84. An agent, a broker or sales representative is personally ~lahrifor
"dlwfvl liable to the insured person in respect of all contracts of mwcls insurance unlawfully made by or through him directly with an insurer who is not registered to carry on insurance business in Jamaica to the same extent as if that agent, broker or sales representative were the insurer. 85.41) An insurer or an officer, employee or agent thereof, :utyfiy or a broker or sales representative shall not directly or indirectly nrcdpemn pay or allow, or agree to pay or allow, compensation or anything faflaclwor aegoiiatm~ of value to any person for placing or negotiating insurance on ,,-cc lives, property or interests in Jamaica, or negotiating the continuance or renewal thereof, or for attempting so to do, if at the date thereof, such person is not registered under this Act. (2) A person who knowingly contravenes subsection (1) shall be guilty of an offence.
86. The rate of premium chargeable under a policy shall be Rcbahng
the amount agreed between the proposer and the inSurer or an officer, employee or agent thereof or a broker or sales representative, at the time of the making of the insurance contract, and any rate to the contrary stated in the policy shall be ofno effect.
87. Nothg in sections 85 and 86 shall be cons d as- kmulkle
(U) affecting any payment by way of dividend, bonus, elrploym profit or savings that is provided for by the policy; daricd

84 NSURANCE
(6) preventing an insurer compensating a bona jde salaried employee of its head or branch office or a spouse or child of that employee, in respect of insurance issued by that insurer upon the life or property of the employee; or (c) requirii that the employee be registered as an agent or sales representative under this Part to effect such insurance. ~eturnsby 88. Every insurer shall make an annual return to the Commission in such form and at such time as the Commission may require, showinginsurers. (0) all persons, partnerships and companies duly authorized as its agents, brokers or sales representatives in Jamaica; and (b) persons, partnerships or companies to whom it has, within such period as the form or return requires, paid or allowed or agreed to pay or allow, directly or indirectly, compensation for placing or negotiating insurance on lives, property or interests in Jamaica, or negotiating the continuance or renewal thereof, or for attempting to do so. Refurnsb 89.--(1) Every broker or corporate agent registered in accordance with this Part shall keep in Jamaica and shall make reg,stmd agems available to the Commission on requestbmkers and (a) a record of all local policies issued by the broker or agent on behalf of any insurer; (b) a record'of the aggregate amount of the premiums received on such policies; and (c) if the broker or agent is a company, a cop the audited financial statements. llllc mcl~on of 11111 PIFS is atitlienred by L N I12nO02 I

INSURANCE 85
(2) Every broker or corporate agent shall, whenever required by the Commission, submit returns to the Commission containing such information as may be prescribed, to enable it to determine the financial position of such broker or agent and to take appropriate action where necessary.
PART V. Long Term Insurance Business
Issue of Policies
90.+1) A company shall not issue any policy unless it has Ratcrof premium, etc. been approved by the Commission. (2) The Commission may at any time require the company to obtain, and to fUrnish it with, a report by an actuary as to the suitability of the rate of premium chargeable under any class of policy issued by the company and, if the actuary considers that the rate is not suitable, a report as to the rate of premium which the actuary considers suitable in respect of that class of policy.
91. Subject to section 93, where a company issues a life NO~IC~
regarding insurance policy that provides that proof of age of the person proof of age whose life is insured is a condition precedent to the payment of the sum insured, the company shall, unless the age of the person whose life is insured has already been admitted by it, issue on or with the policy, a printed notice stating that proof of age of the person whose life is insured may be required before the payment of the sum insured. 92.+1) Where a company declines to accept the proof of where age tendered in respect of a policy, whether issued before or comploy after the 21 st December, 2001, the policyholder may apply to a him- to Judge in Chambers, by summons for an order directing the accempoof company to accept the proof tendered.

