FOURTH REPUBLIC
Insurance Act, 2006
Act 724
ARRANGEMENT OF
SECTIONS
Section
National
Insurance Commission
1)
Establishment of the National Insurance Commission
2)
Object and
functions of the Commission
3)
Governing
body of the Commission
4)
Responsibility of the Board
5)
Tenure of
office of members
6)
Meetings of
the Board
7)
Disclosure
of interest
8)
Establishment of committees
9)
Allowances
for members of the Board
10)
Engagement
of consultants and experts
11)
Ministerial
directions
12)
Appointment
of Commissioner and Deputy Commissioner of insurance
and their functions
13)
Secretary to
the Board
14)
Appointment
of other staff
15)
Delegation
of appointment
16)
Budget and
work programme
17)
Levies
payable to Commission
18)
Funds of the
Commission
19)
Accounts and
audit
20. Annual report
and other reports
Licens ing of
insurers
21)
Application
for insurer's licence
22)
Issue of
insurer's licence and qualification of applicant
23)
Persons not
qualified to be issued with insurance licence
24)
Commission
may issue conditions
25)
Insurer's
licence
26)Restriction on
licensing composite insurance companies 27.
Submission of licence to Commission
27)
'Publication
of issue of licence
28)
Duration of
licence
29)
Variation of
conditions of licence
30)
Refusal,
suspension or revocaton of licence
31)
Notice of
refusal to grant application
33)
Appeal to
the High Court
34)
Application
for renewal
35)
Renewal of
insurer's licence
36)
Prohibition
of unlicensed insurance business
37)
Restriction
on contact with offshore insurer
38)
Authorisation to enter into contract of insurance
with offshore insurer
39)
Restriction
on contact office
40)
Conditions
applicable to offshore insurer's licence
41)
Offence for
offshore insurer to carry on business without
approval
Insurance
business
42)
Insurer to
carry on insurance business only
43. Insurer to
carry on business in accordance with business plan
44 . Avoidance of
contracts of insurance of unlimited amount
45)
Approval of
insurance products
46)
Head office
and registered office
47)
Authorisation to open an offshore office
48)
Approval
required for disposal of interest
49)
Appointment
of directors and principal officers of an insurer
50)
Termination
of appointment of directors and principal officers
of an insurer
51)
Publication
of authorised and subscribed capital
52)
Prohibition
on payment of commission to unlicensed insurance
intermediary
53)
Approval of
reinsurance arrangements by Commission
54)
Reinsurance
statements and documents to be filed
55)Reinsurance of
risks outside the country
56. Appointment of
actuary
57 Powers of
Commission with regard to appointment of actuary
58)
Powers of
actuary
59)
Obligations
of actuary
60)
Actuary to
comply with prescribed standards
61)
Annual
actuarial investigations.
62)
Attendance
of meetings by actuary
63)
Refusal to
co-operate with actuary
64)
Actuarial
investigation and report
65)
Application
for a scheme of transfer or amalgamation
66)Details of
scheme
.
67)
Commission
may conduct hearing of application
68)
Application
of Part S of the Companies Code
Capitalisation,
solvency and financial resources
69)
Maintenance
of capital by insurer
70)
Shares to be
fully paid for in cash
71)
Solvency
margin
72)
Reserves
73)
Deposit
74)
Return of
deposit
75)
Distribution
76)
Prohibition
relating to advances and loans
77. Approval of
premium and rates by the Commission
Accounts and
audit of insurers
78)
Accounts
record
79)
Financial
year of insurer
80)
Preparation
and lodgement of accounts of in surer
81)
Lodgement of
quarterly accounts and report
82)
Extension of
time
83)
Amendment of
accounts
84)
Group
accounts
85)
Insurer to
appoint an auditor
86)
Audit report
87)
Obligations
and termination of appointment of auditors
88)
Powers of
Com mission with regard to appointment of auditor
89)
Auditor may
rely on actuarial valuations
90)
Provisions
do not limit Companies Code
Liquidation and
judicial management of insurance companies
91)
Insurer not
to be wound up by private liquidation
92)
Modification
of Act 180
93)
Commencement
of proceedings
94)
Application
for liquidation by Commission
95)
Service on
Commission
96)
Reduction of
contracts as alternative to official liquidation
97)
Continuation
of long term business by liquidator
98)Protection of
segregated funds and assets . 99)Judicial management
order
100.) Application
for judicial management order
101)Moratorium
102)Duties of
judicial manager
103)
Additional
duties of judicial manager
104)
Powers of
judicial manager
105)
Information
and notice of judicial manager
106)
Appearance
in Court
107)
Remuneration
of judicial manager
108)
Removal of
judicial manager and filling of vacancy
109)
Discharge of
judicial management order
110)
Report of
judicial manager
111)
Order of
court on report of judicial manager
112)Transfer of
business to another company
113). Indemnity of
judicial manager
Insurance
intermediaries
114)
Application
for insurance intermediary licence
115)
Issue of
insurance intermediary's licence
116)
Insurance
intermediary's licence
117)
Restrictions
on persons who may be licensed
118)
Submission
of licence to Commission
119)
Publication
of issue of licence
120)
Variation of
conditions of licence
121)
Duration of
licence
122)
Refusal of
application
123)
Appeal to
High Court
124)
Application
for renewal of insurance intermediary's licence
125)
Renewal of
insurance intermediary's licence
126)
Prohibition
on unlicensed business as an insurance intermediary
127)
Restriction
on contact office
128)
Application
for approval to establish contact office
129)Variation of
condition of offshore insurance intermediary
130.)Offence for maintaining an office without
approval
131) Maintenance of
capital by insurance intermediary
132)
Deposits by
insurance intermediary
133) Return of
deposit .
134)
Restrictions
on insurance intermediary, their directors, officers
and employees
135)
Prohibition
to deal with unlicensed insurer
136)
Collection
of premiums by insurance intermediary
137)
Accounts
records
138)
Financial
year of insurance intermediary
139)
Preparation
and lodgement of accounts
140)
Extension of
time
141)
Lodgement of
quarterly accounts and returns
142)
Amendment of
accounts
143)
Insurance
intermediary to appoint an auditor
144)
Audit report
145)
Obligations
of auditors
146)
Powers of
Commission with regard to appointment of auditor
147)
Insurance
intermediary not to be wound up by private
liquidation
148)
Further
modification of Act 180
149)
Commencement
of proceedings
150)
Commission
may present petition to wind up insurance
intermediary
151)
Service on
Commission
General
provisions on licensing
152)
Monitoring
of advertisements
153)
Commission
may request change of name
154)
Commission
shall approve change of name
155)
Filing of
returns and submission of information to Commission
156)
Defective
returns
157)
Notification
to Commission of any judgment
158)
Fees payable
to Commission
159)
Restrictions
on disclosure of information
160)
Display of
licence
161)
Service of
notice to policy holder
162)
Change in
circumstances relating to application to Commission
163)
Limitation
of section 261 of the Companies Code
164)
Restriction
on the use of the words "insurance", "assurance" and
"underwrite"
Inspection and
enforcement
165)
Inspections
166)
Duties of
directors, officers and managers in relation to
inspection
167)
Report on
inspection
168)
Power of
Commission to gather information
169)Privileged
document and information
170). Examination
under oath
1 71. Assistance to
foreign regulatory authorities 172. Search warrant
173)Appointment of
examiner 174. Order of Court
1 75. Enforcement
176)
Revocation
or suspension of licence
177)
Effect of
revocation or suspension of licence
178)
Representation to the Commission
179)
Appeal to
High Court
180)
Protection
order
181)
Directives
to insurer
182. Directives to
insurance intermediary.
Insurance of
commercial building under construction
183)
Insurance of
commercial building under construction
184)
Insurance of
commercial buildings
Establishment of
Fire Service Maintenance Fund
185)
Establishment of Fire Service Maintenance Fund
186)
Object of
the Fire Service Maintenance Fund
187)
Source of
money for the Fund
188)
Management
of the Fire Service Maintenance Fund
189)
Conditions
for providing grants from the Fund
190)
Accounts,
auditing and annual report
191)
Penalty for
non compliance by an insurer
Establishment of
Motor Compensation Fund
192)
Establishment of the Motor Compensation Fund
193)
Object of
the Fund
194)
Source of
money for the Fund
195)
Management
of the Fund
196)
Conditions
for providing grants from the Fund
197)
Establishment of a Client Rescue Fund
198)
Emergency
treatment for road traffic accident victims
Miscellaneous
provisions
199)
Registers
200)
Inspection
of registers and information held by Commission
201)
Electronic
filing of documents
202)
Regulations
203)
Code of
Practice
Insurance Act,
2006
204)
Market
Conduct Rules
205)
Penalties
for contraventions and offences
206)
Offences by
bodies of person
207)
General
penalty
208)
Order to
comply
209)
General
indemnity
210)
Insurance
agents to be agents of insurers
211)
Interpretation
212)
Transitional
provisions
213)
Repeal and
savings
214)
Consequential amendment
THE SEVEN HUNDRED AND TWENTY-FOURTH
ACT
OF THE
PARLIAMENT OF THE REPUBLIC OF GHANA
ENTITLED
INSURANCE ACT, 2006 ACT 724
AN ACT to revise
the law relating to insurance in order to provide
comprehensive provisions for the regulation of the
insurance industry and for related matters
DATE OF ASSENT:
29th December, 2006.
ENACTED by the
President and Parliament
National
Insurance Commission
Establishment of
the National Insurance Commission
1)
(1) There is
established by this Act, the National Insurance
Commission.
(2) The Commission
is a body corporate with perpetual succession and
common seal and may sue and be sued in its corporate
name.
(3) The Commission
may for the performance of its functions acquire an)
movable and immovable property and may enter into
any contract or other transaction
Object and
functions of the Commission
2. (1) The object
of the. Commission is to ensure effective
administration supervision, regulation, monitoring
and control of the business of insurance to protect
insurance policy holders and the insurance industry
other than health insurance under the National
Health Insurance Act, 2003 (Act 650).
(2) For the
attainment of its object under subsection (1) the
Commission shall perform the following functions:
(a)
license insurers
and insurance intermediaries who transact insurance
business in Ghana;
(b)
in consultation
with relevant bodies approve and set standards for
the conduct of insurance business and insurance
intermediary business; (c) encourage the
development of and compliance with the insurance
industry's codes of conduct;
(d)
approve, where
appropriate, the rate of insurance premiums and
commissions in respect of any class of insurance;
(e)
provide a bureau to
which complaints may be submitted by members of the
public for resolution;
.
(f) arbitrate insurance claims referred to the
Commission by any party
to an insurance
contract;
(g)
recommend to the
Minister proposals for the formulation of policies
for the promotion of a sound and efficient insurance
market in the country;
(h)
supervise and
approve transactions between insurers and their
re-Insurers;
(i)
undertake sustained
and methodical public education on insurance;
(j)
take action against
any person carrying on insurance business or the
business of insurance intermediaries without a
licence;
(k)
maintain contact
and develop relations with foreign insurance
regulators and international associations of
insurance supervisors and maintain a general review
of internationally accepted .standards for the
supervision of insurers and insurance
intermediaries;
(I)
supervise, regulate
and control compliance with the provisions of this
Act and Regulations made under it and any other
enactment relating to insurance; and
(m)
perform other
functions that are incidental to the carrying out of
its functions under this Act.
(3) In performing
its functions under this Act the Commission shall
have regard to the protection of the public against
financial loss arising out of the dishonesty,
incompetence, malpractice or insolvency of insurers
or insurance intermediaries.
Governing body
of the Commission
3. (I) The
governing body of the Commission is a Board
consisting of
(a)
the chairperson,
(b)
one representative
of the Ministry of Finance and Economic Planning not
below the rank of Principal Economic Officer;
(c)
one person who is
either an experienced chartered insurer or a
qualified insurance practitioner nominated in
consultation with insurance industry bodies;
(d)
one person with
qualification and practice in finance;
(e)
one practising
lawyer nominated by the Ghana Bar Association;
(f) the
Commissioner of lnsurance appointed under section
12( I );
(g) one
other person nominated by the President.
(2) The members of
the Board shall be appointed by the President
accordance with article 70 of the Constitution.
Responsibility
of the Board
4.
The Board shall
monitor and oversee the operations of the Commission
a ensure the effective implementation of the object
and functions of the Commission
Tenure of office
of members
5.
(1) A member of the
Board shall hold office for a period not exceeding
three years and is eligible for re-appointment but a
member, except t Commissioner, shall not be
appointed for more than two terms in succession.
(2) Where a member
of the Board resigns, dies, is removed from office
or for a sufficient reason unable to act as a
member, the Minister shall notify t President of the
vacancy and the President shall acting on the advice
of the nominating authority, and in consultation
with the Council of State appoint another person to
hold office for the unexpired portion of the
member's term of office.
(3) A member of the
Board may at any time resign from office in writing
addressed to the President through the Minister.
(4) A member of the
Board who is absent from three consecutive meeting
of the Board without sufficient cause, ceases to be
a member of the Board.
(5) The President
may revoke the appointment of a member by a letter
addressed to that member.
Meetings of the
Board
6.
(I) The Board shall
meet at least once every three months for the
dispatch business at times and in places determined
by the chairperson.
(2) A special
meeting of the Board shall be convened by the
chairperson the request of not less than one-third
of the members of the Board.
(3) The quorum at a
meeting ofthe Board is five members.
(4) The
'chairperson shall preside at meetings of the Board
and in the absence of the chairperson, a member of
the Board elected by the members present.
(5) Matters before
the Board shall be decided by the majority of the
members present and voting and in the event of
equality of votes, the person presiding shall have a
casting vote.
(6) The Board may
co-opt a person to attend a Board meeting but that
person shall not vote on the matter for decision at
the meeting.
(7) The proceedings
of the Board shall not be invalidated by reason of a
vacancy among the members or a defect in the
appointment or qualification of a member.
(8) Subject to this
section, the Board shall determine the procedure for
its meetings.
Disclosure of
interest
7. (1) A member of
the Board who has an interest in a matter for the
consideration by the Board shall disclose in writing
the nature of that interest and is disqualified from
participating in the deliberations of the Board in
respect of that matter.
, (2) A member who
contravenes subsection (1) ceases to be a member.
Establishment of
committees
8. (1) The Board
may establish committees consisting of members of
the Board or non-members or both to perform a
function.
(2) A committee of
the Board may be chaired by a member of the Board.
(3) The Board shall determine the functions of a
committee it appoints.
Allowances for
members of the Board
9. Members of the
Board and members of a Committee of the Board shall
be .paid the allowances determined by the Board with
the approval of the Minister.
Engagement of
consultants and experts
10. The Board may
engage the service of a consultant or other expert
on terms and conditions determined by the Board.
Ministerial
directions
11. The Minister
may give directives to the Board on matters of
policy for the Commission in the performance of its
functions.
Appointment of
Commissioner and Deputy Commissioner of insurance
and their functions
12. (I) The
President shall in accordance with article 195 of
the Constitution appoint a Commissioner of Insurance
..
(2) The
Commissioner shall be the chief executive of the
Commission and shall be a person who has the
qualification and experience in the insurance
industry.
(3) The
Commissioner shall, subject to the general
directions of the Board be responsible for the
day-to-day administration of the Commission.
(4) The
Commissioner may in an emergency situation or for
the protection of public interest, take enforcement
action or other action and within fourteen days
after the date of the action taken, inform the Board
in writing for the Board's review of the action
taken.
(5) The
Commissioner may delegate the functions of office to
an officer of the Commission but shall not be
relieved from ultimate responsibility for the
performance of the delegated function.
(6) The President
shall in accordance with article 195 of the
Constitution appoint a Deputy Commissioner of
Insurance.
(7) The Deputy
Commissioner shall perform functions as the Board or
the Commissioner shall direct.
(8) The terms and
conditions of the Commissioner and the Deputy
Commissioner shall be specified in their letters of
appointment.
Secretary to the
Board
13. (1) The
Commission shall have an officer to be designated as
Secretary to the Board.
(2) The Secretary
shall perform functions assigned by the Commissioner
and the Board.
Appointment of
other staff
14. (1) The
President shall in accordance with article 195 of
the Constitution appoint other staff of the
Commission that are necessary for the proper and
effective performance of its functions.
(2) Other public
officers may be transferred or seconded to the
Commission or may otherwise give assistance to it.
(3) The Commission
may engage the services of advisers on the
recommendation of the Board.
Delegation of
appointment
15. The President
may in accordance with article 195 (2) of the
Constitution delegate the power of appointment of
public officers under this Act.,
Budget and work programme \
16. (1) The
Commissioner shall not later than three months
before the commencement of each financial year
prepare in respect of that financial year
(a)
estimates of the
Commission's'
(i) expected
expenditure, and
(ii) expected
income, and
(b)
a work programme
containing a general description of the work and
activities that the Commission plans to undertake.
(2) The estimated
expenditure of the Commission shall include an
amount for the reserves of the Commission.
(3) The
Commissioner shall submit to the Board a copy of the
estimates and work programme not less than two
months prior to the commencement of the financial
year.
(4) The Board shall
consider the estimates and work programme and shall
not later than one month before the commencement of
the financial year, approve a budget and work
programme for the Commission.
Levies payable to Commission
17. (1) A person
who holds an insurance licence or an insurance
intermediary's licence during a financial year,
shall pay a levy towards the expenses of the
Commission in that financial year calculated by the
Commission in consultation with the licensees.
(2) The total
amount of levies imposed on licensees by the
Commission under this section in a particular year
shall not fall below the income of the Commission
from levies during the preceding year with an
increase to accommodate the rate of inflation in
that particular year.
(3) The rate of
inflation in subsection (2) shall be the official
rate of inflation. (4) The Commission shall provide
in writing
(a)
the formula for
calculating the levy,
(b)
the time and method
of payment, including installment payments, (c)
the payment of interest on moneys over-due, and
(d)
penalties for
non-payment.
Funds of the
Commission
18. The sources of
money for the performance of the functions of the
Commission include
(a)
levies payable to
the Commission under section 17,
(b)
grants from
Government and from any other source approved by
the Minister,
(c)
loans contracted or
guaranteed by Government, and (d) donations,
(e)
fees and other
charges payable by insurance companies and
intermediaries, .
(j)
fines imposed by a
Court for breach of this Act and Regulations, (g)
motor contributions prescribed by Regulations,
and
(h)
any other income
approved by the Board.
Accounts and
audit
19.
(1) The Commission
shall keep books of account and proper records i
relation to them in a form approved by the
Auditor-General.
(2) The accounts of
the Commission shall be audited by the Auditor
General or an auditor appointed by the
Auditor-General within three months after the end of
each financial year.
(3) The
Auditor-General shall, not later than three months
after the end 0 each financial year, forward a copy
of the audited accounts of the Commission fo: the
preceding financial year to the Minister.
(4) The financial
year of the Commission shall be the same as the
financial year of the Government.
Annual report
and other reports
20.
(1) The Commission
shall as soon as practicable after the end of each
financial year but within eight months after the end
of the financial year submit a annual report to the
Minister covering the activities and the operations
of the Commission for the year to which the report
relates.
(2) The
annual report shall include the report of the
Auditor -General.
(3) The
Minister shall within two months after the receipt
of the annual report submit the report to Parliament
with a statement that the Minister may consider
necessary.
(4) The Commission
shall also submit to the Minister other reports that
th Minister may require in writing.
Licensing of
insurers
Application for
insurer's licence
21.
(1) A company
incorporated in the country as a limited liability
company may apply to the Commission for a licence to
carry on insurance business.
(2) An application
under subsection (1) shall be in writing and shall
(a)
state the class of
insurance business for which the applicant see
authorisation to carry on business,
(b)
contain the
prescribed information and be in the prescribed for
and
(c)
be accompanied with
the prescribed documentation.
(3) The Commission
shall require an applicant to furnish it with
(a)
a business plan covering among others, the
(i) class of
insurance business to be undertaken,
(ii) company's
reinsurance programme,
(ill) estimated
setting-up costs and how the cost will be financed,
and
(iv) projected
development of business shown by projected revenue
account and the balance sheet,
(b)
contract
documents,
(i) regulating the
applicants relationship with other companies,
(iI) transferring
the applicants functions to other companies, and
(iii) the contents
of which influence the financial situation of the
company,
(c)
its insurance
products, including proposal forms and policy
wording and rates, and
(d)
its risk management
systems.
(4) The Commission
may require an applicant to furnish it with other
documentation or information it considers necessary
to determine the application.
(5) The applicant
shall pay a fee determined by the Commission for the
licence.
Issue of
insurer's licence
22. (1) The
Commission may issue an insurer's licence to an
applicant subject to conditions the Commission may
determine.
(2) The Commission
shall, in issuing a licence, be satisfied that
(a)
the applicant is
qualified to carry on the class of insurance
business for which the application is made,
(b)
each director and
principal officer of the applicant and of any
holding company of the applicant is qualified to be
concerned with the management of the class of
insurance business for which the application is
made,
(c)
the applicant
intends, to carry on the approved class of insurance
business in this country if issued with a licence,
(d)
where the applicant
is associated with one or more other persons, the
relationship between the applicant and those persons
will not prejudice the effective supervision of the
insurance business to be carried on by the applicant
or be contrary to the interests of policyholders,
(e)
the organisation,
management and financial resources of the applicant
are adequate for the carrying on of the class of
insurance business for which the application is
made,.
(f)
the insurance
business will be conducted in accordance with sound
insurance principles,
(g)
issuing the licence
is not against public interest, and
(h)
the applicant
satisfies the requirements of this Act in respect of
the application and will, upon issue of the licence,
operate in compliance with this Act, Regulations,
the Codes of Practice and where applicable, the
Market Conduct Rules.
Persons not
qualified to be issued with insurance licence
23. An applicant
does not qualify to be issued with a licence to
carry on insurance business unless the Commission is
satisfied that,
(a)
the applicant,
(b)
a person who
has a share or an interest in the applicant, whether
legal or equitable, where the applicant is not a
public company,
(c)
a person associated
with the applicant, and
(d)
a principal member
of the applicant, where the applicant is a mutual
company
is a fit and proper
person to carry on insurance business.
Commission may
issue conditions
24. (I) Without
limiting the scope of section 22, the Commission may
by written notice require an applicant either prior
to the issue of a licence or as a condition of
granting the licence
(a)
to increase its
capital to an amount greater than the minimum, or
(b) to maintain a solvency margin greater than
the minimum.
(2) A notice under
subsection (1) takes effect as a direction under
section 69 (2) or section 71 (2) as the case may be,
upon the issue of a licence to the applicant.
