Revised Laws of Saint Lucia (2021)

Schedule 6

(Section 2)

MEMBER STATES

CHAPTER 12.08
INSURANCE ACT

SUBSIDIARY LEGISLATION

List of Subsidiary Legislation

Registration of Insurance Agents, Insurance Brokers and Insurance Salesmen Regulations – Section 167

(Statutory Instrument 77/1995)

Statutory Instrument 77/1995 .. in force 9 December 1995

ARRANGEMENT OF REGULATIONS

REGISTRATION OF INSURANCE AGENTS, INSURANCE BROKERS AND INSURANCE SALESMEN REGULATIONS – SECTION 167

Commencement [9 December 1995]

1.   Citation

These Regulations may be cited as the Registration of Insurance Agents, Insurance Brokers and Insurance Salesmen Regulations

2.   Interpretation

In these Regulations—

“Act” means the Insurance Act;

“approved educational institution” means the institution or organisation appointed by the Minister to supervise and administer the examinations required under of Part 5 of the Act;

“Board” means the persons appointed by the Minister to supervise and administer the examinations required under Part 5 of the Act;

“Minister” means the Minister responsible for finance.

3.   Application for Registration

1.  

   (1)   Every application for registration or for reinstatement of registration under Part 5 of the Act shall be made on a form approved by the Registrar and shall be accompanied by the receipt obtained from the Accountant General upon payment of the fee prescribed in Schedule 3 to the Act.

1.  

   (2)   Registration and licence fees paid under Schedule 3 to the Act shall be non-refundable.

4.   Insurance Agents and Insurance Brokers

1.  

   (1)   An application for registration as an insurance agent or as an insurance broker, where the applicant is a firm or company, shall be accompanied by—

   1.  

      (a)     the audited balance sheet, profit and loss account and revenue account of the applicant for the financial year immediately preceding the date of application;

   1.  

      (b)     copies of the articles and memorandum of association or other rules constituting the company or firm, together with the certificate of registration;

   1.  

      (c)     a statement of the beneficial shareholding in the case of a firm, or details regarding the interests of the partners, in the case of a partnership; and

   1.  

      (d)     personal particulars of every director, partner and manager prepared on Form GR101.

1.  

   (2)   Where the application is for registration as an insurance agent, the applicant shall submit together with the application form, certified copies of the agency agreement and power of attorney as well as any agreement relating to commissions and other remuneration payable in respect of the agency.

1.  

   (3)   Where an application is for registration as an insurance broker, the applicant shall submit evidence that there is in force professional indemnity insurance of $500,000 or 20% of commission income, whichever is the greater, and placed with an insurer approved by the Registrar.

1.  

   (4)   The deductible to be applied in respect of any claim under the professional indemnity insurance policy should not exceed 15% of the capital and reserves of the company or firm.

1.  

   (5)   Where a firm or company applies for registration the firm or company shall specify the managers of the company, and shall specify the officers or the partners who may act in the name of the firm or company.

5.   Certification of applications

1.  

   (1)   Every application for registration of an agent shall be certified by the insurer or agent on behalf of whom the agent will act.

1.  

   (2)   Every application for registration of a salesman shall be certified by the insurer by which or the agent by whom the salesman is employed or contracted at the time of the application.

6.   Certificate of registration

1.  

   (1)   Every certificate of registration issued under section 65 of the Act shall be numbered and shall specify the date of issue of the certificate.

1.  

   (2)   The certificate of registration of a firm or company shall specify the officers or the partners who may act thereunder in the name of the firm or company.

1.  

   (3)   The Certificate of Registration of insurance agents, insurance brokers and insurance salesmen shall be as set out in Form C13, Form C14 and Form C15 of the Schedule.

7.   Cancellation of certificate

A certificate of registration may be cancelled or suspended with respect to a firm or company with respect to any of the officers or partners named or specified in it.

8.   Renewal of certificate of registration

1.  

   (1)   An application to renew a certificate of registration shall be in a form approved by the Registrar.

1.  

   (2)   The application specified under subregulation (1) shall be accompanied by the receipt obtained from the Accountant General upon payment of a specified fee and shall be made to the Registrar not later than 30 days before the anniversary date of the issue of the certificate.

1.  

   (3)   The fee specified under subregulation (2) shall be non-refundable.

9.   Forms of notices

The notices required by section 70 of the Act shall be in the forms set out as Forms N010, N011, and N012 of the Schedule to these Regulations.

10.   Registers, to be maintained

The Registrar shall maintain registers of all insurance agents, insurance brokers and insurance salesmen to whom certificates of registration have been issued.

11.   Submission of annual accounts

1.  

   (1)   Every insurance agent and every insurance broker shall within 6 months of the end of each financial year submit to the Registrar 3 copies of its audited accounts, balance sheet and profit and loss account of the agency or brokerage business as the case may be.

1.  

   (2)   Every account, balance sheet and profit and loss account shall be audited by an auditor approved by the Registrar.

12.   Client Trust Account

Every insurance agent and every insurance broker shall keep an account called a “Client Trust Account” reflecting only those transactions related to insurance placed with that insurance agent or insurance broker.

13.   Appointment of examiners

1.  

   (1)   The Minister shall appoint either a Board or an educational institution to supervise and administer the examinations referred to in Part 5 of the Act.

1.  

   (2)   The Board shall consist of not less than 3 and not more than 6 members, one of whom shall be the Registrar or his or her nominee.

1.  

   (3)   The other members of the Board shall include persons nominated by insurance associations or organisations recognised as such by the Minister.

