s.2Interpretation
2
Section 2Part 1 — PRELIMINARY

Interpretation

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In this Law —
“actuary” means a person who has qualified as an actuary by examination of the Institute of Actuaries in England or the Faculty of Actuaries in Scotland or the Society of Actuaries in the United States of America or Canada, and who is a current member in good standing of one of the above professional associations or a person in good standing with some other actuarial qualification who is recognised by the Authority as such for the purpose of this Law;
“auditor” means a person who has qualified as an accountant by examination of one of the Institutes of Chartered Accountants in England and Wales, Ireland and Scotland, or the Canadian Institute of Chartered Accountants or the American Institute of Certified Public Accountants, and who is a current member of good standing of one of the institutes referred to or a person of good standing with some other accountancy qualification who is recognised by the Authority as such for the purpose of this Law;
“Authority” means the Cayman Islands Monetary Authority established under section 5 of the Monetary Authority Law (2008 Revision) and includes any employee of the Authority acting under the Authority’s authorisation;
“binding authority” means an instrument whereby an insurer authorises an insurance broker to solicit for a specific class of business on its behalf, having laid down terms and conditions, observance of which fully authorises the insurance broker to effect contracts of insurance between the insurer and the applicant for insurance;
“beneficiary” means a person who is designated by the policy holder under a contract of insurance as a person to whom the whole or part of the proceeds are payable on the maturity or surrender of the contract of insurance or the happening of an event;
“class A insurer” means a holder of a valid class A insurer licence referred to in section 4(3)(a);
“class B insurer” means a holder of a valid class B insurer licence referred to in section 4(3)(b);
“class B (i) insurer” means a holder of a valid class B insurer licence referred to in section 4(3)(b)(i);
“class B (ii) insurer” means a holder of a valid class B insurer licence referred to in section 4(3)(b)(ii);
“class B (iii) insurer” means a holder of a valid class B insurer licence referred to in section 4(3)(b)(iii);
“class C insurer” means a holder of a valid class C insurer licence referred to in section 4(3)(c);
“class D insurer” means a holder of a valid class D insurer licence referred to in section 4(3)(d);
“contract” includes a policy;
“court” means the Grand Court or a court of summary jurisdiction;
“domestic business” means insurance business where the contract is in respect of the life, safety, fidelity or insurable interest, other than in respect of property, of a person who at the time of effecting the contract is ordinarily resident in the Islands, or property that at the time of effecting the contract is in the Islands or, in the case of a vehicle, vessel or aircraft, or other movable property is ordinarily based in the Islands;
“external insurer” means a class A insurer who is not a local insurer and whose principal or registered office is in a jurisdiction outside the Islands where the legislation for the regulation and supervision of insurers is acceptable to the Authority;
“financial year” means an annual period in respect of which financial statements are prepared;
“general business” means insurance business other than long term business;
“general insurer” means an insurer carrying on general business;
“insurance agent” means a holder of a valid insurance agent licence referred to in section 4(3)(e);
“insurance broker” means a holder of a valid insurance broker licence referred to in section 4(3)(f);
“insurance business” means the business of accepting risks by effecting or carrying out contracts of insurance, whether directly or indirectly, and includes running-off business including the settlement of claims;
“insurance group” means a group that includes an insurer’s subsidiaries, holding company, companies related to the insurer through common ownership or control or which have a majority of common senior management or directors;
“insurance manager” means a holder of a valid insurance manager licence referred to in section 4(3)(g);
“insurer” means a person who is —
licensed under section 4(3)(a), (b), (c) or (d) to carry on insurance business; or
an association of individual underwriters including Lloyd’s of London and other associations of underwriters recognised by the Authority for the purposes of section 18 or 31;
“licence” means a licence granted under this Law;
“licensee” means the holder of a valid licence granted under section 4;
“linked policies” means contracts of insurance on human life or contracts to pay annuities on human life where the benefits are wholly or partly to be determined by reference to the value of, or the income from, property of any description, whether or not specified in the contracts, or fluctuations in, or an index of, the value of property of any description, whether or not so specified;
“local insurer” means a class A insurer, incorporated in and having its place of business in the Islands;
“long term insurer” means an insurer carrying on long term business;
“long term business” means the business of involving the making of contracts of insurance —
on human life or contracts to pay annuities on human life, including linked policies, but excluding contracts for credit life insurance and term life insurance other than convertible and renewable term life contracts;
against risks of the persons insured —
sustaining injury as the result of an accident or of an accident of a specified class;
dying as the result of an accident or of an accident of a specified class; or
becoming incapacitated in consequence of disease or diseases of a specified class,
whether by bonds, endowment certificates or otherwise whereby in return for one or more premiums paid to the insurer a sum or series of sums is to become payable to the person insured in the future, not being contracts falling within paragraph (a) or (b);
“margin of solvency” means the excess of the value of prescribed assets over prescribed liabilities;
“policyholder” means the person with whom an insurer has effected a contract of insurance;
“proceeds” means monies, benefits in kind and cash values payable under a contract of insurance or reinsurance and includes any assets acquired with the same;
“reinsurance business” means the business of accepting risks by effecting or carrying one or more contracts of reinsurance whether directly or indirectly, and includes running-off business including the settlement of claims;
“related business” in the context of section 4(3)(b) means business which will originate from the insurer’s members or the members of any group with which it is related through common ownership or a common risk management plan, or as determined by the Authority;
“Regulations” means Regulations made under this Law; and
“repealed Law” means the Insurance Law (2008 Revision).
For the purposes of this Law —
in determining whether a person is a fit and proper person, the Authority shall have regard to all circumstances, including that person’s —
honesty, integrity and reputation;
competence and capability; and
financial soundness; and
in determining whether a person (‘A’) controls another person (‘B’), the Authority shall have regard to whether one or more of the following are met —
‘A’, either directly or indirectly, holds ten per cent or more of the issued share capital in ‘B’;
‘A’ is entitled either directly or indirectly to exercise or control the exercise of ten per cent or more of the total voting rights in ‘B’;
‘A’ has the power to appoint or remove directors of ‘B’;
‘A’ is the most senior officer responsible for the operations of ‘B’; and
‘A’ is a person on whose instructions or directions the directors of ‘B’ either directly or indirectly are accustomed to act.

Defined Terms

actuaryauditorAuthoritybinding authoritybeneficiaryclass A insurerclass B insurerclass B (i) insurerclass B (ii) insurerclass B (iii) insurerclass C insurerclass D insurercontractcourtdomestic businessexternal insurerfinancial yeargeneral businessgeneral insurerinsurance agentinsurance brokerinsurance businessinsurance groupinsurance managerinsurerlicencelicenseelinked policieslocal insurerlong term insurerlong term businessmargin of solvencypolicyholderproceedsreinsurance businessrelated businessRegulationsrepealed Law

Cross References

Referenced By