86 INSURANCE
(2) The Judge in Chambers may, upon an application made to him under subsection (I), make such order in relation to the application as he thinks just. (3) Every order under this section shall be binding on the company. Mis-statcrnmt 93.41) Subject to the provisions of subsection (2), a life insurance policy is not avoided by reason only of a mis- ofage, and avoidance of statement of the age of the person whose life is insured, and in a policy. case of such mis-statementmlb (U) the moneys provided by the policy shall be increased or decreased to the amount that would have been provided for the same premium at the true age; and (b) where the true age as shown by the proof is different than that on which the policy is based, the company may vary the sum insured by, and the bonuses (if any) allotred to, the policy so that as varied, they bear the same proportion to the sum insured by, and the bonuses (if any) allotted to, the policy before variation as the amount of the premiums that have become payable under the policy as issued bears to the amount of the premiums that would have become payable if the policy had been bsed on the true age; (2) A policy issued after the appointed day shall not be avoided by reason only of any incorrect statement (other than a statement as to the age of the person whose life is insured) made in any proposal or other document on the faith of which the policy was issued or reinstated by the company, unless the statement- (U) was Wulently untrue; or

INSURANCE 87
(6) being a statement that is material in relation to the risk of the company under the policy, was made within the period of three years immediately preceding the date on which the policy is sought to be avoided or the date of death of the insured person, whichever is the earlier. 94.-(1) Nothing in any term or condition of a life insurance Provlslons relating 10 mtc ofhcahh policy issued after the appointed day or in this Act shall operate to exempt an insurance company fiom liability under the policy ofinsurd or to reduce the liability of the company under the policy on the ground of any matter relating to the state of health of the person whose life is insured, other than the ground specified in subsection (2). (2) The ground referred to in subsection (1) is that the proposer when making the proposal or thereafier and before the making of the contract- (a) made an untrue statement of his knowledge and belief as regards the matter; or (6) failed to disclose to the company something known by him as regards that matter. 95.--(1) A minor who has attained the age of sixteen years Minors may- (a) effect a policy upon his own life or upon another life in which he has an insurable interest; or (6) take an assignment of a policy, and is as competent in all respects to have and exercise the powers and privileges of a policyholder in relation to a policy of which he is the holder ris if he were of full age. (2) A minor who has attained the age of sixteen years may assign or mortgage a policy with the prior consent in writing of his parent or guardian.

88 INSURANCE
Insurable mterest5
96.-(1) For the purposes of this Act, but without restricting the meaning of the expression "insurable interest", the following persons shall be deemed to have an insurable interest in the life of moth >r person as follow- (a) a parent or guardian of a child who is under eighteen (b) a husband, in the life of his wife; (c) a wife, in the life of her husband; (6, a grandparent of a child who is under eighteen years of age, in the life of his grandchild; (e) any person, in the life of another upon whom he is wholly or partly dependent for support or education; Ifl a company or other person, in the life of an officer or employee thereof; and (g) any person who has a pecuniary interest in the duration of the life of another person, in the life of that person. (2) This section applies to policies whether effected before or after the appointed day. years of age, in the life of the child; Designation of Beneficiary or Legal Personal Representative DeslFtlan ofbeneficoarm generally 97.-(1) For the purpose of this section and sections 98 to "beneficiary" means a person, other than the insured person or his legal personal representative (except where the legal personal representative is also a beneficiary) to whom or for whose benefa insurance money ismadepayable in a contract or by a declaration; "declaration" means an instrument signed by the insured person and witnessed by a Justice of the Peace or Notary Public105- > [TIX III~IU~loli ot clvs mge 1s auibnirzed bv L N 1 I1,2002 I

