Section 31Part 5 — MISCELLANEOUS
Portfolio transfer
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A transfer or amalgamation of the whole, or any part, of the long term business of any insurer to another insurer shall only be effected in accordance with the approval of the Authority.
An application for approval under subsection (1) shall be accompanied by —
a statement as to the solvency of the transferee;
a certified copy of the agreement under which the transfer is to be effected;
a report on the terms of the proposed transfer, prepared by a competent professional person approved by the Authority; and
satisfactory proof that sufficient notice of the proposed transfer has been served on each policyholder affected and that the notice has been published in local media at least thirty days before the application to the Authority is made.
The Authority may approve the proposed transfer as presented or subject to such terms and conditions as it sees fit, having regard to the rights and interests of all policyholders affected by the transfer and all the circumstances of the case.
The Authority may impose conditions on applicants under this section and in particular —
for the transfer from the transferor to the transferee of the whole or any part of the undertaking concerned and of any property or liabilities of the transferor concerned;
for the allotment or appropriation by the transferee of any shares, debentures, policies or other similar interests in the transferee which under the scheme are to be allotted or appropriated to or for any other person;
for the transfer of property or liabilities whether or not the transferor concerned otherwise has the capacity to effect the transfer in question;
in relation to property held by the transferor as trustee;
in relation to future or contingent rights or liabilities of the transferor; and
for securing the effective transfer to the transferee of any property or liabilities, that is the subject of the transfer, situated in or governed by the law of any jurisdiction outside of the Islands.
In this section —
includes duties;
includes property, rights and powers of any description;
means the insurer to whom the long term business of the transferor is transferred; and
means the insurers whose long term business is transferred under subsection (1).
Defined Terms
liabilitiespropertytransfereetransferor