1.  

   (4)   Members of the Board shall be appointed for a period of 2 years and shall be eligible for reappointment.

1.  

   (5)   An approved educational institution shall be appointed for a period of 3 years in the first instance and shall be eligible for reappointment for further periods of not less than 12 months duration.

14.   Remuneration of examiners

The Minister may authorise the amount of remuneration to be paid to the Board or the approved educational institution as the case may be, for the supervision and administration of examinations and specify the fee payable by a candidate for such examinations.

15.   Scope and form of examinations

1.  

   (1)   The Registrar shall determine the scope and form of examinations necessary to qualify a person to act as or carry on business as an insurance agent, insurance broker or insurance salesman.

1.  

   (2)   An examination under subregulation (1) shall not be wholly oral.

16.   Frequency of examinations

1.  

   (1)   Examinations shall be held at least once each year.

1.  

   (2)   A candidate for examination may apply to the Registrar for an examination to be held in respect of any class of insurance business and, subject to subregulation (3), the examination shall be so held where at least 5 candidates have applied and paid the prescribed examination fee.

1.  

   (3)   An examination in respect of a particular class of insurance business shall not be held more than once in 3 months.

17.   Exemptions from examinations

1.  

   (1)   A person who satisfies the Registrar that he or she holds a professional diploma in insurance issued by a body recognised by the Registrar, and covering the class of insurance business for which he or she is applying, may be exempted from the examinations referred to in these Regulations.

1.  

   (2)   A person who satisfies the Registrar that he or she has carried on business for a period of not less than 3 years as an insurance agent, insurance broker or insurance salesman in a particular class of insurance business in an efficient manner, or has been employed by an insurer, an insurance agent or insurance broker in a technical capacity in a particular class of insurance business, may be exempted from the examinations referred to in these Regulations.

Schedule

Insurance Companies (Registration) Regulations – Section 167

(Statutory Instrument 78/1995)

Statutory Instrument 78/1995 .. in force 9 December 1995

ARRANGEMENT OF REGULATIONS

INSURANCE COMPANIES (REGISTRATION) REGULATIONS – SECTION 167

Commencement [9 December 1995]

1.   Citation

These Regulations may be cited as the Insurance Companies (Registration) Regulations.

2.   Interpretation

In these Regulations—

“Act” means the Insurance Act;

“classes of insurance business” means the classes of business set out in Schedule 1 to the Insurance Act.

3.   Forms for application for registration

Every application for registration under Part 3 of the Act shall be made in the Form GR100 specified in the Schedule to these Regulations.

4.   Signatory to an application for registration

An application for registration shall be signed—

1.  

   (a)     in respect of a company incorporated in Saint Lucia, by 2 directors and the secretary of the company;

1.  

   (b)     in respect of a company incorporated outside Saint Lucia, by 2 directors and the principal representative in Saint Lucia.

5.   Currency specification

All amounts shown in the application under regulation 4 shall be in the local currency of Saint Lucia, and where these amounts have been converted from other currencies, the rate of conversion shall be stated.

6.   Personal particulars of directors and managers

Every director and every manager of the applicant company shall submit personal particulars on the Form GR101 specified in the Schedule to these Regulations.

Schedule

Insurance Companies (Accounts and Forms) Regulations – Section 167

(Statutory Instruments 79/1995 and 36/1996)

Statutory Instrument 79/1995 .. in force 9 December 1995

Amended by S.I. 36/1996 .. in force 13 July 1996

ARRANGEMENT OF REGULATIONS

INSURANCE COMPANIES (ACCOUNTS AND FORMS) REGULATIONS-SECTION 167

Commencement [9 December 1995]

1.   Citation

These Regulations may be cited as the Insurance Companies (Accounts and Forms) Regulations.

2.   Interpretation

In these Regulations—

“Accounts” means the balance sheet, profit and loss account and the revenue account of a company;

“Act” means the Insurance Act;

“aviation insurance business” means the business of effecting and carrying out contracts of insurance—

1.  

   (a)     upon aircraft or upon the machinery, fittings or equipment of aircraft;

1.  

   (b)     upon the freight of, or any other interest in or relating to aircraft;

1.  

   (c)     against loss, damage or liability arising out of or in connection with the use of aircraft;

“claims equalisation” means the amount set aside by a company at the end of its financial year to be used for the purpose of minimizing exceptional fluctuations in the amounts charged to revenue in subsequent financial years in respect of claims under insurance contracts;

“claims outstanding” means the amount set aside by a company at the end of its financial year for the purpose of meeting unsettled claims, including incurred but not reported claims under contracts of insurance, in respect of incidents occurring before the end of that year and for the purpose of meeting expenses likely to be incurred in connection with the settlement of such claims; but does not include the reduction of amounts recoverable from other insurers or other persons;

“gross premiums” mean premiums after deduction of refunds and rebates of premiums but before deduction of premiums for reinsurance ceded and commission payable by the company;

“marine insurance business” means the business of effecting and carrying out contracts of insurance—

1.  

   (a)     upon vessels or upon machinery, tackle, furniture or equipment of vessels;

1.  

   (b)     upon the freight of, or any other interest in or related to vessels;

1.  

   (c)     against loss, damage or liability arising out of, or in connection with, the use of vessels;

1.  