INSURANCE 89
(a) with respect to which an endorsement is made (h) that identifies the contract of insurance; or (c) that describes the insurance or insurance in which the insured person designates, alters or revokes the designation of his legal personal representative, trustee or a beneficiary as one to whom or for whose benefit insurance money is payable; on the insurance policy; or money or part thereof, “insured person” means- (a) the person who makes a contract of insurance with an insurer; or (b) in relation to a group policy, an employee on whose behalf an employer effects a group policy; “life insured” means, except in relation to a group policy, a person on whose life an insurance policy has been made. (2) An insured person may designate his legal personal representative, trustee or beneficiary as the person to receive the proceeds of the insurance policy- (a) at the time of making a contract of insurance; or (b) by declaration at any time subsequent to the making of the contract. (3) A designation made under subsection (2)- (a) shall be in a form and effected in the manner specified in the contract of insurance; (b) shall he deposited with the insurer at its principal office in Jamaica with the lifetime of the insured person and of the life insured; [Tlae ~~xlnum d 11#1\ p.tp I< ~iiclioriz~d h) I P* I 121200? I

90 IIKWRANCE
(c) shall. subject to section 98 (2) (b), not affect the right of an insured person to assign, exercise rights under or in respect of, surrender or otherwise deal with, the contract of insurance as provided therein or as may be agreed upon with the insurer; and (d) may, subject to section 98 (1) and (2) (a), be altered or revoked from time to time and such alteration or revocation shall be made by declaration which shall be deposited with the insurer at its principal office in Jamaica within the lifetime of the insured person and of the life insured. (4) A designation made in favour of "the heirs", "next of kin" or "estate" of the insured person or the use of words of like import in a designation, shall be deemed to be a designation of the legal personal representative of the insured person. (5) For the avoidance of doubt, where a designation is made in favour of a legal personal representative or is deemed under subsection (4) to be so made, that legal personal representative shall receive the proceeds of the insurance policy on behalf of the beneficiaries of the insured person's estate. (6) An insurer shall, in a contract of insurance, specify the requirements for the making of a valid deposit under subsection (3) (6) and (4. Irrevocable designetion of knefisiarxs 98.-(1) An insured person may designate irrevocably a (a) at the time of the making of a contract of insurance; or (b) by declaration at any time subsequent to the making of the contract. named beneficiary- (2) Where an insured person designates a beneficiary irrevocably, then so long as the designated beneficiary is alive-

NSURANCE 91
(a) subject to section 99, the insured person may not alter or revoke the designation without the beneficiary's consent; (b) the insured person may not assign, exercise rights under or in respect of, encash any units accruing to or surrender or otherwise deal with the insurance policy without the beneficiary's consent; (c) the insured person or his creditors shall have no control over the proceeds of the insurance policy; and (d) the proceeds of the policy shall not form part of the insured person's estate. (3) The provisions of section 97(3) (a) and (b) shall apply to a designation made under subsection (1) of this section.
99. Where under section 98(1), in respect of a life policy, a mmmnor
named beneficiary is the insured person's spouse, then, if during ~~~~nof the subsistence of the insurance policy, the named beneficiary anccrratlon ceases to be the insured person's spouse, otherwise than by death- (a) the insured person may alter or revoke the irrevocable designation without the consent of the named beneficiary; and (b) such alteration or revocation shall be made by declaration which shall be deposited with the insurer at its principal ofice in Jamaica within the lifetime of the insured person and of the life insured. lOO.+l) Notwithstanding the designation of a beneficiary Insured irrevocably under section 98(1), an insured person is entitled, E::dlo while living, to the dividends or bonuses declared on a contract dividends of insurance, unless the contract otherwise provides. (2) Unless the contract of insurance otherwise directs, an insurer may apply the dividends and bonuses declared on a contract of insurance to that contract for the purpose of keeping the contract in force.

