PART V - DIRECTION AND CONTROL OF DEFAULTING INSURER
Section 58. Notification of non-compliance with margin of solvency.
(1) Where the available assets of a licensed insurer are just adequate or less than adequate to meet its margin of solvency, its board of directors, within ninety days of becoming aware of the situation-
(a) shall notify the Bank of the fact; and
(b) shall furnish a business plan to improve the financial condition.
Penalty: Imprisonment for three years or three million ringgit or both. Default penalty.
(2) The Bank, after considering the business plan, may direct the licensed insurer in writing to improve or restore its margin of solvency in such manner as the Bank may determine.
(3) Where a licensed insurer has no available assets to meet its margin of solvency, the Bank may give notice in writing of not less than thirty days to the licensed insurer to submit a plan to restore its margin of solvency.
(4) The Bank may petition for the winding up of a licensed insurer if it-
(a) fails to submit a plan to restore its margin of solvency; or
(b) submits a plan which is unacceptable to the Bank.