   (d)     against risks incidental to the construction, repair or docking of vessels including third party risks;

“reinsurance ceded” includes reinsurance retroceded;

“reinsurance recoveries” includes recoveries in connection with reinsurance retroceded;

“transport insurance business” means the business of effecting and carrying out contracts of insurance against loss of or damage to merchandise, baggage and all other goods in transit, (whether the transit is by sea, inland water, land or air or partly one and partly another) including risks incidental to the transit insured from the commencement of the transit to the ultimate destination covered by the insurance.

“unearned premium” means the amount set aside by a company at the end of its financial year out of premiums in respect of risks to be borne by the company after the end of its financial year under contracts of insurance entered into before the end of that year;

“unexpired risk” means the amount set aside by a company at the end of its financial year, in addition to unearned premiums, in respect of risks to be borne by the company after the end of its financial year under contracts of insurance entered into before the end of that year.

3.   Revenue account

A revenue account required by section 26(1)(c) of the Act to be prepared by a company at the expiration of each financial year shall be—

1.  

   (a)     in accordance with the forms set out as Forms A1 to A3 and Form E in respect of each class of long term insurance business carried on by the company; and

1.  

   (b)     in accordance with the forms set out as Forms B1 to B5 and Form E in respect of other class of insurance business carried on by the company.

4.   Profit and loss account

1.  

   (1)   A profit and loss account required by section 26(1)(b) shall be prepared in accordance with Form C and shall show—

   1.  

      (a)     the amounts respectively transferred to and transferred from each revenue account of the company for the financial year;

   1.  

      (b)     the amount of interest on loans not shown in the revenue account, and deducted from interest on income;

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      (c)     the amount respectively provided for redemption of share capital and for redemption of loans;

   1.  

      (d)     the amount of expenses of management not shown in the revenue account;

   1.  

      (e)     the amount of taxation not shown in the revenue account;

   1.  

      (f)     the amount of other expenditure not shown in the revenue account classified under appropriate headings;

   1.  

      (g)     the aggregate amount of interest, dividends and rents (before deduction of tax) not shown in the revenue account;

   1.  

      (h)     the amount of other income not shown in the revenue account classified under appropriate headings;

   1.  

      (i)     the aggregate amount (before deduction of income tax) of the dividends to shareholders paid and proposed.

1.  

   (2)   The amount of any charge arising in consequence of the occurrence of an event in a preceding financial year and of any debit or credit so arising shall, if not included in a heading relating to other matters, be stated under a separate heading.

1.  

   (3)   Any material respects in which any items shown in the profit and loss account are affected—

   1.  

      (a)     by transactions of a sort not usually undertaken by the company or otherwise by circumstances of an exceptional or non- recurrent nature; or

   1.  

      (b)     by any change in the basis of accounting

1.  

   shall be stated by way of note if not otherwise shown.

5.   Balance Sheet

1.  

   (1)   A balance sheet required by section 26(1)(a) of the Act to be prepared by a company at the expiration of each financial year shall be prepared in accordance with the forms set out as Forms D1 to D5.

1.  

   (2)   Where the amount of any liabilities shown in the balance sheet or in any statement or report annexed thereto includes an amount of indebtedness of the company (whether on account of a loan or otherwise) to any dependant company, in showing the amount of these liabilities such part of that amount as represents indebtedness to dependant companies shall be separately distinguished.

1.  

   (3)   The aggregate amount (before deduction of income tax) which is recommended for distribution by way of dividend shall be shown.

1.  

   (4)   The following amounts shall be shown under separate headings—

   1.  

      (a)     in respect of a company's long term insurance business the amount of each long-term business fund carried forward in the revenue account of the company for the financial year, as well as the amount of claims admitted but not paid;

   1.  

      (b)     in respect of a company's general insurance business the amounts set aside respectively for

      1.  

         (i)     unearned premium,

      1.  

         (ii)     unexpired risks,

      1.  

         (iii)     claims outstanding, and

      1.  

         (iv)     claims equalisation;

   1.  

      (c)     the amount payable to policyholders, insurance brokers and insurance agents including any amount payable in connection with reinsurance accepted by the company but excluding any amount payable in connection with claims under insurance contracts;

   1.  

      (d)     the amount payable to the company's reinsurers identifying any part of the amount of reinsurance premiums payable which has been retained by the company as a security for future claims against the company's reinsurers;

   1.  

      (e)     the amounts payable to persons carrying on insurance business (other than amounts payable in connection with reinsurance accepted and ceded);

   1.  

      (f)     the amount of bank loans and overdrafts;

   1.  

      (g)     the amounts payable to other creditors classified under appropriate headings;

   1.  

      (h)     other amounts set aside classified under appropriate headings.

1.  

   (5)   The following amounts receivable shall be shown under separate headings—

   1.  

      (a)     the amount receivable from policyholders, insurance brokers and insurance agents including any amount receivable in connection with reinsurance accepted by the company identifying any part of the amount receivable by way of reinsurance premiums which has been retained by persons reinsured as a security for future claims against the company;

   1.  

      (b)     the amount receivable from the company's reinsurers;

   1.  

      (c)     the amount receivable from persons carrying on insurance business (other than amounts receivable in connection with reinsurance accepted or ceded, or amounts receivable through recoveries on subrogation claims);

   1.  

      (d)     the amount receivable from other debtors;

   1.  

      (e)     cash on current account at bankers and in hand;

   1.  

      (f)     the amount of assets not included in the amounts shown under other headings classified under appropriate headings.

1.  

   (6)   If not otherwise shown the following shall be stated by way of note—

   1.  

      (a)     the aggregate amount or estimated amount, of contracts of capital expenditure authorised by the directors which has not been contracted for, where such amounts are material;

   1.  