92 INSURANCE ctrcumrrincc~ 101. Where the proceeds of an insurance policy are payable to a beneficiary. such proceeds shall not form part of the insured in which insurance prucccds not pn of Insured person's Estate, etc. Pre5"mplio" "flrurt negalivcd. hppaintmenl "fmnEC. Bencficlar) predrcrasing insured person. Right to enfilrcr payment of praccedr person's estate- and shall not, as &om the date that the proceeds of the insurance policy become payable, be subject to the claim of any of the insured person's creditors.
102. For the avoidance of doubt, it is hereby declared that on
a construction of a cotrrract of insurance there shall be no presumption of a trust except in cases where the insured person expressly provided for the creation of a trust. 103.41) An insured person may, in a contract of insurance or by declaration, appoint a trustee for a beneficiary and may alter or revoke that appointment by declaration. (2) A payment made by an insurer to a trustee for a beneficiary discharges the insurer to the extent of the payment.
104. Where a beneficiary predeceases the insured person and
no disposition of the share of the deceased beneficiary in the insurance money is provided in the contract of insurance or by a declaration, the deceased beneficiary's share of the policy proceeds shall be payable as follow+ (a) to the surviving beneficiary; (6) if there is more than one surviving beneficiary, to the surviving beneficiaries in equal shares; or (c) if there is no surviving beneficiary, to the insured person or his legal personal representative. 105.41) A beneficiary may, on the death of a life insured, enforce for his own benefit, and a trustee appointed pursuant to
section 103 may enforce as trustee, the payment of the proceeds
of an insurance policy made payable to him in tkt, contract of insurance or by a declaration and in accordance with the provisions thereof. (2) Notwithstanding subsection (I), the insurer concerned may set up any defence that he could have set up against the insured person or his legal personal representative.

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INSURANCE 95
(U) the expiration of the tenth day kom the date on which he receives a notice mentioned in section 110;or (h) ten days fkom the expiration of the day on which he first became aware that the contract was entered into, whichever is the later. (2) Subsection (1) does not apply where an insurer, having failed to serve a notice under section 110(1), within the time specified therein, does so before cancellation of the contract. (3) A notice of cancellation need not be in the form attached to the notice required to be served under section 1 lO(1) but shall indicate a desire to withdraw fiom the contract. (4) Service of a notice of cancellation operates- (a) as a rescission of a contract, if it is served after the contract has been entered into; and (b) as a withdrawal of offer in any other case (5) Where a contract has been rescinded or an offer has been withdrawn as a result of the service of a notice of cancellation, any moneys paid by way of premium or otherwise, whether to the insurer or to any person acting on behalf of the insurer for the purpose of receiving the moneys, are recoverable kom the insurer as a debt in civil proceedings. by reason only of the non-payment of any premium (in this 112.+1) An ordinary long term policy shall not be forfeited ansection referred to as the overdue premium) if- pollclCS I" aMm cases afmn- (U) not less than three years' premiums have been paid pymnnsof on the policy; and pemmms.

96 INSURANCE
(b) the surrender value of the policy (calculated as at the day immediately preceding that on which the overdue premium falls due) exceeds the sum of the amount of the debts owing to the company under, or secured by, the policy and the amount of the overdue premium. (2) The company may, until payment of the overdue premium, charge interest on it, on terms not less favourable to the policyholder than such terms (ifany) as may be prescribed. (3) The overdue premium and any interest charged on it under this section and unpaid shall, for the purposes of this Act, be deemed to be a debt owing to the company under the policy. (4) Without prejudice to the generality of the foregoing provisions of this section, an ordinary long term policy on which not less than three years' premiums have been paid shall not be forfeited by reason only of the non-payment of a premium unless, on or afier the day on which the premium fell due- (U) the company liable under the policy serves a notice in the prescribed manner on the policyholder stating- (i) the amount due or payable to the company at the date of the notice in respect of the policy; that the policy will be forfeited at the end of twenty-eight days after the date of the notice if a sufficient sum is not paid to the company in the meantime; and (b) a period of at least thirty days has passed after the (5) For the purposes of subsection (4), a notice posted to the last known address of the policyholder shall be deemed to be a notice on the policyholder. (ii) service of the notice. lTlie 111cIu~i0n of llm page I< alhnn,ed b? L N I I !/ZIJO! I

