Insurance Act, 2017 (Act No. 18 of 2017)

Chapter 4 : Licensing, Suspension and Withdrawal of Licence

Purchase

(1)	The Prudential Authority may withdraw a licence of an insurer or controlling company in full or in part, if it appears to the Prudential Authority, on the basis of available information, that—

(a)	an insurer or controlling company—

(i)	did not furnish all information which is material to an application for a licence;

(ii)	made a material misrepresentation to members of the public in connection with the insurance business carried on by it;

(iii)

obtained the licence by making false statements or by any other irregular means;

(iv)	fails to submit any plan, scheme or strategy required under this Act, or fails to comply with any approved plan, scheme or strategy, or submits a plan, scheme or strategy that is inadequate; or

(v)	subsequent to the suspension of its licence under section 27, fails to remedy the circumstances that informed the suspension to the satisfaction of the Prudential Authority within a reasonable period;

(b)	in the case of an insurer, the insurer—

(i)	notified the Prudential Authority of its intention to cease to enter into any new insurance policies;

(ii)	failed to commence with conducting insurance business within a period of 12 months after being licensed to do so;

(iii)

ceased to enter into insurance policies to an extent which does not justify its continued licensing as an insurer; or

(iv)	no longer conducts insurance business as a result of a transfer or transaction contemplated in section 50;

(c)	in the case of a branch of a foreign reinsurer, Lloyd’s underwriter or Lloyd’s, the circumstances referred to in section 48 justify the withdrawal; or

(d)	any proceedings referred to under Chapter 9 have been finalised.

(2)	An insurer or a person in control of the affairs of the insurer must notify the Prudential Authority in writing of the occurrence of a circumstance contemplated in subsection (1)(b)(ii) to (iv) or (d).

(3)	A controlling company or a person in control of the affairs of the controlling company must notify the Prudential Authority in writing of the occurrence of a circumstance contemplated in subsection (1)(d).

(4)

(a)	Prior to the withdrawal of a licence of an insurer, in the circumstances referred to under subsection (1) other than subsection (1)(b)(i), the Prudential Authority must direct the insurer—

(i)	not to dispose of or encumber any assets or liabilities, or incur any additional liability, without the approval of the Prudential Authority;

(ii)	not to enter into any new insurance policies from a date specified; and

(iii)

to make arrangements to the satisfaction of the Prudential Authority to—

(aa)	discharge its obligations under all insurance policies entered into before the date referred to in subparagraph (ii);

(bb)	ensure the orderly resolution of the business of the insurer; or

(cc)	transfer that insurance business to another insurer under section 50 by a specified date.

(b)	If an insurer fails to comply with a directive under paragraph (a), the Prudential Authority may initiate any proceedings under Chapter 9.

(5)

(a)	The Prudential Authority must publish a notice of withdrawal of the licence and the reasons therefor on the official website and in any other media that the Prudential Authority deems appropriate.

(b)	The withdrawal of a licence of an insurer or controlling company takes effect on the date specified in the notice referred to in paragraph (a).