(1) An insurer or insurance broker shall not be registered under this Act to carry on and shall not carry on any class of insurance business unless the appropriate amount specified in subsection (2) has in each case been deposited with the Registrar.
(2) Where—
(a) a foreign insurer carries on or intends to carry on long-term insurance business the deposit shall be $100,000;
(b) a local insurer carries on or intends to carry on long-term insurance business, the deposit shall be $50,000;
(c) a foreign insurer carries on or intends to carry on motor vehicle insurance business, the deposit shall be either $100,000 or an amount equal to 40% of the premium income net of reinsurance premium in respect of motor vehicle insurance business transacted in Saint Lucia during the financial year last preceding the date of deposit whichever is the greater;
(d) a local insurer carries on or intends to carry on motor vehicle insurance business, the deposit shall be either $50,000 or an amount equal to 40% of its premium income net of reinsurance premium with respect to motor vehicle insurance business transacted in Saint Lucia during the financial year last preceding the date of deposit whichever is the greater;
(e) a foreign insurer carries on or intends to carry on insurance business other than long-term insurance or motor vehicle insurance business, the deposit shall be $50,000 or an amount equal to 40% of its premium income net of reinsurance premium with respect to its insurance business other than long-term or motor vehicle insurance business transacted in Saint Lucia during the financial year last preceding the date of deposit whichever is the greater;
(f) a local insurer carries on or intends to carry on insurance business other than long-term insurance business or motor vehicle insurance business the deposit shall be $25,000 or an amount equal to 40% of its premium income net of reinsurance premium in respect of its insurance business other than long-term or motor vehicle insurance business transacted in Saint Lucia during the financial year last preceding the date of the deposit whichever is the greater;
(g) a foreign insurance broker carries on or intends to carry on insurance brokerage the deposit shall be $20,000; and
(h) a local insurance broker carries on or intends to carry on insurance brokerage the deposit shall be $10,000.
(3) Despite subsection (2), an insurer shall not be required to deposit any sum in excess of $1,500,000.
(4) At the end of each subsequent financial year an insurer who made a deposit required to be made under subsection (2) shall, where necessary deposit or be refunded an amount equal to the difference between the last preceding deposit and the new amount required to be deposited.
(5) Every such deposit shall be in the form of cash or prescribed securities or partly in the one and partly in the other as determined by the Registrar.
However, in the case of the Commonwealth Caribbean other than Saint Lucia such prescribed securities shall not exceed 10% of any deposit required under this section.
(6) All deposits made by an insurer or insurance broker under this section shall be deemed to form part of the assets of the insurer or insurance broker as the case may be, and all interest accruing on any securities deposited under this section shall be paid to the depositor concerned.
(7) For the purposes of this Act, the several securities listed in Schedule 2 are “prescribed securities”.