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INSURANCE 101
(2) Ifjudgment in respect of any liability to which this
section applies is obtained against any person insured by the
policy, then the insurer shall, subject to the provisions of subsections (3) and (4) and the terms and conditions of the policy, pay to the person entitled to the benefit of the judgment (hereinafter called the plaintiff) any sum payable thereunder in respect of the liability, without any rekrence to the owner, occupier or independent contractor, as the case may be. (3) No sum is payable by an insurer under this section, unless before or within twenty-one days of the commencement of the proceedings in which the judgment is given, the plaintiff had given notice to the insurer of the bringing of the proceedings. (4) Any term or condition of a policy which limits the right of payment conferred on the plaintiff under this section is of no effect.
PART VIII. Miscellaneous
122. The Commission may establish a scheme or may require lnwrance
registered insurers to contribute to a scheme approved by the ~~h'Or) Commission, for the collection, allocation and application, in accordance with regulations made under this Act, of monetary contributions fkom registered insurers and registered insurance intermediaries, for the purpose of covering prescribed risks, if the Minister, on the recommendation of the Commission, determines that- (a) it is in the public interest; and (b) a particular insurance cover is not available. 123.-(1) Every registered insurer that authorizes one or Inrum'sdury more agents to act on its behalf shall establish and maintain a system that-

I02 Ih'SURAh'CE
(a) is reasonably designed to ensure that each agent complies with the requirements of this Act and any regulations made hereunder; (b) provides for the screening of each agent for suitability to carry on business as an agent. (2) An insurer shall report to the Commission if it has reasonable grounds to believe that an agent who acts on its behalf is not suitable to carry on business as an agent. ~eartm tobe 124. A company shall keep at its principal office in kcpr Jamaica a register of policies in accordance with regulations made under this Act. ~splez~t 125.--(1) Where in relation to lie insurance policy- of Ion llfc plicy. (a) a policyholder; or (b) a person claiming the benefit pursuant to the advises the registered insurer that the policy (in this section referred to as the original policy) is lost or has been stolen or destroyed, the registered insurer shall, subject to this section, and on the production of such reasonable evidence as to the loss, theft or destruction of the original policy, issue a replacement policy to the person referred to in paragraph (a) or (b). (2) The registered insurer shall not issue a replacement policy unless and until it has received sufficient proof of the validity of the person's claim in respect of the policy. (3) No replacement policy may be issued unless the applicant has given to the registered insurer an undertakii to surrender the original policy to the registered insurer if it is subsequently found. provisions of a policy, (4) A replacement policy shall- (a) be a copy, as nearly as can be ascertained, of the original policy in substitution for which it is being issued;

INSURANCE 103
(b) contain copies of every endorsement on the original policy issued by the registered insurer; and (c) include the reason for the issue of the replacement policy. (5) The reasonably estimated cost of the issue of a replacement policy shall be paid by the applicant at the time of application therefor. (6) The reason for the issue of the replacement policy shall be recorded by the registered insurer in the appropriate register of policies. (7) A replacement policy is valid and available for all purposes for which the original policy would have been valid and available and, after the issue of the replacement policy, the original policy shall become void. (8) Where a registered insurer hils to issue a replacement policy within three months after receipt of an application in writing kom a person entitled pursuant to subsection (1) so to apply, the Commission may, upon such evidence as to the loss, theft or destruction of the original policy as the Commission deems sufficient, order the registered insurer within such time as the Commission thinks fit, to issue a replacement policy. avoided solely on the ground that the person whose life is wtal insured died by his own hand or act, sane or insane, or suffered On capital punishment, unless the risk of such happening is specifically excluded. appointed day that limits, to an amount less than the sum wvold insured, the amount payable under the policy in the event of the death of the life insured occurring as a direct result of war, is of no effect.
128. Failure on the part of a company to comply with any :E;;?'
provision of this Act shall not in any way invalidate any policy m rn~,datc Effect of 126. A policy, other than a life insurance policy, shall not be su,c,dcor punishment
127. Any term or condition of a policy issued after the ~~~~~~nfo,
issued by the company. pllcres

