THE OFFICIAL GAZETTE 15TH APRIL, 2016
LEGAL SUPPLEMENT — C
BILL No. 11 of 2016 Friday 15th April, 2016
PARLIAMENT OFFICE
Public Buildings,
Georgetown,
Guyana.
15th April, 2016.
The following Bill which will be introduced in the National Assembly is published for general information.
S.E. Isaacs,
Clerk of the National Assembly.
GUYANA
BILL No. 11 of 2016
INSURANCE BILL 2016
ARRANGEMENT OF SECTIONS
SECTION
PART I
PRELIMINARY
1. Short title and commencement.
2. Interpretation.
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3. Continuation under this Act for insurers.
4. Continuation under this Act for intermediaries.
5. The Bank of Guyana.
6. Objective of the Bank.
7. Functions of the Bank.
8. Powers of the Bank.
9. Control of entities.
10. Relationship to Companies Act.
11. Fit and proper criteria.
PART II
FINANCIAL PROVISIONS
12. Licensed insurers to be assessed to cover related expenses of Bank.
13. Definition of “direct written premium”.
14. Payment date.
15. Budget requirements.
16. Assessment obligation.
17. User fees.
18. Recovery of debt.
19. Annual report on insurance supervisory activities.
20. Other reports.
PART III
APPEAL BOARD
21. Appeals.
22. Filing of appeal.
23. Appeals Board.
24. Composition of Appeals Board.
25. Remuneration.
26. Grounds of appeal.
27. Decision of Board.
28. Copy of decision.
29. Further appeals.
30. Rules.
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PART IV
OFFENCES AND PENALTIES
31. Offences and penalties.
32. Sanctioning Policy.
33. Non-compliance.
34. Separate administrative penalties.
35. False information.
36. Incomplete, incorrect or false information.
37. Period of limitation for proceedings.
38. Penalties.
39. Judicial management or wind-up proceedings.
PART V
LICENSING OF INSURERS
40. Licence to conduct insurance business.
41. Reinsurer register.
42. Ratings.
43. Obtaining an insurer licence.
44. Qualifications for the grant of an insurer licence.
45. Documents in support of application.
46. Issue of licence.
47. Conditions or limitations of licence.
48. Notice of decision.
49. Classes of insurance business.
50. Changes in licence.
51. Amendment, suspension or revocation of licence.
52. Right of appeal.
53. Publication in Gazette.
54. Restriction on insurance business.
55. External insurers.
56. Main representative.
57. Removal or change in business address of main representative.
58. Interpretation.
PART VI
CORPORATE GOVERNANCE OF COMPANIES
59. General requirement for companies.
60. Composition of Boards of Directors.
61. Chairperson of the Board of Directors.
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62. Duty to appoint actuary.
63. Responsibilities of Boards of Directors.
64. Audit committees and their responsibilities.
65. Appointment of other committees.
66. Duty of skill and care of directors and officers.
67. Articles of association and internal documents.
68. Indemnification of directors, etc.
69. Examination by directors.
PART VII
BUSINESS POWERS OF INSURERS
70. Business powers generally.
71. Approval to carry on ancillary activities.
72. Ancillary activities for life insurers.
73. Ancillary activities for general insurers.
74. Limit of ancillary activities.
75. Issuing unit-linked products.
76. Application to debts.
77. Prohibition on borrowing, pledging of assets, derivative investments of the insurer.
78. Temporary suspension.
79. Derivatives.
PART VIII
AUDITORS AND ACTUARIES OF INSURERS
80. Appointment of auditor.
81. Appointment of auditing firm as auditor.
82. Qualification of auditor.
83. Registry of Auditors.
84. Notification of appointment.
85. Termination and replacement of auditor.
86. Cessation of office.
87. Dispensing with auditor.
88. Revocation of appointment.
89. Filling auditor vacancy.
90. Term of office.
91. Examinations by auditor.
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92. Audit standards.
93. Right to inspect.
94. Powers of Bank.
95. Auditor’s duty.
96. Privilege of auditor.
97. Appointment of actuary.
98. Qualifications of actuary.
99. Registry of Actuaries.
100. Prohibited appointments.
101. Notification of appointment.
102. Insurer to notify Bank where actuary not qualified.
103. Cessation of duty.
104. Dispensing with actuary.
105. Revocation of appointment.
106. Filling actuary vacancy .
107. Term of office.
108. Valuations by actuary.
109. Actuarial standards.
110. Actuary’s duty.
111. Right to inspect.
112. Privilege of actuary.
PART IX
REGULATORY REPORTING, EXAMINATIONS
AND CAPITAL FOR INSURERS
113. Annual financial statements.
114. Particulars of annual financial statements.
115. Annual financial statements to be made by insurer.
116. Consolidated financial statements.
117. Publication of annual financial statements.
118. Summary of annual financial statements.
119. Form and content of Annual Supervisory Filing.
120. Annual supervisory filing and other returns.
121. Auditor’s report.
122. Valuation of technical provisions.
123. Insurer’s report.
124. Insurer’s Quarterly Supervisory Filings.
125. Summary of statutory fund position.
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126. Power to intervene.
