Act No. 38 OF 2021, THE INSURANCE ACTpdf - 0

Insurance [No.
38 of 2021 415
THE INSURANCE ACT, 2021
ARRANGEMENT OF SECTIONS
PART I
PRELIMINARY PROVISIONS
Section
1. Short title and commencement
2. Interpretation
PART II
ADMINISTRATION
3. Administration of Act
4. Seal of Authority
5. Registrar
PART III
REGULATION OF INSURANCE INDUSTRY
6. Prohibition on carrying on insurance business without licence
7. Types of licences
8. Categories of insurance business
9. Restriction on composite insurance
10. Application for insurance licence
11. Consideration and grant or refusal to grant licence
12. Duration of licence
13. Surrender of licence
14. Suspension and cancellation of licence
15. Effect of suspension or cancellation of licence
16. Loss or damage of licence
17. Application for amendment of licence
18. Accepting insurance business from unlicensed person
19. Entering into insurance contract with unlicensed person
20. Repayment of funds
21. Insurance broker to transmit premium
22. Separate client account
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka. Price K188.00 each
416 No. 38 of 2021] Insurance
PART IV
INSURANCE POLICIES
23. Lodging of insurance form
24. Form of policies
25. Premium rates
26. Payment of premium
27. Currency
28. Settlement of claims
29. Policies and payments
30. Action against insurer and insurance broker
31. Life insurance by minor
32. Customer due diligence to life insurance polices
33. Protection of proceeds during life of policyholder
34. Protection of beneficiary on death of policyholder
35. Protection of policy for spouse and children
36. Further protection for spouse
37. Selection for realisation of life policy
38. Partial realisation and conversion of policy
39. Agreement to exchange life policy
40. Incorrect statement in proposal for life policy
41. Life policy intended to defraud creditor
42. Proof of age
43. Incorrect age in life policy
44. Death occasioned by insured person or beneficiary
45. Lost or destroyed life policy
46. Cancellation of life policy
47. Discrimination between life policy
48. Premium rate on life policy
Insurance [No. 38 of 2021 417
PART V
MANAGEMENT AND SHAREHOLDING FOR INSURER,
REINSURER AND INSURANCE BROKER
49. Shareholding
50. Principal office for insurance business
51. Representation by chief executive officer
52. Acting as director or senior officer
53. Appointment of directors and officers
54. Approval or refusal to approve appointment
55. Notice of termination of appointment
56. Absence of chief executive officer
57. Restriction on employment
58. Restriction on holding shares
59. Board of directors of insurer or reinsurer
60. Corporate governance standards
PART VI
FINANCIAL REGULATION OF INSURANCE BUSINESS
61. Reserves for unexpired risk
62. Reserves for outstanding claims
63. Statutory fund
64. Compliance with solvency requirements
65. Solvency statement
66. Furnishing of information on assets and liabilities
67. Publication of authorised capital, subscribed capital and paid up capital
68. Investment of funds
69. Licensee to appoint actuary
70. Notification of ceasing to have actuary
71. Actuarial investigations
72. Distribution of surplus to policyholders
73. Notification where capital requirements unlikely to be met
PART VII
REINSURANCE
74. Reinsurance programmes
75. Submission of reinsurance treaties and contracts
76. Promotion of local cessions and conduct of reinsurance business
77. National Reinsurance Company
78. Mandatory cessions
PART VIII
MERGERS AND TAKEOVERS OF INSURANCE BUSINESS
79. Prohibition on mergers and takeovers
80. Approval of merger or takeover or transfer
81. Inquiry into effect of merger or takeover
82. Notice to policyholders
83. Determination of application
84. Notification on finalisation of merger or takeover
85. Effect of merger or takeover on insurer
86. Effect of merger or takeover on policyholder
PART IX
AUDITORS, ACCOUNTS AND RETURNS
87. Appointment of external auditor
88. Appointment of firm or body corporate
89. Duties of external auditor
90. External auditor’s duty to report
91. Immunity of external auditor
92. Disqualification of external auditor
93. Auditing of accounts
94. Request for extended scope audit
95. External auditor’s certificate
96. Information by external auditor to Authority
97. Access to information by external auditor
98. External auditor’s report
99. Dismissal of external auditor by Authority
100. Resignation of external auditor
101. Termination of appointment of external auditor by insurer, reinsurer or
insurance broker
102. Audit committee
103. Financial statements and other returns
104. Financial year
105. Submission of signed financial statements
106. Insurer and reinsurer quarterly returns
107. Broker’s quarterly returns
108. Separate accounts for classes of insurance business
109. Signing of accounts and statements
110. Publication of returns and statements
111. Unauthorised publication of returns and statements
112. Examination of returns and reports
PART X
INSPECTIONS AND CO-OPERATION
113. Establishment of inspectorate
114. Appointment of inspectors
115. Conduct of inspections
116. Request for information
117. Appointment of expert investigators
118. Consolidated supervision
119. Cooperation with other institutions
PART XI
SUPERVISORY ACTION
120. Supervisory action by Authority
121. Nature of supervisory action
122. Restrictions on classes of transactions
123. Prohibition from dealing with assets
124. Variation or rescission of restriction or prohibition
125. Notice of taking possession
126. Powers of Authority on taking possession
127. Statement of assets and liabilities
128. Petition to Minister against possession
129. Effect of possession
130. Restructuring and reorganisation
131. Expenses incurred in taking possession
132. Power of authority to appoint agent on taking possession
PART XII
INSOLVENCY, DISSOLUTION AND LIQUIDATION OF
INSURER, REINSURER OR INTERMEDIARY
133. Application of Corporate Insolvency Act

134. Prohibition from conducting business while insolvent
135. Power of Authority on insolvency of insurer, reinsurer or intermediary
136. Approval of voluntary winding up or dissolution
137. Duties of insurer, reinsurer or intermediary on voluntary winding up
138. Notice of voluntary winding up or dissolution
139. Rights of policyholders, creditors and other persons
140. Cancellation of licence on voluntary winding up
141. Powers of Authority where assets insufficient or completion unduly
delayed
142. Compulsory winding up
143. Appeal against order of compulsory winding up or dissolution
144. Powers of Authority in compulsory winding up
145. Limitation on filing claims
146. Objection to liquidation schedule
147. Priority of creditors
148. Undistributed funds
149. Final distribution in compulsory winding up or dissolution
150. Unclaimed funds
151. Restriction on action by third party
152. Other person’s applications to court for winding-up

