Section 4. Registration by Commissioner. (INSURANCE ACT, 1963

(P.M. ACT 1 OF 1963)
INSURANCE ACT, 1963

PART II - CONDUCT OF INSURANCE BUSINESS
Registration of Federation insurers

Section 4. Registration by Commissioner.

(1) The Commissioner shall be responsible for the registration of Federation insurers and, subject to the provisions of this section, shall on the application of any company or society qualified under sub-section (1) of section 3 register the applicant in respect of life business or general business or both.

(2) An application to be registered in respect of life business or general business may be made by an applicant already registered in respect of the other.

(3) The Commissioner shll not be required to consider an application unless it is made in writing signed on behalf of the insurer by one of its directors and by its principal officer in the Federation, and he has been furnished with such documents and information as may be prescribed or as he may in the particular case require.

(4) Subject to sub-section (7), the Commissioner shall refuse to register an applicant if, after appropriate inquiry, he is not satisfied-

(a)

that the applicant has a surplus of assets over liabilities of not less than one million dollars and, if the applicant is carrying on or will (if the application is granted) be registered in respect of both classes of insurance business, not less than one and a half million dollars; and

(b)

that the name of the applicant is not by its resemblance to the name; of any other body likely to deceive.

For the purposes of paragraph (a), "assets" does not include goodwill, and "liabilities" includes contingent and prospective liabilities but not liabilities in respect of share capital.

(5) Subject to sub-section (7), the Commissioner shall also refuse to register an applicant if, after appropriate inquiry, he is not satisfied that the business in respect of which the application is made will be conducted in accordance with sound insurance principles:

Provided that if the application is made in respect of both classes of insurance business, and the Commissioner is satisfied as respects one of them, he shall under this sub-section refuse only as respects the other.

(5A) Where the Commissioner is satisfied that an applicant has complied with all the requirements of this section he shall refer the application to the Minister [Act 89/65]; and if the Minister so directs, the Commissioner shall not register the applicant who shall be notified of the direction.

(6) The Commissioner shall not register an applicant in respect of insurance business of either class until the Accountant-General certifies to him that the applicant has made in respect of that business the deposit required by this Act.

(7) Where an application to be registered in respect of either class of business is made by an existing insurer, the application shall not be refused under sub-section (4) or (5) if-

(a)

the application is made before the end of three months from the comrhencement of this Act; and

(b)

the deposit required by this Act in respect of that business is made before the end of those three months.

(8) The Commissioner shall cause notice of any registration of a Federation insurer to be published in the Gazette.