      (b)     particulars of any charge on the assets of the company to secure the liabilities of any person (other than liabilities arising under a contract of insurance) including the amount secured;

   1.  

      (c)     any other contingent liability not provided for (other than one arising under a contract of insurance) and the aggregate amount or estimated amount of that liability, if it is material.

6.   Salaries and management expenses

A summary of the items “Salaries and Expenses of Management” shall be given in accordance with Form E of these Regulations.

7.   Revenue account and balance sheet

1.  

   (1)   The revenue account prepared in accordance with Forms A1 to A3 and Form E or in accordance with Forms B1 to B5 and Form E, and the balance sheet set out as Forms D1 to D5 shall be submitted in respect of business in St Lucia only.

1.  

   (2)   Separate statements prepared in the same format are to be submitted in respect of the global business of the company.

1.  

   (3)   Despite subregulation (2), a foreign company instead of submitting statements in respect of the global business of the company in accordance with the Forms stated, may with the approval of the Registrar, deposit with the Registrar a copy of the returns lodged with the Regulatory Authority in the country in which its Head Office is situated.

8.   Currency, to be specified in local currency

1.  

   (1)   All amounts which are required to be shown in the accounts or in any statement, certificate or report annexed (excluding accounts and returns deposited with the Regulatory Authority in the country in which the Head Office is situated) which by these Regulations are required or permitted to be so annexed shall be shown in the currency of Saint Lucia.

1.  

   (2)   The basis adopted in converting foreign currency to the currency of Saint Lucia for items in the accounts shall be stated.

9.   Corresponding amounts for previous year

For all items shown in the accounts or in any statement, certificate or report annexed to it, required by these Regulations, there shall be shown the corresponding amounts for the immediately preceding financial year.

10.   Certificate of actuary

There shall be annexed to every balance sheet prepared under section 26(1)(a) of the Act being a balance sheet of a company which has at any time during the financial year carried on long-term business, a certificate signed by an actuary stating whether or not, in his or her opinion, the aggregate amount of the assets of the company in relation to its long-term business as at the end of the financial year exceeded the aggregate amount of the liabilities as shown in the balance sheet.

11.   Notes on accounting policies

Notes on accounting policies adopted or applied in formulation or preparation of the accounts shall be stated in the accounts.

Schedule

(Substituted by S.I. 36/1996)

(Inserted by S.I. 36/1996)

(Substituted by S.I. 36/1996)

Insurance Companies (Reinsurance) Regulations – Section 167

(Statutory Instrument 80/1995)

Statutory Instrument 80/1995 .. in force 9 December 1995

ARRANGEMENT OF REGULATIONS

INSURANCE COMPANIES (REINSURANCE) REGULATIONS – SECTION 167

Commencement [9 December 1995]

1.   Citation

These Regulations may be cited as the Insurance Companies (Reinsurance) Regulations

2.   Interpretation

In these Regulations—

“classes of insurance business” means the classes of business set out in Schedule 1 to the Insurance Act;

“slip” means a paper submitted by a reinsurance broker to an underwriter which identifies the risk and the underwriters participating in the risk and the extent of their participation;

“underwriting year” means the period covered by the company's reinsurance treaty.

3.   Submission of reinsurance treaties

Every company registered to transact general insurance business in Saint Lucia shall, within 14 days of the commencement of its underwriting year, submit to the Registrar in respect of each class of insurance business to be transacted, details of its reinsurance treaties for that underwriting year.

4.   Information to be supplied on reinsurance treaty

Information on the items specified in the Schedule shall be supplied in respect of each reinsurance treaty, in the form of a slip, a cover note or a summary prepared by the re-insurance broker, reinsurance company or the management of the company.

5.   Submission of reinsurance pools, etc

In addition to reinsurance treaties, the company shall submit details of reinsurance pools and other arrangements in which it participates.

Schedule

(Regulation 4)

1.  

   (a)     Name of reinsured;

1.  

   (b)     Location;

1.  

   (c)     Period of cover;

1.  

   (d)     Type of reinsurance treaty;

1.  

   (e)     Class of insurance business;

1.  

   (f)     Territorial scope;

1.  

   (g)     Retention;

1.  

   (h)     Premium or commission;

1.  

   (i)     Reinsurers and percentage share of the treaty;

1.  

   (j)     Terms of portfolio transfer (if applicable);

1.  

   (k)     Exclusions, special wordings and general conditions;

1.  

   (l)     Reinsurers and the proportions written by each.

Insurance (Admissible Assets and Valuation of Assets) Regulations – Section 167

(Statutory Instrument 81/1995)

Statutory Instrument 81/1995 .. in force 9 December 1995

ARRANGEMENT OF REGULATIONS

INSURANCE (ADMISSIBLE ASSETS AND VALUATION OF ASSETS) REGULATIONS – SECTION 167

Commencement [9 December 1995]

1.   Citation

These Regulations may be cited as the Insurance (Admissible Assets and Valuation of Assets) Regulations.

2.   Interpretation

1.  

   (1)   In these Regulations—

“Act” means the Insurance Act;

“approved financial institution” means—

1.  

   (a)     any institution in which a company is required to invest its funds for the purposes of sections 80(5) and 93(1) of the Act; or

1.  

