INSURANCE INDUSTRY: SUBSIDIARY LEGISLATION
INDEX TO SUBSIDIARY LEGISLATION
Exemption of Insurance Companies Order
Insurance (Exemption) Regulations
Insurance Industry Regulations
INSURANCE (EXEMPTION) REGULATIONS
(section 72)
(8th April, 1988)
ARRANGEMENT OF REGULATIONS
REGULATION
1. Citation
2. Exemption of Guaranteed Loans Insurance Fund
S.I. 42, 1988.
These Regulations may be cited as the Insurance (Exemption) Regulations.
2. Exemption of Guaranteed Loans Insurance Fund
The Guaranteed Loans Insurance Fund established by the Guaranteed Loans Insurance Fund Order, 1988 (S.I. 43 of 1988 (Sub. Leg.)), is hereby exempted from all the provisions of the Insurance Act* (Cap. 46:01).
*Insurance Industry Act repealed and replaced by Insurance Industry Act 10 of 2015.
EXEMPTION OF INSURANCE COMPANIES ORDER
(section 110)
(15th June, 2001)
ARRANGEMENT OF PARAGRAPHS
PARAGRAPH
1. Citation
2. Exemption of insurance companies
S.I. 24, 2001.
This Order may be cited as the Exemption of Insurance Companies Order.
2. Exemption of insurance companies
Insurance companies are hereby exempted from the provisions of section 77(1)(ii) of the Act*.
*Insurance Industry Act repealed and replaced by Insurance Industry Act 10 of 2015.
INSURANCE INDUSTRY REGULATIONS
(section 112)
(17th May, 2019)
ARRANGEMENT OF REGULATIONS
REGULATION
PART I
Preliminary
1. Citation
2. Interpretation
PART II
Capital Requirements
3. Minimum capital target for long term insurers and reinsurers
4. Minimum capital target for general insurers
5. Minimum capital requirements for insurance brokers and agents
6. Minimum solvency ratio for insurers
PART III
Provisions Concerning Assets
7. Assets to be held by general insurers
8. Assets to be held by long term insurers
9. Derivatives
PART IV
Licensing of Insurers
10. Application for licence
11. Application for renewal of licence
12. Restriction on business
13. Advertisement
PART V
Insurance Brokers and Insurance Agents
14. Application for licence to provide services as insurance broker of insurance agent
15. Renewal of licence
PART VI
Returns for Insurers
16. Annual returns for insurers
17. Quarterly returns for insurers
18. Annual returns for insurance brokers and insurance agents
19. Quarterly returns for insurance brokers and insurance agents
20. Submissions for transferee or amalgamated insurer
PART VII
Manner of Carrying on Insurance Business
21. Notifications to Regulatory Authority
22. Preservation of records
23. Restriction on controllers and principal officers
24. Professional indemnity and insurance requirements
25. Security guarantee or deposit
26. Setting up of trust account
27. Remittance of premiums by insurance broker
PART VIII
Intermediary Services
28. Agreements with persons rendering services as intermediaries
PART IX
Underwriting Associations
29. Licensing of underwriting association
30. Minimum capital target for association of underwriters
31. Minimum solvency ratio for association of underwriters
32. Classes of business to be transacted
33. Appointment of principal officer of underwriting association
34. Trust account held by principal officer of underwriting association
35. Annual returns for trust accounts of underwriting associations
36. Duties of principal officer of underwriting association
37. Claims by or against underwriting association
38. Payment of certain claims
39. Changes in financial year
PART X
Miscellaneous Provisions
40. Overall assets
41. Approval required for transfer or amalgamation
42. Requirements for transfer or amalgamation
43. Failure to pay premiums for general insurance policy
44. Failure to pay premiums for long term policy
45. Insurance to be held with Botswana insurers
46. Approval of valuator or approved person
47. Limitation on control
48. Annual investigation
49. Exemptions
50. Copies of annual returns
51. Revocation of SI. No. 124 of 1992
SCHEDULES
S.I. 57, 2019.
PART I
Preliminary
These Regulations may be cited as the Insurance Industry Regulations.
In these Regulations, unless the context otherwise requires—
"accounts" in relation to an insurer, insurance broker or insurance agent, means audited financial statements and statutory returns prepared in accordance with the requirements of these Regulations;
"advertisement" includes every form of advertising, whether in a publication, by the display of notices, by means of circulars or other documents, by an exhibition of photographs, cinematograph films, by way of sound broadcasting, television or any other electronic media;
"advice" means any recommendation, guidance or proposal of a financial nature furnished, by any means or medium, to any client or group of clients on the procedure for entering into or renewing an insurance policy or on the variation of any term or condition applying to an insurance product, on the replacement of any such product, or on the termination of any purchase of any such product, but does not include factual advice given—
(a) on the procedure for entering into a transaction in respect of any insurance product;
(b) in relation to the description of an insurance product;
(c) in answer to routine administrative queries;
(d) in the form of objective information about a particular insurer; or
(e) by the display or distribution of promotional material;
"financial year" means each period of 12 months at the end of which the annual financial statements are prepared and includes any lesser or greater periods as the Regulatory Authority may approve;
"intermediary" means a person who facilitates the conduct of insurance business between a client and an insurer;
"principal officer of underwriting association" means a person appointed in terms of regulation 33 and includes a principal officer while acting as the underwriting association liaison in terms of that regulation; and
"underwriting association" or "association of underwriters" means the association comprised of underwriters which exist to provide specialised high risk insurance to the general public.
PART II
Capital Requirements of Insurers
3. Minimum capital target for long term insurers and reinsurers
A long term insurer and reinsurer shall maintain a minimum capital target which shall be the higher of—
(a) P10 million; or
(b) an amount representing 25 per cent of operating expenses as defined and reported in the annual return, estimated for the following year.
4. Minimum capital target for general insurers
A general insurer shall maintain a minimum capital target which shall be the higher of—
(a) P5 million; or
(b) an amount representing 25 per cent of operating expenses as defined and reported in the annual return, estimated for the following year.
5. Minimum capital requirements for insurance brokers and agents
(1) An insurance broker shall maintain a minimum capital which shall be the higher of—
(a) P100 000;
(b) 4 per cent of an amount representing the annual income from rendering services as an intermediary; or
(c) 25 per cent of an amount representing expenses reported in the income statement of the annual return or part thereof if projections are for a shorter period.
(2) An insurance agent shall maintain a minimum capital which shall be the higher of—
(a) P30 000;
(b) 4 per cent of an amount representing the annual income from rendering services as an intermediary; or
(c) 25 per cent of an amount representing expenses reported in the income statement of the annual return or part thereof if projections are for a shorter period.
(3) Where the minimum required capital is defined as the excess of allowed assets over liabilities as per the audited annual financial statements, allowed assets shall exclude—
(a) investments in own shares;
(b) intangible assets;
(c) debts outstanding for more than 90 days; and
(d) prepaid expenses.