153. Recovery of expenses
154. Immunity of Authority against claims
155. Power of Authority to appoint agent
PART XIII
COMPLAINTS
156. Initiation of investigation
157. Refusal to investigate or discontinue complaint
158. Continuation of investigation where complaint withdrawn
159. Referral of matter
160. Collaboration on investigation
161. Enforcement notice
162. Variation or cancellation of enforcement notice
PART XIV
INSURANCE TRIBUNAL
163. Right to appeal
164. Appointment and convening of appeals tribunal
165. Tribunal Rules
PART XV
GENERAL PROVISIONS
166. Insurance to be placed within Republic
167. Documents to be signed and copies supplied
168. Register of licensees
169. Display of information
170. Publication of change of name
171. Alteration of prescribed forms
172. False documents
173. Offence by principal officers of body corporate or unincorporate body
174. Prohibition of use of certain titles
175. Membership to associations
176. General penalty
177. Administrative penalty
178. Immunity of officer, agent or employee of Authority
179. Regulations
180. Repeal of Act No. 27 of 1997
SCHEDULE
GOVERNMENT OF ZAMBIA
ACT
No. 38 of 2021
Date of Assent:19th May, 2021
An Act to provide for the regulation of the insurance industry;

provide for the supervision of insurers, reinsurers and
intermediaries; provide for the financial regulation of
insurers, reinsurers and intermediaries; provide for the
regulation and supervision of microinsurance businesses;
provide for the management and shareholding of insurers,
reinsurers and intermediaries; provide for the auditing
and corporate responsibility of insurers, reinsurers and
insurance brokers; continue the existence of the
Policyholders’ Protection Committee and the Insurance
Fidelity Fund; provide for the establishment of the
National Reinsurance Company; give effect to the
Agreement establishing the African Reinsurance
Corporation and the Agreement establishing the ZEP-RE
(Preferential Trade Area Reinsurance Company); repeal
and replace the Insurance Act, 1997; and provide for
matters connected with, or incidental to, the foregoing.
[20th May, 2021
ENACTED by the Parliament of Zambia. Enactment
PART I
PRELIMINARY PROVISIONS
1. This Act may be cited as the Insurance Act, 2021, and shall Short title and
come into operation on the date appointed by the Minister by commencement
statutory instrument.
2. In this Act, unless the context otherwise requires— Interpretation
“ actuary ” means a person appointed as an actuary under
section 69;
“ Agreement ” means the Agreement establishing the ZEP-
RE (Preferential Trade Area Reinsurance Company)
signed by Heads of State and Government of the Common
Market for Eastern and Southern Africa region on 21st
November, 1990, in Mbabane, Swaziland;
“ Africare Agreement ” means the Agreement establishing
the African Reinsurance Corporation, which was signed
on behalf of the African States, members of the
Organisation for African Unity (now African Union) and
the African Development Bank on 24th February, 1976, in
Yaoundé, Cameroon and came into force, in respect of
Zambia, on 31st January, 1977;
“ appropriate authority ” means the Minister responsible for,
or such public body having powers under, any other written
law over an incorporate or unincorporate entity and the
management of insurance information and includes a public
officer or employee of a statutory body or institution under
the following laws—
Act No. 35 (a) the Narcotic Drugs and Psychotropic Substances
of 2021 Act;
Cap. 107 (b) the Zambia Police Act;
Cap. 321 (c) the Zambia Revenue Authority Act;
Act No. 14 of (d) the Prohibition and Prevention of Money
2001
Laundering Act, 2001;
Act No. 11 of (e) the Road Traffic Act, 2002
2002
Act No. 15 of (f) the Information and Communications Technologies
2009 Act, 2009;
Act No. 24 of (g) the Competition and Consumer Protection Act,

2010 2010;
Act No. 46 of (h) the Financial Intelligence Centre Act, 2010;
2010
Act No. 3 of (i) the Anti-Corruption Act, 2012;
2012
Act No. 7 of (j) the Banking and Financial Services Act, 2017;
2017
Act No. 9 (k) the Corporate Insolvency Act, 2017;
of 2017
Act No. 10 of (l) the Companies Act, 2017; and
2017
Act No. 41 of (m) the Securities Act, 2016;
2016
“ assessor ” means a person, not being a loss adjuster, who,
in the event of a claim against an insurer for loss or
damage, assesses the extent of the loss or damage;
“ associate ” has the meaning assigned to the word in the
Anti-Corruption Act, 2012; Act No. 3 of
2012
“ auditor ” has the meaning assigned to the word in the
Accountants Act, 2008; Act No. 13
of 2008
“ Authority ” means the Pensions and Insurance Authority
established under the Pension Scheme Regulation Act, Act No. 28
1996; of 1996
“ bank ” has the meaning assigned to the word in the Banking
and Financial Services Act, 2017; Act No. 7 of
2017
“ banking business ” has the meaning assigned to the words
in the Banking and Financial Services Act, 2017; Act No. 7 of
2017
“ Bank of Zambia ” means the Bank of Zambia established
by the Constitution; Cap. 1
“ beneficial owner ” has the meaning assigned to the words
in the Companies Act, 2017; Act No. 10
of 2017
“ beneficiary ” means a person for whose benefit a policy is
issued;
“ Board ” has the meaning assigned to the word in the Pension
Scheme Regulation Act, 1996; Act No. 28
of 1996
“ board of directors ” means the governing board of a licensee;
“ ceding insurer ” means an insurer who assigns a risk under
a policy to a reinsurer;
“ Chairperson ” means the person appointed as Chairperson
of the Board under the Pension Scheme Regulation Act, Act No. 28
1996; of 1996
“ child ” has the meaning assigned to the word in the
Constitution and includes a child born out of wedlock, a Cap. 1
step child, an adopted child or a posthumous child born
within ten months from death of the father;
“ citizen ” has the meaning assigned to the word in the
Constitution; Cap. 1
“ citizen owned company ” means a company where one

