Section 23. Actuarial investigations and reports as to life business. (INSURANCE ACT, 1963

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

PART III - RETURNS, INVESTIGATIONS, WINDING UP AND TRANSFERS OF BUSINESS
Returns

Section 23. Actuarial investigations and reports as to life business.

(1) Subject to the provisions of this section, an insurer registered under this Act in respect of life business shall from time to time have an investigation made by a qualified actuary into the financial condition of its life business and a report thereon made to it by the actuary, and shall lodge with the Commissioner (together with any prescribed fee) such abstract of the actuary's report and certificate relating thereto and such statements as to that business as are required by Part II of the Fourth Schedule; and Part III of that Schedule, so far as relevant to those documents, shall have effect with respect to their form and contents and to the time and manner in which they are to be lodged.

(2) Investigations under sub-section (1) shall be made as at the end of such accounting periods as the insurer may determine, subject to the following rules:

(a)

the first investigation Shall be made-

(i) in the case of an existing insurer as at the end of the accounting period preceding the initial accounting period; and

(ii) in other cases as at the end of an accounting period not later than the third accounting period in which the insurer is registered in respect of life business or such earlier accounting period as the Commissioner may require; and

(b)

an investigation made as at the end of one accounting period shall be foIlowed by another made as at the end of the third or an earlier accounting period thereafter, but the Commissioner may in the case of any particular company direct that so long as the direction remains in force investigations shall be made at such interval as may be specified in the direction.

(3) In the case of a company incorporated or established outside the Federation the investigation required by subsection (1) need not extend beyond the business for which an insurance fund is maintained under this Act; but if such a company is required by the law relating to insurance in the country in which it is incorporate or established to furnish the authority having the administration of that law with returns as to actuarial investigations of its life business, the documents to be lodged with the Commissioner under this section shall be accompanied by certified copies of any such returns made since the company was first registered under this Act in respect of life business (or, in the case of an existing insurer, since the commencement of this Act), other than returns of which copies have previously been furnished under this sub-section.

References in this Act to documents lodged with the Commissioner shall not be taken to include documents required by this sub-section to accompany documents so lodged.

(4) Where an insurer registered under this Act in respect of life business-

(a)

has an actuarial investigation made into the life business for which it maintains an insurance fund under this Act ( whether with or without any other life business

carried on by it); and

(b)

the investigation is not made to comply with subsection (1) or with any provision as to returns in the law relating to insurance in a country outside the Federation, but the results of the investigation are made public;

then the insurer shall, as to the lodging of documents with the Commissioner, comply with the requirements of subsection (1) as in the case of an investigation under that sub-section.

*(5) An existing insurer Shall on establishing under this Act its insurance fund for life business, lodge with the Commissioner such summary and valuation of policies belonging to that business and certificate relating thereto as are required by Part II of the Fourth Schedule; and Part III of that Schedule, so far as relevant to those documents, shall have effect with respect to their form and contents and to the time and manner in which they are to be lodged.

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* In its application to Sabah and Sarawak, sub-section (5) of section 23 of this Act, shall have effect as if for the words "An existing insurer shall, on establishing under this Act its insurance fund for life business" there were substituted the words "A pre-registered insurer shall, on adding any assets to its insurance fund as provided in sub-section (9) of section 10 in respect of life policies included in the register in accordance with the provisions of section 9".-See Modification of Laws (insurance) (Extension) Order, 1964, F.L.N. 470/64.