Form of
insurer’s licence
25. (1) An
insurer's licence shall be in writing and shall
specify
(a)
the class of
insurance business that the insurer is authorised to
carry on, and
(b)
the conditions to
which the insurer is subject.
(2) The licence may
(a)
be restricted to
reinsurance business or
(b)
stipulate that the
insurer may not carry on reinsurance business.
Restriction on
licensing composite insurance companies and
specialisation
26. (1) The
Commission shall not issue a licence after the
commencement of this Act that authorises the insurer
to operate a composite insurance business.
(2) A company
licensed to operate
(a)
Life Assurance
business as a speciality shall not be licensed
subsequently to operate a Non-life Insurance
business, and
(b)
Non-life insurance
business as a speciality shall not be licensed
subsequently to operate Life Assurance business.
(3) Despite
subsection (2), a company
(a)
licensed to operate
a Life Assurance business may acquire substantial
shareholding in a Non-life Insurance company, and
(b)
licensed to operate
a Non-life Insurance may acquire substantial
shareholding in a Life Assurance company.
Submission of
licence to Commission
27.
(1) An insurer
shall submit its licence to the Commission where
(a) the licence expires,
(b)
the licence is
suspended or revoked, or
(c)
it is required by
the Commission to do so for a stated reason.
(2) An insurer that
contravenes subsection (1) is liable to pay to the
Commission the pecuniary penalty stated in the First
Schedule.
Publication of
issue oflicence
28.
Where the
Commission issues a licence under section 22 it
shall cause notice of the issue of the licence to be
published in the Gazette and any newspaper of
mass circulation that the Commission may determine.
Duration
oflicence
29.
(I) A licence
issued by the Commission expires twelve months trom
the date of issue and may on application be renewed.
(2) Where an
application for renewal of a licence is made on or
before the date specified in section 34 (2) (d)
but is not determined by the Board by the expiry
date, the licence shall continue in force until the
application for renewal is determined by the Board.
,
Variation of
conditions of licence
30.
(1) The Commission
may, on giving thirty days' written notice to an
insurer (a) vary or revoke a condition for a
licence, or
(b)
impose new
conditions on the insurer.
(2) An insurer may
apply to the Commission in writing for a licence
condition to be revoked or varied:
(3)
Where, on an application made under subsection (2),
the Commission is satisfied that the condition for a
licence is no longer necessary or should be varied,
it may revoke or vary the
(4) Where the
Commission revokes or varies a condition for a
licence or imposes a new condition, the insurer
shall deliver its licence to the Commission for the
licence to be varied accordingly.
Refusal,
suspension or revocation of licence
31.
The Commission may
(a)
refuse to issue a
licence,
(b)
issue a licence but
refuse to authorise all the classes of insurance
business requested in the application, or
(c)
suspend or revoke a
licence
and it shall notify
the applicant or the affected licence holder in
writing of its decision, stating the reasons.
Notice of
refusal
to grant application
32.
Where the
Commission refuses to grant an application for a
licence the
Commission shall
notify the applicant in writing of its refusal to
grant the application stating the reasons within
thirty days.
Appeal to the
High Court
33.
(1) A person
aggrieved by the refusal of the Commission to grant
an
application for
licence may within sixty days after the date of the
notice of refusal appeal to the High Court.
(2) Where the
appeal is allowed the Commission shall license the
applicant.
Application for
renewal
34)
(1) An
insurer may apply to the Commission for the renewal
of its licence.
(2) An application
under subsection (1) shall (a) be in writing,
(b
) contain the
prescribed information and be in the prescribed
form,
(c)
be accompanied with
the prescribed documentation and renewal fee, and
(d)
be made not later
than
(i) three months
before the date of expiry of the licence, or
(ii) a later date
the Commission permits.
(3) The Commission
may require an insurer to furnish it with such other
documentation and information as it considers
necessary to determine the application for renewal
oflicence.
Renewal of
insurer's licence
35.
(1) The Commission
shall renew the licence of an insurer where the
Commission is satisfied that the insurer
(a)
continues to meet
the requirements for the issue of the licence, and
(b)
is in compliance
with this Act and Regulations made under it.
(2) The renewal of
a licence under this section is effective from the
date when the licence renewed would have expired but
for the renewal.
Prohibition of
unlicensed insurance business
36. (1) Subject to
subsection (4), a person shall not carry on, or
purport to carry on, a class of insurance-business
in the country unless that person holds a valid
licence issued under section 22 authorising the
person to carry on that class of insurance business.
(2) For the
purposes of subsection (1), a company incorporated
under the Companies Code, 1963 (Act 179) that
carries on insurance business outside the country
shall carry on insurance business from within the
country.
(3) A person who
carries on insurance business contrary to subsection
(I) commits an offence.
(4) This section
does not apply to an offshore insurer that enters
into a reinsurance contract with an insurer where
the reinsurance contract
(a)
is entered into in
accordance with reinsurance arrangements approved by
the Commission under section 53 (I), or
(b)
is exempted from
approval by the Commission under section 53 (3) .
(5) For the
purposes of subsection (I), "person" includes an
association of underwriters.
Restriction on
contract with offshore insurer
37. (1) Unless
authorised by the Commission, a person shall not
enter into a contract of insurance with an offshore
insurer in respect of
(a) property situate in the country,
(b)
liabilities arising
in the country, or
(c)
goods, other than
personal effects, being imported into the country.
(2) A person who
contravenes subsection (I) commits an offence.
(3) Nothing in this
section affects the validity or enforceability of a
contract of insurance entered into in breach of
subsection (I).
(4) This section
does not apply to an insurer that enters into a
reinsurance contract with an offshore insurer where
the reinsurance contract
(a)
is entered into in
accordance with reinsurance arrangements approved by
the Commission under section 53 (1), or
(b)
is exempted from
approval by the Commission under section 53 (2).
Authorisation to
enter into contract of insurance with offshore
insurer
38. (I) A person
may apply to the Commission, or through an insurance
intermediary, for authorisation to enter into a
contract of insurance of a type specified in section
37 (1) with an offshore insurer.
(2) The Commission
may authorise the applicant to enter into a contract
of insurance with an offshore insurer in respect of
that risk subject to such conditions, as the
Commission considers appropriate.
(3) In determining
whether to grant an authorisation under subsection
(2), the Commission shall have regard to the local
capacity available to insure the risk in respect of
which the application is made.
(4) Where the
Commission issues an authorisation under subsection
(2), the offshore insurer is considered not to be in
breach of section 36.
(5) A person who is
issued an authorisation under subsection (2) shall
pay a premium to be determined by the Commission.
Restriction on
contact office
39. (1) An offshore
insurer shall not establish, maintain or carry on
insurance business through a representative, branch
or contact office in the country unless it has
obtained the prior written approval of the
Commission.
(2) A person shall
not
(a)
establish or
maintain a place of business to solicit insurance
business, or
(b)
establish or
maintain a representative, branch or contact office,
in the country for
an offshore insurer, unless the offshore insurer has
obtained the written approval of the Commission
under subsection (1).
(3) An application
for approval under subsection (I) shall
(a)
contain the
prescribed information and be in the prescribed
form; and
(b)
be accompanied with
the prescribed documentation.
(4) The Commission
may require an offshore insurer to furnish it with
such other documentation and information as it
considers necessary to determine an application for
approval made under subsection (1).
Conditions
applicable to offshore insurer's licence
40. (1) The
Commission may approve an application under section
39 subject .to the conditions that it considers
appropriate ..
(2) The Commission
may, vary or revoke any condition to which the .
licence is subject, or impose new conditions on an
offshore insurer upon giving reasonable written
notice to the offshore insurer.
Offence for
offshore insurer to carry on business without
approval
41.
An offshore insurer
commits an offence where it
(a)
carries on business
contrary to section 39, or
(b)
establishes,
maintains or carries on business through a
representative, branch or contact office contrary to
conditions imposed by the Commission.
Insurance
business
Insurer
to carryon insurance business only
42.
(1) An insurer
shall not carry on any business whether in the
country or elsewhere, otherwise than for the purpose
of its insurance business.
(2) Subsection (1)
does not apply to a business specified in the
Regulations made under this Act as business
considered to be carried on in connection with or
for the purposes of the insurance business of an
insurer.
Insurer to carry
on business in accordance with business plan
43.
(1) An insurer
shall submit its business plan to the Commission for
approval.
(2) An insurer
shall carry on its business substantially in
accordance with the recent business plan lodged with
and approved by the Commission.
(3) An insurer may,
at any time, submit an amended business plan to the
Commission together with an application for the
Commission to approve the amended business plan.
(4) On receipt of
an application for approval of an amended business
plan, the Commission may require the insurer to
provide it with such further information or
documentation as the Commission requires to
determine the application.
(5) The Commission
may refuse to approve an amended business plan or
may approve it subject to conditions the Commission
considers appropriate.
Avoidance of
contracts of insurance of unlimited amount
44.
(1) Subject to
subsection (2), a contract of insurance entered into
by an insurer after the commencement date is void if
it is a contract under which the insurer undertakes
a liability the amount, or maximum amount, of which
is uncertain at the time when the contract is
entered into.
(2) Regulations may
prescribe contracts of insurance, or classes or
descriptions of contracts of insurance, that are
exempt from subsection (1).
(3) This section
applies to motor insurance contracts despite
anything to tpe contrary in the Motor Vehicles
(Third Party Insurance) Act, 1958 (No. 42).
(4) The Commission
in consultation with the insurance industry shall by
Regulations prescribe a formula to compute the
compensation in respect of injury and deceased
claims arising out of a motor accident.
Approval of
insurance products
45.
(1) An insurer
shall not issue a new form of insurance product
unless the Commission has given its prior written
approval for the product.
(2) An insurer that
contravenes subsection (1) is liable to pay to the
Commission the percuniary penalty stated in the
First Schedule.
Head office and
registered office
46.
(I) An insurer
shall have its head office in Ghana and shall notify
the Commission of the address of its head office and
of its registered office.
(2) Where the
address of the head office or the registered office
of a insurer changes, the insurer shall notify the
Commission of the new address within fourteen days
of the change.
(3) An insurer who
contravenes subsection (2) is liable to pay to the
Commission the percuniary penalty stated in the
First Schedule.
Authorisation to
open an offshore office
47.
(1) An insurer
shall not open, maintain or carry on business
through a representative, branch or contact office
offshore unless it has obtained the prior written
approval of the Commission.
(2) An insurer that
contravenes subsection (1) commits an offence and i~
liable on summary conviction to the penalty stated
in the First Schedule.
Approval
required for disposal of interest
48.
(1) A person who
owns or holds a significant interest in an insurance
business shall not sell, transfer, charge or
otherwise dispose of the interest in the insurance
business, or a part of the interest, except with the
prior written approval of the Commission.
(2) A person shall
not, whether directly or indirectly, acquire a
significant interest in an insurance business except
with the prior written approval ofthe Commission. -
(3) An insurer
shall not, unless with the prior written approval of
the Commission
(a)
cause, permit or
acquiesce in the sale, transfer, charge or other
disposal referred to in subsection (I), and
(b)
issue or allot any
shares or cause, permit or acquiesce in any other
reorganisation of its share capital that results in
(i) a person
acquiring a significant interest in the insurance
business, or
(ii) a person who
already owns or holds a significant interest in the
insurance business, increasing or decreasing the
size of the interest.
(4) An application
to the Commission for approval under subsection (1),
(2) or (3) shall be made by the insurer.
(5) The Commission
shall not grant approval under subsection (1), (2)
or (3) unless it is satisfied that a person who will
acquire a significant interest as a result of the
approval is qualified to have an interest in the
insurer.
(6) An approval
under subsections (1), (2) or (3) may be granted by
the· Commission on such terms and conditions as the
Commission considers appropriate.
(7) A person who
contravenes subsection (1) or (2) or an insurer that
contravenes subsection (3) commits an offence and is
liable on summary conviction to the penalty stated
in the First Schedule.
Appointment of
directors and principal officers of an insurer
49.
(1) An insurer
shall not appoint a director or a principal officer
without the prior written approval of the
Commission.
(2) The Commission
shall not grant an approval under subsection (1)
unless it is satisfied that the person concerned is
a qualified person to hold the proposed appointment.
(3) An approval
under subsection (1) may be granted on terms and
conditions the Commission considers appropriate.
(4) An insurer who
contravenes subsection (1) is liable to pay to the
Commission the percuniary penalty stated in the
First Schedule.
Termination of
appointment of directors and principal officers of
an insurer
50.
(I) Where an
insurer terminates the appointment of a director or
a member of senior management staff, it shall,
within fourteen days after the termination provide
written notification to the Commission.
(2) An insurer that
contravenes subsection (1) is liable to pay to the
Commission the percuniary penalty stated in the
First Schedule.
Publication of
authorised and subscribed capital
51.
(1) An insurer
shall not publish or issue a document in which is
printed a statement of
(a)
its authorised
capital, unless the statement also sets out the
amount of its subscribed capital and of its paid-up
capital, or
(b)
of its subscribed
capital, unless the statement also sets out the
amount of its paid-up capital. .
(2) An insurer that
contravenes subsection (1) is liable to pay to the
Commission the percuniary penalty stated in the
First Schedule.
(4) An application
to the Commission for approval under subsection (I),
(2) or (3) shall be made by the insurer.
(5) The Commission
shall not grant approval under subsection (1), (2)
or (3) unless it is satisfied that a person who will
acquire a significant interest as a result of the
approval is qualified to have an interest in the
insurer.
(6) An approval
under subsections (1), (2) or (3) may be granted by
the" Commission on such terms and conditions as the
Commission considers appropriate.
(7) A person who
contravenes subsection (I) or (2) or an insurer that
contravenes subsection (3) commits an offence and is
liable on SU..11unary conviction to the penalty
stated in the First Schedule.
Publication of
authorised and subscribed capital
51.
(I) An insurer
shall not publish or issue a document in which is
printed a statement of
(a)
its authorised
capital, unless the statement also sets out the
amount of its subscribed capital and of its paid-up
capital, or
(b)
of its subscribed
capital, unless the statement also sets out the
amount
of its paid-up capital.
.
(2) An insurer that
contravenes subsection (1) is liable to pay to the
Commission the percuniary penalty stated in the
First Schedule.
Prohibition on
payment of commission to unlicensed insurance
intermediary 52. (1) An insurer shall not pay any
commission to an insurance intermediary that is not·
licensed under this Act.
(2) An insurer that
contravenes subsection (1) is liable to pay to the
Commission the percuniary penalty stated in the
First Schedule.
Approval of
reinsurance arrangements by Commission
53. (1) An insurer
shall have arrangements approved by the Commission
in accordance with the Regulations for the
reinsurance of liabilities in respect of risks
insured by the insurer in the course of its business
as an insurer.
(2) An insurer or
re-insurer shall utilise the local capacity
available in insurance business originating from the
local market before recourse to any overseas
re-Insurance ...
(3) The Commission
may, by written notice, exempt reinsurance contracts
of a type specified in the notice from the
requirements for approval under subsection (1).
(4) An insurer that
contravenes subsection (1) is liable to pay to the
Commission the percuniary penalty stated in the
First Schedule.
Reinsurance
statements and documents to be filed
54. (1) The
Commission shall examine the
(a)
retention policy of
insurance companies,
(b)
securities of
reinsurers, and
(c)
appropriateness of
reinsurance contracts. '
(2) For purposes of
subsection (1), an insurer shall, on or before a
date each year determined by the Commission for that
insurer, file with the Commission a statement
setting out the details as to its reinsurance
arrangements as may be prescribed.,
(3) The statement
filed under subsection (2) shall be accompanied with
copies of every reinsurance agreement referred to in
the statement. -
(4) A person who
contravenes this section is liable to pay to the
Commission the percuniary penalty stated in the
First Schedule ..
Reinsurance of risks outside the country
55. (I) An insurer
shall not enter into a contract of reinsurance
except in the case of a facultative reinsurance
arrangement.
. (2) Subsection
(I) does not apply to an insurer whose licence is
restricted to reinsurance business
(3) An insurer that
contravenes subsection (1) is liable to pay to the
Commission the percuniary penalty stated in the
First Schedule.
Appointment of
actuary
56.
(1) A long term
insurer shall have the services of an actuary at any
time whose appointment has been approved by the
Commission in writing.
(2) The Commission
shall not approve the appointment of an actuary
under subsection (1) unless it is satisfied that the
individual concerned has sufficient experience and
is competent to act as actuary of the insurer
(3) A long term
insurer shall, within fourteen days of
(a)
the appointment of
its actuary, or
(b)
a person ceasing to
be its actuary,
submit a notice in
the prescribed form to the Commission.
(4) Where, for
whatever reason, a person ceases to be the actuary
of a long term insurer, the long term insurer is not
in breach of subsection (1) if it appoints another
qualified actuary within six weeks of the date the
person who was previously appointed actuary ceases
to hold that appointment.
(5) Subject to
subsection (4), a long term insurer that contravenes
subsection (1) is liable to pay to the Commission
the percuniary penalty stated in the First Schedule.
Powers of
Commission with regard to appointment of actuary
57.
(1) Where the
Commission is satisfied that the actuary of a long
term insurer has failed to fulfill obligations under
this Act it may, revoke the approval of the
appointment of the actuary by written notice to the
long term insurer and the insurer shall appoint a
new actuary ..
(2) A notice
revoking the appointment of an actuary under
subsection (1) shall be sent to the actuary.
(3) Where a long
term insurer fails to appoint an actuary, the
Commission may appoint a qualified person to act as
the actuary of the long term insurer.
(4) An actuary
appointed under subsection (3) is considered for the
purposes of this Act to have been appointed by the
long term insurer.
Powers of
actuary
58.
(1) The actuary of
a long term insurer
(a).
is entitled to have
access to any information or document in the
possession or under the control of the insurer where
the actuary reasonably requires access for the
proper performance of the . actuary's functions and
duties, and
(b)
may require any
director-or employee of the insurer to answer
questions or produce documents for the purpose of
enabling the actuary to properly perform the
actuary's functions and duties.
Appointment of
actuary
56.
(1) A long term
insurer shall have the services of an actuary at any
time whose appointment has been approved by the
Commission in writing.
(2) The Commission
shall not approve the appointment of an actuary
under subsection (I) unless it is satisfied that the
individual concerned has sufficient experience and
is competent to act as actuary of the insurer ..
(3) A long term
insurer shall, within fourteen days of
(a)
the appointment of
its actuary, or
(b)
a person ceasing to
be its actuary,
submit a notice in
the prescribed form to the Commission.
(4) Where, for
whatever reason, a person ceases to be the actuary
of a long term insurer, the long term insurer is not
in breach of subsection (1) if it appoints another
qualified actuary within six weeks of the date the
person who was previously appointed actuary ceases
to hold that appointment.
(5) Subject to
subsection (4), a long term insurer that contravenes
subsection (I) is liable to pay to the Commission
the percuniary penalty stated in the First Schedule.
Powers of
Commission with regard to appointment of actuary
57.
(1) Where the
Commission is satisfied that the actuary of a long
term insurer has failed to fulfill obligations under
this Act it may, revoke the approval of the
appointment of the actuary by written notice to the
long term insurer and the insurer shall appoint a
new actuary ..
. (2) A notice
revoking the appointment of an actuary under
subsection (I) shall be sent to the actuary.
(3) Where a long
term insurer fails to appoint an actuary, the
Commission may appoint a qualified person to act as
the actuary of the long term insurer.
(4) An actuary
appointed under subsection (3) is considered for the
purposes of this Act to have been appointed by the
long term insurer.
Powers of
actuary
58.
(I) The actuary of
a long term insurer
(a).
is entitled to have
access to any information or document in the
possession or under the control of the insurer where
the actuary reasonably requires access for the
proper performance of the . actuary's functions and
duties, and
(b)
may require any
director-or employee of the insurer to answer
questions or produce documents for the purpose of
enabling the actuary to properly perform the
actuary's functions and duties.
(7) An actuary who
contravenes subsection (1), (2), (3) or (4) is
liable to pay to the Commission the percuniary
penalty stated in the First Schedule.
Actuary to
comply with prescribed standards
60.
The actuary of a
long term insurer, in the performance of functions
and the exercise of power, shall comply with
relevant actuarial standards.
Annual actuarial
investigations
61.
(I) A long term
insurer shall, at least once each year, cause an
investigation to be made into its financial
condition in respect of its long term insurance
business by its actuary.
(2) An
investigation under subsection (I) shall comply with
such requirements as may be prescribed.
(3) The actuary
shall produce a report of the actuary's
investigation under subsection (I) containing
information and in a form that may be prescribed.
Attendance of
meetings by actuary
62.
(I) The actuary of
a long term insurer is entitled to attend meetings
of the directors ofthe insurer and to speak on a
matter being considered at the meeting (a)
that relates to, or may affect the adequacy of the
capital of the insurer, its solvency, its reserves
or its financial condition,
(b)
that relates to
advice given by the actuary to the directors, and
(c)
that concerns a
matter in relation to which the actuary is or will
be required to investigate, report on or give
advice.
(2) The actuary of
a long term insurer is entitled to attend any
general meeting of the insurer at which
(a)
the insurer's
accounts or financial statements are to be
considered, or (b) any matter in connection
with the actuary's functions or duties is to be
considered,
and to speak on the
matter being considered at the meeting.
Refusal to
co-operate with actuary
63.
Where, without
reasonable excuse
(a)
a long term insurer
fails or refuses to provide its actuary with access.
to the documents and information specified in
section 58 (I) (a), or (b) a director
or employee of the insurer contravenes section 58
(1) (b), the actuary may report the matter to
the Commission.
Actuarial
investigation
and report
64.
(I) The Commission
may at any time, by notice, direct an insurer to
cause an actuary to investigate the aspects of its
financial condition that the Commission may specify
in the notice and to provide the Commission with the
report prepared by the actuary.
(2) A report
prepared under subsection (1) shall be at the cost
of this insurer.
(3) The
Commissioner may direct that the actuarial
investigation is cam out by the actuary appointed by
the insurer, if any, or by any other actuary this
Commission specifies.
Application for
a scheme of transfer or amalgamation
65. (I) Subject to
section 68, a part of an insurance business may not
be
(a) transferred to another person, or
(b)
amalgamated with
the business of another person;
except under a
scheme that complies with this section and sections
66 and 67 a approved by the Commission.
(2) Application to
the Commission for the approval of a scheme shall
made jointly by or on behalf of the insurer and a
person who is a party to this scheme.
(3) An application
under subsection (2) shall be in a form, contain
information and be accompanied with documentation
that may be prescribed.