hundred percent of its equity is owned by citizens and in
which citizens have significant control of the management
of the company;
“ claims agency business ” means the business of negotiation
and settlement of a claim arising from a policy, with an
insurer or the insurer’s representative, on behalf of an
insured person;
“ claims agent ” means a person licensed to carry on a claims
agency business;
“ Commission ” means the Competition and Consumer
Act No. 24 Protection Commission established by the Competition
of 2010 and Consumer Protection Act, 2010;
“ Committee ” means the Policyholders’ Protection Committee
continued under section 180;
“ company ” has the meaning assigned to the word in the
Act No. 10 Companies Act, 2017;
of 2017
“ contract of insurance ” means an agreement under which a
person pays a premium to an insurer who undertakes to
indemnify the person against risk or loss, damage or liability
arising from the occurrence of some specified contingency;
“ contract of reinsurance ” means an agreement under which
one or more reinsurers agree to indemnify a ceding insurer
against all or part of a risk arising under a policy that the
insurer has issued;
“ control ” in relation to the management of an insurer, has
Act No. 10 the meaning assigned to the word in the Companies Act,
of 2017 2017;
“ court” has the meaning assigned to the word in the
Cap. 1 Constitution;
“ customer ” includes a policyholder or beneficiary under a
policy;
“ director ” has the meaning assigned to the word in the
Act No. 10 Companies Act, 2017;
of 2017
“ financial interest ” means direct material interest of a financial
monetary or economic nature or direct material interest to
which a monetary value may be attributed;
“ financial year ” means a period specified in section 104;
“ fit and proper person ” means a person who meets the
criteria prescribed by the Minister;
“ foreign company ” has the meaning assigned to the word in
Act No. 10 the Companies Act, 2017;
of 2017
“ funeral policy ” means a policy under which an insurer
assumes a contingent obligation dependent on the death of
a beneficiary for expenses relating to the funeral and
interment of the beneficiary;
“ general insurance business ” means a business of a class

that the Minister may, on recommendation of the Board,
prescribe;
“ general insurer ” means a company that carries on general
insurance business;
“ holding company ” has the meaning assigned to the words
in the Companies Act, 2017; Act No. 10 of
2017
“ insolvent ” has the meaning assigned to the word in the
Corporate Insolvency Act, 2017, and includes a failure to Act No. 9 of
meet the solvency margins or capital adequacy 2017
requirements prescribed by the Minister;
“ inspector ” means a person appointed by the Authority as
an inspector under section 114;
“ insurance ” means a mechanism or service for the transfer
of all or part of certain risks of financial loss or defined
benefit by one party, the insured or beneficiary, to another
party, the insurer or entity that assumes the financial liability
in exchange of payment of a premium or contribution,
through which—
(a) the insurer or entity that assumes the liability
undertakes to indemnify or compensate the insured
or beneficiary on the occurrence of loss as defined
in the policy or contract between parties;
(b) the insurer or entity that assumes the liability
collects and pools the premium or contribution paid
for the purposes of providing indemnity,
compensation or creating reserves for future loss;
and
(c) the insurer or entity that assumes the liability on
the expiry of the policy or contract between the
parties retains the premium or funds earned from
such a service;
“ insurance agency business ” means a business, by a person
who is not an employee of an insurer who initiates insurance
business on behalf of the insurer;
“ insurance agent ” means a person who is licensed to engage
in an insurance agency business under this Act;
“ insurance broker ” means a company not being an agent of
an insurer or reinsurer, acting independently and carries

on insurance or reinsurance brokerage, in consideration
for a commission or other compensation from an insurer
or reinsurer;
“ insurance brokerage ” means the business of—
(a) bringing together persons seeking a contract of
insurance or reinsurance;
(b) carrying out work preparatory to the conclusion
of a contract of insurance or reinsurance; or
(c) assisting in the administration and performance of
a contract of insurance or reinsurance;
“ insurance business ” means a business—
(a) of undertaking liability by way of insurance,
including reinsurance, in respect of any loss of life
and personal injury and any loss or damage,
including liability to pay damage or compensation,
contingent on the happening of a specified event,
and any business incidental to insurance business;
(b) by a person, other than a person carrying on banking
business, of carrying on contracts for fidelity bonds,
performance bonds, administration bonds or
customs bonds or similar contracts of guarantee
in return for the payment of one or more premiums;
or
(c) by a person, other than a person carrying on banking
business, or carrying on capital redemption
contracts and any business incidental to insurance
business;
“ Insurance Fidelity Fund ” means the Insurance Fidelity Fund
continued under section 180;
“ insurer ” means a company licensed to carry on an insurance
business under this Act and includes a microinsurer;
“ intermediary ” means an insurance agent, insurance broker,
underwriting agent or microinsurance aggregator or a
licensee who invites other persons to make offers or
proposals or to take other steps with a view to taking up a
policy, but excludes a person who publishes invitations on
behalf of, or to the order of, some other person;
“ legal practitioner ” has the meaning assigned to the word

“practitioner” in the Legal Practitioners Act; Cap. 30
“ legally disqualified ” means having no legal capacity as
prescribed in section 4 of the Mental Health Act, 2019; Act No. 6
of 2019
“ licence ” means a licence issued under this Act;
“ licensee ” means a holder of a licence issued under this
Act;
“ life policy ” means a contract under which an insurer assumes
a contingent obligation dependent on human life, including
a contract of insurance customarily regarded as a contract
of life insurance, but excludes a policy—
(a) under which the contingent obligation forms a
subordinate part of the insurance effected by the
policy; or
(b) of a kind prescribed by statutory instrument in
accordance with this Act;
“ long-term insurer ” means a company that carries on long
term insurance business;
“ long term insurance business ” means insurance business
of a class that the Minister may, on the recommendation
of the Board, by statutory instrument, prescribe;
“ long term policy ” means a policy classified as a long term
policy in guidelines issued by the Authority under this Act;
“ loss adjuster ” means a person who, in the event of a claim
against an insurer, investigates the circumstances of the
loss, assesses and quantifies the insurer’s liability under a
policy;
“ medical scheme fund management business ” means the
business of undertaking liability in return for contributions
from members to partially or fully discharge the expenditure
incurred in connection with a member, or that member’s
dependents for health services received from health
services providers, and includes the provision of a personal
medical saving facility;
“ merger ” has the meaning assigned to the word in the
Competition and Consumer Protection Act, 2010; Act No. 24
of 2010
“ microinsurance agency business ” means an insurance
business of a class that the Minister may, on
recommendation of the Board, prescribe;
“ microinsurance agent ” means a person licensed to carry
on a microinsurance agency business;
“ microinsurance aggregator ” means—
Act No. 10 (a) an entity incorporated under the Companies Act,

