s.4Licences
4
Section 4Part 2 — LICENSING

Licences

←→ Navigate  ·  Click subsection badges to collapse  ·  Press ? for help

A person desiring to carry on —
insurance business;
reinsurance business; or
business as an insurance agent, insurance broker or insurance manager, in or from within the Islands shall make an application in writing to the Authority for the grant of a licence under one or more of the categories set out in subsection (3).
An application under subsection (1) shall contain the information prescribed and shall be accompanied by —
a business plan containing the details prescribed; and
the prescribed application fee, and the Authority, if satisfied pursuant to subsection (5), may approve the application and business plan and grant a licence, subject to such conditions as determined by the Authority for the proper operation and supervision of the licensee.
Subject to subsection (4), the categories of licences which may be granted by the Authority are —
class A insurer licence, for carrying on of domestic insurance business by a local insurer or external insurer, or limited reinsurance business as approved by the Authority;
class B insurer licence, for the carrying on of insurance business other than domestic business in respect of which —
at least ninety-five per cent of the net premiums written will originate from the insurer’s related business;
over fifty per cent of the net premiums written will originate from the insurer’s related business; or
fifty per cent or less of the net premiums written will originate from the insurer’s related business;
class C insurer licence, for the carrying on of insurance business involving the provision of reinsurance arrangements in respect of which the insurance obligations of the class C insurer are limited in recourse to and collateralised by the class C insurer’s funding sources or the proceeds of such funding sources which include the issuance of bonds or other instruments, contracts for differences and such other funding mechanisms approved by the Authority;
class D insurer licence, for the carrying on of reinsurance business and such other business as may be approved in respect of any individual licence by the Authority;
insurance agent licence for the soliciting of domestic business on behalf of not more than one general insurer and one long term insurer;
insurance broker licence for arranging or procuring, directly or through representatives, insurance or reinsurance contracts or the continuance of such contracts on behalf of existing or prospective policyholders; and
insurance manager licence for providing insurance expertise to or for class B insurers or class C insurers.
A licensee shall be subject to the following conditions —
an insurance broker shall not hold any other licence under this Law except an insurance manager licence;
an insurer that is not a class D insurer and not a class B insurer incorporated as a segregated portfolio company under Part XIV of the Companies Law (2010 Revision) must be separately licensed for long term business and for general business;
only a person incorporated under the Companies Law (2010 Revision) and that has a minimum of two directors may be licensed as an insurance broker, insurance manager, a class A insurer that is a local insurer or a class D insurer;
an insurance manager who also carries on business as either an insurance broker or an insurance agent is required to be separately licensed in respect of each such activity;
an insurance agent who acts on behalf of more than one long term and one general insurer is to be taken for the purposes of this Law to be acting as an insurance broker;
only a person incorporated as an exempted company under the Companies Law (2010 Revision) and that has at least two directors may be licensed as a class B insurer or a class C insurer;
a class B insurer may carry on domestic business where such business forms less than five per cent of net premiums written or where the Authority has otherwise granted prior approval which may be reviewed by the Authority at such intervals as the Authority considers appropriate; and
an employee of an insurer does not require an insurance agent licence to solicit of domestic business on behalf of the insurer.
The Authority shall not grant a licence unless it is satisfied that —
the business to which the application relates would be carried on by persons who are fit and proper persons to be directors, managers or officers in their respective positions;
the applicant will be able to comply with the requirements of this Law and the Regulations and with the Money Laundering Regulations (2009 Revision);
it will not be against the public interest;
the applicant has personnel with the necessary skills, knowledge and experience and such facilities and such books and records as the Authority considers appropriate, having regard to the nature and scale of the business;
the structure of the applicant’s insurance group, if any, will not hinder effective supervision; and
the applicant’s capital complies with the prescribed level.
A licensee who is an insurance broker, an insurance manager, a class A insurer or a class D insurer shall have a place of business in the Islands.
The Authority shall cause notice of each licence granted under this section to be published in the Gazette.

Referenced By