(4) Notice of the
application shall be published in the Gazette
and in newspaper of mass circulation that the
Commission may determine and notice of the
application together with an approved summary of the
scheme shall be se to every policyholder affected by
the scheme.
(5) The notice of
the scheme shall contain a statement that
representation may be made to the Commission
concerning the scheme on or before a date not latter
than two months after the date of the
publication in the Gazette.
(6) Before
determining an application under this section, the
Commission
may
(a)
at the cost of the
insurer, undertake an investigation into (hi
desirability or otherwise of the scheme, and
(b)
require the insurer
and each party to the scheme to provide ( Commission
with the documents and information it requires.
(7) An
investigation under subsection (6) may be carried
out by (hi Commission or by one or more persons
appointed by the Commission to act on behalf.
(8) A transaction
to which an insurer is a party which has the effect
0' transferring a part of the business of an insurer
to another person or amalgamating part of the
business of the insurer with the business of another
person is void unless effected under a scheme
approved by the Commission.
Details of
scheme
66.
A scheme shall set
out
(a)
the terms of the
agreement or deed under which the proposed transfer
or amalgamation is to be carried out,
(b)
particulars of
other arrangements that are necessary to give effect
to the scheme, and
(c)
contain other
information that may be prescribed.
Commission may
conduct hearing of application
67.
(I) The Commission
may, where it considers it necessary, conduct a
hearing of the application at which the insurer,
each party to the scheme and any interested person
who has made representations to the Commission
concerning the scheme are entitled to attend and be
heard either in person, or in the case of a company
through an officer, or a legal representative.
(2) At a hearing
conducted under subsection (1), the Commission may
consider evidence that it considers appropriate.
(3) Where the
Commission confirms the scheme,
(a) it
is binding on the parties to it, and
(b)
it has effect
despite anything to the contrary in the memorandum
or articles of association of the insurer or of any
company that is a party to the scheme.
(3) A copy of the
confirmed scheme shall be filed with the Registrar
of Companies.
Application of
Part
S of the Companies Code
68.
(1) An insurer may
effect an arrangement or amalgamation in accordance
with Part S of the Companies Code subject to this
section.
(2) An insurer
shall not pass a special resolution under section
230 of the Companies Code putting the company into
members' voluntary liquidation for the purposes of
an arrangement or amalgamation unless the Commission
has given its prior written consent to the
resolution.
(3) A resolution
passed by an insurer under section 230 of the
Companies Code without the prior written consent of
the Commission is void.
(4) An arrangement
or amalgamation effected in respect of an insurer
under Part S of the Companies Code is of no effect
unless approved by the Court in accordance with
sections 231 to 233 of the Companies Code
(5) The Commission
is entitled to appear and be heard at every hearing
in respect of an arrangement or amalgamation under
Part S of the Companies Code.
Capitalisation,
solvency and financial provisions
Maintenance of
capital by insurer
69.
(1) An insurer
shall ensure that its capital is maintained in an
amount which is not less than
(a)
the minimum capital
applicable to the insurer as stated in the Second
Schedule, or
(b)
the amount that the
Commission may by notice direct under subsection
(2).
(2) Where, having
regard to the nature and extent of the insurance
business carried on by the insurer, the Commission
considers it appropriate, the Commission may by
notice direct an insurer to increase its capital to
an amount greater than the prescribed minimum
capital applicable to the insurer.
(3) A direction
issued under subsection (2) shall specify a
reasonable time period for compliance with the
direction.
(4) Where the
capital of an insurer falls below the amount that it
is required to maintain under subsection (1), it
shall immediately notify the Commission in writing.
(5) An insurer is
liable to pay to the Commission the percuniary
penalty stated in the First Schedule, where
(a)
it knowingly causes
or permits its capital to fall below the amount that
it is required to maintain, or
(b)
it does not inform
the Commission immediately of the fall in its
capital.
Shares to be
fully paid for in cash
70.
(1) A share of an
insurer issued on or after the commencement date
shall be fully paid for in cash.
(2) For the
purposes of subsection (1), "paid for in cash" has
the meaning specified in section 45 of the Companies
Code.
(3) The Commission
may, on the application of an insurer, authorise the
insurer to issue one or more shares otherwise than
in accordance with subsection (1).
(4) An insurer that
contravenes subsection (1) is liable to pay to the
Commission the percuniary penalty stated in the
First Schedule.
Solvency margin
71.
(1) An insurer
shall ensure that at all times it maintains a
solvency margin not less than
(a)
the ·solvency
margin calculated in accordance with Regulations or
(b) the solvency margin that the Commission
may direct under subsection (2).
(2) Where, having
regard to the nature and extent of the insurance
business carried on by the insurer, the Commission
considers it appropriate, it may by notice direct an
insurer to maintain a larger solvency margin than
that prescribed.
(3) A direction
issued under subsection (2) shall specify a
reasonable time period for compliance with the
direction.
(4) Where the
solvency margin of an insurer falls below the amount
that it is required to maintain under subsection
(1), the insurer shall immediately notify the
Commission in writing.
(5) An insurer that
contravenes subsection (4) is liable to pay to the
Commission the percuniary penalty stated in the
First Schedule.
Reserves
72.
(1) An insurer
shall ensure that it maintains reserves in an amount
equal to or greater than that prescribed in
Regulations in respect of the insurance business
which it is authorised to carry on.
(2) Where the
amount of reserves maintained by an insurer falls
below the amount that it is required to maintain
under subsection (1), it shall immediately notify
the Commission in writing.
(3) An insurer that
contravenes subsection (2) is liable to pay to the
Commission the percuniary penalty stated in the
First Schedule ..
(4) Where the
amount of reserves maintained by an insurer falls
below the amount the insurer is required to maintain
in accordance with Regulations made under subsection
(1), the Commission shall by notice direct the
insurer to increase the reserves to the required
level.
(5) An insurer who
does not comply with a directive issued by the
Commission under subsection (4) is liable to pay to
the Commission the percuniary penalty stated in the
First Schedule.
Deposit
73.
(1) The Commission
shall, by notice require an insurer or reinsurer to
deposit ten percent of its minimum capital with the
Bank of Ghana in Government securities.
(2) The Commission
may, by notice at any time increase the deposit to
be provided by an insurer or reinsurer.
(3) A notice issued
under subsection (1) or (2) shall specify a
reasonable period within which the deposit, or
increased deposit, shall be made.
(4) An insurer
that is required by a notice issued under subsection
(1) to make a deposit with the Bank of Ghana is
liable to pay to the Commission the percuniary
penalty stated in the First Schedule if it does not
make the deposit within the time period specified in
the notice.
Return of
deposit
.
74. (1) Where the
Commission is satisfied that there is good reason
for some or all of a deposit made under section 73
to be returned to an insurer, the Commission may by
notice authorise the return of the deposit to the
insurer.
(2) Subject to
subsection (3), a deposit made by an insurer under
section 73 shall not be returne3 to the insurer
unless the Commission has issued a notice
authorising the return under subsection (1).
(3) Despite
subsection (2), where an insurer is in liquidation
or in judicial management, the court may order that
a deposit made under section 73 shall be returned to
the liquidator or judicial manager subject to such
conditions as the court considers appropriate.
Distribution
. 75. (1) An
insurer shall not make a distribution to a
shareholder unless, after the distribution
(a)
its capital equals
or exceeds the capital that it is required to
maintain under section 69 (1),
(b)
its solvency margin
equals or exceeds the solvency margin that it is
required to maintain under section 71 (I), and
(c)
its reserves equal
or exceed the reserves that it is required to
maintain under section 72 (1 )
(2) An insurer that
contravenes subsection (1) is liable to pay to the
Commission the percuniary penalty slated in the
First Schedule.
(3) For the
purposes of this section, "distribution", in
relation to a distribution by a company to a
shareholder means,
(a)
the direct or
indirect transfer of money or property, other than
the company's own shares, to or for the benefit of
the shareholder, or
(b)
the incurring of a
4ebt to or for the benefit of a shareholder in
relation to shares. held by that shareholder and
whether by means of a purchase of property, the
redemption or other acquisition of shares, a
distribution of indebtedness or by some other means
and includes a dividend.
Prohibition
relating to advances and loans
76. (1) An insurer
shall not after the commencement of this ·Act
(a)
acquire or deal in
its own shares or lend money or make advances on the
security of its own shares,
(b)
lend any of its
funds to a connected person,
(c)
grant unsecured
credit to a person except, in the case of a short
term insurer, for temporary cover not exceeding the
prescribed period, or
(d)
enter into a
guarantee or provide a security in connection with a
loan by another person to a connected person.
(2) The Regulations
shall specify persons who are connected persons for
the purposes of subsection (1).
(3) Subsection (1)
does not apply to a distribution permitted under
section 75.
(4) An insurer that
contravenes subsection (1) is liable to pay to the
Commission the percuniary penalty stated in the
First Schedule.
Approval of
premium and rates by Commission
77. (1) The
Commission may, by notice, approve minimum rates of
premium and commission to be charged by an insurer
for any insurance policy issued in respect of a
class of insurance business specified in the notice.
(2) A notice may be
limited to certain specified types of policy within
the class of insurance business specified in the
notice.
(3) The notice
(a)
takes effect from
the date of its issue or such later date as may be
specified in the notice, and
(b)
remains in effect
until revoked by the Commission by the issue of a
revocation notice.
(4) The Commission
shall, within fourteen days after the date of
issuing a notice or revoking a notice, send a copy
of the notice to each insurer authorised to carry on
business of the class specified in the notice.
(5) Where the
notice is in effect, an insurer who issues a policy
of insurance at a rate of premium lower than that
specified in the notice despite having received the
notice proof of which shall be on the insurer is
liable to pay to the Commission the percuniary
penalty stated in the First Schedule.
(6) An insurer may
offer to an insured, a policy which makes the
insurer liable to compensate the insured on the
occurrence of an event covered by the policy, within
ninety days of the insured's default in paying the
premium.
(7) An insurer
shall after ninety days of an insured's premium
payable becoming accrued, charge interest on the
accrued sum from the date of the insured's default,
at a rate determined by the Commission in
consultation with the Minister for Finance.
Accounts and
audit of insurers
Accounts record
78.
(1) An insurer
shall keep accounting records
(a)
that are sufficient
to explain its transactions and financial position
with respect to its insurance business and any other
business that it carries on,
(b)
that enable it to
prepare the accounts and make the returns required
by this Act and Regulations, and -
(c)
that enable its
accounts to be audited in accordance with this Act
and Regulations.
(2) An insurer
shall retain accounting records for a period of at
least six years after the completion of the
transaction to which they relate.
(3) An insurer
shall
(a)
keep its accounting
records in the country, and
(b)
notify the
Commission in writing of the place in the country
where its accounting records are kept.
(4) An insurer that
contravenes this section is liable to pay to the
Commission the percuniary penalty stated in the
First Schedule.
Financial year
of insurer
79.
The financial year
of an insurer shall be the same as the financial
year of Government.
Preparation and
lodgement of accounts of insurer
80.
(I) An insurer
shall, in respect of each financial year, prepare
(a) a revenue account for the year,
(b)
a balance sheet as
at the last day of the year, (c) a profit and
loss account for the year, and
(d)
any other accounts
and financial statements that may be directed by the
Commission.
(2) The accounts
and statements specified in subsection (1) shall be
lodged with the Commission within four months after
the end of the financial year to which the accounts
and statements relate and shall be accompanied with
(a)
a director's
certificate,
(b)
an auditor's
report,
(c)
in the case of an
insurer authorised to carry on long term business, a
report in respect of the financial year prepared by
the actuary appointed by the insurer under section
56,
(d)
any report on the
affairs of the insurer made to the members or
policyholders of the insurer in respect of the
relevant financial year, and
(e)
the other documents
that may be prescribed,
in each case,
containing such information and in the form that may
be prescribed.
(3) Unless
accompanied by the certificates, reports and
documents specified in subsection (2), the accounts
and statements referred to in subsection (I) are
considered not to have been lodged with the
Commission.
(4) An insurer that
contravenes subsection (I) or (2) is liable to pay
to the Commission the percuniary penalty stated in
the First Schedule.
Lodgement of
quarterly accounts and report
81.
(I) An insurer
shall, in respect of each quarter, lodge with the
Commission (a) a revenue account for the
quarter,
(b)
a balance sheet as
at the last day ofthe quarter, (c) a profit
and loss account for the quarter, and
(d)
the other reports,
accounts and financial statements that may be
prescribed.
(2) The reports,
accounts and financial statements specified in
subsection (I) shall be lodged with the Commission
within six weeks after the end of the quarter
accompanied by a director's certificate containing
the information and in the form prescribed.
(3) Unless they are
accompanied with a directors' certificate complying
with the Regulations, the reports, accounts and
financial statements referred to in subsection (I)
are considered not to have been lodged with the
Commission.
(4) An insurer that
contravenes this section is liable to pay to the
Commission the percuniary penalty stated in the
First Schedule.
Extension of
time
82.
(I) The Commission
may, on the application of an insurer, extend the
time for compliance with section 80 (2), section 81
(2) or section 56 (4) for a period of one month, or
where it grants more than one extension for an
aggregate period not exceeding three months ..
(2) An extension
under subsection (1) may be granted subject to any
condition the Commission considers appropriate.
Amendment of
2ccounts
83.
(1) Where the
Commission considers that a document lodged by an
insurer under section 80 or section 81 is inaccurate
or incomplete or is not prepared in accordance with
this Act and Regulations, the Commission may by
notice require the insurer to amend the document or
lodge a replacement document.
(2) Where an
insurer fails to comply with a notice under
subsection (1), the Commission may amend the
document itself or reject the document.
(3) A document
amended by the Commission or by the insurer is
considered as having been lodged in its amended
form.
Group accounts
84.
(1) Where an
insurer is a member of a group of companies, the
Commission may require the insurer to lodge group
accounts .
(2) The
Commission may require that the group accounts are
audited by
the auditor of the
insurer or by another auditor approved by the
Commission.
(3) Regulations may
provide for the form and content of group accounts
to be lodged under this section.
Insurer to
appoint an auditor
85.
(1) An insurer
shall appoint an auditor for the purposes of
auditing
(a)
the accounts
referred to in paragraphs (a) to (c)
of section 80 (1), and
(b)
the accounts and
statements referred to in section 80 (1) (d)
that the Regulations made under this Act specify
shall be audited.
(2) An auditor
shall not be appointed under subsection (1) unless
(a)
the auditor is
qualified under Regulations to act as the auditor of
an insurer, and
(b)
the Commission has
given its approval in writing to the auditor's
appointment.
(3) The Commission
shall approve the appointment of an auditor where it
is satisfied that the auditor has sufficient
experience and is competent to audit the accounts of
the insurer.
(4) An insurer
shall make the arrangements that are necessary to
enable its auditor to audit its accounts and
financial statements in accordance with this Act.
(5) Despite
subsection (2), the approval of the Commission is
not required' where the auditor appointed in respect
of a financial year acted as the auditor of the
insurer in the previous financial year.
(6) An insurer that
fails to appoint an auditor in accordance with
subsection (I is liable to pay to the Commission the
percuniary penalty stated in the First Schedule
(7) An insurer
shall, within fourteen days of the appointment of
its auditor, submit a notice of appointment in the
prescribed form to the Commission; failure to notify
the Commission attracts the percuniary penalty
stated in the First Schedule and payable to the
Commission.
Audit report
86.
(1) Upon completion
of the audit of the accounts and financial
statements referred to in section 85 (1), the
auditor of an insurer shall submit an audit report
to the insurer.
(2) The Commission
may at anytime, by notice in writing, direct an
insurer to supply the Commission with a report,
prepared by its auditor or other person nominated by
the Commission, on such matters as the Commission
may determine which may include an opinion on asset
quality, adequacy of provisions for losses and the
adequacy of the accounting and control systems.
(3) A report
prepared under subsection (2) shall be at the cost
of the insurer.
Obligations and
termination of appointment of auditors
87.
(I) Despite
anything to the contrary in any other enactment, the
auditor of an insurer shall
(a)
provide the
Commission with a copy of the audit report submitted
to the insurer under section 86 (1), and
(b)
report immediately
to the Commission any information that relates to
the affairs of the insurer that has been obtained
and which in the opinion of the auditor, suggests
that
(i) the insurer is
insolvent or is likely to become insolvent or is
likely to be unable to meet its obligations,
(ii) a criminal
offence has been or is being committed by the
insurer in connection with its business,
(iii) the insurer
is in breach of section 69, 70, or 72, or
(iv) serious
breaches of this Act, Regulations, the Code of
Practice or the Market Conduct Rules have occurred
in respect of the insurer or its insurance business.
(2) Where the
appointment of an auditor is terminated, that
auditor shall (a) immediately inform the
Commission of the termination of the auditor's
appointment and disclose to the Commission the
circumstances that gave rise to such termination,
and
(b)
where, but for the
termination of the auditor's appointment, the
auditor would have
(i) sent an audit
report to the Commission under subsection
(1)
(a), or
(ii) reported
information to the Commission under subsection
(1) (b),
the auditor shall
send a copy of the report to the Commission, or
report the information concerned to the Commission,
as if the appointment had not been terminated.
(3) The Commission
may require an auditor of an insurer to discuss an
audit the auditor has conducted or commenced with,
or provide additional information regarding the
audit to the Commission.
(4) Where, in good
faith, an auditor provides a report or an
information to the Commission under subsections (1),
(2) or (3), the auditor is not considered to be in
contravention of any enactment, rule of law or
professional code of conduct for which the auditor
is subject and civil, criminal or disciplinary
proceedings shall no! lie against the auditor in
respect of the report or information.
(5) The failure, in
good faith, of an auditor to provide a report or
information to the Commission under subsection (1),
(2) or (3) shall not confer upon any other person a
right of action against the auditor which, but for
that failure, the person would not have had.
(6) An auditor or
former auditor who contravenes subsection (1) or (2)
is liable to pay to the Commission the pecuniary
penalty stated in the First Schedule"
(7) For the
purposes of subsection (1), an insurer is considered
to be insolvent where the total value of its assets
does not exceed the total amount of liabilities by
at least the minimum margin of solvency that it is
required to maintain under section 71 (1).
Powers of
Commission with regard to appointment of auditor
88. (1) Where the
Commission is satisfied that the auditor of an
insurer has failed to fulfill an auditor's
obligations under this Act or is otherwise
disqualified to act as the auditor of an insurer,
the Commission may, by written notice to the'
insurer, revoke the approval of the appointment of
the auditor and the insurer shall appoint a new
auditor in accordance with section 85.
(2) A notice
revoking the appointment of an auditor under
subsection (1) shall be given to the auditor.
(3) Where an
insurer fails to appoint an auditor, the Commission
may appoint a person qualified under the Regulations
to act as the auditor of the insurer:
. Auditor may rely
on actuarial valuations
89.
(1) The auditor of a long term insurer may accept,
for the purposes of audit under this Act, a
valuation by the actuary appointed by the insurer of
(a)
the policy
liabilities of the company as at the end of the
financial year of the insurer, or
(b)
a change, during a
financial year, in the policy liabilities of the
insurer in relation to a particular fund.
(2) Without
limiting to subsection (1), an external auditor
shall not rely solely on the valuations of the
actuary but shall carry out an independent review
and examination to express an opinion on the
financial statement.
Provisions do
not limit Companies Code
90.
Sections 78 to 89
does not limit the application of the accounts and
audits provisions of the Companies Code to an
insurer that is subject to that Code and, unless
this Act or the Regulations provide otherwise, the
accounts and financial statements of an insurer
lodged with the Commission, including any group
accounts, shall be prepared in accordance with the
Code.
Liquidation and
judicial management of insurance companies
Insurer not to
be wound up by private liquidation
91.
(1) An insurer
shall not be wound up by a private liquidation under
the Companies Code.
(2) A resolution of
an insurer to be wound up by private liquidation
under the Companies Code is void.
Modification of
Act 180
92.
The provisions of
the Bodies Corporate (Official Liquidations) Act,
1963 (Act 180) relating to the official liquidation
of companies are modified in respect of insurers and
companies carrying on unlicensed insurance business
to the extent specified in section 91 to 113
Commencement of
proceedings
93.
(1) The official
winding up of a long term insurer may only be
commenced by a petition to the Court.
(2) The official
winding up of a short term insurer may be commenced
by a special resolution of the company where the
Commission has given its prior written consent to
the passing of the resolution.
(3) A resolution
(a)
of a long term
insurer to appoint a liquidator in contravention of
subsection (1), or
(b)
of a short term
insurer to appoint a liquidator in contravention of
subsection (2),
. (4) Where the
members of a short term insurer appoint a liquidator
in accordance with this section, the Commission may
by notice direct the liquidator to publish the
appointment in a manner that is specified in the
notice.
(5) A liquidator
who fails to publish its appointment in accordance
with a direction of the Commission issued under
subsection (4) is liable to pay to the Commission
the pecuniary penalty stated in the First Schedule.
Application for
liquidation by Commission
94. (1) For the
purposes of Act 180, an insurer is considered to be
insolvent where the total value of the insurer's
assets does not exceed the total amount of
liabilities by at least the minimum margin of
solvency that it is, or was, required (, maintain
under section 71 (1).
(2) The Commission
may pursuant to Act 180, present an application
petition to the Court for official liquidation of an
insurer or a company that is carrying on or has
carried on, unlicensed insurance business.
(3) On a petition
presented under subsection (2), the Court may-make
order for the official liquidation of the insurer
(a)
on any ground
specified in Act 180,
(b)
where the Court is
satisfied that it is in the public interest that the
company be wound up, or
(c)
in the case of an
insurer, where the insurer has failed to lodge with
the Commission, within the period specified, the
documents specified, in section 80 (2).
(4) On the hearing
of a petition for the official liquidation of an
insurer evidence that the insurer has, at any time
prior to the date of the presentation of petition
been insolvent is, unless the contrary is proved,
evidence that it continues be insolvent.
Service on
Commission
95. A petition for
the official liquidation of an insurer shall, where
presented by, person other than the Commission, be
served on the Commission and the Commission, is
entitled to appear and be heard at the hearing of
the petition.
Reduction of
contracts as alternative to official liquidation
96. Where on the
hearing of a petition for the official liquidation
of an insurer, Court is satisfied that the insurer
is insolvent, it may reduce the amount of the ins
contracts on conditions that the Court considers
just, instead of making an order the
officia11iquidation of the insurer.