   (b)     any institution the Minister may, by Gazette Notification, approve;

“asset”, for the purpose of the business of general insurance companies, means admissible assets and includes part of an asset;

“computer equipment” means the electro-mechanical and electronic units which make up a computer configuration and includes a software package used under the business of a company;

“debenture” includes debenture stock and bonds, whether constituting a charge on assets or not, and loan stock or notes;

“debt” means an obligation to pay premiums or other monies outstanding to the account of an insurance company;

“insurance liabilities” means in relation to an insurance company, any debt due from or other liabilities of the company under any contract of insurance to which it is a party;

“intermediary” means a person who in the course of any business or profession invites other persons to make offers or proposals or to take other steps with a view to entering into contracts of insurance with an insurance company;

“liability” includes a contingent or prospective liability and a part of a liability, but does not include a liability in respect of share capital;

“middle market price” means—

1.  

   (a)     in relation to an investment for which 2 prices are quoted in the official list published for the relevant market, the average of the 2 prices so quoted for the day on which the investment falls to be valued or, if no official list has been published for that day, for the most recent day prior to that day for which the official list has been published;

1.  

   (b)     in relation to an investment for which one price is quoted in the official list for the relevant market, the price so quoted for the day on which the investment falls to be valued or, if no official list has been published for that day, for the most recent day prior to that day for which the official list has been published; and

1.  

   (c)     in any other case, the nearest equivalent to the average referred to in paragraph (a) which is published or can be reasonably ascertained from information which is published;

“parent company” means a company incorporated in Saint Lucia or elsewhere which owns or controls directly or indirectly more than 50% of the voting shares of one or more companies whether incorporated in Saint Lucia or elsewhere;

“proper valuation” means in relation to land, a valuation made by a qualified valuer not more than 3 years before the relevant date which determined the amount which would be realised at the time of the valuation on an open market sale of the land free from any hypothec or charge;

“qualified valuer” means a person who is—

1.  

   (a)     a fellow or associate of the Royal Institute of Chartered Surveyors or a fellow or associate of the Incorporated Society of Valuers and Auctioneers or the Rating and Valuation Association and has knowledge and experience in the valuation of land; or

1.  

   (b)     approved by the Minister by instrument in writing as a qualified valuer for the purpose of these Regulations;

“quoted”, in relation to an investment, means the grant of a quotation or permission to deal in respect of that investment on any stock exchange which is a recognised stock exchange approved by the Minister for the purpose of these Regulations;

“relevant date” means in relation to the valuation of any asset for any purpose for which these Regulations apply, the date when the asset falls to be valued for that purpose;

“share” includes a stock;

“subsidiary company” means a company, whether incorporated in Saint Lucia or elsewhere, in which another company holds more than 50% of its shares.

3.   Dependant company

For the purpose of these Regulations, a company is a dependant of another where –

1.  

   (a)     that other company, either alone or with any associate or associates is entitled to exercise, or control the exercise of 1/3 or more of the voting power at any general meeting of the first-mentioned company; or

1.  

   (b)     the first-mentioned company is a dependant of any company which is that other company's dependant.

4.   Application of Regulations

1.  

   (1)   These Regulations apply with respect to the determination of the value of assets of insurance companies.

1.  

   (2)   Any asset to which these Regulations apply (other than cash) for the valuation of which no provision is made in these Regulations shall, unless approved by the Minister, be left out of account for the purposes specified in subregulation (1).

1.  

   (3)   Where it is provided by these Regulations that the value of any asset is to be no greater than as determined in accordance with these Regulations and in all circumstances of the case it appears that the asset is of a lesser value, such lesser value shall be the value of the asset.

5.   Shares in and debts due from dependants

1.  

   (1)   The value of any share in a dependant of an insurance company shall be no greater than that part of the net asset value of the dependant which would be payable in respect of the share if the dependant were in liquidation and the net asset value were the amount distributable to the shareholders in the winding up.

1.  

   (2)   In this Regulation “net asset value”, in relation to a dependant company, means the amount by which the value of its assets, as determined in accordance with these Regulations, exceeds the amount of its liabilities including contingent and prospective liabilities but not including liabilities in respect of share capital.

1.  

   (3)   The value of any debt due, or to become due, to an insurance company from a dependant shall be the amount which would reasonably be expected to be recovered in respect of that debt (due respect being taken of any security held in respect thereof) if the dependant were in liquidation.

1.  

   (4)   Any share in a dependant—

   1.  

      (a)     in which there is no such excess of assets over liabilities as is specified in subregulation (2);

   1.  

      (b)     in relation to which an insurance company cannot reasonably ascertain the amount of the liabilities of the dependant for the purposes of subregulation (2), shall be left out of account for the purposes for which these Regulations apply.

1.  

   (5)   Where an insurance company is unable to determine the value of any debt due or to become due to the company from a dependant because it cannot reasonably ascertain the amount of the liabilities of the dependant for the purpose of ascertaining what would reasonably be expected to be recovered in respect of that debt in accordance with subregulation (3), the debt shall be left out of account for the purposes for which these Regulations apply.

1.  

   (6)   In determining the net asset value of a dependant company which is an insurance company the value of its assets and the amount of its liabilities shall be determined in accordance with any valuation regulations applicable for the purpose of section 34 of the Act, in the case of general insurance business and for the purpose of any investigation to which section 95 of the Act applies in the case of long-term insurance business.

1.  

   (7)   In determining for the purpose of this Regulation the net asset value of a dependant company, which is not an insurance company, the value of the assets of the dependant company shall be determined in accordance with these Regulations as if they were assets of an insurance company.

6.   Debts and other rights

1.  

   (1)   The value of any debt due, or to become due, to an insurance company other than a debt to which subregulation (2), (3) or (5) of this regulation or regulations 9 and 13 apply shall be—

   1.  