6. Minimum solvency ratio for insurers
An insurer shall maintain a minimum solvency ratio as prescribed in the Administrative Rules.
PART III
Provisions Concerning Assets
7. Assets to be held by general insurers
A general insurer may hold assets as set out in Schedule 1 to the extent defined therein.
8. Assets to be held by long term insurers
A long term insurer may hold assets as set out in Schedule 2 to the extent defined therein.
An insurer shall not invest in derivative instruments except under the following conditions—
(a) derivatives designated as an asset in respect of a linked policy in respect of long term insurance business;
(b) derivatives acquired out of or in respect of assets that are in excess of the assets required to meet the insurer’s liabilities under insurance policies and capital adequacy requirement in terms of section 28(1) of the Act and for the purpose of efficient portfolio management; or
(c) for the purpose of reducing investment risk:
Provided that—
(i) in respect of paragraphs (a), (b) and (c), the insurer will, or reasonably expects to have the asset at the settlement date of the derivative instrument which matches the obligations under the instrument and from which it can discharge those obligations, or
(ii) for a long term insurer the valuator has in writing agreed thereto.
PART IV
Licensing of Insurers
(1) An application for a licence to carry on business of insurance in terms of section 7 of the Act shall be made to the Regulatory Authority in Form 1 set out in Schedule 3.
(2) Where the application meets all the requirements, the Regulatory Authority shall on payment of a fee set out in Schedule 4, issue the applicant with an insurance licence in Form 2 set out in Schedule 3.
11. Application for renewal of licence
(1) An application for renewal of an insurer licence shall be made to the Regulatory Authority in Form 3 set out in Schedule 3 and shall be accompanied by a renewal fee set out in Schedule 4.
(2) Where the application meets the requirements, the Regulatory Authority shall renew the licence.
(1) An insurer shall provide the Regulatory Authority with particulars of a new insurance product together with the product brochure or other sales literature and specimen policy relating to that product and any other supporting information as the Regulatory Authority may specify.
(2) The Regulatory Authority may require the insurer to submit additional documentation on a new product for its consideration, including—
(a) a report from a valuator of a long term insurer on the suitability of the policy terms and premium rates for the time being chargeable by the insurer for the long term insurance policy;
(b) a report from the insurer or suitable expert on the suitability of the policy terms and premium rates for the time being chargeable by the insurer for a general insurance policy; or
(c) any other documentation as the Regulatory Authority considers necessary.
(3) The Regulatory Authority may, where it appears that an insurance product is not appropriate for any reason—
(a) prohibit the insurer from offering the product to the public; or
(b) require the insurer to make such changes to the product as the Regulatory Authority may specify.
(4) No action shall lie against the Regulatory Authority or any member of the Regulatory Authority for any damage or loss suffered as a result of compliance with this regulation.
Where any advertisement, brochure or similar document which relates to the business of a licensee or to an insurance policy and which is being, or is to be published by a person is misleading or contrary to public interest or contains an incorrect statement of fact, the Regulatory Authority may by notice, direct that person not to publish it or to effect the changes that the Regulatory Authority considers fit.
PART V
Insurance Brokers and Insurance Agents
14. Application for licence to provide services as insurance broker or insurance agent
(1) A person who wishes to render services as an insurance broker or insurance agent shall make an application to the Regulatory Authority in Form 4 set out in Schedule 3.
(2) Where the Regulatory Authority is satisfied that the applicant meets all the requirements, the Regulatory Authority shall, on payment of a fee set out in Schedule 4, where—
(a) the application is in relation to an insurance broker, issue the applicant with a licence to render services as an insurance broker in Form 5 set out in Schedule 3; or
(b) the application is in relation to an insurance agent, issue the applicant with a licence to render services as an insurance agent in Form 6 set out in Schedule 3.
(3) A licence issued to an insurance broker or insurance agent shall be valid for a period of 12 months.
(1) An application to renew an insurance broker’s or insurance agents’ licence shall be made to the Regulatory Authority in Form 7 set out in Schedule 3.
(2) Where the application meets the requirements, the Regulatory Authority shall, on payment of a fee set out in Schedule 4, renew the licence to render services as an insurance broker or insurance agent.
PART VI
Returns for insurers
16. Annual returns for insurers
(1) An insurer shall, within four months after the end of its financial year, furnish the following returns to the Regulatory Authority—
(a) audited financial statements prepared by the company according to recognised international standards;
(b) financial condition report; and
(c) complaints report in Form 8 set out in Schedule 3.
(2) A long term insurer shall in addition to the reports required under subregulation (1), furnish to the Regulatory Authority—
(a) annual statutory returns in the form prescribed in the Administrative Rules; and
(b) a valuator’s report.
(3) A general insurer shall in addition to the reports required under subregulation (1), furnish to the Regulatory Authority—
(a) annual statutory returns in the form prescribed in the Administrative Rules; and
(b) approved person’s report, where applicable.
17. Quarterly returns for insurers
An insurer shall, within 30 days after the end of the quarter furnish to the Regulatory Authority, the following returns—
(a) quarterly statutory returns for general insurance in the form prescribed in the Administrative Rules;
(b) quarterly statutory returns for long term insurance in the form prescribed in the Administrative Rules;
(c) complaints report in Form 8 set out in Schedule 3; and
(d) register of representatives in Form 9 set out in Schedule 3.
18. Annual returns for insurance brokers and insurance agents
An insurance broker or insurance agent shall, within four months after the end of its financial year furnish to the Regulatory Authority—
(a) audited financial statements;
(b) annual statutory returns for the insurance broker or insurance agent in the form prescribed in the Administrative Rules.;
(c) compliance report in Form 10 set out in Schedule 3; and
(d) complaints report in Form 8 set out in Schedule 3.
19. Quarterly returns for insurance brokers and insurance agents
An insurance broker or insurance agent shall, within 30 days after the end of each quarter furnish to the Regulatory Authority—
(a) quarterly statutory returns of an insurance broker or insurance agent in the form prescribed in the Administrative Rules;
(b) complaints report in Form 8 set out in Schedule 3; and
(c) register of representatives in Form 9 set out in Schedule 3.
20. Submissions for transferee or amalgamated insurer
The transferee or amalgamated insurer shall within 90 days of the publication of a notice of approval of the transfer or amalgamation, as the case maybe, lodge with the Regulatory Authority—
(a) financial statements prepared in accordance with the international financial reporting standards;
(b) a declaration under the hand of each person who was, immediately prior to the date of publication of notice of approval of the transfer or amalgamation, a chairperson of the insurer that was a party to the transfer or amalgamation, stating that—
(i) to the best of his or her belief, every payment made or to be made to any person on account of the transfer or amalgamation is fully specified in the declaration and that no other payments have been or are made either in cash, policies, bonds valuable securities or other property, by or with the knowledge of the parties to the transfer or amalgamation, and
(ii) the requirements of the Act and these Regulations have been complied with; and
(c) any other report or document as the Regulatory Authority may require.