127. Power of Bank to request reports.
128. Onsite inspection.
129. Minimum capital.
130. Minimum solvency.
131. Power to increase solvency requirement.
PART X
FUNDAMENTAL CHANGES IN RESPECT OF INSURERS
132. Non-transferral of policies.
133. Publication of request to transfer.
134. Requirements for approval of transfer.
135. Changes in control.
136. Requirements for approval of change.
137. Notice to Bank.
138. Mergers.
139. Publication of merger request.
140. Requirements for approval of merger.
PART XI
CHANGES OF KEY PERSONNEL
141. Officers.
142. Notice to Bank.
PART XII
MARKET CONDUCT OF INSURERS
143. Responsibility of insurers regarding agents and brokers.
144. Liability of insurer.
145. Duty of insurers.
146. Insurer to file names and addresses with Bank.
147. Unlicensed intermediaries.
148. Responsibility of insurer regarding other insurers.
149. Improper statements re-financial standing.
150. Policy and related material.
151. Policies to be written in English.
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152. Exemption.
153. Compliance.
154. Misleading, false or deceptive statements.
155. Prohibition.
156. Advertisements.
157. Consumer compensation.
PART XIII
CONSUMER PROTECTION
158. Dealing with complaints.
159. Investigation by insurer.
160. Investigation by Bank.
161. Legal recourse.
162. Arbitration Board.
163. Composition of Board.
164. Ruling of Board.
165. Appeals.
166. Remuneration.
167. Assessment of costs.
168. Frivolous or vexatious disputes.
169. Rules of Board.
170. Power to make information public.
PART XIV
STATUTORY FUND
171. Establish fund.
172. Assets of fund.
PART XV
STATUTORY INTERVENTION
173. Power of intervention.
174. Conditions for intervention.
175. Notice of intervention.
176. Representation by insurer.
177. Legal undertaking.
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178. Emergency situations.
179. Exercise of intervention power.
180. Variation of requirements.
181. Control of assets.
182. Urgent concerns.
183. Hearing by Governor.
184. Costs.
PART XVI
JUDICIAL MANAGEMENT AND WINDING UP
185. Appointment of judicial manager or liquidator.
186. Judicial management petition.
187. Presentation of petition.
188. Stay of actions.
189. Order for judicial management.
190. Cancellation of order.
191. Report to Court by judicial manager.
192. Acceptance of judicial manager report.
193. Security for costs.
194. Immunity.
195. Winding-up.
196. Petition for wind-up.
197. Valuation of policy.
198. Notice by liquidator.
199. Ranking of claims.
200. Ranking of transferred policies and unit-linked products.
PART XVII
REGULATION OF INSURANCE AGENTS AND BROKERS
201. Requirement that agents be licensed.
202. Requirement that brokers be licensed.
203. Cease and desist order.
204. Obtaining a licence as an agent or broker.
205. Qualification of individuals for licences as agents or brokers.
206. Qualification of companies.
207. Indemnity insurance.
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208. Application for licence.
209. Issue of licence.
210. Restrictions.
211. Continuation under this Act.
212. Term of licence.
213. Acting without a licence.
214. Renewal of agent and broker licences.
215. Suspension or revocation of agent and broker licences.
216. Hearing and appeal processes on licensing decisions.
217. Decision of Appeal Board.
218. Interim order.
219. Hearing of appeal.
220. Single principal of licensed agents.
221. Exemptions.
222. Confirmation of cover by licensed brokers.
223. Certificate of coverage.
224. Trust accounts.
225. Long term insurance funds.
226. Other obligations of licensed brokers.
227. Delays.
228. Unlicensed insurers.
229. Liability.
230. Fit and proper requirements.
231. Notification of non-compliance.
232. Placing of insurance outside of Guyana.
233. Special broker’s licence.
234. Retention of documents.
235. Obligations of agents and brokers.
236. Premiums.
237. Production of accounts.
238. Long term insurance premiums.
239. Guidelines.
240. Duties of intermediaries.
241. Independence.
242. Production of licence.
243. Bank powers in relation to agents and brokers.
244. Examination under oath.
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PART XVIII
REGULATION MAKING AUTHORITY
245. Regulations.
PART XIX
MISCELLANEOUS PROVISIONS
246. Creditors offering insurance relating to debt or collateral.
247. Accident surveyors and damage assessors.
248. List of experts.
249. Confidentiality of information.
250. Co-operation with other agencies.
251. Protection of Bank, employees and agents.
252. Right of access to records.
253. Production of documents.
254. Extended audits.
255. Special audit.
256. Special actuarial valuations.
257. Charging certain expenses to insurers.
258. Fees.
259. Forms.
260. Mutual insurance companies.
261. Composite insurance companies.
262. Repeal and savings.
SCHEDULE 1
Sanctioning Policy of the Bank – Guidelines
SCHEDULE 2
Types and Classes of Insurance Business
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