      (a)     in the case of any such debt which is due, or will become due within 12 months of the relevant date (including any debt which would become due within that period if the company were to exercise any right to which it is entitled to require payment of the same), the amount which can reasonably be expected to be recovered in respect of that debt (due account being taken of any security being held in respect thereof); and

   1.  

      (b)     in the case of any other such debt, the amount which would reasonably be paid by way of consideration for an immediate assignment of the debt together with the benefit of any security held in respect of it.

1.  

   (2)   The value of any debt due, or to become due, to the company which is secured on a policy of insurance issued by the company and which (together with any other debt secured on that policy) does not exceed the amount payable on a surrender of that policy at the relevant date shall be the amount of that debt.

1.  

   (3)   Any debt due, or to become due, to the company from an intermediary in respect of money advanced on account of commission to which that intermediary is not absolutely entitled at the relevant date shall be left out of account for the purposes for which these Regulations apply.

1.  

   (4)   Any recovery due, or to become due, to the company by subrogation shall be left out of account for the purposes for which these Regulations apply.

1.  

   (5)   The value of any salvage right of the company shall be the amount which can reasonably be expected to be recovered by virtue of the exercise of that right.

7.   Immovable property

The value of any land of an insurance company (other than land held by the company as a security for a debt or to which regulation 10 applies) shall, where an amount representing such value has been put into the account for the first time or where a change is made reflecting an increase in the relevant amount stated or shown in a previous account, not be greater than the amount which, after deduction of the reasonable expenses of sale, would be realised if the land were sold at a price equal to the most recent proper valuation of that land which has been provided to the company and any such land of which there is no proper valuation shall be left out of account for the purposes of these Regulations.

8.   Equipment

The value of any computer equipment, office machinery, furniture and motor vehicles of an insurance company—

1.  

   (a)     when purchased in the second 6 months of the financial year, shall not be greater than 85% of the cost thereof to the company;

1.  

   (b)     when purchased in the first 6 months of the financial year, shall not be greater than 75% of that cost;

1.  

   (c)     in the first financial year thereafter, shall not be greater than 50% of that cost;

1.  

   (d)     in the second financial year thereafter, shall not be greater than 25% of that cost; and

1.  

   (e)     in any subsequent financial year, shall be left out of account for the purposes for which these Regulations apply.

9.   Quoted investments

The value of any quoted debenture which is not a debenture issued by a dependant of the insurance company, and of any quoted share which is not a share in such a dependant shall be the greater of the middle market price or the average of the middle market prices during the last 3 months before the day on which the investment falls to be valued.

10.   Life interest, reversionary interests, etc

The value of any asset consisting of a right in relation to immovable property which itself is considered an immovable property under the Civil Code and can be transferred or assigned for consideration shall be the amount which would reasonably be paid by way of consideration for an immediate transfer or assignment thereof.

11.   Unit trust

The value of any holding of units, or other beneficial interest, under a unit trust scheme shall be the published price at which the managers or management, as the case may be, under the unit trust scheme would purchase the holding of units or other beneficial interest if required to do so.

12.   Unquoted shares

The value of any unquoted share, which is neither an equity share nor a share in a dependant of the insurance company, shall be the amount which would reasonably be paid by way of consideration for an immediate transfer of that share.

13.   Other assets

The value of any securities issued or guaranteed by any government or public authority shall be—

1.  

   (a)     in the case of quoted securities, the middle market price;

1.  

   (b)     in the case of securities which are not transferable, the amount payable on a surrender or redemption of such securities at the relevant date; and

1.  

   (c)     in any other case the amount which would reasonably be paid by way of consideration for an immediate transfer or assignment thereof.

14.   Assets, to be taken into account to a specified extent only

Insurance company assets of any of the descriptions specified in the Schedule shall be taken into account only to the extent of the percentages specified in the Schedule, of the total assets or net premium, as the case may be, of the insurance company.

Schedule

Insurance (Brokers' Returns Forms) Regulations – Section 167

(Statutory Instrument 126/2002)

Statutory Instrument 126/2002 .. in force 16 December 2002

ARRANGEMENT OF REGULATIONS

INSURANCE (BROKERS' RETURNS FORMS) REGULATIONS – SECTION 167

Commencement [16 December 2002]

1.   Citation

These Regulations may be cited as the Insurance (Brokers' Returns Forms) Regulations.

2.   Interpretation

In these Regulations, the “Act” means the Insurance Act.

3.   Prescription of brokers' returns forms

The following forms are hereby prescribed for purposes of section 69 of the Act—

Insurance (Appeals Tribunal) Regulations – Section 167(1)(f)

(Statutory Instrument 113/2019)

Statutory Instrument 113/2019 .. in force 19 August 2019

ARRANGEMENT OF REGULATIONS

PRELIMINARY

PART I
MEETINGS OF TRIBUNAL

PART II
APPEALS

PART III
HEARING OF APPEALS

PART IV
MISCELLANEOUS

INSURANCE (APPEALS TRIBUNAL) REGULATIONS – SECTION 167(1)(F)

Commencement [19 August 2019]

PRELIMINARY

1.   Citation

These Regulations may be cited as the Insurance (Appeals Tribunal) Regulations.

2.   Interpretation

In these Regulations—

“Act” means the Insurance Act;

“appellant” means—

1.  

   (a)     an insurer, insurance agent, insurance broker or insurance salesperson; or

1.  