of 2017 2017;
(b) an entity registered as a cooperative society under
Cap. 397 the Cooperative Societies Act; or
(c) any other association of persons for the mutual
benefit of its members and registered as a
microinsurance aggregator by the Registrar;
“ microinsurance business ” means the business of a class
prescribed by the Minister under this Act;
“ microinsurance policy ” means a contract under which a
person, in return for a premium, undertakes to provide policy
benefits subject to the limitations prescribed by the Minister
under this Act;
“ microinsurer ” means a company that carries on
microinsurance business;
“ minor ” means a person who has not attained the age of
eighteen;
“ money laundering ” has the meaning assigned to the words
Act No. 14 in the Prohibition and Prevention of Money Laundering
of 2001 Act, 2001;
“ National Reinsurance Company ” means a company
established under section 77;
“ partnership ” means the relation which subsists between
persons carrying on a business in common with a view to
profit;
“ policy ” means a contract of insurance of any kind;
“ policyholder ” means a person who is entitled to enforce a
benefit provided for in a policy;
“ premium ” means a payment paid by a policyholder under a
policy;
“ premium rate ” means the cost of insurance broken down
to price per unit;
“ register ” means the register of insurance service providers
established and maintained under section 168;
“ Registrar ” means the person appointed as Registrar under
Act No. 28 the Pension Scheme Regulation Act, 1996;
of 1996
“ regulatory statement ” means a directive, guideline, order,

circular or bulletin issued by the Authority for the efficacious
implementation of this Act;
“ reinsurance ” means the transfer of a risk assumed by an
insurer to a reinsurer;
“ reinsurer ” means a company licensed to carry on the
business of reinsurance under this Act, and includes a
retrocessionaire;
“ Reinsurance Company ” means the ZEP-RE (Preferential
Trade Area Reinsurance Company), established under
Article 2 of the Agreement, as a regional organisation
responsible for promoting trade, development and
integration within the Common Market for Eastern and
Southern Africa region through the trade of insurance and
reinsurance business;
“ Reinsurance Corporation ” means the African Reinsurance
Corporation established by the Africare Agreement;
“ related company ” has the meaning assigned to the words
in the Companies Act, 2017; Act No. 10
of 2017
“ repealed Act ” means the Insurance Act, 1997; Act No. 27
of 1997
“ risk surveyor ” means a person who assesses the potential
financial risk posed to an insurer by issuing a policy and
provides the insurer with information on how to reduce the
risk or whether to issue the policy;
“ secretary ” has the meaning assigned to the word in the
Companies Act, 2017; Act No. 10
of 2017
“ senior officer ” means a chief executive officer, chief
financial officer, head underwriting, head claims, manager
or other management personnel of a licensee;
“ subsidiary ” has the meaning assigned to the word in the
Companies Act, 2017; Act No. 10
of 2017
“ statutory fund ” means a fund established and maintained in
accordance with section 63;
“ surrender value ” means the sum of money payable by an
insurer to a policyholder in the event that the policyholder
voluntarily terminates the policy before its maturity or the
occurrence of the insured event;
“ take-over ” has the meaning assigned to the words in the

Act No. 41 Securities Act, 2016;
of 2016
“ terrorist ” has the meaning assigned to the word in the Anti-
Act No. 6 of Terrorism and Non-Proliferation Act, 2018;
2018
“ terrorism financing ” has the meaning assigned to the words
Act No. 6 of in the Anti-Terrorism and Non-Proliferation Act, 2018;
2018
“ treaty reinsurance ” means a contract of reinsurance in
which the reinsurer accepts a specific level of risk from
the primary insurer, and cognate expressions shall be
construed accordingly;
“ underwriting agency business ” means the business of
issuing and pricing policies on behalf of an insurer;
“ underwriting agent ” means a person licensed to carry on
underwriting agency business under this Act;
“ unexpired risk ” means an obligation of an insurer under a
policy for the remainder of the duration of the policy;
“ unsafe and unsound practice ” means—
(a) the conduct of affairs by a licensee in a manner
that is—
(i) detrimental to the stability of the insurance
industry or the interests of a policyholder
or creditor;
(ii) prejudicial to the interest of the licensee;
or
(iii) in contravention of this Act or any other
relevant written law; or
(b) any other practice that the Authority may designate
as unsafe and unsound;
“ Vice-Chairperson ” means the person appointed as Vice-
Chairperson of the Board in accordance with the provisions
Act No. 28 of the Pensions Scheme Regulation Act, 1996; and
of 1996
“ Zambia Institute of Chartered Accountants ” means the
Zambia Institute of Chartered Accountants established by
Act No. 13 the Accountant’s Act, 2008.
of 2008
PART II
ADMINISTRATION
3. This Act shall be administered by the Authority. Administration
of Act
4. The seal of the Authority kept in terms of the Pension Seal of

Authority
Scheme Regulation Act, 1996, shall be used for the purposes of Act No. 28
this Act and the impression made for that purpose shall be judicially of 1996
noticed.
5. The Registrar appointed under the Pension Scheme Registrar Act
Regulation Act, 1996, shall, in addition to the Registrar’s functions No. 28 of
1996
and powers specified in that Act and any other written law, exercise
the power and perform the functions conferred on the Registrar in
this Act.
PART III
REGULATION OF INSURANCE INDUSTRY
6. (1) A person shall not carry on insurance business or hold Prohibition
on carrying
oneself out as an insurer, reinsurer, intermediary, assessor, claims on insurance
agent, loss adjustor or risk surveyor unless the person is licensed business
without
under this Act. licence
(2) A person who contravenes subsection (1) commits an
offence and is liable, on conviction, to a fine not exceeding two
hundred thousand penalty units or to imprisonment for a term not
exceeding two years, or to both.
7. A licence issued by the Authority shall authorise the licensee Types of
to provide any of the following types of insurance services: licences
(a) insurance;
(b) reinsurance;
(c) microinsurance;
(d) insurance brokering;
(e) loss adjustering;
(f) microinsurance agregation;
(g) microinsurance agency;
(h) risk surveyor;
(i) assessor;
(j) claims agency;
(k) insurance agency; and
(l) underwriting agency.
Categories 8. Subject to section 9, a person may engage in—