Continuation of
long term business by liquidator
97. (1) The
liquidator of a long term insurer shall, unless the
Court of he orders, carry on the long term business
of the insurer with a view to it be' transferred as
a going concern to another insurer, whether in
existence or to incorporated for the purpose.
(2) In carrying on
the insurer's long term business under subsection
(1), liquidator may agree to the variation of any
contracts of insurance at the commencement of the
official liquidation, but the insurer shall not
effect a new contract of insurance.
(3) On the
application of the liquidator of a long term
insurer, the Court may by order reduce the amounts
of the contracts made by the company in the
course of carrying on its long term business.· .
(4) An order under
subsection (3) may be made subject to conditions
that the Court considers appropriate.
(5) The liquidator
of a long term insurer,
(a)
may appoint an
actuary to investigate and report to the insurer on
the long term business of the insurer and, where
appropriate, to conduct actuarial valuations of the
business, and
(b)
may apply to the
Court for the appointment of a special manager to
manage the business of the insurer.
(6) A special
manager appointed by the Court
(a)
shall act in
accordance with such directions that may be given to
it by the court,
(b)
shall give security
and account in the manner that the Court may direct,
and
(c)
is entitled to be
paid such remuneration as may be determined by the
Court.
Protection of
segregated funds and assets
98. (I) Despite Act
180, in the official liquidation of a long term
insurer, the assets of the funds maintained by the
insurer in respect of its long term business shall
first be applied to meet the insurer's long term
liabilities attributable to the funds.
(2) Where the value
of the assets referred to in subsection (1) exceeds
the amount of the long term liabilities of the
insurer attributable to the funds, the excess is an
asset of the insurer available for distribution in
accordance with Act 180.
(3) Where the Court
makes an order under Act 180 in respect of a long
term insurer requiring a person to repay, restore or
account for money or other assets, to pay
compensation to the insurer or to pay interest to
the insurer, the court shall, insofar as the
delinquency relates to assets belonging to the
insurer's long term funds, order that the money,
assets or contribution is to be treated for the
purposes of subsection (I) as assets of those funds.
Judicial
management order
99. (I) A judicial
management order is an order directing that, during
the period for which the order is in force, an
insurer, or the part of the business of an insurer
that is specified in the order, be managed by a
judicial manager appointed by and under the control
of the court.
(2) The Court may
make a judicial management order in respect of
insurer where it is satisfied that it is in the
interests of the insurer's policyholders do so.
(3) The judicial
management of an insurer commences on the date of
judicial management order, or the later date that
may be specified in the order terminates when the
judicial management order is discharged under
section 109.
Application for
judicial management order
100.
(I) Application for
a judicial management order may be made by the ins
or by the Commission.
(2) An application
for a judicial manager shall be served
(a)
where application
is made by the insurer, on the Commission later than
thirty days before the date fixed for the hearing of
application, or
(b)
where application
is made by the Commission, on the insurer later than
five days before the date fixed for the hearing oft
application.
(3) The insurer and
the Commission are both entitled to appear and •
heard on an application for a judicial management
order.
(4) Where it is
satisfied that the application is urgent, the Court
may reduce the time for service specified in
subsection (2).
Moratorium
101.
During the period
in which a judicial management order is in force
respect of an insurer, except with the leave of the
Court or with the consent of judicial manager
(a)
steps shall not be
taken to enforce any security over the insurer
assets,
(b)
steps shall not be
taken to repossess assets that are being used
occupied by or are in the possession of the insurer,
(c)
proceedings,
execution or other legal process shall not be
commenced or continued or distress levied against
the insurer or its assets,
(d)
. a share shall not
be transferred and an alteration shall not be made
the status of the members of the insurer, whether by
an amendment the memorandum or articles or in any
shareholders' or member agreement or otherwise, and
(e)
a resolution of the
members of the insurer shall not be passed.
Duties
of judicial
manager
102.
(1) On making a
judicial management order, the Court shall appoint a
suitably qualified and experienced person to be the
judicial manager.
(2) The judicial
manager shall
(a)
manage the
business, assets and affairs of the insurer, or that
part of the business, assets and affairs of the
insurer in respect of which the judicial manager has
been appointed, and
(b)
take into custody
and control the assets of the insurer or, where the
judicial manager has been appointed in respect of
only part of the business of the insurer, those
assets necessary to enable the judicial manager
perform the function.
(3) A person who,
immediately before the commencement of the judicial
management of the insurer, is vested with the
management of the insurer, or that part of the
business of the insurer in respect of which the
judicial management order is made, is divested of
that management.
Additional
duties of judicial manager
103
(1) The court may,
on the application of the judicial manager or of the
Commission at any time as it considers appropriate,
(a)
give the judicial
manager any additional duties, and
(b)
give the judicial
manager any directions concerning its duties and
powers or in relation to any matter arising in the
course of the judicial management.
(2) A judicial
manager shall not issue or enter into any policies
except with the leave of the Court.
Powers of
judicial manager
. 104.
Unless and to the extent that the Court otherwise
orders, a judicial . ,manager has the following
powers:
(a)
to bring or defend
any legal proceedings in the name and on behalf of
the company,
(b)
to appoint a legal
practitioner to help it in the performance of its
functions,
(c)
to appoint an
actuary to assist it in the performance of its
functions,
(d)
to sell or
otherwise dispose of any of the property of the
company,.
(e)
to do all acts and
execute in the name and on behalf of the company
deeds, receipts and other documents,
(f)
for the purpose of
paragraph
(d),
to use the
company's common seal, (g) to prove in the
bankruptcy of any debtor of the company or under any
deed executed under that Act,
(h)
to draw, accept,
make and endorse any bill of exchange or promissory
note in the name and on behalf of the company,
(i)
to obtain credit,
whether on the security of the company or otherwise,
(j)
to take letters of
administration of the estate of a deceased debtor
and to do anything necessary for obtaining payment
of any money due from a debtor, or his or her
estate, that cannot conveniently done in the name of
the company,
(k)
to appoint an agent
to do anything that it is not practicable for
judicial manager to do personally or that it is
unreasonable to ex him or her to do personally, and
(I)
the other powers
that the court directs.
Information and
notice
of judicial manager
105.
The judicial
manager shall give the Commission
(a)
the information
that it may from time to time require, and
(b)
notice of any
application made to the court.
Appearance in
Court
106.
The Commission and
the judicial manager are both entitled to appear be
heard on any application to the Court concerning the
judicial management of insurer, including an
application for the discharge of the order.
Remuneration of
judicial
manager
107.
(I) The judicial
manager is entitled to be paid remuneration for
services judicial manager and to be reimbursed
reasonable costs arid expenses.
(2) The
remuneration payable to the judicial manager, and
the costs expenses to be reimbursed shall be fixed
by the court.
(3) Unless the
Court otherwise orders,
(a)
the remuneration,
costs and expenses of the judicial manager payable
out of the assets of the insurer in respect of which
the judicial manager is appointed, and
(b)
the judicial
manager has a charge over the assets of the insurer
for remuneration, costs and expenses.
(4) Unless the
Court otherwise orders, the charge specified in
subsection
(3)
(a)
ranks in priority
to any floating charge to which the assets of the
insurer may be subject, and
(b)
continues to
subsist after the discharge of the judicial
management order.
Removal of
judicial manager and filling of vacancy
108.
The Court, on the
application of the insurer or the Commission may
(a)
remove
the judicial manager, and
(b)
appoint another
suitably qualified and experienced person as
judicial manager in place of the judicial manager
removed under paragraph (a) or fill a
vacancy.
Discharge of
judicial management order
109. (I)
Application may be made to the court for the
discharge of a judicial management order by the
judicial manager, the Commission or by any other
interested person.
(2) On an
application under subsection (I), the court may
discharge the judicial management order where it is
satisfied that
(a)
the purpose of the
order has been fulfilled, or
(b)
for a reason it is
undesirable that the order should remain in force.
(3) An application under subsection (I) shall be
served within the period
before the date of
the hearing as the court may direct where an
application is made (a) by an interested
person, on the judicial manager and the Commission,
(b) by the Commission, on the judicial
manager, and
(c)
by the judicial
manager, on the Commission.
(4) On the
discharge of a judicial management order,
(a)
the judicial
manager is divested of the management of the
insurer, or that part of its business in respect of
which the judicial manager was appointed, and
(b)
the management of
the insurer or of its business re-vests in its
directors.
Report of
judicial manager
11 O. (I) As soon
as practicable after appointment, a judicial manager
shall file with the court a report recommending
which of the following courses is in its opinion
most advantageous to the general interests of the
policy-holders of the insurer:
(a)
the transfer of the
business, or part of the business, of the insurer
to some other
insurer,
(b)
the carrying on by
the insurer of its business, (c) the official
liquidation of the insurer, or
(d)
such other course
of action as the judicial manager considers
appropriate.
(2) In the report,
the judicial manager
(a)
may recommend
different courses of action in respect of different
parts of the insurer's business, and
(b)
shall set out the
reasons for any recommendations made in the report.
(3) The judicial
manager shall as soon as possible after filing the
report (a) provide a copy to the Commission,
and
(b)
apply to the Court
for an order to give effect to the recommendations
within the report.
(4) The report is a
document to which the public may have access.
Order of Court
on report of judicial manager
111.
(1) On an
application under 11 0 (3)(b), the Court may
make an order giving effect to such course of action
as it considers to be most advantageous to the
interests of the policyholders of the insurer.
(2) An order under
subsection (1) is binding and takes effect despite
anything in the memorandum or articles of
association of the insurer.
Transfer of business to another company
112.
Where the Court
makes an order for the transfer of the business, or
part of the business of an insurer to another
insurer, the judicial manager shall prepare a scheme
for the transfer in accordance with this Act and
until the scheme is confirmed by the Court, the
management of the insurer, or that part of the
insurer as the case may be, continues to be vested
in the judicial manager.
Indemnity of judicial manager
113.
A judicial manager
is not subject to any liability to any person in
respect of anything done, or omitted to be done, in
good faith in the exercise of powers, functions
performance or discharge of duties conferred or
imposed on the judicial manager by this Act or by
the court.
Insurance
intermediaries
Application for
insurance intermediary licence
114.
(1) A person may
apply to the Commission for an insurance
intermediary’s licence in one of the following
categories:
(a)
insurance broker;
(b)
insurance agent;
(c)
insurance
sub-agent; or
(d)
insurance loss
adjuster.
(2) An application
under subsection (1) shall be in writing and shall
(a) state the category of licence for which
the application is made,
(b)
where the
application is for a licence to act as an insurance
broker or an insurance loss adjuster, state the type
and the class of business in respect of which the
applicant seeks to be authorised,
(c)
contain the
prescribed information and be in the prescribed
form, and
(d) /be
accompanied with the prescribed
documentation.
(3) An application
for a licence to act as an insurance agent or an
insurance sub-agent shall be supported by the
insurer with which the applicant is or will be
contracted.
(4) The Commission
may require an applicant under section 114-151 to
furnish it with any other documentation or
information it considers necessary to determine the
application.
(5) The applicant
shall pay a fee determined by the Commission for the
licence.
Issue of
insurance intermediary's licence
115.
(1) The Commission
may issue an insurance intermediary's licence to an
applicant subject to any conditions the Commission
may determine.
(2) An applicant
does not qualify to be issued a licence unless the
Commission is satisfied that in the category applied
for,
(a)
the applicant is a
fit and proper person to act as an insurance
intermediary,
(b)
in the case of an
applicant that is a body corporate
(i) each person
having a share or other interest in the applicant,
whether legal or equitable is a fit and proper
person to have an interest in the intermediary
insurance business applied for, and
(ii) each director
and principal officer of the applicant and of any
holding company of the applicant is a fit and proper
person to be concerned with the management of the
category of intermediary insurance business applied
for,
(c)
the applicant
intends, if issued with a licence, to act as an
insurance' intermediary in the country,
(d)
the applicant
satisfies the requirements of this Act in respect of
the application and will, upon the issue of the
licence, be in compliance with this Act, the
Regulations, the Codes of Practice and, where
appropriate, the Market Conduct Rules,
(e)
the organisation,
management and financial resources of the applicant
are adequate for an insurance intermediary in the
category applied for, and
(f)
the name of the
applicant suggests that the applicant is carrying on
insurance business, or acting as an insurance
intermediary in the category that is being applied
for ..
(2) The Commission
may issue a licence to the applicant subject to the
other conditions that the Commission considers
appropriate.
Insurance
intermediary's licence
116.
A licence issued
under subsection (1) shall be in writing and shall
specify (a) the category in respect of which
the licence is issued,
(b)
the conditions to
which the licence is subject,
(c)
where the category
of the licence is insurance broker or insurance loss
adjuster, the class of insurance business in respect
of which the insurance intermediary is authorised
to operate, and
(d)
where the category
of the licence is insurance agent or insurance
subagent, the insurer by which the insurance
intermediary is or will be appointed.
Restrictions on
persons who may be licensed
117.
(1) A licence as an
insurance broker or an insurance loss adjuster shall
only be granted to a company or a partnership.
(2) A director,
officer or employee of a company holding a licence
as an insurance broker, a partner or employee of a
partnership holding a licence as an insurance broker
or a person holding a significant interest in an
insurance broker shall not be granted a licence as
an insurance agent, an insurance sub-agent or an
insurance loss adjuster.
(3) A director,
officer or employee of an insurer and a person
holding a significant interest in an insurer shall
not be granted a licence as an insurance broker and
shall not be a director, officer or employee of a
person holding a licence as an insurance broker.
(4) A person
holding a licence as an insurance agent or sub-agent
shall not hold a licence as an insurance broker.
(5) A person
holding a licence as an insurance broker shall not
hold a licence as an insurance agent or sub-agent.
(6) A person
holding a licence as an insurance loss adjuster
shall not hold a licence as an insurance broker or
an insurance agent or sub-agent.
Submission of
licence to Commission
118.
(1) An insurance
intermediary shall submit its licence to the
Commission where (a) the licence is suspended
or revoked, or
(b)
it is required by
the Commission to do so for a stated reason.
(2) An insurance
intermediary that contravenes subsection (1) is
liable to pay to the Commission the percuniary
penalty stated in the First Schedule.
(3) In this section
"insurance intermediary" includes a former insurance
intermediary whose licence has expired or has been
revoked.
Publication of
issue of licence
119.
Where the
Commission issues a licence under section 116, it
shall cause notice of the issue to be published in
the Gazette and any newspaper of mass
circulation that the Commission may determine.
Variation of
conditions of licence
120.
(1) The Commission
may, upon giving reasonable written notice to an
insurance intermediary,
(a)
vary or revoke any
licence conditions, or
(b)
impose new
conditions on the insurance intermediary.
(2) An insurance
intermediary may apply to the Commission in writing
for a condition to which its licence is subject to
be revoked or varied.
(3) Where on an
application made under subsection (2), the
Commission is satisfied that the condition is no
longer necessary or should be varied, it may revoke
or vary the condition.
(4) Where the
Commission. revokes or varies a condition or issues
a new condition, the insurance intermediary shall
deliver its licence to the Commission which shall
issue a replacement licence.
Duration of
licence
121.
(1) A licence
expires twelve months from the date of its issue or
of its last renewal.
(2) Where
application for the renewal of a licence is made on
or before the date specified in section 124 (2)(
d) but has not been determined by the Commission
when the licence is due to expire, the licence
continues in force until the application for renewal
is determined by the Commission and a renewal is
considered to take effect from the date when the
lcence would have expired but for the renewal.
Refusal of
application
122.
Where the
Commission
(a)
refuses to issue a
licence, or
(b)
issues a licence
but, in the case of an insurance broker or an
insurance loss adjuster, refuses to authorise all
the classes of insurance business, specified in the
application,
it shall notify the
applicant in writing of its refusal, stating the
reasons within thirty days.
Appeal to High
Court
123 ..
(1) A person aggrieved by the refusal of the
Commission to grant an application for licence may
within sixty days after the date of the notice of
refusal appeal to the High Court.
(2) Where the
appeal is allowed the Commission shall license the
insurance intermediary ..
Application for
renewal of insurance intermediary's licence
124. (1) An
insurance intermediary may apply to the Commission
for the renewal of its licence.
(2) An application
under subsection (1) shall (a) be in writing,
(b)
contain the
prescribed information and be in the prescribed
form;
(c)
be accompanied with
the prescribed documentation, and
(d)
be made no later
than
(i) three months before
the expiry of the licence, or
(ii) subject to
subsection (3), the later date that the Commission
may allow.
(3) Despite
subsection (2)(d)(ii), application for the renewal
of a licence shall be made prior to the expiry of
the licence ..
(4) The Commission
may require an insurance intermediary to furnish it
with such other documentation and information that
it considers necessary to determine the application
for renewal of the licence.
Renewal of
insurance intermediary's licence
125. (1) The
Commission shall renew the licence of an insurance
intermediary where it is satisfied the insurance
intermediary
(a)
continues to meet
the requirements for the issue of a licence, and
(b) is in compliance with this Act, Regulations
the Code of Practice and, where applicable, the
Market Conduct Rules.
(2) The renewal of
a licence under this section is effective from the
date when the licence renewed would have expired but
for the renewal.
Prohibition on
unlicensed business as an insurance intermediary
126. (l) A person
shall not carry on business as, or purport to carry
on business as, an insurance intermediary in or from
within the country unless
(a)
the person holds a
licence issued under sections 115 and 116 in the
appropriate category, and
(b)
the licence has not
been suspended under section 176.
(2) For the
purposes of subsection (1), a company incorporated
under the Companies Code or a person resident in the
country that carries on business as an insurance
intermediary outside the country carries on the
business of an insurance intermediary from within
the Republic.
(3) A person who
carries on or purports to carry on business as an
insurance intermediary contrary to subsection (1)
commits an offence and is liable on summary
conviction to the penalty stated in the First
Schedule.
Application for
renewal of insurance intermediary's licence
124.
(1) An insurance
intermediary may apply to the Commission for the
renewal of its licence.
(2) An application
under subsection (1) shall
(a) be in
writing,
(b)
contain the
prescribed information and be in the prescribed
form;
(c) be accompanied
with the prescribed documentation, and
(d)
be made no later
than
(i) three months
before the expiry of the licence, or
(ii) subject to
subsection (3), the later date that the Commission
may allow.
(3) Despite
subsection (2)(4)(ii), application for the renewal
of a licence shall be made prior to the expiry of
the licence ..
(4) The Commission
may require an insurance intermediary to furnish it
with such other documentation and information that
it considers necessary to determine the application
for renewal of the licence.
Renewal of
insurance
intermediary's licence
125.
(1) The Commission
shall renew the licence of an insurance intermediary
where it is satisfied the insurance intermediary
(a)
continues to meet
the requirements for the issue of a licence, and
(b)
is in compliance
with this Act, Regulations the Code of Practice and,
where applicable, the Market Conduct Rules.
(2) The renewal of
a licence under this section is effective from the
date when the licence renewed would have expired but
for the renewal.
Prohibition on
unlicensed business as an insurance intermediary
126.
(1) A person shall
not carry on business as, or purport to carry on
business as, an insurance intermediary in or from
within the country unless
(a)
the person holds a
licence issued under sections I 15 and 116 in the
appropriate category, and
(b)
the licence has not
been suspended under section 176.
(2) For the
purposes of subsection (1), a company incorporated
under the Companies Code or a person resident in the
country that carries on business as an insurance
intermediary outside the country carries on the
business of an insurance intermediary from within
the Republic.
(3) A person who
carries on or purports to carry on business as an
insurance intermediary contrary to subsection (1)
commits an offence and is liable on summary
conviction to the penalty stated in the First
Schedule.
Restriction on
contact office
127. (1) An
offshore insurance intermediary shall not open,
maintain or carry on business through a
representative, branch or contact office in the
country unless it has obtained the prior written
approval of the Commission.
(2) A person shall
not
(a)
establish or
maintain a place of business to solicit insurance
intermediary's business, or
(b)
establish or
maintain a representative, branch or contact office
in the country,
for an offshore
insurance intermediary, unless the offshore
insurance intermediary has obtained the written
approval of the Commission under subsection (1).
(3) In this section
"offshore insurance intermediary" means an insurance
intermediary incorporated, constituted or formed
with its main place of business outside the country.
Application for
approval to establish contact office
128. (1) An
application for approval under section 127 shall
(a)
contain the
prescribed information and be in the prescribed
form, and (b) be accompanied with the
prescribed documentation.
(2) The Commission
may require an offshore insurance intermediary to
furnish it with such other documentation and
information as it considers necessary to determine
an application.
(3) The Commission
may approve an application subject to the conditions
that it considers appropriate.
Variation of
condition of offshore insurance intermediary
129. (1) The
Commission may, upon giving reasonable written
notice to an offshore insurance intermediary
(a)
vary or revoke any
condition to which the offshore insurance
intermediary is subject, or
. (b)
impose new
conditions on an offshore insurance intermediary.
Offence for
maintaining an office without approval
130. An offshore
insurance intermediary who contravenes section 127
commits an offence is liable on summary conviction
to the penalty stated in the First Schedule.
Maintenance of
capital by insurance intermediary
131. (1) A company
that holds a licence as an insurance broker or an
insurance loss adjuster shall ensure that its
capital is maintained in an amount not less than the
prescribed minimum capital applicable to its
licence.
(2) Where the
capital of an insurance intermediary falls below the
amount that it is required to maintain under
subsection (1), it shall immediately notify the
Commission in writing.
(3) An insurance
intermediary that contravenes subsection (1) or sub
section (2) is liable to pay to the Commission the
percuniary penalty stated in the First Schedule.
Deposits by
insurance intermediary
132.
(1) The Commission
may, by notice require a person holding a licence as
insurance broker or an insurance loss adjuster to
deposit a sum specified in t notice with the Bank of
Ghana.
(2) The Commission
may, by notice at any time increase the deposit to
provided by such a person
(3) A notice issued
under subsection (1) or (2) shall specify a
reasonable period within which the deposit, or
increased deposit, shall be made.
Return of
deposit
133.
(1) Where the
Commission is satisfied that there is good reason
for deposit made under section 132 to be returned to
the insurance intermediary, it m by notice authorise
the return of the deposit, and a deposit made by an
insuran intermediary under section 132 shall not be
returned to the insurance intennedi unless the
Commission has issued a notice authorising the
return.
Restrictions on
insurance intermediary, their directors, officers
an
employees
134.
(1) A director,
officer or employee of a person holding a licence as
insurance broker shall not be a director of an
insurer.
(2) A person
holding a licence as an insurance loss adjuster
shall not director, officer or employee of a company
holding a licence as an insurance broker,
Prohibition to
deal with unlicensed insurer
135.