   (b)     a person who is aggrieved by a decision of the Authority;

“Authority” means the Financial Services Regulatory Authority established under section 3 of the Financial Services Regulatory Authority Act;

“Chairperson” means the Chairperson of the Tribunal;

“member”, in relation to an appeal, means a member of the Tribunal entitled to sit for the purpose of hearing and determining that appeal;

“Secretary” means the Secretary to the Tribunal;

“Tribunal” means the Insurance Appeals Tribunal established under section 170 of the Act.

PART I
MEETINGS OF TRIBUNAL

3.   Meetings

1.  

   (1)   The Tribunal shall meet at such times as may be necessary or expedient for the transaction of business, and such meetings shall be held at such place and time and on such days as the Chairperson determines.

1.  

   (2)   The Chairperson—

   1.  

      (a)     may call a special meeting of the Tribunal; and

   1.  

      (b)     shall call a special meeting within 4 days of a written request for that purpose addressed to him or her by 2 members of the Tribunal.

1.  

   (3)   The Secretary to the Tribunal shall give to every member of the Tribunal notice of a meeting at least 72 hours before the time appointed for holding the meeting.

1.  

   (4)   The Chairperson shall preside at meetings of the Tribunal and if at any meeting the Chairperson is not present within 30 minutes of the time appointed for holding the meeting, the members present may choose one member among themselves to chair the meeting.

1.  

   (5)   The decisions of the Tribunal shall be by a simple majority of votes.

1.  

   (6)   Minutes, in the form the Chairperson directs, of each meeting shall be kept by the Secretary.

1.  

   (7)   Subject to these Regulations, the Tribunal may regulate its own proceedings.

PART II
APPEALS

4.   Application

This Part applies to an appeal filed on or after the commencement date of these Regulations.

5.   Notice of Appeal

1.  

   (1)   An appellant may appeal, by serving notice in writing, to the Tribunal within 15 days of receipt of the decision of the Authority.

1.  

   (2)   The notice of appeal under subregulation (1) must be signed by the appellant and 6 copies of the notice of appeal must be submitted to the Secretary.

1.  

   (3)   A notice of appeal must be in the form set out in Schedule 1.

1.  

   (4)   The Secretary shall publish in the Gazette an address where a notice of appeal may be given under these Regulations.

1.  

   (5)   A notice of appeal shall be given to the Secretary personally or by sending it by registered mail to the address published under subregulation (4).

6.   Application for extension of time

1.  

   (1)   The Tribunal may extend the time within which an appeal must be brought under these Regulations.

1.  

   (2)   An application to extend the time within which an appeal must be brought shall be in writing and made within 10 days of receipt of the decision of the Authority.

1.  

   (3)   An application to extend the time within which an appeal must be brought must be in the form set out in Schedule 2.

1.  

   (4)   The Tribunal shall determine an application to extend the time within 5 days of receipt of the application.

7.   Record

The Secretary shall, as soon as possible after receiving a notice of appeal, compile a record consisting of the—

1.  

   (a)     notice of appeal;

1.  

   (b)     notes of evidence;

1.  

   (c)     relevant documents and exhibits, if any;

1.  

   (d)     reasons for the decision of the Authority.

8.   Transmission of the record

1.  

   (1)   The Secretary shall, as soon as possible after compiling the record under regulation 7, send one copy to each of the following persons—

   1.  

      (a)     the Chairperson;

   1.  

      (b)     members of the Tribunal;

   1.  

      (c)     the appellant; and

   1.  

      (d)     the Authority.

1.  

   (2)   The copy of the record to be sent to the appellant and the Authority must be sent personally or by registered mail.

9.   Filing of opposition by Authority

1.  

   (1)   In an appeal the Authority is the respondent.

1.  

   (2)   The Authority shall, within 15 days of receipt of a copy of a notice of appeal, file with the Secretary its opposition to the appeal.

1.  

   (3)   The Authority shall, when filing its opposition to the appeal, serve a copy of the opposition on the appellant and any person to whom a copy of the record was sent under regulation 8(1).

PART III
HEARING OF APPEALS

10.   Preliminary hearing

1.  

   (1)   A preliminary hearing must be held.

1.  

   (2)   The Chairperson shall serve a notice on the parties, setting out the date, time and place of the preliminary hearing—

   1.  

      (a)     not later than 30 days after receipt by the Secretary of the opposition to the appeal by the Authority; and

   1.  

      (b)     not less than 10 days before the day appointed for the preliminary hearing.

1.  

   (3)   Notwithstanding subregulation (2), the appellant and the Authority may agree to the times the notice is to be served.

1.  

   (4)   A preliminary hearing may be held as a matter of urgency as directed by the Chairperson or as agreed to by the parties.

1.  

   (5)   The preliminary hearing must be in private and shall be heard by the Chairperson.

1.  

   (6)   The parties may appear in person at the preliminary hearing, or be represented by an attorney-at-law, or by any other person duly authorized by the parties.

1.  

   (7)   The Chairperson shall consider the disclosure of matters contained in a notice of appeal to another person, and may direct that the matters be disclosed.

1.  

   (8)   The Chairperson shall—

   1.  

      (a)     give such directions as he or she considers necessary or desirable for the conduct of the appeal; and

   1.  

      (b)     fix the date, time and place of the hearing of the appeal;

1.  

   (9)   The parties may seek clarification regarding the conduct of the appeal.

11.   Hearing by Tribunal

1.  

   (1)   A hearing by the Tribunal shall take place at least 90 days after the date of the Authority's decision.

1.  