PART VII
Manner of carrying on insurance business
21. Notifications to Regulatory Authority
(1) An insurer, insurance broker or insurance agent shall notify the Regulatory Authority in writing of every appointment, termination or resignation of a—
(a) shareholder;
(b) controller;
(c) manager;
(d) director; or
(e) managing executive,
within 14 days after such appointment, termination or resignation together with the reasons for any such termination or resignation.
(2) An insurer shall notify the Regulatory Authority of any breach of financial services law by an insurance broker and insurance agents consistent with the insurance business undertaken as a consequence of agency agreements as entered into with that insurer.
(3) An insurer, insurance broker or insurance agent shall notify the Regulatory Authority in writing of any changes in the address of its principal office at least 14 days prior to the change.
(4) An insurer, insurance broker or insurance agent shall notify the Regulatory Authority in writing of any proposed changes of its financial year prior to effecting such change.
An insurer, insurance broker or insurance agent shall keep records in hard copy and electronic form for a minimum period of seven years either after maturity, cancellation or realisation of an insurance policy or after the date of loss under such policy as the case may be.
23. Restriction on controllers and principal officers
An insurer, insurance broker or insurance agent shall not employ as its controller or principal officer any person who—
(a) has been adjudged an undischarged bankrupt in any country;
(b) has made an assignment or arrangement or composition with creditors which has not been rescinded or set aside;
(c) has been convicted by any court in any country of an offence involving dishonesty or of an offence in terms of this Act, for which the applicant was imprisoned without an option of a fine; or
(d) is in the opinion of the Regulatory Authority, an unfit person to hold the office.
24. Professional indemnity insurance requirements
(1) An insurance broker or insurance agent shall have and maintain a professional indemnity insurance policy, where limit of indemnity for a single claim is set at an appropriate level given the level of the sum insured for policies where services are rendered, subject to a minimum limit of P1 000 000 for insurance brokers and P500 000 for insurance agents.
(2) An insurance broker or insurance agent shall submit, to the Regulatory Authority, the professional indemnity insurance cover note and any other supporting information as the Regulatory Authority may specify.
(3) Where it appears to the Regulatory Authority that the level of professional indemnity cover is not appropriate for any reason, the Regulatory Authority may require the insurance broker or insurance agent to make such changes to the terms and conditions and level of cover as the Regulatory Authority may specify.
25. Security guarantee or deposit
(1) An insurance broker who is authorised to receive, hold or in any other way, deal with premiums on behalf of an insurer shall hold minimum security of P100 000 by means of—
(a) a guarantee policy issued by a general insurer for the purposes of providing such security; or
(b) a contract, which, but for the fact that the undertaking concerned is given by a bank, would be a guarantee policy and under which policy benefits are to be provided in the event of failure of that person to meet those obligations.
(2) The security referred to in subregulation (1) shall be the greater of P100 000 or an amount equal to 30 per cent of the total premiums actually received, held or in any other manner dealt with by that person in the previous financial year.
(3) The application and use of the security deposit shall be as prescribed in the Administrative Rules by the Regulatory Authority.
26. Setting up of trust account
An insurance broker shall ensure that a trust account required to be kept in accordance with section 83 of the Act—
(a) is not to be changed in any way without prior approval of the Regulatory Authority;
(b) has more than one signatory; and
(c) is used exclusively for the purpose of collection of premiums and remittance of the premiums to the insurer.
27. Remittance of premiums by insurance broker
An insurance broker who is authorised to receive premiums on behalf of an insurer shall remit the premiums—
(a) if the policy is incepted, renewed or endorsed on or before the 15th day of the calendar month, on the last day of the same calendar month; or
(b) if the policy is incepted, renewed or endorsed after the 15th day of the calendar month, on the last day of the next calendar month.
PART VIII
Intermediary services
28. Agreements with persons rendering services as intermediaries
(1) A principal in an intermediary agreement shall, furnish the person rendering services as an intermediary in relation to policies underwritten by the insurer with a written agreement setting out the terms and conditions of the services offered by the intermediary.
(2) A person shall not render services as an intermediary otherwise than under the terms of the agreement referred to in subregulation (1).
(3) The agreement referred to in subregulation (1) shall contain in addition to any other terms and conditions, a term setting out—
(a) the kinds of policies which may be entered into;
(b) the premiums or the basis for the calculation of premiums to be charged in terms of those policies;
(c) the wording of the policies;
(d) the maximum value of the policy benefits which may be undertaken to be provided under each kind of policy, where relevant;
(e) if the intermediary is empowered to settle or pay claims under any such policies, setting out the scope of the intermediary’s powers to settle or pay claims and the circumstances under which it may be done;
(f) if the intermediary is by virtue of the agreement entitled to any remuneration other than by commission only and setting out the basis on which the intermediary is remunerated for services rendered in terms of such agreement; and
(g) requiring that such intermediary shall, prior to entering into an insurance policy on behalf of the insurer concerned, disclose to the prospective policyholder the name of the insurer or underwriting association and the fact that the intermediary is acting in terms of the agreement.
(4) An insurance policy shall not be void merely because of failure of the person rendering services as an intermediary to act in accordance with the agreement referred to in subregulation (1).
(5) The insurer shall notify the Regulatory Authority of the appointment or termination of the appointment of the person rendering services as an intermediary within 30 days of the date of appointment or termination.
(6) For purposes of this regulation, "intermediary" includes an insurance broker, insurance agent, a representative and any other person providing intermediary services.
PART IX
Underwriting Associations
29. Licensing of underwriting association
(1) A person shall not perform any act as an underwriting association in Botswana without a licence issued under these Regulations.
(2) An application for licensing as an underwriting association shall be made to the Regulatory Authority in Form 11 set out in Schedule 3 and shall be accompanied by—
(a) proof in writing that the applicant has been permitted by or on behalf of the underwriting association to act in Botswana as an underwriting association;
(b) a document signed by the underwriting association concerned containing the terms and conditions in terms of which the principal officer is authorised to act on behalf of the underwriting association;
(c) a letter of comfort from the underwriting association that it shall meet claims against members of the underwriting association at all times should they fail to meet their obligations;
(d) a letter of good standing from the underwriting association’s host country supervisor;
(e) an application fee set out in Schedule 4; and
(f) such other documents and information as the Regulatory Authority may require in the particular case.
(3) The underwriting association shall register a local entity in accordance with the Companies Act (Cap. 42:01).
(4) Where the application meets the requirements of this regulation, the Regulatory Authority shall on such conditions as it shall determine, issue the applicant with a licence to operate as an underwriting association in Form 12 set out in Schedule 3.
(5) An application to renew a licence to operate as an underwriting association shall be made to the Regulatory Authority in Form 13 set out in Schedule 3 and shall be accompanied by a renewal fee set out in Schedule 4.
(6) An underwriting association shall notify the Regulatory Authority in writing of both the physical and postal addresses of its office in Botswana, telephone numbers, email address, facsimile number and of any change in such particulars.