(1) A~ insurance
intermediary shall not act in relation to a policy
of insurance to be effected by or with an insurer
that does not hold a licence issued under section 38
or that has not been suspended, unless the insurer
is an offshore insurer that has been authorised in
respect of the policy under section 38.
(2) Subsection (1)
does not apply where the insurance intermediary'
acting in relation to a policy of reinsurance that,
under this Act or the Regulation permitted to be
effected with an offshore insurer.
Collection of
premiums
by insurance intermediary
136.
An insurance
intermediary shall not receive, hold or in any way
deal M premium payable under an insurance
policy entered into or to be entered into with
insurer, unless the insurance intermediary receives,
holds or deals with the premi in accordance with
rules or guidelines of the Commission.
Accounts records
13 7. (1) An
insurance intermediary whether a company, a
partnership or an individual, shall keep records of
accounts,
(a)
that are sufficient
to record and explain its transactions and financial
position with respect to its business as an
insurance intermediary and any other business that
it may carry on,
(b)
that enable it to
prepare the accounts and make the returns required
under this Act and Regulations, and
(c)
in the case of a
company or partnership licensed as an insurance
broker or an insurance loss adjuster, that enables
its accounts to be audited in accordance with this
Act and Regulations.
(2) An insurance
'intermediary shall retain accounting records for a
period of at least six years after the completion of
the transaction to which they relate.
(3) An insurance
intermediary shall
(a)
keep its accounting
records in the country, and
(b)
notify the
Commission in writing of the place in the country
where accounting records are kept.
(4) An insurance
intermediary that contravenes this section is liable
to pay to the Commission the percuniary penalty
stated in the First Schedule.
Financial year of
insurance intermediary
138. The financial
year of an insurance intermediary shall be the same
as the financial year of Government.
Preparation and
lodgement of accounts
139. (1) A company
or partnership holding a licence as an insurance
broker or
an insurance loss
adjuster shall, in respect of each financial year,
prepare (a) a revenue account for the year,
(b)
a balance sheet as
at the last day of the year,
(c) a
profit and loss account for the year, and
(d)
other accounts and
financial statements that may be prescribed.
(2) The accounts
and statements specified in subsection (1) shall be
lodged with the Commission within four months after
the end of the financial year to which they relate
accompanied with
(a)
a directors'
certificate,
(b)
an auditor's
report, and
(c)
any other
prescribed document
in each case,
containing the information in a prescribed form.
(3) Unless
accompanied by the certificates, reports and
documents specified in subsection (2), the accounts
and statements referred to in subsection (1) are not
considered to have been lodged with the Commission.
(4) A company or
partnership holding a licence as an insurance broker
or an insurance loss adjuster that contravenes
subsection (1) or (2) is liable to pay to the
Commission the percuniary penalty stated in the
First Schedule.
Extension
of time
140.
(1) The Commission
may, on the application of an insurance
intermiediary, extend the time for compliance with
section 139 (2) for a period of one month or where
it grants more than one extension for an aggregate
period, not exceeding three months.
(2) An extension
may be granted subject to such conditions as the
Commission considers appropriate.
Lodgement of
quarterly accounts and returns
141.
(1) A company or
partnership holding a licence as an insurance broker
or a loss adjuster shall, in respect of each
quarter, lodge with the Commission the accounts,
financial statements and reports that may be
prescribed.
(2) The reports,
accounts and statements specified in subsection (I)
shall be lodged with the Commission within six weeks
after the end of the quarter to which they relate
accompanied with a certificate containing the
information and in the form prescribed.
(3) Unless they are
accompanied by a certificate complying with the
Regulations, the reports, accounts and financial
statements referred to in subsection (I) are not
considered to have been lodged with the Commission.
(4) The Commission
may, on the application of a licensee under this
Part, extend the time for compliance with subsection
(2) for a period of one month or where it grants
more than one extension for an aggregate period not
exceeding three months.
(5) An extension
under subsection (4) may be granted subject to the
conditions that the Commission considers
appropriate.
(6) An insurance
intermediary that contravenes this section is liable
to pay to the Commission the percuniary penalty
stated in the First Schedule.
Amendment of
accounts
142.
(I) Where the
Commission considers that any document lodged by an
insurance intermediary under section 139 is
inaccurate or incomplete or is not prepared in
accordance with this Act, Regulations, or the Code
of Practice, it may by notice require the insurance
intennediary to amend the document or to lodge a
replacement document.
(2) Where an
insurance intermediary fails to comply with a notice
under subsection (1), the Commission may itself
amend the document or reject the document.
(3) A document
amended by the Commission or by the insurance
intermediary is treated as having been lodged in its
amended form.
Insurance
intermediary to appoint an auditor
143.
(1) A company or
partnership holding a licence as an insurance broker
or an insurance loss adjuster shall appoint an
auditor for the purposes of auditing the accounts
referred to in paragraph (a) to (c) of
section 139 (1 ), and the accounts and statements
referred to in section 139 (1) (d) that the
Regulations specify shall be audited.
(2) An auditor
shall not be appointed under subsection (1) unless
(a)
the auditor is
qualified under the Regulations to act as the
auditor of an insurance broker or an insurance loss
adjuster, and
(b)
the Commission has
given its approval in writing to the appointment.
(3) The Commission
shall not approve the appointment of an auditor
unless it is satisfied that the auditor has
sufficient experience and is competent to audit the
accounts of the insurance broker or insurance loss
adjuster concerned.
(4) A company or
partnership which holds a licence as an insurance
broker or an insurance loss adjuster shall make such
arrangements as are necessary to enable its auditor
to audit its accounts and financial statements in
accordance with this Act.
(5) Despite
subsection (2), the approval of the Commission is
not required where the auditor appointed in respect
of a financial year acted as the auditor ofthe
company or partnership in the previous financial
year.
(6) A company or
partnership which holds a licence as an insurance
broker or an insurance loss adjuster shall, within
fourteen days of the appointment of its auditor,
submit a notice of the appointment in, the
prescribed form to the Commission.
(7) A company or
partnership holding a licence as an insurance broker
or an insurance loss adjuster that contravenes
subsection (1) or subsection (6) is liable to pay to
the Commission the percuniary penalty stated in the
First Schedule.
Audit report
144.
(1) Upon completion
of the audit of the accounts and financial
statements referred to in section 143 (1), the
auditor shall provide an audit report that complies
with the Regulations to the insurance intermediary.
(2) The Commission
may at any time, by notice, direct a company or
partnership which holds a licence as an insurance
broker or an insurance loss adjuster to supply the
Commission with a report, prepared by its auditor or
other person nominated by the Commission, on such
matters as the Board may determine which may
include an opinion on the adequacy of the accounting
and control
(3) A report
prepared under subsection (2) shall be at the cost
of the insurance intermediary.
Obligations of
auditors
145.
(1) Despite
anything to the contrary in any other enactment, the
auditor of a company or partnership holding a
licence as an insurance broker or an insurance loss
adjuster shall
(a)
provide the
Commission with a copy of the audit report provided
to an insurance intermediary;
(b)
report immediately
to the Commission any information relating to the
affairs of the company that the auditor has obtained
in the course of acting as its auditor that, in the
opinion of the auditor, suggests
(i) that the
insurance intermediary is insolvent or is likely to
become insolvent or is likely to be unable to meet
its obligations,
(ii) that a
criminal offence has been or is being committed by
the insurance intermediary or in connection with its
business,
(iii) that the
insurance intermediary, if a company, is in breach
of section 131, or
(iv) that serious
breaches of this Act or Regulations have occurred in
respect of the company or partnership or its
business as an insurance intermediary.
(2) Where the
appointment of an auditor is terminated, the auditor
shall (a) immediately inform the Commission
of the termination of the appointment and disclose
to the Commission the circumstances that gave rise
to the termination, and
(b)
where, but for the
termination of the appointment, the auditor would
have
(i) sent an
auditor's report to the Commission under subsection
(1) (a), or
(ii) report
information to the Commission under subsection
(1)(b),
the auditor shall
send a copy of the report to the Commission, or
report the information concerned to the Commission,
as if the appointment had not been terminated.
(3) The Commission
may require an auditor of a company or partnership
holding a licence as an insurance broker or <in
insurance loss adjuster to discuss an audit the
auditor has conducted or commenced with, or provide
additional information regarding the audit to the
Commission.
(4) Where, in good
faith, an auditor provides a report, certificate or
information to the Commission under subsections (1),
(2) or (3), the auditor is not considered to be in
contravention of an enactment, rule of law or
professional code of conduct to which the auditor is
subject and no civil, criminal or disciplinary
proceedings shall lie against the auditor in respect
of it.
(5) The failure, in
good faith, of an auditor to provide a report,
certificate or information to the Commission under
subsection (1), (2) or (3) does not confer upon any
other person a right of action against the auditor
which, but for that failure, the person would not
have had.
(6) An auditor who
contravenes subsection (1) or (2) commits an offence
and is liable on summary conviction to the penalty
stated in the First Schedule.
Powers of
Commission with regard to appointment of auditor
146. (1) Where the
Commission is satisfied that the auditor of a
company or partnership holding a licence as an
insurance broker or an insurance loss adjuster has
failed to fulfill an auditor's obligations under
this Act or is otherwise not qualified to act as the
auditor of an insurance broker or an insurance loss
adjuster, it may, by written notice to the insurance
intermediary, revoke the approval of the appointment
of the auditor and the insurance intermediary shall
appoint a new auditor.
(2) A notice
revoking the appointment of an auditor under
subsection (1) shall be given to the auditor.
(3) Where a company
or partnership holding a licence as an insurance
broker or an insurance loss adjuster fails to
appoint an auditor, the Commission may appoint a
person qualified under the Regulations to act as the
auditor of the insurance intermediary.
(4) An auditor
appointed under subsection (3) is considered for the
purposes of this Act to have been appointed by the
insurance intermediary.
Insurance
intermediary not to be wound up by private
liquidation
147. (1) A company
that holds or at any time has held a licence as an
insurance broker or as an insurance loss adjuster
referred to in this Part as a relevant company shall
not be wound up by a private liquidation under the
Companies Code.
(2) Any resolution
of a relevant company to be wound up by private
liquidation under the Companies Code is of no
effect.
Further
modification of Act 180
148. The provisions
o(Bodies Corporate (Official liquidations ) Act,
1963 (Act 180) as modified in section 92 is further
modified relating to the official liquidation of
companies in respect of relevant companies and
companies that are carrying on or have carried on
business as an insurance intermediary without a
licence.
Commencement of
proceedings
149.
(1) The official
winding up of a relevant company may be commenced a
special resolution of the company where the
Commission has given its prior written consent to
the passing of the resolution.
(2) A resolution of
a relevant company to appoint a liquidator in
convention of subsection (1) is void.
(3) Where the
members of a relevant company appoint a liquidator
accordance with this section, the Commission may by
notice in writing direct liquidator to advertise his
or her appointment in such manner as is specified in
notice.
(4) A liquidator
who fails to advertise his or her appointment in
accordance with a directive of the Commission issued
under subsection (3) is liable to pay to .
Commission the percuniary penalty stated in the
First Schedule.
Commission
may
present petition to wind up insurance intermediary
150. (1) The Commission may present a petition
to the court for office liquidation under Act 180 of
(a)
a relevant company,
or
(b)
a company that is
carrying on or has carried on business as insurance
intermediary without a licence.
(2) On a petition
presented under subsection (2), the Court may make
order for the official liquidation of the company
(a)
on a ground
specified in Act 180,
(b)
where the Court is
satisfied that it is in the public interest that th
company be wound up, or
(c)
in the case of a
relevant company, if the company has failed to lodge
with the Commission, within the time period
specified, the documents specified in section 139
(2).
(3) For the
purposes of subsection (2) (b), the public
interest includes the interests of the customers of
a relevant company.
(4) On the hearing
of a petition for the official liquidation of a
relevant company presented by the Commission under
this section, evidence that the company has, at any
time prior to the date of the presentation of the
petition been insolvent is, unless the contrary is
proved, evidence that it continues to be insolvent.
Service on
Commission
151.
A petition for the
official liquidation of a relevant company shall,
where presented by a person other than the
Commission, be served on the Commission and the
Commission is entitled to appear and be heard at the
hearing of the petition.'
General
provisions on licensing
Monitoring of
advertisements
152.
(1) An insurer or
insurance intermediary shall not issue, or cause or
permit to be issued, any advertisement, statement,
brochure or other similar document which is
misleading or which contains an incorrect statement
of fact.
(2) Where the
Commission is of the opinion that any advertisement,
statement, brochure or other similar document
issued, or to be issued, by or on behalf of an
insurer or an insurance intermediary is misleading,
contains an incorrect statement of fact or is
contrary to the public interest, it may
(a)
direct the insurer
or insurance intermediary in writing not to issue
the document or to withdraw it, or
(b)
authorise the
insurer or insurance intermediary in writing to
issue the document with such changes as the
Commission may specify.
(3) An insurer or
insurance intermediary that issues or causes or
permits to be issued an advertisement, statement,
brochure or other similar document intending it to
mislead or knowing that it contains an incorrect
statement off act, commits an offence and is liable
on summary conviction to the penalty stated in the
First Schedule.
(4) An insurer or
insurance intermediary that issues or causes or
permits to be issued an advertisement, statement,
brochure or other similar document contrary to a
directive of the Commission under subsection (2)
commits an offence and is liable on summary
conviction to the penalty stated in the First
Schedule.
Commission may
request change of name
153.
(1) The Commission
may, by written notice, require an insurer or
insurance intermediary who carries on insurance
business or the business of acting as an insurance
intermediary under a name that is
(a)
identical to that
of any other person, whether within or outside the
country, or which so nearly resembles that name as
to be likely to deceive,
(b)
likely to suggest
falsely the patronage of or connection with some
person whether within or outside the country,
(c)
likely to suggest
falsely that the person has special status in
relation to or derived from the Government or has
the official approval of, or acts on behalf of, the
Government or of any of its departments or
officials, or
(d)
is otherwise
misleading or undesirable, to immediately change its
name,
(2) A person who
fails to change the name under which business is
carried on within seven days of the date of receipt
of a written notice under subsection (1 ) is liable
to pay to the Commission the percuniary penalty
stated in the First Schedule.
Commission shall
approve change
of name
154.
(1) An insurer or
insurance intermediary shall not, without the prior
written, approval of the Commission
(a)
change the name
under which it carries on business, and
(b)
in the case of a
corporate body, change its name.
(2) An insurer or
insurance intermediary who contravenes subsection (1
is liable to pay to the Commission the percuniary
penalty stated in the First Schedule
Filing of
returns
and submission of information to Commission
155.
(1) An insurer or
insurance intermediary shall submit, report any
information or furnish any returns or documentation
prescribed by the Regulations or required by the
Code of Practice or the Market Conduct Rules to the
Commission within such time 'and verified in such
form and manner as is prescribed or required by the
Regulation the Code of Practice or the Market
Conduct Rules.
(2) An insurer or
insurance intermediary who contravenes subsection (I
is liable to pay to the Commission the percuniary
penalty stated in the First Schedule
(3) A person who in
submitting a report required under subsection (I
makes a false statement of a material fact or omits
to state a material fact require, to be provided by
the Commission or necessary to avoid the report
being material! misleading commits an offence.
(4) A person does
not commit an offence under subsection (3) if the
person did not know and with the exercise of
reasonable diligence could not having known that the
report contained a false statement or omitted a
material fact.
Defective
returns
156.
(1) Where the
Commission considers that any document furnished by
insurer or insurance intermediary under section 155
is inaccurate or incomplete is not prepared in
accordance with this Act, Regulations, the Code of
Practice 0] the Market Conduct Rules, it may by
written notice require the insurer or insurance
intermediary to amend the document or to lodge a
replacement document.
(2) Where an
insurer or insurance intermediary fails to comply
with notice under subsection (1), the Commission may
itself amend the document 0 reject the document.
(3) A document
amended by the Commission or by the insurer or
insurance intermediary is considered as having been
lodged in its amended form.
Notification to
Commission of any
judgment
157.
An insurer or
insurance intermediary shall notify the Commission
of judgment obtained against it and shall provide
the Commission with evidence as tl whether or not
the judgment has been satisfied.
Fees payable to
Commission
158. A fee, charge
or contribution which is owed to the Commission.
under this Act or the Regulations may be recovered
as a debt due to the Commission.
Restrictions on
disclosure of information
159. (1) Subject to
subsection (2), the Commission and a person acting
under the Commission's authority shall not disclose
to any person information concerning the affairs of
a protected person that the person has acquired in
the discharge of duties or performance of functions
under this Act or under any other enactment.
(2) Subsection (I)
does not apply to a disclosure
(a)
required or
permitted by a Court of competent jurisdiction in
the country,
(b)
to any person for
the purpose of discharging a duty or exercising a
power under this Act,
.
(c)
in respect of the
affairs of a protected person made with the consent
of that protected person,
(d)
if the information
disclosed is or has been available to the public
from any other source,
(e)
where the
information disclosed is in a summary or in
statistics expressed in a manner that does not
enable the identity of the protected person to whom
the information relates to be determined, or
(f) made by
the Commission to a foreign regulatory authority
upon the written request of that authority in
accordance with section 171.
(3) For the
purposes of this section, "protected person" means
(a)
a person who has
applied for an insurer or insurance intermediary
licence, or
(b)
a policyholder or a
former policyholder of an insurer.
(4) A person who
contravenes this section commits an offence and is
liable on summary conviction to the penalty stated
in the First Schedule.
(5) For the
purposes of this section, "licence made under this
Act includes a person who has at any time been
licensed under this Act but who has since ceased to
be a licensee under this Act.
Display of
licence
160. (1) An insurer
or insurance intermediary shall prominently display
a copy of its licence at each of the premises where
the business is carried on.
(2) An insurer or
insurance intermediary who contravenes subsection
(I) is liable to pay to the Commission the
prercuniary penalty stated in the First Schedule.
Service of
notice to policy holder
161. (I) Where a
notice is required by this Act or the Regulations to
be sent by an insurer or insurance intermediary to a
policyholder, it may be sent to the last address of
the policyholder notified by the policyholder to the
insurer or insurance intermediary.
(2) Where a person
who claims to be interested in a policy has give
notice of that interest to an insurer or insurance
intermediary, a notice required to be s by the
insurer or insurance intermediary to a policyholder
shall also be sent to person claiming interest at
the address specified by that person in the notice
to the insurer or insurance intermediary.
Change in
circumstances relating to application to Commission
162. (1) Where,
before the determination by the Commission of any
application made under this Act, whether by an
insurer or insurance intermediary or otherwise,
there is a material change in information or
particulars provided by: the application the
Commission in connection with the application, the
applicant shall immediately give the Commission
written particulars of the change.
(2) A person who
contravenes subsection (1) is liable to pay to the'
Commission the percuniary penalty stated in the
First Schedule.
Limitation of
section 261 of the Companies Code
163. (1) The
Registrar of Companies shall send to the Commission
a copy of! any notice that is sent to an insurance
company under section 261 of the Companies Code with
evidence of despatch.
(2) The Registrar
shall not strike out the name of a company that
holds, or has held a licence from the register of
companies under section 261 of the Companies Code
without the prior written consent of the Commission
.
. Restriction on
the use of the words "insurance", "assurance" and
"underwrite" 164. (1) A person other than an insurer
or insurance intermediary licensed under this Act
shall not
(a)
use the words
"insurance", "assurance" or "underwrite" or any
combination or derivative as part of the business
name, style or title of that person,
(b)
use a word that in
the opinion of the Commission connotes an insurance
business or the business of an insurance
intermediary, or
(c) make a
representation in a document or in a manner that is
likely to suggest that the person is an insurer or
insurance intermediary licensed under this Act. ..
(2) A person who
contravenes subsection (1) commits an offence and is
liable on summary conviction to the penalty stated
in the First Schedule.
Inspections
165. (1) The
Commission may, at any time, for the purposes of
supervision of insurers and insurance intermediaries
(a)
inspect the
premises, business and affairs, including the
procedures, systems and controls, of a person,
whether in or outside Ghana,
(b)
inspect the assets,
including cash, belonging to or in the possession or
control of any person, and
(c)
examine and make
copies of documents, including accounting records,
belonging to or in the possession or control of a
person who in the opinion of the Commission, relate
to the carrying on by the person of insurance
business or the business of an insurance
intermediary ..
(2) When
undertaking an inspection, the Commission may have
regard to matters which, in its opinion, are
relevant to the supervision of insurers and
insurance intermediaries including
(a)
verifying the
capital and, in the case of an insurer, the solvency
margin and reserves,
(b)
satisfying itself
that the insurer or insurance intermediary is in
compliance with this Act, Regulations, the Code of
Practice, the Market Conduct Rules, any conditions
to which its licence is subject and any directives
that the Commission may have issued to an insurer or
insurance intermediary, and
(c)
satisfying itself
that the insurer or insurance intermediary has
adequate procedures in place to prevent it from
being used for the purposes of money laundering or
for terrorist funding.
(3) The Commission
shall give reasonable notice to an insurer or
insurance intermediary of its intention to exercise
its powers under subsection (1 ).
(4) Without
limiting the scope of subsection (1), the Commission
shall ensure that an inspection is carried out in
respect of an insurer or insurance intermediary not
less than once in every two years.
(5) In undertaking
an inspection, the Commission shall exercise
reasonable care to avoid hindrance to the day to
day activities of the insurer or insurance
intermediary.
Duties of
directors, officers and managers in relation to
inspection
166. (I) Where the
Commission is undertaking an inspection in relation
to an insurer or insurance intermediary that insurer
or insurance intermediary shall
(a)
give the Commission
access to its premises and to the assets that the
Commission, in the opinion of the insurer or
insurance intermediary needs access to for the
purposes of the inspection,
(b)
give the Commission
access to all documents, including accounting record
and produce to the Commission any documents the
Commission, requires, and
(c)
provide the
Commission with information and explanations that
Commission may reasonably require.
(2) Where documents
required by the Commission for the purposes of
inspection are held by a person other than the
insurer or insurance intermediary Commission shall
ensure that the person concerned produces those
documents the Commission and provides the Commission
with the information and explanation that the
Commission requires.
(3) When
undertaking an inspection, the Commission may, by
written notice require a director, officer or
manager of the insurer or insurance intermediary
provide it with any information and explanations it
reasonably requires.