of insurance
business (a) long-term insurance business;
(b) general insurance business; or
(c) microinsurance business.
Restriction 9. (1) Subject to subsection (2), the Authority shall not issue
on
composite
a licence to carry on—
insurance (a) long-term insurance business if the applicant is already
carrying on, or has applied to be licensed to carry on,
general insurance business; or
(b) general insurance business if the applicant is already
carrying on, or has applied to be licensed to carry on,
long term insurance business.
(2) Subsection (1) shall not apply to a reinsurer and
microinsurer.
Application 10. A person who intends to provide an insurance service
for
insurance
under section 7 shall, apply to the Authority, for a licence, in a
licence prescribed manner and form on payment of a prescribed fee.
Consideration 11. (1) The Authority shall, on receipt of an application, made
and grant or
refusal to under section 10, within ninety days, grant a licence to the applicant
grant licence on terms and conditions that may be prescribed, if the applicant—
(a) is capable of carrying on insurance business as specified
in this Act;
(b) is capable of protecting the interests of policyholders
in preference to, but not to the exclusion of, the interests
of the shareholders and other providers of the
applicant’s capital;
(c) meets the minimum financial, solvency and liquidity
requirements, or other criteria that may be prescribed
in accordance with this Act or any other written law in
respect of the insurance business to which the
application relates; and
(d) is competent to conduct the insurance business for the
class to which the application relates.
(2) A licensee shall—
(a) comply with the prescribed terms and conditions of a
licence;
(b) meet the prescribed minimum capital requirements;
and
(c) comply with other conditions that may be prescribed,
for the protection of a policyholder.
(3) The Authority shall, where an application fails to comply

with the requirements under subsection (1), refuse to grant the
licence to the applicant.
(4) The Authority shall, within ninety days of receipt of an
application under subsection (3), notify the applicant of the decision
to reject the application, stating the reasons for the rejection.
(5) Where the Authority fails to notify an applicant of the
Authority’s decision to grant or refuse the licence within the period
specified under subsections (1) and (4), the application is considered
to be granted.
12. (1) A licence granted under this Part shall remain in force Duration of
subject to the prescribed conditions unless earlier suspended, licence
cancelled or surrendered.
(2) A licensee shall pay the prescribed annual fee and comply
with the terms and conditions of the licence, or this Act.
13. Where a licensee decides not to continue operating, the Surrender of
licensee shall surrender the licence to the Authority. licence
14. (1) Subject to section 120, the Authority may take Suspension
supervisory action by suspending or cancelling a licence. and
cancellation
(2) The Authority shall, before suspending or cancelling a of licence
licence, in accordance with subsection (1)—
(a) give to the licensee, in the prescribed form and manner,
written notice of its intention to suspend or cancel the
licence;
(b) give the reasons for the intended suspension or
cancellation; and
(c) direct the licensee to show cause, within a period of
thirty days, why the licence should not be suspended or
cancelled.
(3) Where a licensee takes remedial measures to the
satisfaction of the Authority, within the period specified in subsection
(2), the Authority shall not suspend or cancel the licence.
(4) The Authority shall, in making its final determination on
the suspension or cancellation of a licence, consider the submissions
made by the licensee, under subsection (2), and any remedial
measures taken under subsection (3).
(5) The Authority may suspend or cancel a licence if the

licensee, after being notified under subsection (2), fails to show
cause or does not take any remedial measures to the satisfaction
of the Authority within the specified period.
(6) The Authority shall, where it suspends or cancels a licence
under this section—
(a) publish a notice of the suspension or cancellation in the
Gazette, daily newspaper of general circulation or in
other electronic media in the Republic; and
(b) take any additional steps necessary to inform the public
of the suspension or cancellation of the licence.
Effect of 15. (1) Where a licence is suspended under this Act, the licensee
suspension
or shall, for the period of the suspension of the licence, cease to be
cancellation entitled to the rights and benefits conferred by the licence and this
of licence Act.
(2) Where a licence is cancelled under this Act, the licensee
shall—
(a) with effect from the date of the cancellation, cease to
be entitled to the rights and benefits conferred by the
licence and this Act; and
(b) surrender the licence to the Authority.
(3) A licensee whose licence is suspended or cancelled under
this Act shall not, from the date of receiving a notice of the suspension
or cancellation from the Authority—
(a) enter into a new contract in relation to the business
authorised by the licence; or
(b) renew or vary a contract entered into with any person
in relation to the business authorised by the licence.
(4) Where a licence is suspended or cancelled under this Act,
and the licensee has a liability in respect of the business authorised
by the licence—
(a) this section shall not be a defence by the licensee against
that liability; and
(b) the licensee shall take necessary action, or an action
that the Authority may direct, to make good the liability.
16. (1) A licensee who loses a licence, issued under this Act, Loss or
shall— damage of
licence
(a) within seven days of the loss, inform the Registrar in
writing; and
(b) apply to the Authority, in the prescribed manner and
form, for a duplicate licence.
(2) A licensee whose licence is defaced or damaged shall apply
to the Authority for a duplicate licence.
(3) The Authority shall, where an application made under
subsection (1) or (2) meets the requirements of this Act, issue a
duplicate licence in a prescribed manner and form on payment of a
prescribed fee.
Application
17. (1) Subject to section 6, a licensee may apply to the for
Authority for an amendment to a licence to authorise the licensee amendment
to carry on insurance business, of a class not authorised by the of licence
licence in the prescribed manner and form on payment of a
prescribed fee.
(2) The Authority shall, within sixty days of receipt of an
application to amend a licence under subsection (1)—
(a) amend the licence on the terms and conditions that the
Authority may specify in the licence and endorse the
licence; or
(b) refuse to amend the licence.
(3) Subject to subsection (2), the Authority shall within seven
days of its decision, notify the applicant of the Authority’s decision.
18. (1) Subject to section 166, a licensed insurer or reinsurer Accepting
shall not accept insurance business or pay commission or other insurance
business
form of remuneration to a person who is not licensed in accordance from
with this Act. unlicensed
person
(2) A licensed insurer or reinsurer who contravenes subsection
(1) commits an offence and is liable, on conviction, to a fine not
exceeding two hundred thousand penalty units or to imprisonment
for a term not exceeding two years, or to both.
19. (1) A person shall not cause another person to enter into, Entering into
insurance
or to make an application to enter into, an insurance business with contract with
a person who is not licensed in accordance with this Act. unlicensed
person
Repayment 20. (1) A person holding funds obtained by conducting insurance
of funds business in contravention of this Act shall repay the funds in
accordance with the directions that the Registrar may give.
(2) A person who fails to comply with the directions given
under subsection (1) commits an offence and is liable, on conviction,
to pay the Authority a fine of twenty thousand penalty units for
each day that the failure to comply continues.
(3) Funds repayable under this section which remain unpaid
at the end of the period directed by the Registrar for repayment is
a debt due to the Authority in trust for a person who appears to the
Authority to be lawfully entitled to the funds.
(4) The Authority may institute an action in a court of
competent jurisdiction to recover funds repayable under this section.
(5) Nothing in this section relieves a person from criminal
liability as provided in this Act, or any other written law, as a result
of the person’s contravention of this section.
Insurance 21. (1) A licensed insurance broker shall, where a premium
broker to
transmit on a policy is paid to the licensed insurance broker by a client,
premium within fourteen days or other period that may be agreed, in writing,
between the licensed insurer and the licensed insurance broker,
transmit the premium to the licensed insurer, less any agreed
commission or other charges payable by that licensed insurer to
the licensed insurance broker.
(2) A licensed insurance broker who contravenes subsection
(1) shall, in addition to the outstanding premium payable to the
licensed insurer, be liable to pay interest to the licensed insurer at
the prevailing Bank of Zambia policy rate plus ten percent of that
rate.
(3) Despite subsection (2), a licensed insurance broker who
contravenes this section commits an offence and is liable, to pay to
the Authority an administrative penalty not exceeding ten thousand
penalty units for each day that the offence continues.
Separate 22. (1) A licensed insurance broker shall deposit, in a separate
client
account client account, moneys received by the licensed insurance broker
from or on behalf of a client and shall keep that money separate
from the money belonging to the licensed insurance broker.
(2) The Registrar may, in writing, direct a licensed insurance