(7) Where a process in any legal proceedings against an underwriting association is required to be served on the underwriting association, such process may be served by delivering a copy thereof at the address referred to in subregulation (6).
30. Minimum capital target for association of underwriters
An association of underwriters shall maintain a minimum capital target which is the higher of—
(a) P20 million; or
(b) an amount representing 25 per cent of operating expenses as defined and reported in the annual return, estimated for the following year.
31. Minimum solvency ratio for association of underwriters
An association of underwriters shall maintain a minimum solvency ratio as prescribed in the Administrative Rules.
32. Classes of business to be transacted
An underwriting association shall transact insurance business in terms of Schedule 1 or 2 of the Act or in terms of both Schedule 1 and Schedule 2 where the underwriting association undertakes general insurance business and long term insurance business and may transact any other insurance business as may be approved by the Regulatory Authority.
33. Appointment of principal officer of underwriting association
(1) The underwriting association shall appoint, as principal officer, a natural person resident in Botswana who has authority to act in Botswana as the liaison of the underwriting association.
(2) The underwriting association shall appoint another person to act in Botswana as a liaison of the underwriting association in the event of the principal officer of the underwriting association not being able to act as liaison and the person so appointed shall have the authority to act as principal officer of the underwriting association.
(3) The underwriting association shall be bound by the decisions of the liaison officer appointed under subregulation (1) and (2).
(4) The appointment of the principal officer of the underwriting association shall not take effect unless the underwriting association has, subject to such conditions as may be determined by the Regulatory Authority, deposited with Bank of Botswana or a commercial bank registered in Botswana, an amount set out in Schedule 4 as security.
(5) The underwriting association shall submit details of the principal officer that will manage the day-to-day operations of the underwriting association as well as the other person appointed to act where principal officer is unable to.
(6) A person shall not be appointed as a principal officer of the underwriting association unless he or she satisfies the fit and proper requirements as prescribed in the Administrative Rules.
(7) The principal officer of the underwriting association shall notify the Regulatory Authority in writing within 14 days of—
(a) commencement of duty as principal officer, of his or her full names and address and the address of the underwriting association’s office in Botswana; and
(b) any change in such particulars.
34. Trust account held by principal officer of underwriting association Cap. 46:04
(1) The principal officer of an underwriting association shall open a trust account in the name of the underwriting association at a bank otherwise than provisionally in terms of the Banking Act.
(2) The principal officer of an underwriting association shall, not later than the last working day of each month, deposit in the trust account an amount equal to 70 per cent or such percentage as may from time to time be determined by the Minister by notice in the Gazette, of the premiums received by the underwriting association excluding—
(a) premiums refunded during the month in which such premiums were received; and
(b) commissions paid or payable in respect of such premiums.
(3) The principal officer of an underwriting association shall transfer a sum not less than 25 per cent to the reserve account and shall not transfer any amount from the reserve account without the approval of the Regulatory Authority.
(4) Any moneys standing to the credit of the trust account that are not required for immediate use may be invested in any asset specified in the Administrative Rules.
(5) Any document issued in respect of an investment made under subregulation (4) shall be held by the principal officer of the underwriting association who may realise any such asset.
(6) The principal officer of the underwriting association shall deposit moneys acquired by virtue of any investment or realisation in the trust account within 15 days from the date of receipt.
(7) The principal officer of the underwriting association may on the last working day of each month, withdraw from the trust account an amount equal to the amount deposited in the trust account during the same month of the preceding year, together with interest thereon.
35. Annual returns for trust accounts of underwriting associations
(1) The principal officer of an underwriting association shall prepare and submit to the Regulatory Authority, annually, within four months after the end of its financial year, an audited return in respect of the trust account as at the end of the last day of the last preceding year, in the form prescribed in the Administrative Rules.
(2) The principal officer of the underwriting association shall submit a certified copy of the return submitted to the Regulatory Authority in the home jurisdiction of the underwriting association, together with—
(a) financial condition report; and
(b) complaints report in Form 8 set out in Schedule 3.
(3) Notwithstanding subregulation (2), the principal officer of the underwriting association, shall if requested in writing by the Regulatory Authority, submit a return in respect of the trust account as at any other day as may be specified by the Regulatory Authority.
(4) The underwriting association shall submit to the Regulatory Authority any other document in relation to the trust account as maybe requested by the Regulatory Authority.
36. Duties of principal officer of underwriting association
The principal officer of an underwriting association shall—
(a) keep books and records in respect of all acts performed by the underwriting association;
(b) on a quarterly basis—
(i) submit to the Regulatory Authority a record of the premiums written and claims paid by class of business,
(ii) furnish the Regulatory Authority with a record of the market conduct of the players under the underwriter’s market including but not limited to cover holders and underwriting management agents, and
(iii) furnish the Regulatory Authority with a report of policyholders’ complaints handled; and
(c) on an annual basis, within four months after the end of its financial year, prepare and submit to the Regulatory Authority, a return, audited by an auditor, in respect of all acts performed by the underwriting association during the last preceding calendar year, including acts per formed by the principal officer.
37. Claims by or against underwriting association
(1) Any claim by or against an underwriting association arising from a policy entered into by virtue of an act performed by an or its principal officer shall be cognizable by any competent court in Botswana.
(2) In any action or other proceedings instituted in terms of subregulation (1), the principal officer of the underwriting association may be cited as the defendant or respondent as the case may be.
Any claim against an underwriting association arising from a policy entered into by virtue of an act performed by the principal officer of the underwriting association may be paid out of the moneys standing to the credit of the trust account or from any assets referred to in regulation 34 or from any amount due to the underwriting association in respect of any act performed by the principal officer of the underwriting association.
An association of underwriters shall notify the Regulatory Authority in writing of any proposed changes of its financial year prior to effecting such change.
PART X
Miscellaneous provisions
For purposes of sections 29 and 31(3)(b) of the Act, an insurer shall determine the value of its assets, net liabilities and prescribed capital target on a daily basis as prescribed in the Administrative Rules.
41. Approval required for transfer or amalgamation
An insurer who seeks approval of a scheme for the transfer or amalgamation in terms of section 41(2) of the Act shall make an application of its intention to transfer or amalgamate with another insurer at least 60 days before the proposed transfer or amalgamation date to the Regulatory Authority in Form 14 set out in Schedule 3.
42. Requirements for transfer or amalgamation
An insurer who seeks approval for transfer or amalgamation shall after approval of scheme for the transfer or amalgamation, make an application to the Regulatory Authority in Form 15 set out in Schedule 3.
43. Failure to pay premiums for general insurance policy
For the purposes of section 57(3) of the Act, the insurer shall notify the general insurance policyholder in writing by electronic mail or registered mail to the last known postal or electronic mail address so as to reach the policyholder at least 15 days prior to the lapse of the policy and the insurer shall confirm delivery.
44. Failure to pay premiums for long term insurance notify
(1) For the purposes of section 58(3) of the Act, the insurer shall the long term insurance policyholder in policy writing by electronic mail or registered mail to the last known electronic mail address or postal address so as to reach the policyholder at least 15 days prior to the lapse of the policy and the insurer shall confirm delivery.
