Section 15Part 3 — OBLIGATIONS OF LICENSEES
Trust funds
←→ Navigate · Click subsection badges to collapse · Press ? for help
Except as otherwise approved by the Authority, an external insurer that carries out domestic business shall, at all times, place and maintain upon trust, with a person approved by the Authority, in a segregated account at a bank in the Islands which holds an “A” licence issued under the Banks and Trust Companies Law (2009 Revision), funds as approved by the Authority in respect of its —
general business; and
long term business.
Trust funds placed and maintained under subsection (1) shall be held under a trust deed approved by the Authority, which shall provide that —
the funds are exclusively to be used to discharge the external insurer’s obligations to policyholders, and for no other purpose; and
the funds are not to be made the subject of any charge, security interest, mortgage, trust, assignment, lien or other dealing,
and except with the written consent of the Authority, any distribution, dealing or undertaking entered into in contravention of paragraphs (a) or (b) shall be void.
An external insurer shall —
provide, within two months of the end of its financial year, a report to the Authority in the prescribed form confirming the placement or maintenance of the funds approved by the Authority under subsection (1); and
if the funds held in trust under subsection (1) fall below the prescribed level, notify the Authority of the fact within seven working days, together with its proposed remedial actions, for the approval of the Authority.
Cross References
- Section of Banks And Trust Companies Law
Banks and Trust Companies Law (2009 Revision)