(4) An insurer or
insurance intermediary who contravenes subsection(
commits an offence and is liable on summary
conviction to the penalty stated in First Schedule~
(5) A director,
officer or manager of an insurer or insurance
intermediary commits an offence if, having received
a written notice under subsection (2), without
reasonable excuse fails or refuses to provide the
Commission with t information and explanations that
the Commission requires and is liable on summary
conviction to the penalty stated in the First
Schedule.
Report on
inspection
167.
(I) The Commission
shall, within six weeks after completing an
inspection forward a report to the insurer or
insurance intermediary concerned setting a summary
of its findings.
(2) The report
issued
(a)
may contain any
recommendations to the insurer or insurance
intermediary concerning the conduct of its business,
its system procedures or controls or concerning such
other matters as the Commission considers
appropriate, and
(b)
shall specify
whether or not the Commission requires a responsible
from the insurer or insurance intermediary
concerning the report an if it does require a
response, may indicate particular aspects oft report
or particular recommendations in respect of which a
response is required.
(3) Where the
Commission specifies in its report that it requires
response to the report, the insurer or insurance
intermediary concerned shall provide a response to
the Commission within fourteen days of receiving the
report, or with' such longer period as may be
specified in the report.
(4) An insurer or
insurance intermediary who fails to comply with
subsection (3) commits an offence and is liable on
summary conviction to the penalty stated in the
First Schedule.
Power of
Commission
to gather information
168.
(1) Where
reasonably required by the Commission for the
performance of its functions under this Act or any
other enactment or, subject to section 171 on the
written request of a foreign regulatory authority,
the Commission may, by notice given to a person
specified in subsection (2), require that person to
submit specified information or documentation.
(2) A notice under
subsection (1) may be issued to (i) an insurer or
insurance intermediary,
(ii) a person
connected with an insurer or insurance intermediary,
(iii) a person
carrying on insurance business or the business of an
insurance intermediary, or
(iv) a person
reasonably believed to have the information or
documentation to which the notice relates; and
(3) The notice
shall specify the place where and the period within
which the information or documents shall be
submitted.
(4) The Commission
may request that
(a)
information
submitted under this section to be provided shall be
in the form that the Commission may request,
(b)
information
submitted is authenticated in the manner that the
Commission may reasonably request, and
(c)
the person to whom
the notice is issued, or a person who is or has been
a director, auditor or actuary of that person,
provide such explanations relating to the
information submitted as the Commission requests.
(5) The Commission
may take copies or extracts of any documents
produced under this section.
(6) Where a person
claims a lien on a document, its production under
this section is without prejudice to the person's
lien.
Privileged
document and information
169.
(1) A person is not
required to disclose information under section 168
if that person would be entitled to refuse to
disclose the information or to produce the document
on the grounds of legal professional privilege in
legal proceedings.
(2) For the
purposes of this section, information comes to a
lawyer in privileged circumstances if it is
communicated or given to the lawyer
(a)
by a client or by a
representative of the client in connection with the
giving by the lawyer of legal advice to the client,
(b)
by a person or that
person's representative seeking legal advice from
the lawyer, or
(c)
by a person in
contemplation of, or in connection with, legal
proceedings, or for the purposes of those
proceedings.
(3) Information
shall not be treated as coming to a lawyer in
privilege circumstances if it is communicated or
given with a view to furthering any criminal
purpose.
(4) Despite
subsection (1), a lawyer may be required under
section 16 to provide the name and address of the
client.
Examination
under oath
170.
(1) Where, in
connection with a direction given under section 168,
the Commission considers it necessary to examine a
person on oath, the Commission may apply to the
court to have that person examined by the court and
to have the results of that examination transmitted
to the Commission.
(2) On an
application under subsection (1), the court may
order the examination of a person under oath on such
terms and conditions as the court consider fit
Assistance
to foreign regulatory authorities
171.
(1) Where a foreign
regulatory authority requests the Commission in
writing: to provide it with assistance in connection
with the exercise of its regulatory function the
Commission may disclose information, or provide
documentation, in its possession to the foreign
regulatory authority in accordance with this
section.
(2) The Commission
shall not
(a)
issue a notice
under section 168 on the request of a foreign
regulation authority, or
(b)
disclose
information or provide documentation to a foreign
regulation authority under subsection (1 )
unless it is
satisfied that the information or documentation to
which the request. relates is reasonably required by
the foreign regulatory authority for the purposes of
its regulatory functions .. ;
(3) In deciding
whether or not to issue a notice on the request of a
foreign regulatory authority or to disclose
information or provide documentation to a foreign
regulatory authority under subsection (1), the
Commission may take into account in particular
(a)
whether reciprocal
treatment would be given to the Commission in
country or territory of the foreign regulatory
authority,
(b)
whether the request
relates to the breach of a law, or other
requirement, which has no close parallel in the
country or involving the assertion of a jurisdiction
not recognised by the country,
(c)
the seriousness of
the case and its importance to persons in Ghana, and
(d)
whether it is
otherwise appropriate in the public interest to
provide the assistance sought.
(4) For the
purposes of subsection (3) (a), the
Commission may request the foreign regulatory
authority making the request to give a written
undertaking, in the form that the Commission may
require to provide corresponding assistance to the
Commission.
(5) Where a foreign
regulatory authority fails to comply with a
requirement of the Commission made under subsection
(4), the Commission may refuse to provide the
assistance sought by the foreign regulatory
authority
(6) The Commission
may decide that it will not, on the request of a
foreign regulatory authority, exercise its powers
unless,
(a)
it is satisfied
that any information provided to the foreign
regulatory authority will not be used in any
criminal proceedings against the person furnishing
it, other than proceedings for an offence under
section 168 or for an offence of perjury or any like
offence, and
(b)
the foreign
regulatory authority undertakes to make contribution
towards the cost of exercising the Commission's
powers that the Commission considers appropriate.
(7) The Commission
shall not exercise its powers under subsection (1)
unless it is satisfied that the information or
documentation provided to a foreign regulatory
authority will be subject to safeguards equivalent
to those contained in section 169.
Search warrant
172.
(1) A magistrate
may issue a search warrant under this section where
the magistrate is satisfied on information on oath
or affirmation given on behalf of the Commission
that there are reasonable grounds for believing that
the conditions specified in subsection (2) have been
satisfied.
(2) The conditions
referred to in subsection (1) are
(a)
that a person has
failed to comply with a notice of the Commission
issued under section 168 (1) within the time period
specified in the notice and that on the premises
specified in the warrant
(i) there are
documents that have been required to be produced or
(ii) there is
information that has been required to be provided,
(b)
that a notice could
be issued by the Commission under section I
(1) against a
person, and
(i) there are
documents, or there is information, on the premi
specified in the warrant in respect of which a
notice un section 168 (1) could be issued, and
(ii) if a notice
under section 168 (1) was to be issued, it would not
be complied with or the documents or information
which the notice related would be removed, tampered
or destroyed, or
(c)
that
(i) a relevant
offence has been, or is being, committed b person,
and
(ii) there are
documents, or there is information, on the premises:
specified in the warrant that evidence the
commission the offence, and
(iii) if a notice
under section 168 (1) was to be issued, it would not
be complied with or the documents or information
which the notice related would be removed, tampered
with or destroyed.
(3) A warrant
issued under this section shall authorise a named
representative the Commission, together with a
police officer and any other person named in the
warrant,
(a)
to enter the
premises specified in the warrant at any time within
seven " days from the date of the warrant,
(b)
to search the
premises and take possession of a documents
information appearing to be documents or information
of a type" respect of which the warrant was issued
or to take, in relation such documents or
information, any other steps which appear to
necessary for preserving or preventing interference
with them,
(c)
to take copies of,
or extracts from documents or information appearing
to be documents or information of a type in respect
which the warrant was issued,
(d)
to require a person
on the premises to provide an explanation of:
document or information appearing to be a document
or information of a type in respect of which the
warrant was issued or to state where such documents
or information may be found; and
(e)
to use the force
that may be reasonably necessary.
(4) Unless a Court,
on the application of the Commission, otherwise
orders, a document of which possession is taken
under this section may be retained
(a)
for a period of
three months, or
(b)
if within that
period, proceedings for a criminal offence to which
the document is relevant, are commenced against any
person, until the conclusion of those proceedings.
(5) In this
section, "premises" includes a vehicle, vessel or
aircraft.
Appointment of
examiner
173.
(1) Where the
Commission is entitled to take enforcement action
against an insurer or insurance intermediary under
section 175 it may appoint one or more competent
persons as examiners to conduct an investigation on
its behalf.
(2) The matters
investigated by an examiner appointed under
subsection (1) may include one or more of the
following:
(a)
the nature, conduct
or state of the business of the insurer or insurance
intermediary;
(b)
a particular aspect
of the business of the insurer or insurance
intermediary; and
(c)
the ownership or
control of the insurer or insurance intermediary.
(3) An examiner
appointed under subsection (1) may, also investigate
the business of any person who is, or at any time
has been
(a)
a member of the
group of which the person under investigation is a
part, or
(b)
a partnership of
which the person under investigation is a member
where necessary for the purposes of the
investigation
(4) The appointment
of an examiner shall be made on the terms and
conditions that the Commission considers
appropriate.
Order of Court
174.
(1) Where a person
fails to comply with a notice issued by the
Commission, the Commission may apply to the Court
for an order requiring that the person comply with
the notice.
(2) On an
application by the Commission under subsection (1),
the Court may order the person to whom the notice
was issued
(a) to comply with the notice, or
(b)
to comply with a
part of the notice as it considers appropriate.
(3) A person who
fails to comply with an order of the Court made
under subsection (2) without reasonable excuse,
commits an offence.
(4) A person who
in purported compliance with a notice issued by the
Commission or an order of the Court
(a)
provides
information which the person knows to be false or
misleading in a material respect, or
(b)
recklessly provides
information which is false or misleading in a
material respect,
commits an offence.
(5) A person who,
for the purpose of obstructing or frustrating
compliance with a notice issued by the Commission or
compliance with an order of the Court destroys,
mutilates, defaces, hides or removes a document
commits an offence.
Enforcement
175. (1) The
Commission may take enforcement action against an
insurer or insurance intermediary where in the
opinion of the Commission the insurer or insurance
intermedimy
(a)
has contravened or
is in contravention of this Act, the Regulations,
the Code of Practice or the Market Conduct Rules,
(b)
is carrying on
business in a manner detrimental to the public
interest or to the interest of any of its
policyholders or creditors, customers or in the case
of an insurance agent or the insurers on whose
behalf the insurer or insurance intermediary acts,
(c)
is or is likely to
become insolvent,
(d)
has failed to
comply with a directive given to it by the
Commission under section 181, in the case of an
insurer or section 182 in the case of an insurance
intermediary,
(e)
is in breach of any
condition of its licence,
(f)
is not qualified to
hold a licence, or
(g)
has provided the
Commission with false, inaccurate or misleading
information, whether on making application for a
licence or subsequent to the issue of the licence.
(2) The Commission
may also take enforcement action where
(a)
the insurer or
insurance intermediary that is a company proposes to
make or has made a composition or arrangement with
its creditors, is wound up, passes a resolution for
winding up or is dissolved,
(b)
a receiver and
manager has been appointed in respect of the
insurance business or insurance intermediary
business .carried on by the insurer . or insurance
intermediary or possession has been taken of any of
its property by or on behalf of the holder of a
debenture secured by a registered charge,
(c)
in the opinion
of the Commission
(i) a person who
has a share or interest in the insurer or insurance
intermediary, whether equitable or legal, or any
director or principal officer of the insurer, is not
a qualified person to have an interest in the
management of the business of an insurance company
or insurance intermediary, as the case may be,
(ii) a part of the
business of the insurer, is not being carried on in
accordance with sound insurance principles,
(iii) the insurer
or any other person has refused or failed to
co-operate with the Commission on an inspection
conducted by the Commission,
(iv) adequate
arrangements have not been made, or will not be
made, for the reinsurance of risks against which
persons are insured by the insurer,
(v) . there has
been a substantial departure from any business plan
submitted to the Commission, or
(d)
the Commission is
entitled to take enforcement action under a
provision in any other enactment.
(2) For the
purposes of subsection (1) (c), an insurer is
considered to be solvent where the total value of
its assets does not exceed the total amount of its
abilities by at least the minimum margin of solvency
that it is required to maintain under section 71
(1).
(3) Where the
Commission is entitled to take enforcement action
under subsection (1) it may exercise one or more of
the following powers:
(a)
revoke or suspend
the insurer's or insurance intermediary's licence
under section 176, .
(b)
appoint an examiner
to conduct an investigation under section 173,
(c)
appoint a qualified
person to advise the insurer or insurance
intermediary on the proper conduct of its business,
or
(d)
issue a directive
under sections 181 or 182.
Revocation or
suspension of licence
176. (1) The
Commission may at any time revoke or suspend the
licence of an surer or insurance intermediary where
(a)
the Commission is
entitled to take enforcement action against the
insurer or insurance intermediary under section 175,
(b)
the insurer or
insurance intermediary fails to commence the
business' for which it was licensed within six
months of the licence being issued or ceases to
carry on the insurance business for which it was
licensed, or
(c)
in the opinion of
the Commission
(i) a person who
has a share or interest in the insurer or insurance
intermediary, whether equitable or legal, or any
director or principal officer of the insurer, is not
a qualified person to have an interest in the
management of the business of an insurance company
or insurance intermediary, as the case may be,
(ii) a part of the
business of the insurer, is not being carried on in
accordance with sound insurance principles,
(iii) the insurer
or any other person has refused or failed to
co-operate with the Commission on an inspection
conducted by the Commission,
(iv) adequate
arrangements have not been made, or will not be
made, for the reinsurance of risks against which
persons are insured by the insurer,
(v) . there has
been a substantial departure from any business plan
submitted to the Commission, or
(d)
the Commission is
entitled to take enforcement action under a
provision in any other enactment.
(2) For the
purposes of subsection (1) (c), an insurer is
considered to be insolvent where the total value of
its assets does not exceed the total amount of its
liabilities by at least the minimum margin of
solvency that it is required to maintain under
section 71 (1).
(3) Where the
Commission is entitled to take enforcement action
under subsection (1) it may exercise one or more of
the following powers:
(a)
revoke or suspend
the insurer's or insurance intermediary's licence
under section 176, .
(b)
appoint an examiner
to conduct an investigation under section 173,
(c)
appoint a qualified
person to advise the insurer or insurance
intermediary on the proper conduct of its business,
or
(d)
issue a directive
under sections 181 or 182.
Revocation or
suspension of licence
176.
(1) The Commission
may at any time revoke or suspend the licence of an
insurer or insurance intermediary where
(a)
the Commission is
entitled to take enforcement action against the
insurer or insurance intermediary under section 175,
(b)
the insurer or
insurance intermediary fails to commence the
business' for which it was licensed within six
months of the licence being issued or ceases to
carry on the insurance business for which it was
licensed, or
(c)
the insurer or
insurance intermediary fails to pay the renewal fee
for the licence within two months of the date upon
which it is due for payment.
(2) The Commission
may revoke the licence of an insurer or insurance
intermediary where it is requested to do so by the
insurer or insurance intermediary.
(3) Subject to
subsection (4), the period of suspension of a
licence under subsection (I) shall not exceed thirty
days.
(4) Where it is
satisfied that it is in the public interest to do
so, a Court may, on the application of the
Commission, extend the period of suspension of a
licence under this section for one or more further
periods not exceeding thirty days each.
(5) Before
suspending or revoking a licence under paragraph
(a) or (b) of subsection (I), the
Commission shall give written notice to the insurer
or insurance intermediary stating
(a)
the grounds upon
which the Commission intends to revoke or suspend
the licence, and
(b)
that unless the
insurer or insurance intermediary, by written notice
filed with the Commission, shows good reason why its
licence should not be revoked or suspended, as the
case may be, on a date not later than fourteen days
after the date of the notice.
(6) Where the
Commission revokes or suspends a licence under this
section, the Commission shall send a written notice
to the insurer or insurance intermediary stating
(a)
that the licence
has been revoked or suspended, and
(b)
the grounds upon
which and the date from which the licence has been
revoked or suspended.
(7) Where the
Commission revokes or suspends a licence under this
section, it shall cause notice ofthe revocation or
suspension to be published in the Gazette and
any newspaper of mass circulation that the
Commission may determine.
Effect of
revocation or suspension of licence
177.
(I) Where the
licence of an insurer or insurance intermediary is
suspended or revoked, the insurer or insurance
intermediary shall not after the date upon which an
insurer or insurance intermediary receives notice of
the suspension or revocation (a) enter into a
new contract of insurance, or
(b)
renew or vary a
contract of insurance entered into before the
commencement date
(2) Where the
licence of an insurer or insurance intermediary is
suspended or revoked, so long as the insurer or
insurance intermediary remains under any liability
in respect of any insurance policies, the insurer or
insurance intermediary shall take such action as it
considers necessary or as may be required by the
Commission to ensure that reasonable provision has
been or will be made for that liability and that
adequate arrangements exist or will exist for
payment of reasonable premiums and expenses on those
policies.
(3) An insurer or
insurance intermediary that contravenes subsection
(2) commits an offence.
Representation
to the Commission
178.
(I) An applicant
who receives a notice of suspension, revocation or
refusal may make a representation to the Commission
within twenty-one days from the date of receipt of
the notice of suspension, revocation or refusal.
(2) Where a
representation is not made under subsection (I), the
Commission may uphold the revocation or refusal to
renew the licence.
(3) The Commission
shall within fourteen days of the receipt of a
representation under subsection (1) take a decision
on the representation and inform the applicant of
its decision within seven days of the date of the
decision.
Appeal to High
Court
179.
A person aggrieved
by a decision of the Commission may within sixty
days of notification of the decision appeal to the
High Court.
Protection order
180.
(1) Where a licence
of either an insurer or insurance intermediary
expires or is about to be revoked or suspended, the
Commission may apply to the Court for a protection
order.
(2) On an
application made under subsection (1), the Court may
make such order as it considers necessary to protect
or preserve the business or property of the insurer
or insurance intermediary, or the interests of its
policyholders, creditors, customers or the public
including
(a)
an order preventing
the insurer or insurance intermediary or any other
person from transferring, disposing of or otherwise
dealing with property in the insurer's or insurance
intermediary's custody or control,
(b)
an order appointing
an administrator to take over and manage the
business then carried on by the insurer or insurance
intermediary immediately before the revocation or
suspension of the licence, as the case may be,
(c)
in the case of a
company, an order that the insurer or insurance
intermediary be wound up by the court subject to the
supervision of the court under the Companies Code,
or
(d)
an order granting
the Commission a search warrant.
(3) An order made
under subsection (2) (b) may
(a)
specify the powers
of an administrator, which may include the powers of
an insurer under this Act or of a liquidator under
the Companies Code,
(b)
require the
administrator to provide security to the
satisfaction of the Court,
(c)
determine the
remuneration of the administrator, or
(d)
require a person it
considers necessary to appear before the court for
the purposes of giving information or producing
records concerning the insurer or insurance
intermediary or the business carried on by the
insurer or insurance intermediary.
(4) An order made
under subsection (2) (b) shall make provision
for reports to be submitted by the administrator to
the court and to the Commission.
(5) The court may
on its own motion or on the application of the
Commission or the administrator,
(a)
give directions to
the administrator concerning the exercise of the
administrator's powers;
(b)
vary the powers of
the administrator, or
(c)
terminate the
appointment of the administrator,
(6) An application
under subsection (1) may be made'
(a)
by one party or
upon the notice that the Court may require, and
(b) before the Commission has given notice of
intention to suspend or revoke a licence under
section 176 in the case of either an insurer or
insurance intermediary.
Directives to
insurer
181. (1) Where the
Commission is entitled to take enforcement action
against a licensee, the Commission may issue a
written directive to the insurer ordering the
insurer
(a)
to cease to engage
in any class of insurance business,'
(b)
not to enter into
any new contracts for any class of insurance
business,
(c) not
to vary any existing contracts of insurance,
.
(d)
to limit to a
specified amount the aggregate premiums to be
received by the insurer, whether before or after the
deduction of reinsurance premiums payable by the
insurer for reinsuring the liabilities in respect of
which premiums are to be received;
(e)
to retrain from
making investments of a specified class or
description,
(f)
to realise, before
the date that may be specified in the directive, the
whole or a specified portion of investments of a
specified type or description held by the insurer,
(g)
cause an actuary or
the other person that may be specified by the
Commission to undertake an investigation into its
financial position in respect of its business or any
part of its business and to submit a report of the
investigation to the Commission,
(h)
to provide any
return or other document it is obliged to file under
this Act within a shorter period of time than that
permitted under this Act, and
(i)
to take the other
action that the Commission considers may be
necessary to protect the assets of the insurer or to
protect, policyholders or potential policyholders of
the insurer.
(2) Unless the
Commission otherwise directs
(a)
an investigation
under subsection (1 ) (g) shall comply with
the requirements that may be prescribed for an
investigation under section 61(2), and
(b)
the report of an
investigation under subsection (1 )(g) shall
contain the information and be in a form that may be
prescribed for a report prepared under section 61
(3);
with the
modifications that may be appropriate where the
insurer carries on short term insurance business.
(3) An insurer that
fails to comply with, or carries on business in
contravention of, a directive issued by the
Commission under this section commits an offence.
Directives to
insurance intermediary
182.
(1) Where the
Commission is entitled to take enforcement action
against an insurance intermediary, the Commission
may issue a directive ordering that the insurance
intermediary
(a)
cease to act as an
insurance intermediary,
(b)
cease accepting
particular types of business, or
(c)
take other action
that the Commission considers may be necessary to
protect the interests of the insurance
intermediary's customers or, in the case of an
insurance agent or sub agent, the insurer on whose
behalf the agent or sub agent acts.
(2) An insurance
intermediary that carries on business in
contravention of a directive issued by the
Commission under this section commits an offence.
Insurance of
commercial building under construction
Insurance of
commercial building under construction
183.
(1) A person shall
not construct or cause to be constructed a
commercial building without insuring with a
registered insurer the liability in respect of
construction risks caused by negligence or the
negligence of servants, agents or consultants which
may result in bodily injury or loss of life to or
damage to property of any workman on the site or of
any member of the public.
(2) A
person who contravenes subsection (1) commits an
offence.
Insurance of
commercial buildings
184. (1) Every
commercial building shall be insured with an insurer
against the hazards of collapse, fire, earthquake,
storm and flood, and an insurance policy issued for
it.
(2) The
insurance policy shall cover the legal liabilities
of an owner or occupier of premises in respect of
loss of or damage to property, bodily injury or
death suffered by any user of the premises and third
parties.