(2) For the purposes of section 58(4) of the Act, the rate shall be the prevailing prime rate prorated monthly.
(3) For the purposes of section 58(6) of the Act, the insurer shall notify the long term policyholder in writing by electronic mail or registered mail to the last known electronic mail address or postal address so as to reach the policyholder at least 15 days prior to the lapse of the policy and the insurer shall confirm delivery.
45. Insurance to be held with Botswana insurers
For the purposes of section 101(3) of the Act, an insurance broker shall make an application to the Regulatory Authority in Form 16 set out in Schedule 3 and shall be accompanied by the documents referred to in the said Form prior to commencement of the policy cover.
46. Approval of valuator or approved person
For purposes of section 19 of the Act, an insurer shall apply to the Regulatory Authority for approval of valuator or approved person in Form 17 set out in Schedule 3.
(1) For the purposes of section 27(6)(b) of the Act, a controller of an insurer, insurance broker or insurance agent shall not vary the percentage of shareholding by more than five per cent without the prior approval of the Regulatory Authority.
(2) Notwithstanding subregulation (1), where the variation in the percentage of shareholding is less than 5 per cent but such variation would result in the controller becoming a majority shareholder, the controller shall not vary the shareholding without the prior approval of the Regulatory Authority.
For purposes of section 37 of the Act, the insurer shall be deemed to have conducted an annual investigation as to their financial soundness if they complete and submit to the Regulatory Authority—
(a) the financial condition report; and
(b) annual returns and audited financial statement.
(1) The Act shall not apply to any insurance fund created by the Government of Botswana as a special fund under the Public Finance Management Act (Cap. 54:01) or the Government of Botswana in respect of the collection and payment of insurance premiums governed by Part VIII of the Act.
(2) Sections 85, 86, 87 and 89 of the Act shall apply to representatives not giving advice.
Any person shall be entitled on payment of a fee set out in Schedule 4, to have a copy of an insurer or insurance broker or agent’s annual returns kept in terms of these Regulations.
51. Revocation of S.I. No. 124 of 1992
The Insurance Industry Regulations are hereby revoked.
SCHEDULE 1
Assets of General Insurers
(regulation 7)
|
Kind of Asset |
Description of Asset |
Maximum Admissible Percentage of Net Liabilities and prescribed capital target |
|
8.1 Cash |
Cash on hand in a currency which is legal tender in Botswana |
No limit |
|
8.2 Credit Balances |
Credit balance in a current or savings account with, or a deposit (including a negotiable deposit) accepted by, a banking institution or a building society or money market instruments in terms of which such banking institution or building society is liable, including the paid up shares of a building society or deposits in the Post Office Savings Bank |
|
|
|
(a) Per banking institution |
25% |
|
|
(b) Per building society |
20% |
|
|
(c) Other permitted deposit taking institutions as defined under the Banking Act |
20% |
|
8.3 Government Bonds |
Bills, bonds or securities to, guaranteed by or issued by the Government of Botswana or any statutory body or local authority in Botswana that is approved by the Regulatory Authority; |
|
|
|
(a) Government of Botswana |
No limit |
|
|
(b) Per local authority or regional council authorised by law to levy rates upon immovable property |
20% |
|
|
(c) Government infrastructure bonds |
20% |
|
|
(d) Development bank bonds |
20% |
|
|
(e) Other bonds issued by a body corporate established by a law of Botswana and approved by the Regulatory Authority |
20% |
|
|
|
|
|
8.4 Corporate Bonds |
Listed and unlisted bills, bonds or securities issued by a body corporate registered in Botswana (in aggregate) |
20% |
|
|
Provided that the investment in an individual institution shall be limited to |
5% |
|
8.5 Foreign Bonds |
Bills, bonds or securities issued by the government of or by a local authority in countries approved by the Regulatory Authority (in aggregate) |
20% |
|
|
Bonds or securities issued by institutions, in countries approved by the Regulatory Authority, other than the government or local authorities (in aggregate) |
20% |
|
|
Provided that the investment in an individual institution shall be limited to |
5% |
|
8.6 Property |
Immovable property, units in unit trust schemes in property shares, and shares in, loans to and debentures, both convertible and non-convertible, or property companies |
10% |
|
|
Provided that the investment in a single property or property development project shall be limited to |
5% |
|
8.7 Shares |
Ordinary shares in companies and related parties (but excluding shares in property companies and investment subsidiaries), convertible debentures, whether voluntarily or compulsorily convertible (but excluding such debentures of property companies), and units in collective investment schemes (but excluding units in collective investment schemes in property shares) held in respect of a general insurance business |
30% |
|
|
Provided that |
|
|
|
(a) Shares and convertible debentures in a single company or related party listed on the Botswana Stock Exchange, or listed on an exchange approved by the Regulatory Authority: |
2.5% |
|
|
(i) with a market capitalisation of P700 million or less shall be limited to |
5% |
|
|
(ii) with a market capitalisation of more than P700 million shall be limited to |
2.5% |
|
|
(b) Unlisted shares in Botswana companies shall be limited to; in aggregate |
20% |
|
|
Preference shares in companies and related parties (but excluding shares in property companies and investment subsidiaries) held in respect of a general insurance business shall be limited to Investment in preference shares issued by a single company |
2.5% |
|
8.8 Related Parties |
Loans to and non-convertible debentures of related parties |
5% |
|
8.9 Claims |
Claims secured by mortgage bonds on immovable property, debentures (listed and unlisted but excluding convertible debentures) or any other secured claims against natural persons. But excluding the following: |
25% |
|
|
(a) Loans or advances on the sole security of domestic policies under which an insurer is liable |
|
|
|
(b) Outstanding premiums (including premiums debited to insurance agents, insurance brokers or reinsurance brokers) in respect of domestic policies under which an insurer is liable |
|
|
|
(c) Loans to investment subsidiaries, related parties and loans to and debentures of property companies. |
|
|
|
Provided that |
|
|
|
(i) Claims against any one natural person shall be limited to |
0.25% |
|
|
(ii) Claims against any single company shall be limited to |
5% |
|
|
|
|
|
8.10 Equipment |
Computer equipment, furniture and other office machinery and motor vehicles used by an insurer in the course of its business in Botswana, shall be limited to |
|
|
|
(a) Computer equipment |
5% |
|
|
(b) Other equipment and motor vehicles |
2.5% |
|
8.11. Other Assets |
Any other assets from the following list may be held, but in total shall be limited to |
|
|
|
(a) Loans or advances on the sole security of domestic policies under which an insurer is liable |
2.5% |
|
|
(b) Outstanding premiums (including premiums debited to insurance agents, insurance brokers or reinsurance brokers) in respect of domestic policies under which an insurer is liable and which have been outstanding for less than 60 days since the date on which they became due and payable. |
|
|
|
(c) Any other secured claims against companies or other associations incorporated in Botswana or natural persons resident in Botswana |
|
|
|
(d) Other assets approved by the Regulatory Authority, subject to conditions determined by the Regulatory Authority. |
|
SCHEDULE 2
Assets of Long Term Insurers