104 Ih'SUR.4 NCE
1oca\po\iuies lilws.
129.-(1) Every contract of insurance which is evidenced by a local policy shall be governed by the laws of Jamaica, notwithstanding any agreement to the contrary. poreriled b! JsmJiU" (2) Subsection (I) does not apply to marine insurance contracts. Payment or SpClfiDd currency
130. Where any policy is issued after the 2 1 st December 200 1
in respect of which the premiums are payable or paid in Jamaica such premiums shall be payable or paid, as the case may be, and any sums payable or paid upon the maturity of such policy shall be payable or paid, as the case may be, in the currency stated in the policy. rnone! E in Pouerto~y Court. 131.+1) Subject to Rules of Court, any insurance company carrying on life insurance business may, after giving notice in writing to the Commission, pay into Court any moneys payable by the company under a contract of life insurance in respect of which, in the opinion of the directors, no sufficient discharge can otherwise be obtained. money into (2) The receipt or certificate of the Registrar or Deputy Registrar of the Court shall be a sufficient discharge to the company for the moneys so paid into Court and such moneys shall, subject to Rules of Court and any regulations made under this Act, be dealt with according to the orders of the Court. PayIllCllt without probate or adminimat incertain CBYS. 132.+1) An insurer by whom any moneys are payable under one or more policies to the personal representative of a ion deceased person may, without requiring the production of the grant of probate or letters of administration, pay out of such moneys any amount (including any bonuses added to the policy or policies) not exceeding the prescribed amount to any person who satisfies the insurer that he is entitled to obtain probate of the will of the deceased person or to take out letters of administration of his estate.

INSURANCE 105
(2) All persons to whom any moneys are paid under subsection (I) shall apply those moneys in due course of administration and, if the insurer thinks fit, it may require those persons to give sufficient security by bond or otherwise that the moneys so paid will be so applied. (3) Nothing in this section shall be construed as requiring a company to see to the application of any moneys paid under this section. 133.-(1) A court, in awarding judgment to a plaintiff in smcfured respect of a claim, the liability for which is covered by a rcn'emen's contract of insurance may, with the consent of both parties, instead of a lump sum, order specified payments with interest to be made at such intervals and over such period not exceeding three years, as the Court may specify. (2) Nothing in subsection (1) shall be construed as preventing an insurer and a person who has made a claim against an insurer kom entering into a settlement agreement for the payment by the insurer of specified payments at specified intervals over a specific period in satisfaction of the claim that has been made. (3) Amounts payable by the insured or the beneficiary in respect of payments made or, as the case may be, received pursuant to this section shall be exempt ftom income tax. insurance company or in respect of any such company proposed ~Of,Oe to be formed after the appointed day, a prospectus, notice, offering for subscription any shares in the company or proposed company, unless the prospectus, notice, circular, advertisement or other invitation is fmst submitted to and approved by the (2) A person acting as promoter of a proposed company referred to in subsection (1) shall not accept any ofice of profit in the company or any payment or pecuniary advantage other than as provided in the prospmtus, notice, circular, advertisement or other invitation. 134.-(1) A person shall not publish in respect of any ~ppovai required for shares for circular, advertisement or other invitation offering to the public subscriptton Commission inlr Inc~usIoI1 ortillr p,ge 15 ~I~II,~~~~~~ by I N I I 212~2 1