broker to disclose a client account and the manner in which the
account is being maintained.
(3) A licensed insurance broker shall not maintain a client
account in a bank in which the licensed insurance broker, a director
or partner of that licensed insurance broker is the beneficial owner.
(4) A licensed insurance broker who contravenes this section
commits an offence and is liable, to an administrative penalty not
exceeding ten thousand penalty units for each day that the offence
continues.
PART IV
INSURANCE POLICIES
23. (1) A licensed insurer shall at least thirty days before use Lodging of
of a policy form or proposal form, lodge with the Registrar a copy insurance
form
of the policy form.
(2) The Registrar may, for reasons that may be prescribed,
prohibit the use of a form lodged under subsection (1), unless the
form meets the requirements that the Registrar may determine.
(3) A licensed insurer who contravenes this section commits
an offence and is liable, on conviction, to a fine not exceeding
twenty thousand penalty units.
24. (1) A licensed insurer shall issue a policy which contains Form of
terms and conditions that are in legible print and clear typeface of policies
a legible font as prescribed.
(2) A licensed insurer who contravenes subsection (1) commits
an offence.
25. (1) The Authority may request a licensed insurer to submit Premium
to the Registrar, within a period that the Authority may determine, rates
the premium rates being charged by that licensed insurer.
(2) The Authority shall, where the Authority finds a premium
rate being charged by a licensed insurer is below a pure risk premium,
direct that licensed insurer, in writing, to cease charging that rate.
(3) A licensed insurer who continues to charge the premium
rate, after being directed by the Authority to cease charging the
rate under subsection (2), commits an offence and is liable, to pay
the Authority a penalty of twenty thousand penalty units for each
day that the licensed insurer continues to charge the rate.
(4) Despite this section, the Authority shall not be prevented

from enforcing section 173 against a chief executive officer of a
licensed insurer where that licensed insurer contravenes this section.
Payment of 26. (1) A policy of general insurance shall cease to operate if
premium
a premium is not paid within thirty days after the due date of the
premium or within a period that the policy may specify.
(2) Despite subsection (1), a licensed insurer who issued the
policy shall cancel a policy of general insurance where the premium
is not paid by the policyholder and notify the policyholder of the
cancellation in writing.
(3) The Minister may, on the recommendation of the Board,
by statutory instrument, make Regulations relating to the payment
of premiums for all categories of insurance business.
(4) For the purposes of this section, where a policyholder pays
a premium to a licensed insurance broker that arranged a policy
with the policyholder, the premium is considered to have been paid
to the licensed insurer.
(5) For the purposes of subsection (1), “ due date ” means the
date on which the first premium falls due.
Currency 27. A sum insured, premium and any other sum of money
mentioned in a policy, shall be stated in the currency of the Republic
or in any foreign currency acceptable to a bank and financial
Act No. 7 of institution licensed under the Banking and Financial Services Act,
2017
2017.
Settlement 28. (1) A licensed insurer shall, where a claim is made, in writing,
of claims by a policyholder and the licensed insurer accepts liability, the
licensed insurer shall settle the claim within a prescribed period.
(2) Where a licensed insurer does not accept liability, under
subsection (1), the licensed insurer shall not later than a prescribed
period from the date on which the claim is delivered to the licensed
insurer, deliver to the person making the claim or that person’s
authorised representative a statement, in writing, stating the reasons
for disclaiming liability.
(3) A licensed insurer who contravenes this section commits
an offence and is liable to pay the Authority an administrative penalty
not exceeding ten thousand penalty units for each day that the
offence continues.
29. A licensed insurer who receives a proposal for a policy Policies and
payments
shall issue the policy in the Republic and any premium and payment
arising from the policy is payable in the Republic.
30. (1) A policyholder may, despite a provision to the contrary Action
against
in the policy, enforce that policyholder’s rights under the policy insurer and
against a licensed insurer or licensed broker in the court. insurance
broker
(2) Despite subsection (1), where a policy provides that a
question of law arising in an action between the policyholder and
the licensed insurer shall be determined by arbitration, the court
shall give effect to that provision and order that the action be
determined by arbitration in accordance with the Arbitration Act, Act No. 19
2000. of 2000
(3) Where a policy does not provide expressly or by implication