(regulation 8)
|
Kind of Asset |
Description of Asset |
Maximum Admissible Percentage of Net Liabilities and prescribed capital target |
|
9.1 Cash |
Cash on hand in a currency which is legal tender in Botswana |
No limit |
|
9.2 Credit Balances |
Credit balance in a current or savings account with, or a deposit (including a negotiable deposit) accepted by, a banking institution or a building society or money market instruments in terms of which such banking institution or building society is liable, including the paid up shares of a building society or deposits in the Post Office Savings Bank |
|
|
|
(a) Per banking institution |
20% |
|
|
(b) Per building society |
20% |
|
|
(c) Other permitted deposit taking institutions as defined under the Banking Act |
20% |
|
9.3 Government Bonds |
Bills, bonds or securities to, guaranteed by or issued by the Government of Botswana or any statutory body or local authority in Botswana that is approved by the Regulatory Authority; |
|
|
|
(a) Government securities |
No limit |
|
|
(b) Local authorities or regional councils authorised by law to levy rates upon immovable property |
20% |
|
|
(c) Government infrastructure bonds |
20% |
|
|
(d) Development bank bonds |
20% |
|
|
(e) Other bonds issued by a body corporate established by a law of Botswana and approved by the Regulatory Authority |
20% |
|
9.4 Corporate Bonds |
Listed and unlisted bills, bonds or securities issued by a body corporate registered in Botswana (in aggregate) |
20% |
|
|
Provided that the investment in an individual institution shall be limited to |
5% |
|
9.5 Foreign Bonds |
Bills, bonds or securities issued by the government of or by a local authority in countries approved by the Regulatory Authority (in aggregate) |
20% |
|
|
Bonds or securities issued by institutions, in countries approved by the Regulatory Authority, other than the government or local authorities (in aggregate) |
20% |
|
|
Provided that the investment in an individual institution shall be limited to |
5% |
|
9.6 Property |
Immovable property, units in unit trust schemes in property shares, and shares in, loans to and debentures, both convertible and non-convertible, or property companies |
25% |
|
|
Provided that the investment in a single property or property development project shall be limited to |
5% |
|
9.7 Shares |
Preference and ordinary shares in companies and related parties (but excluding shares in property companies and investment subsidiaries), convertible debentures, whether voluntarily or compulsorily convertible (but excluding such debentures of property companies), and units in collective investment schemes (but excluding units in collective investment schemes in property shares) held in respect of a general insurance business |
60% |
|
|
Provided that |
|
|
|
(a) Shares and convertible debentures in a single company or related party listed on the Botswana Stock Exchange, or listed on an exchange approved by the Regulatory Authority: |
|
|
|
(i) with a market capitalisation of P700 million or less shall be limited to |
10% |
|
|
(ii) with a market capitalisation of more than P700 million shall be limited to |
15% |
|
|
(b) Unlisted shares in Botswana companies shall be limited to; in aggregate |
5% |
|
9.8 Related Parties |
Loans to and non-convertible debentures of related parties |
2.5% |
|
9.9 Claims |
Claims secured by mortgage bonds on immovable property, debentures (listed and unlisted but excluding convertible debentures) or any other secured claims against natural persons. But excluding the following: |
25% |
|
|
(a) Loans or advances on the sole security of domestic policies under which an insurer is liable |
|
|
|
(b) Outstanding premiums (including premiums debited to insurance agents, insurance brokers or reinsurance brokers) in respect of domestic policies under which an insurer is liable |
|
|
|
(c) Loans to investment subsidiaries, related parties and loans to and debentures of property companies. |
|
|
|
Provided that |
|
|
|
(i) Claims against any one natural person shall be limited to |
0.25% |
|
|
(ii) Claims against any single company shall be limited to |
5% |
|
9.10 Equipment |
Computer equipment, furniture and other office machinery and motor vehicles used by an insurer in the course of its business in Botswana, shall be limited to |
|
|
|
(a) Computer equipment |
5% |
|
|
(b) Other equipment and motor vehicles |
2.5% |
|
9.11. Other Assets |
Any other assets from the following list may be held, but in total shall be limited to |
2.5% |
|
|
(a) Loans or advances on the sole security of domestic policies under which an insurer is liable |
|
|
|
(b) Outstanding premiums (including premiums debited to insurance agents, insurance brokers or reinsurance brokers) in respect of domestic policies under which an insurer is liable and which have been outstanding for less than 60 days since the date on which they became due and payable. |
|
|
|
(c) Any other seemed claims against companies or other associations incorporated in Botswana or natural persons resident in Botswana |
|
|
|
(d) Other assets approved by the Regulatory Authority, subject to conditions determined by the Regulatory Authority. |
|
SCHEDULE 3
Form 1
Application for Licence to Operate as an Insurer
(regulation 10(1))
|
1. General Information |
|
Business Name |
|
1.1. State the full name of the public company, incorporated in Botswana, that is applying for a licence to operate as an insurer: |
|
………………………………………………………………………………………………… |
|
………………………………………………………………………………………………… |
|
Previous Name(s): |
|
………………………………………………………………………………………………… |
|
1.2. Date of registration under the Companies Act: |
|
………………………………………………………………………………………………… |
|
1.3. Furnish the company registration number: |
|
………………………………………………………………………………………………… |
|
1.4. State the proposed name of the applicant insurer, if the name is different from the name in 1.1 above: |
|
…………………………………………………………………………………………………… |
|
…………………………………………………………………………………………………… |
|
Head Office |
|
1.5. Provide details of the Head Office location: |
|
Building………………………………………………………………………………………. |
|
Road…………………………………………………………………………………………. |
|
Town…………………………………………………………………………………………. |
|
Country………………………………………………………………………………………. |
|
Postal Address……………………………………………………………………………… |
|
………………………………………………………………………………………………… |
|
………………………………………………………………………………………………… |
|
Telephone…………………………………………………………………………………….. |
|
Fax……………………………………………………………………………………………. |
|
Email………………………………………………………………………………………….. |
|
Principal Place of Business |
|
1.6. If different from Head Office, provide details of the insurer’s principal place of business: |
|
Building………………………………………………………………………………………… |
|
Road……………………………………………………………………………………………. |
|
Town……………………………………………………………………………………………. |
|
Country…………………………………………………………………………………………. |
|
Postal Address………………………………………………………………………………… |
|
…………………………………………………………………………………………………… |
|
…………………………………………………………………………………………………… |
|
Telephone………………………………………………………………………………………. |
|
Fax………………………………………………………………………………………………. |
|
Email……………………………………………………………………………………………. |
|
Reliance on Other Parties |
|
1.7. Provide the name of the persons who assisted in compiling this application (if applicable). |
|
1.7.1 Consultant: ……………………………………………………………..………………. |
|
1.7.2 Auditor: ………………………………………………………………………………….. |
|
1.7.3 Actuary: …………………………………………………………………………………. |
|
1.7.4 Insurance Manager: ……………………………………………………………………. |
|
[Please provide the contact details of these persons in Appendix A] |
|
Contact Details |
|
1.8. State the full forename(s) and surname of the person that is authorised to apply for licensing: |
|
…………………………………………………………………………………………………… |
|
…………………………………………………………………………………………………… |
| 1.9. Provide details of the contact person(s) for further enquiries regarding this application: |
|
Name …………………………………………………………………………………………… |
|
Qualification/ role ……………………………………………………………………………… |
|
Postal Address ……………………………………………………………………………….. |
|
Telephone ……………………………………………………………………………………… |