(3) For the
purposes of this section, "commercial building"
means a privately owned building to which members of
the public have ingress and egress for the purpose
of obtaining educational or medical service,
engaging in a commercial activity for the purpose of
recreation or transaction of business.
Establishment of
a Fire Service Maintenance
Fund
Establishment
of Fire Service Maintenance Fund
185. There is
hereby established a Fire Service Maintenance Fund
in this Act referred to as the Fire Maintenance
Fund.
Object of the
Fire Maintenance Fund
186. The object of
the Fire Maintenance Fund is to provide funds and
equipment to state institutions assigned with fire
fighting functions and such other organisations as
the Commission may determine for the purpose of
fighting fires.
Source of money
for the Fund
187. The Commission
shall in consultation with insurance associations
prescribe in Regulations a percentage of the gross
premium received by each direct insurer on policies
issued in respect of commercial buildings under
sections 183( 1) and 184( 1) to be paid into the
Fire Maintenance Fund.
Management of
the Fire Maintenance Fund
188. (1) The Fire
Maintenance Fund shall be under the management of
the Commission.
(2) The
contributions shall be paid to the Commission.
(3) For
the purposes of management of the Fire Maintenance
Fund, the Commission shall open a bank account into
which the contributions shall be paid.
Conditions for
providing grants from the Fund
189.
The Commission
shall in consultation with representatives of
licensed insurers and the Chief Fire Officer of the
Ghana Fire Service provide conditions in writing for
providing grants From the Fire Maintenance Fund.
Accounts,
auditing and annual report
190.
The provisions in
sections 19 and 20 on keeping of accounts, auditing
and annual report to Parliament shall apply to the
Fire Maintenance Fund.
Penalty for non
compliance by an insurer
191.
Where an insurer
fails or refuses to pay towards the Fire Maintenance
Fund, the Commission shall take action as the
Commission considers appropriate including
revocation of the insurance licence.
Establishment of
a Motor Compensation Fund
Establishment of
the Motor Compensation Fund
192.
There is hereby
established a Motor Compensation Fund.
Object of the
Compensation Fund
193.
The Fund is to
be used to
(a)
compensate persons
who suffer injury or death through a motor accident
and who are unable to obtain compensation from an
insurance company, and
(b)
promote public
education on motor insurance in particular and
insurance business in general,
Source of money
for the Fund
194.
The Commission
shall in consultation with the insurers
associations, allocate a percentage of the motor
contributions received by the Commission on every
sticker issued by a motor underwriting company to an
insured, into the Fund.
Management of
the Fund
195)
(1) The Fund
shall be managed by the Commission.
(2) For purposes of
management of the Fund, the Commission shall open a
bank account into which the contributions shall be
paid.
(3) The Commission
shall set up a committee comprising of
representatives of motor underwriting companies to
assist with the making of awards under the Fund.
Conditions for
providing grants from the Fund
196.
The Commission in
consultation with the insurers associations shall
establish in writing the conditions for providing
grants From the Fund.
Miscellaneous
provisions
Establishment of
a Client Rescue Fund
197)
(I) There is
established by this Act a Client Rescue Fund.
(2) The Fund is to
be used to compensate clients of insurance companies
. that become bankrupt.
(3) The Commission
shall by Regulations allocate a percentage of the
gross premium received by each direct insurer to be
paid into the Fund.
(4) The Fund shall
be managed by the Commission.
(5) The Commission
shall open a bank account for purposes of managing
the Fund into which the contributions shall be paid.
(6) The Commission
shall establish a committee to assist with the
making of awards under the Fund.
Emergency
treatment for road traffic accident victims
198.
A percentage of the
emergency motor insurance premium to be jointly
agreed by the Commission, motor insurer and the
National Health Insurance Council shall be paid to
the National Health Insurance Fund by motor insurers
to cover the cost of emergency treatment of road
accident victims.
Registers
199.
(I) The Commission
shall maintain
(a)
a Register of
Insurance Companies,
(b)
a Register of
Insurance Intermediaries, and (c) other
registers that may be appropriate,
in which shall be
recorded the information that the Board may
determine.
(2) The registers
and the information contained in any document filed
with the Commission may be kept in any form the
Commission considers appropriate including, either
wholly or partly, by means of a device or facility
(a)
that records or
stores information in magnetic or electronic form,
and
(b)
that permits the
information to be inspected and reproduced in
legible and useable form.
Inspection of
registers
and information held by Commission
200.
(I) Subject to
subsection (2), a person may, on payment of the
prescribed fee during normal business hours
(a)
inspect the
registers and any records kept by the Commission
that . are designated as public records, and
(b)
request to be
furnished by the Commission with a copy or certified
copy of, or extract from, any document that the
person would be entitled to inspect under paragraph
(a).
(2) In respect of
documents filed or kept in electronic form, the
rights granted under subsection (I) extend only to
reproductions of those documents in useable written
form produced in the manner that the Commission
considers appropriate.
(3) A copy or
reproduction of, or extract from any document or
record that is kept by the Commission and certified
by it is admissible in evidence in legal proceedings
to the same extent as the original document.
Electronic
filing of documents
201.
(I) Regulations may
provide for a system enabling documents required or
permitted to be filed with the Commission under this
Act, or Regulations to be filed in electronic form.
(2) A system for
the filing of documents, in electronic form shall
provide for
(a)
the criteria for
authorising persons to file documents in electronic
form, and
(b)
the security and
authentication of the documents filed.
Regulations
202.
(I) The Minister
may on the recommendation of the Commission by
legislative instrument make Regulations for the
effective implementation of the provisions of this
Act.
(2) Without
limiting the scope of subsection (I) Regulations may
be made prescribing:
(a)
the valuation and
admissibility of assets and the valuation of
liabilities;
b)
persons qualified
to act as an auditor or an actuary of an insurer;
(c)
the segregation,
control, allocation and application of the funds of
an insurer;
(d)
requirements for
the receipt and holding of insurance premiums by
insurance intermediaries and the manner in which
they must be dealt with;
(e)
the form and
contents of accounts, including group accounts,
which may be specified by reference to Generally
Accepted Accounting Practice;
(f)
procedures for the
arbitration of such insurance claims as may be
submitted to the Commission;
(g)
arrangements,
schemes or procedures for the provision of security
by off shore insurers which, without limiting this
paragraph, may include provision for the making of
deposits by offshore insurers and the establishment
of a scheme for the provision of letters of credit
by offshore insurers;
(h)
the factors to be
taken into account by the Commission in considering
whether to approve the reinsurance arrangements of a
licensed insurer;
(i)
obligations of
offshore insurers opening, maintaining or carrying
on business through a branch, representative or
contact office;
(j)
rules and
procedures for the liquidation and judicial
management of insurers and for the liquidation of
insurance intermediaries which may modify or exclude
the provisions of Act 180 in relation to insurers
and insurance intermediaries;
(k)
actuarial standards
and valuations and the duties of an actuary;
(I)
the consideration
that may be offered or provided directly or
indirectly to an insurance intermediary from or by
(i) a licensed
insurer, or
(ii) any other
person,
including
circumstances in which commission may not be paid by
an insurer to an insurance intermediary;
(m)
records to be
maintained by insurer and insurance intermediaries;
(n)
the investment of
assets by insurers, which may specify permitted and
non-permitted investments;
(0)
the duties of an
auditor;
(P)
the application and
treatment of deposits made by insurers and
insurance intermediaries under this Act;
(q)
the run-off of the
insurance business of an insurer that, for whatever
reason, ceases to carry on business;
(r)
the margin of
solvency to be maintained by an insurer in respect
of particular funds;
(s)
motor contributions
to be paid into the Motor Compensation Fund; and
(I)
compensation in
respect of injury and deceased claims arising out of
a motor accident.
Code of Practice
203.
The Commission
shall within six months after the commencement of
this Act issue a Code of Practice which sets out
procedures to be followed by and the conduct of an
insurer and an insurance intermediary.
Market Conduct
Rules
204.
The Commission
shall issue Market Conduct Rules within six months
after the commencement of this Act.
Penalties for
contraventions and offences
205.
A person who
contravenes a provision of this Act or commits an
offence under a section specified in column 1 of the
First Schedule is liable on summary conviction or by
way of a percuniary penalty
(a)
where an
individual, to the penalty stated in relation to the
offence in column 4 of the First Schedule, or
(b)
where a body
corporate, to the penalty stated in relation to the
contravention or offence in column 3 of the First
Schedule,
and in either case
to the daily default fine stated in relation to the
contravention or offence in column 5 of the First
Schedule for each day during which the default
continues.
Offences by
bodies of persons
206.
(I) Where an
offence is committed under this Act by a body of
persons,
(a)
in the case of a
body corporate, other than a partnership, each
director or officer of that body shall be considered
to have contravened that provision or committed
that offence, or
(b)
in the case of a
partnership, each partner or officer of that body
shall be considered to have contravened that
provision or committed that offence
and is liable on
summary conviction to the penalty set out in
relation to the contravention or offence in column
4 of the First Schedule and to the daily default
fine set out for the contravention or offence in
column 5 of the First Schedule for each day during
which the default continues.
(2) A person shall
not be convicted of an offence by virtue of
subsection (1) if that person proves that the
offence was committed without the knowledge or
connivance of that person and that person exercised
due care and diligence to prevent the contravention
or the commission of the offence having regard to
the circumstances.
General penalty
207.
A person who
contravenes a provision of this Act for which a
penalty is not provided is liable on summary
conviction to a fine not exceeding one thousand
penalty units.
Order to comply
208.
Where a person is
convicted of an offence under this Act or the
Regulations, the Court having jurisdiction to try
the offence may, in addition to any punishment it
may impose, order that person to comply with the
provision of this Act or the Regulations for the
contravention of which that person has been
convicted.
General
indemnity
209.
Neither the
Commission nor a Board member, employee or agent of
the Commission is liable for anything done or
omitted to be done in the discharge or purported
discharge of a duty, the exercise of a power or the
performance of a function under this Act or any
other enactment that assigns function to the
Commission unless it is shown that the act or
omission was in bad faith.
Insurance agents
to be agents of insurers
210.
(1) Despite
anything to the contrary contained in a contract of
insurance, an insurance agent or sub-agent who
completes an insurance form or a similar document on
behalf of a person is deemed to be the agent of the
insurer and not the agent of the person on whose
behalf the agent completes the proposal form.
(2) Knowledge
acquired by an insurance agent or a sub-agent in the
course of completing an insurance proposal or a
similar document under subsection (1), is deemed to
be knowledge acquired by the insurer.
(3) Nothing
contained in a contract of insurance shall absolve
the insurer from liability in respect of knowledge
obtained by the insurance agent or sub-agent under
subsection (2).
Interpretation
211.
In this Act, unless
the context otherwise requires
"accounting
records" includes books, vouchers, invoices,
receipts, orders for the payment of money, bills of
exchange, cheques, promissory notes and such working
papers and other documents as are necessary to
explain the methods and calculations by which
accounts are made up and other documents as may be
prescribed;
"actuary" means a
person qualified under this Act to act as an
actuary; "associated person" means a person
associated with a body corporate
such that the
person:
(a)
has a significant
interest in the body corporate, (b) is a
subsidiary of the body corporate,
(c)
is a holding
company of the body corporate, or
(d).
is another body
corporate having a person associated with it who
is also associated with the first body corporate;
"Board" means the
Board of the Commission provided for under section
3; "capital" means
(a)
in the case of a
body corporate with share capital, its fully paid-up
share capital, and
(b)
in the case of a
mutual company, its uncommitted reserves;
"Code of Practice"
means the Code of Practice as issued by the
Commission under section 196 of this Act;
"Commission" means
the National Insurance Commission established under
section 1 of this Act;
"Commissioner"
means the chief executive of the National Insurance
Commission appointed under section 12 (1);
"Companies Code"
means the Companies Code, 1963 (Act 179);
"Court" means a
court of competent jurisdiction;
"document" includes
(a)
any writing or
printing on any material,
(b)
any record of
information or data, however compiled, and whether
stored in paper, electronic, magnetic or any non
paper based form and any storage medium, including
discs and tapes,
(c)
books and drawings,
and -
(d)
a photograph, film,
tape, negative or other medium in which one or more
visual images are embodied and are capable with or
without the aid of equipment of being reproduced,
any application to or order of a court or tribunal
and other legal process and notice;
"electronic form"
means a computer processable message format that is
capable of being transmitted electronically;
"fit and proper
person" means a person with appropriate integrity,
competency, experience and qualification determined
by the Commission;
"foreign regulatory
body" means an authority in a jurisdiction outside
the country which performs functions corresponding
or similar to those performed by the Commission.
"insurance agent"
includes a person appointed and authorised by an
insurer to solicit applications for insurance or
negotiate for insurance business on behalf of the
insurer and to perform the other functions that may
be assigned to the agent by the insurer but does not
include an individual who is a salaried employee of
the insurer;
"insurance broker"
means a person who acts as an independent
contractor or consultant who for commission or
other compensation and, not being an agent of the
insurer, carries out any of the following
activities;
(a)
the soliciting or
negotiating of insurance business, including the
renewal and continuance of such business, on behalf
of an insurer or a prospective insured other than
himself,
(b)
the bringing
together, either directly or through the agency of a
third party, with a view to the insurance of risks,
of persons seeking insurance and insurers, and
carries out work preparatory to the conclusion of
contracts of insurance;
"insurance
business" means the business of undertaking
liability to indemnify a person in respect of loss
or damage, and the liability to pay damages or
compensation contingent upon the happening of a
specified event and any business incidental to
insurance business and reinsurance business;
"insurance
intermediary" means an insurance broker, an
insurance agent, an insurance sub-agent and an
insurance loss adjuster;
"insurance loss
adjuster" includes a person who, for commission or
other compensation, including a salary, investigates
and negotiates the settlement of claims, under
insurance contracts solely on behalf of either the
insurer or the insured but does not include
(a)
an individual who
is an employee of an insurer or an insurance agent
while acting on behalf of the insurer or insurance
agent, or
(b)
an insurance agent
who is authorised to settle claims on behalf of the
insurer for whom the insurance agent acts as agent;
"insurance
sub-agent" includes a person appointed by an
insurance agent or another insurance sub-agent to
solicit applications for insurance or negotiate for
insurance business through the insurance agent or
sub-agent who appointed that person but does not
include an individual who is a salaried employee of
the insurance agent or sub-agent;
"insurer" includes
a person licenced under this Act to carry on
insurance business and an association of
underwriters, but does not include an insurance
intermediary;
"licensee" means a
person issued a licence under this Act,
"long term
business" means insurance business prescribed in
Regulations as long term business;
"long term insurer"
means an insurer authorised by its licence to carry
on class of long term business;
"Market Conduct
Rules" means the Market Conduct Rules, issued by the
Commission under section 197;
"Minister" means
the Minister responsible for Finance;
"mutual company"
means a company whose capital is owned by the
policyholders of the company;
"notice" means
notice in writing;
"offshore insurer"
means an insurer incorporated, constituted or formed
or having its main place of business outside the
country;
"public interest"
includes a right or advantage which enures or is
intended to enure to the general benefit of the
people of this country and the interest of policy
holders;
"recognised
representative body" means an association or body
recognised in the Regulations as representing
insurers or insurance intermediaries, or a category
of insurers or insurance intermediaries;
"register" means a
register required to be maintained by the Commission
under section 192;
"Regulations" means
Regulations made under this Act;
"re insurer" means
a person whose licence is restricted to reinsurance
business;
"reinsurance
business" means the business of insuring insurers;
"short term
insurance business" means insurance business
prescribed in Regulations as short term business;
"significant
interest", in respect of a company, means a holding
or interest in the company or in any holding company
of the company held or owned by a person, either
alone or with any other person and whether legally
or equitably, that entitles or enables the person,
directly or indirectly
(a)
to control ten per
cent or more of the voting rights of that company at
a general meeting of the company,
(b)
to a share often
per cent or more in dividends declared and paid by
the licensee, or
(c)
to a share often
per cent or more in any distribution of the surplus
assets of the company; and
"subsidiary
company" has the meaning provided in the Companies
Code; "unlicensed insurance business" means
insurance business carried on by an insurer in the
country who does not have a licence authorising it
to carryon that kind of insurance business and who
has not been suspended.
Transitional
provisions
212.
(1) The rights,
assets, liabilities of and property vested in the
Commission established under the Insurance Law, 1989
(PN.D.C.L. 227) immediately before the commencement
of this Act and the persons employed by the
Commission are transferred to the Commission
established under this Act, and accordingly
proceedings taken by or against the former
Commission may be continued by or against the
Commission ...
(2) A contract
subsisting between the Commission. established under
the Insurance Law, 1989 (P.N.D.CL. 227) as amended
and any other person and in
force immediately
before the commencement of this Act shall subsist
between the Commission established under this Act
and that other person.
(3) Pursuant to
section 26 which restricts the licensing of
composite insurance companies after the
commencement of this Act, existing composite
companies shall separate their business into
long-term and short-term companies within twelve
months after the commencement of this Act.
(4) Insurers and
insurance intermediaries shall bring their minimum
capital levels up to the levels stated in the Second
Schedule, within a period of twelve months after the
commencement of this Act.
Repeal and savings
213. (1) The
following are repealed by this Act
(a)
the Insurance Law,
1989 (P.N.D.C.L. 22z);
(b)
the Insurance
(Amendment) Law 1991 (P.N.D.C.L. 260); (c)
the Insurance (Amendment) Law 1993 (P.N.D.C.L. 316).
(2) The Ghana
Reinsurance Organisation Law 1984 (P.N.D.C.L. 79)
and the Ghana Reinsurance Organisation (Amendment)
Law 1987 (P.N.D.C.L. 169) are hereby repealed.
(3) Despite the
repeal of the enactments specified in subsection
(1), Regulations, bye-laws, notices, orders,
directions, appointments or other act lawfully made
or done under the repealed enactments and in force
immediately before the commencement of this Act
shall subject to modifications made to them by this
Act be considered to have been made or done under
this Act and shall until reviewed, cancelled,
withdrawn or terminated continue to have effect.
(4) Despite the
repeal of the Ghana Reinsurance Organisation Law,
1984 (P.N.D.C.L. 79) and the Ghana Reinsurance
Organisation (Amendment) Law, 1987 (P.N.D.C.L. 169)
the Ghana Reinsurance Company Ltd. shall continue to
enjoy the compulsory reinsurance cessing provided
for under section 5 of P.N.D.C.L. 78 for a
transitional period of two years after the
commencement of this Act, after which two year
period the compulsory reinsurance cessing shall
cease.
Consequential
amendment
214. (1) Section 45
of the National Health Insurance Act 2003 (Act 650)
is hereby repealed.
(2) Sections 22,
23,44,49, 50, 52, 71, 72, 75, 77,78,91 to 113 and
193 of this Act apply to private commercial health
insurance schemes under the National Health
Insurance Act 2003 (Act 650).
(3) For purposes of
the National Health Insurance Act 2003 (Act 650),
(a)
an insurer shall at
all times in respect of the insurance transacted by
it in the country invest and hold assets equivalent
to not less than the amount of the funds in the
insurance business as shown in its balance sheet;
(b)
the investment of
insurance funds referred to in paragraph (a)
shall-in respect of a non-life insurance fund be
made up of
(i) twenty- five
per cent in Government securities, and
(ii) seventy-five
per cent in other investments approved by the
Commission;
(c)
a party to a
contract of insurance shall not be obliged to
disclose a fact about which a question is not asked
by the insurer or the insurer's agent;
(d)
a party to a
contract of insurance may despite paragraph (c),
rescind the contract where the other party, with
the intent to avoid the rejection of the risk by the
insurer or the payment of a higher premium, conceals
from, or fails to disclose to the party to the
contract, a fact which that other party knows or
believes or has reasons to believe to be material to
the contract;
(e)
a fact is to be
considered as material if in the circumstances it
would be considered material by a reasonable person;
(f)
a defence to a
claim shall not be maintained by reason of a
misstatement of fact by the insured, where the
(i) insured can
prove that the statement was true to the best of the
insured's knowledge or belief, or
(ii) fact misstated
is not material to the risk,
subject to
paragraphs (a) and (b) and despite
anything contained in the contract of insurance;
(g)
a person holding
five per cent or more or the proprietary interests
in an insurance company shall not serve as a
management personnel or a principal officer of an
insurance intermediary firm registered under the
Act; and
(h)
a person holding
five per cent or more of the proprietary interest of
an insurance company shall own more than fifty per
cent of the equity share of an insurance brokerage
or intermediary firm registered under the Act.
|
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FIRST
SCHEDULE |
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(sections
205 and 206) |
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OFFENCES AND
PENALTIES |
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COLUMN
|
COLUMN
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COLUMN
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COLUMN
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COLUMN
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1 |
2 |
3 |
|
4 |
5 |
|
Section of Act
|
General nature
of |
Fine (in
penalty |
Fine (in
penalty |
Daily default
|
|
creating
|
offence or
|
units)
(corporate |
units)
(individual) |
fine (in
penalty |
|
offence or
|
contravention
|
body)
|
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|
units)
|
|
contravention
|
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. |
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27 (2)
|
Insurer failing
to |
250
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250
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25 |
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submit its
licence |
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to Commission
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36 (3)
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Person carrying
on |
2500
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2500, five
years im |
100
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or purporting
to |
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prisonment or
tc |
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carry on
insurance |
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both
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. |
business
without |
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a licence
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37 (2)
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Person entering
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250
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250
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into a contract
of |
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insurance with
an |
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offshore
insurer |
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without the au-
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thorisation of
the |
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Commission.
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39 |
Offshore
insurer |
500
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500, two years
im- |
25 |
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?pening,
ma!ntain- |
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prisonment or
tc |
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mg or ca~mg on
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business trough
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both
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M |
a
representative, |
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branch or
contact |
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office in Ghana
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. |
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without the
prior |
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written
approval |
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of the
Commission |
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88
Insurance Act,
2006
Act 724
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COLUMN 2
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COLUMN 3
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COLUMN 4 I
COLUMNS |
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41 |
I Offshore
insurer |
500
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5~0, two yeaI:S
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?pening,
ma!ntain- |
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imprisonment
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109 or ca~mg on
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or to both
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business trough
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a
representative, |
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branch or
contact |
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office contrary
to |
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conditions im-
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p~se~ by the
Com- |
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mission
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. 45 (2)
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Long term
insurer I |
250
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I |
250
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I issuing a new
form |
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of insurance
policy |
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without the
prior |
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written
approval of |
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the Commission.