that a question of law arising in an action between a policyholder
and the licensed insurer shall be determined by arbitration, a court
shall proceed to hear and determine the action in accordance with
this Act.
31. (1) A minor may, with the consent of the minor’s guardian, Life insurance
effect a life policy on the minor’s own life and pay any premium by minor
under the policy with money at the minor’s disposal.
(2) Subject to subsection (1), a minor may effect a life policy
on the minor’s life and pay a premium due under the policy with
money at the minor’s disposal for the minor’s own benefit or for
the benefit of a child of the minor.
(3) A minor who effects a life policy, under subsection (1),
shall not, without the consent of the minor’s guardian, pledge, assign
or surrender the policy.
(4) A minor shall—
(a) be the holder of the life policy; and
(b) have the right to exercise all powers and privileges in
relation to the policy as if the minor were of full age.
32. (1) A life policy shall name the beneficiary and the beneficial Customer
due diligence
owner under the policy. to life
insurance
(2) A licensed insurer or reinsurer shall carry out customer policies
due diligence measures in identifying the beneficiary of a policy as
provided under any relevant written law.
Protection of 33. (1) The proceeds on realisation of the policy shall, during
proceeds the lifetime of that person and to the extent specified in subsection
during life of
policyholder (2), be protected against a creditor or a claim in connection with an
attachment or bankruptcy, where a life policy taken by a person on
the person’s own life has subsisted for three years or more from
the date of payment of the first premium and the policy—
(a) is attached in execution of a judgment or order of a
court at the instance of a creditor of the person; or
(b) becomes part of the estate in the bankruptcy of that
person.
(2) The protection afforded by this section shall—
(a) subject to paragraph (b), apply if the policy is pledged
to an amount of the proceeds, on realisation of the policy,
that exceed the amount of the liability secured by the
pledge; and
(b) not extend to prescribed amount of the proceeds realised
under this Act.
(3) Money or an asset shall, to the extent specified under
subsection (4), be protected against that creditor or a claim in
connection with the attachment or bankruptcy during the period of
five years from the date the money first became due or payable
under the policy, where money due or payable to a person by a
licensed insurer under a life policy under subsection (1), or asset
acquired or partly acquired with that money—
(a) is attached in execution of a judgment or order of court
at the instance of a creditor of that person; or
(b) becomes part of the estate in bankruptcy of that person.
(4) The protection provided under subsection (3) in respect of
the money or assets of a person under that subsection shall—
(a) subject to paragraph (b), apply in the case of an asset
which is pledged or mortgaged, to an amount of the
proceeds, on realisation of the asset, that exceed the
amount of the liability secured by the pledge or mortgage;
(b) extend to that money, or the proceeds realised from the
assets, insofar as that money or realised proceeds,
together with—
(i) other money due or paid to the person under
subsection (1);
(ii) the value of other existing assets of the person
acquired with the money paid under a life policy
under subsection (1); and
(iii) the realisable value of a life policy under

subsection (1) of which the person is the holder,
do not exceed three thousand three hundred and
thirty three fee units or a prescribed amount;
and
(c) not extend to money due or paid under a life policy under
subsection (1) on the surrender of the policy, or to an
asset acquired with that money.
(5) For the purposes of this section, a life policy issued by a
licensed insurer—
(a) in exchange for, or in consideration of, the surrender of
another life policy under which the licensed insurer was
previously liable, is considered to have been effected
on the date on which the surrendered policy was issued,
if the licensed insurer did not receive a payment other
than the value of the surrendered policy as consideration
for the new policy; and
(b) under section 35(3), is considered to have been effected
on the date on which the old life policy for which it was
substituted was issued.
34. A beneficiary shall have the protection provided under Protection of
beneficiary
section 33, where on the death of a holder of a life policy, or the on death of
holder of money or an asset in respect of which protection is afforded policyholder
under that section, the beneficiary has a claim under the policy or
to the money or asset, and that policy, money or assets—
(a) are attached in the execution of a judgment or order of
a court at the instance of a creditor of the deceased
holder of the policy, money or asset; or
(b) become part of the estate in bankruptcy of the deceased
holder of the policy, money or assets.
35. (1) A policy or money payable under a policy shall not, Protection of
policy for
where a person before or during the subsistence of that person’s spouse and
marriage, effects or assigns a policy for the benefit of that person’s children
spouse or child, subject to this section and in the case of a policy
which is assigned to the terms of the assignment—
(a) be attached in execution of a judgment or order of a
court at the instance of a creditor of the person by whom
the policy was effected or assigned; or
(b) form part of the estate in bankruptcy of the person by
whom the policy was effected or assigned.
(2) A benefit conferred or purported to be conferred on a

spouse or child by the assignment of a life policy under subsection
(1), shall be enforceable against the licensed insurer who is liable
under the policy at the suit of the spouse or child, despite the spouse
or child not accepting the benefit and not being a party to the policy—
(a) or any agreement to the contrary between the licensed
insurer and the person by whom the policy was effected;
and
(b) subject, in the case of a policy which is assigned, to the
terms of the assignment.
(3) A life policy shall not, for the purposes of this section, be
treated as having been effected for the benefit of the spouse or
child of the person who effected the policy unless, expressly provided
for at the time of issue, of the policy.
Further 36. (1) The proceeds realised under a policy shall, to the extent
protection
for spouse specified in section 35(2), be protected against the creditor or a
claim in connection with the attachment or bankruptcy where a
person, before or during the person’s marriage, effects or assigns
for the benefit of the person’s spouse a life policy on the person’s
life or the life of the person’s spouse, and the policy—
(a) is attached in execution of a judgment or order of a
court at the instance of a creditor of the spouse for
whose benefit the policy was effected or assigned; or
(b) becomes part of the estate in bankruptcy of that spouse.
(2) Section 33(3), (4) and (5) and section 35(2) and (3) shall,
with the necessary modifications, apply to—
(a) a life policy under subsection (1);
(b) money due or paid under the policy by the licensed
insurer; and
(c) assets acquired with money under paragraph (b) or with
that money and other money.
Selection for 37. A judgment creditor or trustee of the estate in bankruptcy
realisation of shall determine the policies or assets realised, wholly or partly, in
life policy
order to make available to a person the aggregate realisable value
not protected where—
(a) two or more life policies or assets which are the property
of one person and in respect of which protection is
afforded by section 33, 34 or 35 are attached in execution
of a judgment or order of a court at the instance of a
creditor; or
(b) the holder of two or more life policies or assets in respect