|
Fax ……………………………………………………………………………………………… |
|
Email …………………………………………………………………………………………… |
|
2. Governance |
|
Company Structure, Legal Form and Head Office |
|
2.1. What type of insurer will the company be? |
|
|
Long-term Insurer |
|
|
General Insurer |
|
|
Reinsurer |
|
2.2. State the legal form of the applicant insurer: |
|
………………………………………………………………………………………………… |
|
Controllers/ Key Persons |
|
2.3. Have the directors, executive officers and principal officer been appointed? |
|
|
Yes |
|
No |
|
[If YES, complete Appendix B and Appendix C for each director, executive officers and principal officer and attach to this application] |
|
2.4. Submit audited and complete personal balance sheets/financial statements for all directors, executive officers and principal officer as well as any other controller for the past 3 years. If the person is an individual, submit audited net worth statements reflecting the position on a date not later than three months prior to the date of this application. |
|
2.5. Have the following officers been appointed: |
|
Auditor |
|
Yes |
|
No |
|
Valuator/Approved Person |
|
Yes |
|
No |
|
Insurance Manager |
|
Yes |
|
No |
|
Other (please specify) |
|
|
|
|
|
………………………… |
|
Yes |
|
No |
|
[If YES, complete Appendix E for each service provider and attach to this application] |
|
2.6. State the names(s) of the auditor(s) and the responsible partner(s) at the auditing firm appointed by the applicant insurer. |
|
…………………………………………………………………………………………………… |
|
…………………………………………………………………………………………………… |
|
…………………………………………………………………………………………………… |
|
…………………………………………………………………………………………………… |
|
2.7. State the names(s) of the Valuator (long-term) or Approved Person (general) appointed by the applicant insurer: |
|
…………………………………………………………………………………………………… |
|
…………………………………………………………………………………………………… |
|
…………………………………………………………………………………………………… |
|
…………………………………………………………………………………………………… |
|
…………………………………………………………………………………………………… |
|
[Submit the Application for Approved Person or Valuator (Form 17) with this application |
|
Foreign Regulation |
|
This section on Foreign Regulation applies only to foreign owned insurers wishing to establish a subsidiary in Botswana. |
|
2.8 State the name of the company’s home supervisory authority: |
|
…………………………………………………………………………………………………… |
|
…………………………………………………………………………………………………… |
|
…………………………………………………………………………………………………… |
|
2.9. Indicate if any previous application by the applicant insurance company has been: |
|
|
Refused |
|
|
Revoked |
|
|
Any requirements imposed as a condition to continue to carry on insurance business by any other supervisory or regulatory authority. |
|
|
If so, please give particulars: |
|
|
………………………………………………………………………………………… |
|
|
………………………………………………………………………………………… |
|
|
………………………………………………………………………………………… |
|
|
………………………………………………………………………………………… |
|
|
………………………………………………………………………………………… |
| 2.9.1 Please submit a Statement of Agreement regarding the above from your domestic Supervisor. |
2.10. Submit a reference letter from your domestic Supervisor.
2.11. Submit audited annual financial statements for the last 5 years.
3. Ownership and Control
Group Structure
3.1. State in regard to the ultimate parent/controller:
a. The date and place of incorporation:
………………………………………………………………………………………………
………………………………………………………………………………………………
b. Listing(s) on stock exchange(s):
………………………………………………………………………………………………
………………………………………………………………………………………………
c. Authorisation/registration/licences granted by other authorities:
………………………………………………………………………………………………
………………………………………………………………………………………………
3.2. Submit a structural chart of the group of companies to which the applicant insurer belongs. Include the respective percentages of shareholdings.
Control
3.3. Indicate who, directly or indirectly, will control the applicant insurer (including the ultimate beneficial owner)
……………………………………………………………………………………………………
……………………………………………………………………………………………………
……………………………………………………………………………………………………
[Submit audited and complete financial statements and complete personal balance sheets of the owner for the past 3 years]
3.4. Indicate the source of funds used by the owner to purchase shares
|
|
Borrowing |
|
|
Capital |
|
|
Other |
|
If other, please specify: |
|
|
………………………………………………………………………………………………… |
|
|
………………………………………………………………………………………………… |
|
|
………………………………………………………………………………………………… |
|
|
|
|
3.5. Complete Appendix D for each shareholder with more than 20% paid up shares and attach to this application. |
|
4. Financial Soundness and Capital Requirements |
|
4.1. Provide a business plan as required in Appendix G |
|
4.2. Provide relevant details on sources of capital as required in Appendix H |
|
5. Size and Type of Business |
|
5.1. Which type of insurance does the company intend to sell (Schedule 1)? |
|
a. Classes of General Insurance Business (Schedule 1 of the Act): |
|
|
Accident Business |
|
|
Engineering Business |
|
|
Health Business |
|
|
Property Business |
|
|
Guarantee Business |
|
|
Liability Business |
|
|
Miscellaneous Business |
|
|
Motor Business |
|
|
Transportation Business |
|
b. Classes of Long Term Insurance Business (Schedule 2 of the Act): |
|
|
Disability Business |
|
|
Health Business |
|
|
Fund Business |
|
|
Life Business |
|
|
Sinking Fund Business |
|
6. Administration Systems and Processes |
|
6.1. Attach a brief overview of the administrative system to be used to secure the proper functioning of the applicant insurer. |
|
6.2. Will the applicant insurer outsource administration? |
|
|
Yes |
|
No |
|
[Where administration is being outsourced applicants must complete Appendix E and Appendix F. Applicants must also submit a copy of the outsourcing agreement] |
|
a. If, YES, is administration outsourced to an: |
|
|
Independent service provider on commercial terms |
|
|
Affiliate on the basis of commercial terms |
|
|
Affiliate on the basis of internal agreement |
|
b. If, NO, Please indicate the party who developed your administration system |
|
|
Developed in-house |
|
|
Developed by third party customised to own specifications |
|
|
Purchased an off- the-shelf system from a third party (other than a software vendor*) |
|
|
Purchased an off-the-shelf system from a software vendor specialising software for the administration of insurers |
|
|
........................................................................... |
|
|
Other, please specify |
|
*A software vendor in this context is an organisation whose primary business is the development and supply of systems applications. |
|
6.3. Attach disaster recovery system plan |
|
6.4. Attach business continuity plan |
|
6.5. Are your auditors satisfied as to your systems and controls? |
|
|
Yes |
|
No |
|
[Attach declaration from the auditors on systems and controls] |
|
If, NO, please detail the issues identified by the auditors: |
|
………………………………………………………………………………………………… |
|
………………………………………………………………………………………………… |
|
………………………………………………………………………………………………… |
|
………………………………………………………………………………………………… |
|
6.6. Please indicate the actions taken by management to address these issues: |
|
………………………………………………………………………………………………… |
|
………………………………………………………………………………………………… |
|
………………………………………………………………………………………………… |
|
………………………………………………………………………………………………… |
|
7. Other |
|
7.1. Is there any other information or documents relevant to this application? If yes, then kindly specify the information or documents. |
|
8. Certification |
|
I hereby enclose - |
|
|
Form |
Completed (yes) or (no) |
Number of forms completed |
|
a. |
Appendix A: Reliance on Other Parties |
|
|
|
b. |
Appendix B: Particulars of Controllers/Key Persons |
|
|
|
c. |
Appendix C: Questionnaire for Controllers/Key Persons |
|
|
|
d. |
Appendix D: Particulars of the Shareholders |
|
|
|
e. |
Appendix E: Particulars of Service Providers |
|
|
|
f. |
Appendix F: Risk Management Strategy |
|
|
|
g. |
Appendix G: Business Plan |
|
|
|
h. |
Appendix H: Sources of Capital |
|
|
|
i. |
Appendix I: AML/CFT Policy |
|
|