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46(3)
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I Insurer
failing to I |
100
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I |
100
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I |
25 |
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notiZ
Commission |
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of c anfe' of
ad- |
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dress 0 its
head |
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office or
registered |
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office withm
four- |
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teen days of
the |
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change.
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47 (2)
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I Ins.ure,r
,opening, |
500
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500, two years
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mamtammg or
car- |
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imprisonment
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ging
on ousiness |
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t rough a repre-
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or to both
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sentatlve,
branch |
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or contact
office |
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outside Ghana
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without the
prior |
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written
apRroval of |
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the Commission
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48 (7)
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I Person
selJing, I |
250
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I |
·250
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transferTlng,
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charging or
other- |
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wise disposing
of |
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a significant
interest |
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in a licensee,
or any |
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part, without
the |
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prior written
ap- |
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proval of the
Co |
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48 (7)
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I Person
acquiring |
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a signi.fic~nt
in- I |
250
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I |
250
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terest 10
msurer |
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without the
prior |
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written
approval |
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.
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89 |
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Act 724
Insurance Act,
2006
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of the Commis-
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sion.
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49(4)
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Insurer
appointing |
250
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250
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25 |
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a director or
prin- |
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cipal officer
with- |
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out the prior
writ- |
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ten approval of
the |
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Commission.
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50 (2)
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Insurer failing
to |
100
|
100 .
|
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provide written
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notice to
Commis- |
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sion
oftermination |
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of appointment
of |
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a director or
prin- |
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cXal officer
within |
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1 days.
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51 (2)
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Insurer
publishing |
250
|
250
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or issuing a
docu- |
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ment in which
is |
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printed a
state- |
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ment of its
author- |
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ized cat tal or
its |
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subscri ed
capital |
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in
contravention |
|
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of section 4
(1). |
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52 (2)
|
Insurer paying
|
250
|
250
|
|
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|
commission to
un- |
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|
licensed
insurance |
|
|
|
|
|
intermediary.
|
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53 (3)
|
'Insurer
failing to |
500
|
500
|
25 |
|
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have
reinsurance |
|
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|
|
arrangements
a~- |
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troved by t e
|
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ommlsslon In
ac- |
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cordance with
the |
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Regulations.
|
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54 |
Insurer failing
to |
250
|
250
|
|
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|
file statement
set- |
|
|
|
|
|
ting out
details of |
|
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its reinsurance
ar- |
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rangements as
re- |
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~uired by
section |
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5 (1).
|
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55 (3)
|
~nsurer enterin~
|
500
|
500
|
25 |
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mto contract 0
|
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reinsurance,as
the |
|
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reinsurer, with
a |
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person other
than |
|
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another
insurer. |
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|
90
Insurance Act,
2006
Act 724
56(5)
59 (7)
69(5)
69(5)
70(4)
71 (5)
72 (3)
Long term insurer
failing to appoint and have an actuary whose
appointment has been approved by the Commission in
writinL
Actuary or former
actuary failing to comply with obligations of
section 59 (I), (2), (3) or (4).
Insurer causing or
permitting its capi-
. tal to fall below
the amount that it is required to maintain under
section 69 (1).
Insurer failing to
notify Commission tl1at its capital has fallen
5elow the amount that it is required to maintain
under section 69 (1).
Insurer issuing a
share on or after the commencement date not fully
paid for in cash.
Insurer failing to
notify Commission that its solvency margin has
fallen below the amount that it is required to
maintain under section 71 (1).
Insurer failing to
notify Commission that its reserves have fallen
below the amount
250
500
250
250
250
250
91
250
250
500
250
250
250
250
-25
25
25
250
Act 724
Insurance Act,
2006
|
|
that it is
required |
|
|
|
|
|
|
to maintain
under |
|
|
|
|
|
|
section 72 (1).
|
|
|
|
|
|
|
73(4)
|
Insurer not
com- |
250
|
|
250
|
|
|
|
plying with a
direc- |
|
|
|
|
|
|
tive Issued by
the |
|
|
|
|
|
|
Commission
under |
|
|
|
|
|
|
section 72 (4)
|
|
|
|
|
|
|
|
Insurer or
rein- |
|
|
|
|
|
|
surer failing
to |
250
|
500, two years
im- |
|
|
75 (2) .
|
make deposIt in
|
|
prisonment or
to |
|
|
|
accordance with
|
|
both
|
|
|
|
|
notice issued
un- |
|
|
|
|
|
|
der section 73
(1 ). |
|
|
|
|
|
76(4)
|
Insurer making
|
500
|
500, two years
im- |
|
|
|
distribution to
|
|
|
|
|
|
shareholder
|
10 |
|
prisonment or
tc |
|
|
|
contravention
of |
|
both
|
|
|
|
|
section 75 (1).
|
|
|
|
|
|
|
77 (5)
|
Insurer
undertakes |
500
|
|
250
|
|
|
|
a transaction
pro- |
|
|
|
|
|
|
hibited by
section |
|
|
|
|
|
|
76(1).
|
|
|
|
|
|
|
78 (4)
|
Insurer issuing
a |
250
|
|
500
|
|
|
|
policy of insur-
|
|
|
|
|
|
|
ance at a rate
of |
|
|
|
|
|
|
premium lower
|
|
|
|
|
|
|
than that
specified |
|
|
|
|
|
|
in a notice
issued |
|
|
|
|
|
|
under 77 (1).
|
|
|
|
|
|
|
78 (4)
|
Insurer failing
to |
500
|
|
100
|
25'
|
|
|
keep or
maintain |
|
|
|
|
|
|
accountinl
|
|
|
|
|
|
|
records in
accor - |
|
|
|
|
|
|
ance with
section |
|
|
|
|
|
|
78 (1)
|
|
|
|
|
|
|
~0(4)
|
Insurer failing
to |
100
|
|
500
|
25 |
|
|
notify
Commission |
|
|
|
|
|
|
ofblace in the
Re- |
|
|
|
|
|
|
pu lie where
its |
. |
|
|
|
|
|
ace 0 un tin g
|
|
|
|
|
|
|
records are
kept. |
|
|
|
|
|
|
|
|
|
|
, |
|
|
80(4)
|
Insurer failing
to |
500
|
|
250
|
|
|
|
prepare
accounts |
|
|
|
|
92
Insl!r.ance Act,
2006
Act 724
|
|
and statements
re- |
|
|
|
|
|
~uired by
section |
|
|
|
|
|
0(1).
|
|
|
|
|
|
Insurer failing
to |
250
|
250
|
25 |
|
81 (4)
|
lodge accounts
|
|
|
|
|
|
and statements
|
|
|
|
|
|
and accompany-
|
|
|
|
|
|
ing documents
|
|
|
|
|
|
with Commission
|
|
|
|
|
|
in accordance
with |
|
|
|
|
|
section 80 (2)
|
|
|
|
|
85 (6)
|
Insurer
contraven- |
250
|
100
|
25 |
|
|
Ing section 81
|
|
|
|
|
|
(Lodgement of
|
|
|
|
|
|
quarterly ac-
|
|
|
|
|
|
counts and re-
|
|
|
|
|
|
turns)
|
|
|
|
|
|
Insurer failing
to |
100
|
500
|
25 |
|
85 (7)
|
submit notice
of |
|
|
|
|
|
apSiointment of
|
|
|
|
|
|
au itorto
Commis- |
|
|
|
|
|
sion in
accordance |
|
|
|
|
|
with section 85
(6). |
|
|
|
|
87(6)
|
Insu~er failin~
to |
500
|
250
|
25 |
|
|
appomt an au
Itor |
|
|
|
|
|
in accordance
with |
|
|
|
|
|
section 85 (I).
|
|
|
|
|
|
Auditor or
former |
|
250
|
25 |
|
93 (5)
|
auditor
contraven- |
|
|
|
|
|
ing section 87
(1) |
|
|
|
|
|
or (2)
|
|
|
|
|
|
Liquidator
failing |
|
|
|
|
118 (2)
|
to advertise
his |
250
|
250
|
25 |
|
|
appointment in
ac- |
|
|
|
|
|
cordance with a
|
|
|
|
|
|
directive of
the |
|
|
|
|
|
Commission is-
|
|
|
|
|
|
sued under
section |
|
|
|
|
|
93 (4)
|
|
|
|
|
127 (3)
|
Insurance
|
2500
|
2500, three
years |
25 |
|
|
intemediary
failing |
|
|
|
|
|
to submit its
li- |
|
imprisonment or
to |
|
|
|
cence to the
Com- |
|
both
|
|
|
|
mission in
accord- |
|
|
|
|
|
ance with
section |
|
|
|
|
|
118(1).
|
|
|
|
93
Act 724
Insurance Act,
2006
|
130
|
Person
cID-rying on |
250
|
500, three
years im |
|
|
|
or purporting
to |
|
prisonment or
both |
|
|
|
carry. on
busin~ss' |
|
|
|
|
|
as an Insurance
In- |
|
|
|
|
|
tennediary
without |
|
|
|
|
|
a licence In
the ap- |
|
|
|
|
|
propriate
category. |
|
|
|
|
131 (3)
|
Offshore insur-
|
250
|
250
|
|
|
|
ance
intennediary |
|
|
|
|
|
that
contravenes |
|
|
'. |
|
|
section 127.
|
|
|
|
|
131(3)
|
Insurance
intenne- |
500
|
250
|
25 |
|
|
diary failing
to en- |
|
|
|
|
|
sur:e that its
ca&i- |
|
|
|
|
|
tal does not
fall e- |
|
|
|
|
|
low the' amount
|
|
|
|
|
|
that it is
required to |
|
|
|
|
|
maintain under
|
|
|
|
|
|
section 131
(1). |
|
|
|
|
137 (4)
|
Insurance
intenne- |
100
|
500
|
|
|
|
diary failing
to no- |
|
|
|
|
|
tify Commission
|
|
|
|
|
|
that its
ca~ital has |
|
|
|
|
|
fallen be ow
the |
|
|
|
|
|
amount that it
is re- |
|
|
|
|
|
quired to
maintain |
|
|
|
|
|
under section
131 |
|
|
|
|
|
(2).
|
|
|
|
|
137(4)
|
Insuranceintenne- |
500
|
100
|
25 |
|
|
diary failing
to |
|
|
|
|
|
keep or
!11aintain |
|
|
|
|
|
accountmg re-
|
|
|
|
|
|
cords in
accordance |
|
|
|
|
|
with section
137. |
|
|
|
|
139(4)
|
Insuranceintenne- |
250
|
500
|
25 |
|
|
dia~ failing to
no- |
|
|
|
|
|
tify ommission
of |
|
|
|
|
|
Filace in the
Repub- |
|
|
|
|
|
ic where its
ac- |
|
|
|
|
|
counting
records |
|
|
|
|
|
are kept.
|
|
|
|
|
|
Insurance
intenne- |
500
|
|
|
|
139(4)
|
diary failing
to pre- |
|
250
|
25 |
|
|
pare accounts
and |
|
|
|
|
|
statements re-
|
|
|
|
|
|
(uired by
section |
|
|
|
|
|
, 39(1)
|
|
|
|
94
Insurance Act,
2006
Act 724
|
141 (6)
|
I Insurance
interme- I |
250
|
I |
|
250
|
.. 1
|
25 |
|
|
diary failing
to |
|
|
|
|
|
|
|
|
|
lodge accounts
and |
|
|
|
|
|
|
|
|
|
statements and
ac- |
|
|
|
|
|
|
|
|
|
compan'y'i~
doc!l- |
|
|
|
|
|
|
|
|
|
ments WIth
ommls- |
|
|
|
|
|
|
|
|
|
sion in
accordance |
|
|
|
|
|
|
|
|
|
with section
139 (2) |
|
|
|
|
|
|
|
|
143 (7)
|
I I~surance
intefI!le- I |
100
|
I |
|
250
|
1 |
25 |
|
|
dIary
contravemng |
|
|
|
|
|
|
|
|
|
sectIon 141
(Lodge- |
|
|
|
|
|
|
|
|
|
ment of
quarterly |
|
|
|
|
|
|
|
|
|
accounts and
re- |
|
|
|
|
|
|
|
|
|
turns)
|
|
|
|
|
|
|
|
|
|
143 (7)
|
I
Insurance
interme- I |
|
I |
|
100
|
|
|
|
|
diary failing
to ap- |
|
|
|
|
|
|
|
|
|
point an
auaitor In |
|
|
|
|
|
|
|
|
|
accordance with
|
|
|
|
|
|
|
|
|
|
section 143 (1)
|
|
|
|
|
|
|
|
|
145(6)
|
I Insurance
interme- |
|
|
|
500, two years
im- |
|
|
|
|
diary failing
to sub- |
|
|
|
|
1 |
25 |
|
|
mit notice of
aJi- |
|
|
|
prisonment or
|
|
|
|
|
pointment of au
i- |
|
|
|
both
|
|
|
|
|
|
tor to
Commission |
|
|
|
|
|
|
|
|
|
in accordance
with |
|
|
|
|
|
|
|
|
|
section 143 (6)
|
|
|
|
|
|
|
|
|
149(4)
|
I Auditor
contraven- I |
|
I |
|
100
|
I |
|
|
|
ing section 145
(1) |
|
2500
|
|
|
|
|
25 |
|
|
or (2).
|
|
|
|
|
|
|
|
|
|
152(3)
|
I Liqui~tor
failing to |
|
500
|
|
2500, five
years |
|
|
|
|
adve~lse
appoInt- |
|
|
|
|
|
|
|
|
ment In
accordance |
|
|
|
imprisonment or
|
|
|
|
|
with a
directive of |
|
|
|
both
|
|
|
|
|
|
the Commission
is- |
|
|
|
|
|
|
|
|
|
sued under
section |
|
|
|
|
|
|
|
|
|
149(3).
|
|
|
|
|
|
|
|
|
|
152 (4)
|
I Insurer or
insur- |
|
|
|
500, two years
im- |
|
|
|
|
~mc~
intermedi~ry |
|
250
|
|
|
|
|
|
|
IssUIng or
causIng |
|
|
|
prisonment or
to |
|
|
|
|
or permitting
to be |
|
|
|
both
|
|
|
|
|
|
issued an adver-
|
|
|
|
|
|
|
|
|
|
tisement,
|
state-
|
|
|
|
|
|
|
|
|
|
ment, brochure
or |
|
|
|
|
|
|
|
|
|
other similar
docu- |
|
|
|
|
|
|
|
|
|
ment intending
it to |
|
|
|
|
|
|
|
|
|
mislead or
knowing |
|
|
|
|
|
|
|
|
|
that it
contains an |
|
|
|
|
|
|
|
|
|
incorrect
statement |
|
|
|
|
|
|
|
|
|
of fact.
|
|
|
|
|
|
|
|
|
|
|
|
|
I
|
|
|
|
|
|
|
|
|
|
|
|
95 |
|
|
|
|
|
Act 724
Insurance Act,
2006
|
153 (2)
|
|
Insurer or
insur- |
250
|
|
250
|
25 |
|
|
|
~mc~ intermedi~
|
|
|
|
|
|
|
|
IssUIng or
causmg |
|
|
|
|
|
|
|
or permitting
to be |
|
|
|
|
|
|
|
issued an adver-
|
|
|
|
|
|
|
|
tisement,
state- |
|
|
|
|
|
|
|
ment, brochure
or |
|
|
|
|
|
|
|
other similar
docu- |
|
|
|
|
|
|
|
ment contrary
to a |
|
|
|
|
|
|
|
directive or
au- |
|
|
|
|
|
|
|
thorisation of
the |
|
|
|
|
|
|
|
Commission
under |
|
|
|
|
|
|
|
section 152 (2)
|
|
|
|
|
|
|
|
Insurer or
insur- |
|
|
250
|
25 |
|
154(2)
|
|
ance
intermediary |
250
|
|
|
|
|
|
|
failing to
change |
|
|
|
|
|
|
|
the name under
|
|
|
|
|
|
|
|
which business
is |
|
|
|
|
|
|
|
carried
|
within
|
|
|
|
|
|
|
|
seven days of
the |
|
|
|
|
|
|
|
date of receipt
of a |
|
|
|
|
|
|
|
written notice
un- |
|
|
|
|
|
|
|
der section 153
(l). |
|
|
|
|
|
155 (2)
|
|
Insurer or
insur- |
2500
|
|
250
|
|
|
|
|
ance
intermediary |
|
|
|
|
|
|
|
contravening
sec- |
|
|
|
|
|
|
|
tion 154 (1)
|
|
|
|
|
|
|
|
(change of
name) |
|
|
|
|
|
155 (3)
|
|
Insurer or
insur- |
500
|
|
|
|
|
|
. |
ance
intermediary |
|
2500, five
years im- |
|
|
|
|
fail~nfc to
r~port |
|
prisonment or
to |
|
|
|
|
any m ormatIOn
or |
|
both
|
|
|
|
|
|
furnish any re-
|
|
|
|
|
|
|
|
turns or
documen- |
|
|
|
|
|
|
|
tation in
contra- |
|
|
|
|
|
|
|
vention of
section |
|
|
|
|
|
|
|
155 (l)
|
|
|
|
|
|
|
159(4)
|
|
Person making
or |
250
|
500, two years
im- |
|
|
|
|
assisting in
mak- |
|
prisonment or
to |
|
|
|
|
ing false or
mis- |
|
|
|
|
|
|
leading
represen- |
|
both
|
|
|
|
|
|
tation,
statement, |
|
|
|
|
|
|
|
report or
return. |
|
|
|
|
|
160(2)
|
|
Person
contraven- |
\ 250
|
|
250
|
|
|
|
|
ing section 159
(1) |
|
|
|
|
|
|
|
(Restrictions
on |
|
|
|
|
|
|
|
disclosure of
|
|
|
|
|
|
|
|
information).
|
|
|
|
|
96
I
Insurance Act,
2006
Act 724
|
162 (2)
|
Insurer or
insur- |
500
|
|
|
|
|
ance
intennediary |
|
250
|
25 |
|
|
failing to
promI- |
|
|
|
|
|
nently display
a |
|
|
|
|
|
copy of
licen'ie at |
|
|
|
|
|
every l'remlses
|
|
|
|
|
|
where licensed
|
|
|
|
|
|
business is
carried |
|
|
|
|
|
on.
|
|
|
|
|
164 (2)
|
Person contra-
|
500
|
500, two years
im- |
|
|
|
venin, section
|
|
prisonment or
to |
|
|
|
1.62 (1 ~appli~a-
|
|
|
|
|
|
tIons to ommls-
|
|
both
|
|
|
|
sion)
|
|
|
|
|
166(4)
|
Person contra-
|
500
|
500, two years
im- |
|
|
|
venin~ section
|
|
|
|
|
|
164 (
estriction |
|
prisonment or
to |
|
|
|
on use of
certain |
|
both
|
|
|
|
tenns ).
|
|
|
|
|
166(5)
|
Person contra-
|
500
|
500, two years
im- |
|
|
|
venin" section
|
|
|
|
|
|
] 66 (])
(duties in |
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prisonment or
both |
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relation to
inspec- |
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tion)
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]69(4)
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Director,
officer or |
2500
|
500, two years
im- |
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manager having
|
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received a
notice |
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prisonment or
to |
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under section ]
66 |
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both
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(3) failing or
refus- |
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ing to provide
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CommissIOn with
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the information
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and explanation
|
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that it
requires. |
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175 (3)
|
Relevant person
|
2500
|
2500, five
years im- |
]00
|
|
|
failing to
provide |
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prisonment or
to |
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a response to
the |
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both
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Commission in
re- |
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spect of a
report |
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issued under
sec- |
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tion ]69.
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Person failing,
|
2500, five
years |
2500, five
years im- |
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174(4)(a)
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without reason-
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able excuse, to
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imprisonment or
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prisonment or
to |
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compll with an
or- |
both
|
both
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der 0 the Court
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made under sec-
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tion ] 74 (2).
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97
Act 724
Insurance Act,
2006
|
174 (4)(b)
|
Person
providing |
2500
|
2500, five
years im- |
|
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infonnatIon, in
pur- |
|
prisonment or
to |
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ported
compliance |
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with an order
under |
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both
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section 174 (3)
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which he or she
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knows to be
false |
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or misleading
in a |
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material
respect. |
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175 (5)
|
Person
recklessly |
2500
|
2500, two years
im- |
25 |
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providing
infonna- |
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tion in
purported |
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prisonment or
to |
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compliance with
an |
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both
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order under
sec- |
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tion 174 (4)
infor- |
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mation which is
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false or
misleading |
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in a material
re- |
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spect.
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177(3)
|
Person, for the
pur- |
500
|
500, two years
im- |
25 |
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|
pose of
obstruct- |
|
prisonment or
to |
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mg or
frustrating |
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compliance with
a |
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both
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notice issued
by |
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the Commission
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under section
160 |
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or comsliance
with |
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an or er of the
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Court under
sec- |
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tion 174 (2)
de- |
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stroyinfa,
mutilat- |
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1ng, de acing,_
hid- |
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mg or removmg a
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document.
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Insurer/insurance |
500
|
500, two years
|
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181 (3)
|
intermediary
un- |
|
imprisonment or
to |
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dertaking
transac- |
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|
tion specified
in |
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both.
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section 177 (2)
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when its
licence is |
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suspended or
re- |
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voked.
|
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182 (2)
|
Insurer failing
to |
500
|
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comply with, or
|
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carrying on
busi- |
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ness in
contraven- |
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tion of, a
directive |
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issued by the
Com- |
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mission under
sec- |
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tion 181
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98
Insurance Act,
2006
SECOND SCHEDULE
(section 69)
MINIMUM CAPITAL
REQUIREMENTS
Act 724
Maintenance of
capital by an insurer
1.
Pursuant to section
69, the capital required to be maintained by an
insurer after the commencement ofthis Act shall be,
in the case of
(a)
a company limited
by shares that is a direct insurer, the Cedi
equivalent of one million dollars irrespective of
whether the company
is into long-term or ~hort-term
business, .
(b)
a company limited
by shares that is a reinsurer, the cedi equivalent
of two million five hundred thousand dollars, and
(c)
a mutual company,
an amount equal to the value of its liabilities plus
fifteen percent of its assets.
Maintenance of
capital by an insurance intermediary
2.
Pursuant to section
131, the capital requirement to be maintained by a
company holding an insurance intermediary's licence
after the commencement of this Act shall be, in the
case of
(a)
an insurance
broker, the cedi equivalent of twenty-five thousand
dollars, and
(b)
an insurance loss
adjuster, the cedi equivalent oftwenty- five
thousand dollars.
,
Date of Gazette
notification: 29th December, 2006.
|
