(1) A licensed life insurer shall not issue a life policy unless the premium rate chargeable under that description of policy has been certified by its appointed actuary as suitable.
Penalty: One million ringgit.
(2) A licensed life insurer shall lodge with the Bank particulars of a new life policy product together with its certification by the appointed actuary, the prospectus or other sales literature and specimen policy relating to that product and any other supporting information as the Bank may specify, at least thirty days before offering the new life policy product to the public.
Penalty: One million ringgit.
(3) Where it appears to the Bank that a life policy product is not appropriate for any reason, the Bank, before expiry of the thirty days referred to in subsection (2)-
(a) may prohibit the licensed life insurer from offering the life policy to the public; or
(b) may require the licensed life insurer to make such changes to the life policy product as the Bank may specify before offering it to the public.
Penalty: One million ringgit. Default penalty.
(4) The certificate of the appointed actuary shall be in such form as the Bank may specify.
(5) The appointed actuary shall not certify premium rates for a life policy product unless he is satisfied that it is suitable and in accordance with sound insurance principles consistent with the experience of the licensed life insurer and complies with such code of good practice as the Bank may specify with regard to the actuarial basis for determination of premium rates.
(6) The appointed actuary in certifying premium rates for a life policy product shall have regard to the maximum rate of commission or discount proposed to be paid or allowed to a person for that description of policy.
(7) Where premium rates are certified by the appointed actuary for a life policy product, the licensed life insurer, except with the approval of the Bank, shall not pay or allow in respect of a policy of that description, commission at a rate greater than the maximum rate of commission.