Section 24Part 4 — POWERS AND DUTIES OF THE AUTHORITY
Powers of the Authority
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The Authority may immediately do any of the things provided in subsection (2), where the Authority is of the opinion that —
a licensee is or appears likely to become unable to meet its obligations as they fall due;
a licensee is carrying on business in a manner detrimental to the public interest or to the interest of its creditors or policy holders;
the activities of any member of the licensee’s insurance group are detrimental to the interest of the licensee’s creditors or policy holders;
a licensee has contravened this Law or the Money Laundering Regulations (2009 Revision);
a licensee has failed to comply with a condition of its licence or with section 8(2);
the direction and management of a licensee’s business has not been conducted in a fit and proper manner;
a person holding a position as a director, manager or officer of a licensee’s business is not a fit and proper person to hold the respective position; or
a person holding or acquiring control or ownership of a licensee is not a fit and proper person to have such control or ownership.
Where subsection (1) applies, the Authority may do any of the following —
require the licensee immediately to take steps to rectify the matter;
suspend the licence of the licensee pending a full enquiry into the licensee’s affairs made under section 22(1)(b);
revoke the licence;
impose conditions with respect to decisions made by the licensee including the suspension of voting rights or nullification of votes cast;
impose conditions, or further conditions, upon the licence and amend or revoke any such condition;
require the substitution or removal of any director, manager or officer of the licensee;
at the expense of the licensee, appoint a person to advise the licensee on the proper conduct of its affairs;
at the expense of the licensee, appoint a receiver or person to assume control of the licensee’s affairs who shall have all the powers necessary to administer the affairs of the licensee including power to terminate the insurance business of the licensee; and
require such action to be taken by the licensee as the Authority considers necessary.
Notwithstanding section 34(1), a licensee may, within seven days of the decision, apply to the Authority for a reconsideration of its decision to revoke a licence under subsection (2)(c).
A person appointed in respect of a licensee under subsection (2)(g) or (h) shall —
when requested to do so by the Authority, supply the Authority with such information in respect of the licensee as is specified by the Authority;
within three months of his appointment, or within such other period as the Authority may specify, prepare and supply to the Authority a report on the affairs of the licensee making, where appropriate, recommendations in respect of the licensee; and
if his appointment is not terminated after supplying the report referred to in paragraph (b), subsequently supply to the Authority such other information, reports and recommendations as the Authority specifies.
On receipt of a report under subsection (4), the Authority may —
revoke the appointment of the person appointed under subsection (2)(g) or (h);
extend the period of his appointment;
subject to such conditions as the Authority may impose, allow the licensee to reorganise its affairs in a manner approved by the Authority;
revoke the licence; or
apply to the Grand Court for an order that the licensee be forthwith wound up by that Court in which case the provisions of the Companies Law (2010 Revision) relating to the winding up of a company by that Court shall apply.
The Authority may revoke a licence if the licensee —
has ceased to carry on insurance business; or
goes into liquidation or is wound up or otherwise dissolved.
Where the Authority suspends a licence under subsection (2)(b) or revokes a licence under subsection (2)(c), subsection (5)(d) or subsection (6), the Authority shall cause notice of the suspension or revocation to be published in the Gazette, and may also cause the notice to be published, whether within the Islands or elsewhere, in such newspaper or other publication as the Authority may consider necessary in the circumstances.
The provisions of this section may be applied to a segregated portfolio within a segregated portfolio company that is licensed under this Law.
Cross References
- Section 8 of Insurance Law
Reference to compliance in section 24(1)(e)
- Section 22 of Insurance Law
Reference to enquiry in section 24(2)(b)
- Section 34 of Insurance Law
Reference to reconsideration in section 24(3)
- Section of Companies Law 2010 Revision
Reference to winding up provisions in section 24(5)(e)
Referenced By
- Section 22 — Duties of the Authority
Reference in section 22(1)(d)(vi)
- Section 26 — Preservation of assets, etc.
Reference to powers exercised in section 26(1)