106 INSURANCE
Publica-ationnf 135. Where any notice, advertisement or other Official publication of a company contains a statement of the amount of authoriz.ed rubwibed and pid-up the authorized capital of the company, the publication shall also contain a statement of the amount of the capital which has been capital subscribed and the amount paid up. Inspectiun of documents.
136. Any person may, upon payment of such fee as may be
prescribed, inspect at the office of the Commission any of the records specified under paragraph (a), (b) or (c) of section 29 which has been furnished to the Commission and make a copy of, or extract from, the document. hcumentsto 137. Every document purporting to be certified by the evidence Commission to be a document lodged with it under this Act, and every document purporting to be similarly certified to be a copy of such a document, shall be deemed to be such a document or copy, as the case may be, and is admissible in evidence as if it were the original document, unless some variation between it and the original document is proved.
138. Any document required by or under this Act to be
signed by a director or the principal officer of a company may be signed by any other officer of the company if prior to the exercise of that function that officer is thereto authorized by the board of directors and the board of directors has notified the Commission in writing of the authorization
139. Where under this Act, a document is required to be
printed, the Commission may, in its discretion, permit it to be reproduced by such means as the Commission may approve. 140.41) Any person aggrieved by any action, decision, ruling, direction, order or proposal of the Commission in any case may, in writing, appeal to the Appeal Tribunal within thirty days of being notified of that action, decision, ruling, direction, order or proposal be admined in uthorito ~cumem5. sign kinringof documcnn. Appeal. (2) A person referred to in subsection (1) shall state the grounds of appeal and send a copy thereof to the Commission.

INSURANCE 107
(3) The Tribunal shall give its decision in writing and may confirm, vary, cancel or reverse the Commission's action, decision, ruling, direction, order, proposal or any part thereof, as the case may be. (4) The Appeal Tribunal shall forward a copy of its decision to the Commission and a copy to the appellant, together with a written statement of the reasons for its decision. 141.31) Where Guening of re$lmtlon (a) an insurance company, an association of aC underwriters or other person is registered under this Act; (b) an application for registration under this Act of an insurance company, an association of underwriters or any other person is refused; or (c) the registration of an insurance company, association of undenniters or any other person is suspended or cancelled, the Commission shall cause notice of the registration, refusal, suspension or cancellation to be published at least ome in the Gazette and in a newspaper in nationwide circulation published in Jamaica. (2) The Commission shall hm time to time cause to be published in the Gazette and in a newspaper in nationwide circulation published in Jamaica, up-to-date lists of companies, associations of underwriters and persons registered under this Act.
142. Subject to this section, after twelve months !Torn the RCSWIC~O~O~
(a) no person carrying on any class of insurance tms business specified in section 3 shall have or use, or continue tohave or use, the word "Insurance" or "Assurance", or any derivative thereof, in the name under which that person is carrying on business, unlessthatpersonisregistered under this Act or exempted hm registration hereunder; UP of appointed day- msursnn pile inclusion nf 1hiP pqr is suthonaad by L.N. I IZRW? ]

I08 INSURANCE
(6) no person carrying on any such class of insurance business shall have or use, or continue to have or use, in the name under which that person is carrying on business any words indicating that the person is an insurer unless that person is registered under
Part I1 or exempted hm registration thereunder;
(c) no person registered under Part I1 shall, without the written consent of the Commission, carry on any insurance business unless that person has and uses as
part of the business name of that person the word
"Insurance" or "Assurance" or a derivative thereof; (4 no person registered under Part IV as a broker shall, without the written consent of the Commission, cany on business as such unless that person has and uses as
part of the business name of that person the words
"Insurance Broker" or "Assumme Broker"; and (e) no person registered under Part IV as an agent (and not also registered under Part 11) shall, without the written consent of the Commission, carry on business as such unless that person has and uses as
part of the business MIX of that person the words
"Insurance Agent" or "Assumme Agent".
Eaenrlmaf 143. Where any provision of this Act requires anything to be done within a specifid period of time and no provision is made for the extension thereof, that period may in any particular case be extended by the Commission time limtis Refllahon~ 144.+1) The Commission may, with the approval of the Minister, make regulations providing for such matters as may be necessary or expedient for the purposes of this Act and without prejudice to the generality of the foregoing the regulations may make provision in relation to all or any of the following-

[The inclusion of this page is authorized by L.N. 143A/2021]

The Insurance Act

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