   (2)   At least 7 days before the date fixed for the hearing of an appeal, the Secretary shall by notice in writing advise the appellant and the Authority of the date on, and the place at which, the appeal has been set down for hearing.

1.  

   (3)   A notice under subregulation (2) shall be given to the appellant and the Authority personally or by sending the notice by registered mail.

1.  

   (4)   An appeal to the Tribunal is a review of the record.

12.   Constitution

1.  

   (1)   A hearing by the Tribunal must comprise the Chairperson and the other members of the Tribunal.

1.  

   (2)   Whenever the Chairperson sits on an appeal he or she shall preside at the hearing.

13.   Evidence and procedure

1.  

   (1)   At the hearing the Chairperson may, on the application of a party to the appeal or on his or her own motion, by direction given at the hearing or by notice in writing, require the parties or another person, at a time and place given in the direction or notice, to attend and give evidence or to produce a document in the person's custody or under his or her control which relates to a matter in question at the hearing.

1.  

   (2)   A person shall not be compelled to give evidence or to produce a document which he or she could not be compelled to give or produce if the hearing was a proceeding in a court of law.

1.  

   (3)   Notwithstanding subregulation (2), evidence may be admitted by the Tribunal whether or not it would be admissible in a court of law.

1.  

   (4)   In exercising the power under subregulation (1), the Chairperson shall take into account the need to protect information which relates to a person who is not a party to the appeal and which is commercially sensitive, or was communicated or obtained in confidence.

1.  

   (5)   The Chairperson may set aside a direction or notice given under subregulation (1) on the application of the person to whom the direction or notice was given, but shall not do so without first notifying the person who applied for the direction or notice and considering representations made by that person.

1.  

   (6)   The Secretary shall supply a copy of a document obtained under this regulation to a party to the appeal if that party does not have a copy of the document, and it is a condition of such supply that the information supplied is used only for the purposes of the appeal.

1.  

   (7)   The hearing must be in private.

1.  

   (8)   The parties may appear in person at the hearing, or may be represented by an attorney-at-law or by any other person duly authorized by the parties.

1.  

   (9)   At the hearing each party may make an opening statement, call witnesses to give evidence, cross-examine witnesses called by the other party, and make a final statement.

1.  

   (10)   If the Tribunal requires a witness to give evidence, the evidence must be given on oath or affirmation; and the Chairperson shall administer the oath or affirmation.

1.  

   (11)   If the parties fail to appear or be represented at the time and place fixed for the hearing, the Tribunal may proceed with the hearing or adjourn it to a later date.

1.  

   (12)   If the Tribunal proceeds with the hearing under subregulation (11) the Tribunal shall take into consideration written representations which may have been submitted by each party.

1.  

   (13)   A person who, in respect of a material matter—

   1.  

      (a)     tenders into evidence, or procures another to tender into evidence, a false written statement;

   1.  

      (b)     while giving evidence under oath or affirmation, knowingly makes a false statement or makes a statement which he or she does not believe is true; or

   1.  

      (c)     procures another to give evidence under oath or affirmation which the person knows is a false statement or which he or she does not believe is true,

commits an offence and is liable on summary conviction to a fine not exceeding ten thousand dollars.

14.   Withdrawal of appeal or opposition

1.  

   (1)   An appellant may withdraw an appeal, and the Authority may withdraw its opposition to an appeal, before the hearing by giving notice in writing to the Secretary and to the other party.

1.  

   (2)   At the hearing, the appellant may give notice to the Tribunal that he or she desires to withdraw the appeal, or the Authority may give notice that it desires to withdraw its opposition to the appeal, and the Tribunal shall bring the hearing to a close.

15.   Decision

1.  

   (1)   The Tribunal may within 14 days of an appeal affirm or set aside the decision appealed or may make another decision which the Authority could have made.

1.  

   (2)   The Tribunal shall, within 20 days, indicate the reasons for its decision made under subregulation (1).

1.  

   (3)   The Secretary shall, within 7 days of the decision of the Tribunal under subregulation (1), send a copy of the decision to—

   1.  

      (a)     the appellant; and

   1.  

      (b)     the Authority.

1.  

   (4)   A copy of a decision must be sent under subregulation (3) to the appellant and the Authority personally or by registered mail.

PART IV
MISCELLANEOUS

16.   Time and miscellaneous powers

1.  

   (1)   If the time specified by these Regulations for doing an act expires on a Saturday, Sunday or bank holiday and the act cannot be done on that day, the act is in time if done on the next working day.

1.  

   (2)   The Authority may file with the Secretary an application requesting the Chairperson to extend the time under regulation 9.

1.  

   (3)   The Chairperson may, after consulting with the other party, grant an extension on terms, if any, as he or she thinks fit.

1.  

   (4)   An application may be granted after the time specified under regulation 5, 6, or 9, has expired.

1.  

   (5)   The Chairperson may, after consultation with the parties—

   1.  

      (a)     postpone the date fixed for a hearing; or

   1.  

      (b)     alter the place appointed for a hearing.

1.  

   (6)   If a hearing is postponed, or the place for a hearing is altered under subregulation (5), the Secretary shall notify the following persons of the revised arrangements—

   1.  

      (a)     the parties to the appeal;

   1.  

      (b)     a witness.

17.   Pending appeals

The procedure to regulate an appeal pending before the Tribunal before the date on which these Regulations are made is as determined by the Tribunal.

Schedule 1

(Regulation 5)

SAINT LUCIA

Schedule 2

(Regulation 6)

APPLICATION TO EXTEND TIME WITHIN WHICH TO APPEAL

SAINT LUCIA