|
j. |
Appendix J: General Insurer Financial Projections |
|
|
|
k. |
Appendix K: Long term Insurer Financial Projections |
|
|
|
l. |
Copy of the Certificate of Incorporation under the Companies Act |
|
|
|
m. |
Audited Personal Balance Sheets/Statements for All Directors, Executive Officers and Principal Officer |
|
|
|
n. |
Structural Chart of the Company Group |
|
|
|
o. |
Letter of Good Standing From Domestic Supervisor |
|
|
|
p. |
Audited Annual Financial Statements For Established Foreign Insures Establishing Subsidiaries |
|
|
|
q. |
Product Sign-Off Documents and Policy Documents (Not Applicable to International Insurers) |
|
|
|
r. |
Overview of Administration System, Controls and Reporting Capabilities of the Administrator |
|
|
|
s. |
Disaster Recovery Plan |
|
|
|
t. |
Business Continuity Plan |
|
|
|
u. |
Declaration from the Auditors that the Systems and Controls Have Been Investigated and Have Been Found to be Appropriate for an Administrator (or a Qualified Declaration that Identifies the Issues that the Administrator Must Address). |
|
|
|
I hereby declare that the Insurance Industry Act (Cap 46:01) and Non-Bank Financial Institutions Regulatory Authority Act (Cap 46:08) have been complied with and the statements contained herein and the documents submitted herewith are true and accurate to the best of my knowledge and belief. Any alterations in particulars stated here in or in the said documents will be promptly communicated to the Regulatory Authority within a period not later than 30 days from the date of the alteration. |
|
Signed on this …………… day of …………………….......…. 20 ... |
|
Signature of Applicant |
|
Full Name: …………………………………………………………………… |
|
Designation: …………………………………………………………………. |
|
Signature of Proposed Principal Officer |
|
Full Name: …………………………………………………………………… |
|
I hereby submit proof of payment in respect of application for the licensing of an insurer. |
|
Amount paid: ……………………………………………………………….. |
|
Cheque No.: ………………………………………………………………… |
|
Date Paid: …………………………………………………………………… |
|
Paid By: …………………………………………............................….… (Full Names) |
|
Signature: …………………………………………………………………… |
|
Designation : ………………………………………………………………… |
|
|
|
OFFICIAL DATE STAMP |
|
APPENDIX A: Reliance on Other Parties |
|
A.1 Provide the contact details of parties assisting with the application. |
|
Name: …………………………………………………………………………………………………. |
|
Role: ……………………………………………………………..……………………………………. |
|
Qualification: …………………………………………………….……………………………………. |
|
Postal Address: ………………………………………………………………………………………. |
|
…………………………………….…………………………………….……………………………… |
|
…………………………………….…………………………………….……………………………… |
|
Telephone: …………………………………………………………….……………………………… |
|
Fax: …………………………………………………………………….……………………………… |
|
Email: ………………………………………………………………….……………………………… |
|
|
|
APPENDIX B: Particulars of Controllers/Key Persons |
||||||
|
Name of Insurer: |
||||||
|
Full Name |
Nationality |
Role |
Occupation |
Date of Appointment |
Permanent Address |
% Shareholding (where applicable) |
|
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Note: "manager" means as defined in the Insurance Industry Act |
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APPENDIX C : Questionnaire for Controllers / Key Persons |
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C1. Contact details |
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Name: ……………………………………………………………............................. |
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Primary residential address: ……………………………………........................... |
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……………………………………………………………………............................. |
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……………………………………………………………………............................. |
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……………………………………………………………………............................. |
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Postal address: ……………………………………………………......................... |
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……………………………………………………………………............................. |
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……………………………………………………………………............................. |
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Email address: ………………………………………………….............................. |
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Telephone number: …………………………………………….............................. |
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Mobile number: …………………………………………………............................. |
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Occupation: …………………………………………………….............................. |
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C2. In what capacity are you being appointed? |
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Director |
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Non-executive Director |
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Senior Executive Officer |
Title: ……………………………… |
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Manager |
Title: ……………………………… |
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Principal Officer |
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Other (Specify) …………………………… |
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C3. Qualifications and membership of professional bodies: |
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Qualification or membership of a professional body |
Institution granting the qualification or professional body |
Date granted |
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[Please note that evidence of professional and academic qualifications must be enclosed with this questionnaire and attached to this application] |
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C4. Prior experience in this or a similar role: |
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Period |
Name of company |
Nature of experience gained that you believe is relevant to your appointment as a controller |
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[Please note that a detailed curriculum vitae should be enclosed with the questionnaire and attached to this application] |
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C5. Has any previous appointment as a director, senior executive officer, manager or principal officer of an insurance company been terminated for a reason other than resignation or retrenchment? |
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Yes |
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No |
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If YES, please provide the following details about the employer: |
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Name: ……………………………………………………………………………… |
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Address: …………………………………………………………………………… |
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…………………………………………………………………….………………… |
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…………………………………………………………………….………………… |
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…………………………………………………………………….………………… |
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Email address: ………………………………………………….………………… |
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Telephone number: ……………………………………………..………………… |
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Position from which you were discharged: |
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…………………………………………………………………….………………… |
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…………………………………………………………………….………………… |
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…………………………………………………………………….………………… |
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Date of action: …………………………………………………..………………… This section of the article is only available for our subscribers. Please click here to subscribe to a subscription plan to view this part of the article. |