of which protection is afforded under section 33, 34 or
35 is declared bankrupt; and a part only of the aggregate
realisable value of the policies or assets is protected.
38. (1) A judgment creditor of the holder of a life policy or the Partial
realisation
trustee of the policyholder’s estate in bankruptcy who is entitled to and
a part of the realisable value of the policy may, where the judgment conversion
creditor or trustee is in possession of the policy, deliver it to a licensed of policy
insurer who is liable under the policy for payment to the judgment
creditor or trustee of the sum to which the judgment creditor or
trustee is entitled.
(2) A policyholder or other person in possession of the policy
shall, where a judgment creditor or trustee, under subsection (1), is
not in possession of the life policy to which the subsection relates,
at the request of the judgment creditor or trustee, deliver it to the
licensed insurer who is liable under the policy for payment to the
judgment creditor or trustee of the sum to which the judgment
creditor or trustee is entitled.
(3) A licensed insurer shall, on receipt of a life policy, delivered
under subsection (1) or (2), at the request of the—
(a) judgment creditor or trustee, under subsection (1), pay
to the judgment creditor or trustee a sum equal to the
part of the realisable value of the policy to which the
judgment creditor or trustee is entitled; or
(b) policyholder under subsection (2), issue to the
policyholder a new policy of the same class but for a
sum insured equal to the difference between—
(i) the full sum under the old policy, including any
bonus which may have accrued in connection
with it; and
(ii) an amount which bears the same ratio to the
full sum insured under the old policy, including
any bonus, as the amount paid by the licensed
insurer to the judgment creditor or trustee under
subsection (1) bears to the full realisable value
of the old policy.
(4) Where a licensed insurer makes a payment or issues a
new life policy, under subsection (3), the old life policy shall lapse.
Agreement 39. Where a person who effects or assigns a life policy for
to exchange the benefit of the person’s spouse or holds a life policy in trust for
life policy
another person is unable to pay the premiums expected to be paid
on the life policy, the person may, with the consent of a person
having an interest in the policy, or a minor’s guardian, where the
person interested in the policy is a minor, agree with the licensed
insurer under the policy to—
(a) exchange the policy with a paid up life policy of a value
equal to that of the original policy in accordance with
the licensed insurer’s current tariff payable at the time
and in the manner stipulated in the original policy to the
person entitled to the sum insured by the original policy;
(b) borrow from the licensed insurer, on terms and
conditions of the policy, sums that may be necessary to
keep the policy in force or revive it; or
(c) apply a bonus, which has accrued in connection with
the policy, to a temporary or permanent reduction of
premiums or to the payment of premiums which have
fallen due.
Incorrect 40. (1) A policy shall not be avoided by reason of an incorrect
statement in statement made in a proposal or other document based on which
proposal for
life policy the policy was issued or reinstated by a licensed insurer, unless the
statement was material to the risk of the licensed insurer, and made
knowing that it was false or without reason to believe that the
statement was true.
(2) Despite any written law or agreement between the proposer
and the licensed insurer, where a licensed insurance agent or a
servant of a licensed insurer completes a proposal for a policy
with the licensed insurer, a policy issued on the basis of the proposal
shall not be avoided by reason of an incorrect or false statement
contained in those particulars, unless the incorrect or false statement
was made by the proposer to the licensed insurance agent or the
servant of the licensed insurer for the purposes of the proposal.
(3) The burden of proving that a statement, under subsection
(2) was made by the proposer for the purposes of the proposal lies
with the licensed insurer.
Life policy 41. (1) This section shall not be construed as derogating from
intended to
defraud the power of a court of competent jurisdiction to set aside, under
creditor the law relating to bankruptcy, an assignment of a life policy made
with intent to benefit a person at the expense of a creditor.
(2) A court of competent jurisdiction may, where a premium

on a life policy is paid with the intent to benefit a person at the
expense of a creditor of the person making the payment, order the
policyholder to pay a sum equal to the aggregate of premiums
paid, with interest at the prevailing Bank of Zambia rate, on the
amount of each premium paid from the date of its payment to—
(a) the person to whose detriment the premium was paid;
or
(b) where the person, under paragraph (a) is declared
bankrupt, to the trustee of the estate in bankruptcy of
that person.
(3) An order, made under subsection (2) shall have the effect
of pledging, as security, the life policy under subsection (2) to a
person entitled to the payment and, until the payment is made, the
person is entitled to the policy.
42. A written statement made in an insurance proposal as to Proof of age
the age or date of birth of the insured person shall, for purposes of
the claim, be accepted as the correct age or date of birth of the
insured person, where—
(a) a claim for a benefit under a life policy has been insured
for a period of three years or more from the date of the
payment of the first premium;
(b) the age or date of birth of an insured person is not admitted
by the licensed insurer, unless the contrary is proved by
submission of medical examination records of the insured
person by the licensed insurer; or
(c) a person claiming a benefit shows that as a result of
circumstances beyond the person’s control, that person
or the person by whom the policy was effected was
not aware of a document showing proof of the age or
date of birth of the insured person.
43. (1) Where, after the issuance of a life policy, it is reasonably Incorrect age
in life policy
proved that the life policy issued is based on an incorrect statement
of the age of the person whose life is being insured, the sum insured
and other benefits under the policy shall, subject to subsection (2),
be payable on that premium as if the policy was secured on a
correct statement of the person’s age.
(2) The Authority may, where the Authority is satisfied that
the nature of a life policy of a particular kind issued by a licensed
insurer on the basis of an incorrect statement renders subsection
(1) inequitable, direct the licensed insurer to apply, in relation to
policies of that kind, other methods of making adjustments, in respect
of the incorrect statement of age, as the Authority considers
equitable.
Death 44. (1) A life policy shall not be void—
occasioned
by insured (a) due to a provision in that policy stating that the life policy
person or
beneficiary is made void by the death of the insured person caused
by the person’s own act resulting in death of that person;
and
(b) by reason of the death of an insured person arising from
that person’s actions within two or more years after the
issue of the policy, despite the absence of a provision
giving effect to that eventuality in the policy.
(2) A policy of life insurance shall not be void merely on the
grounds that the person whose life is insured died by that person’s
actions, whether sane or insane, suffered capital punishment, where
on the true construction of the policy, a licensed insurer has thereby
agreed to pay the sum insured in the event that such an occurrence
happened.
(3) Where a beneficiary intentionally causes the death of an
insured person, the beneficiary’s benefit under the policy is void.
Lost or 45. (1) Where a life policy is lost or destroyed and advertised
destroyed in a prescribed manner, the licensed insurer who is liable under the
life policy
policy shall, at the request of the policyholder, and on payment of a
prescribed fee, issue to the policyholder a correct and certified
copy of—
(a) the policy, in which is inscribed any endorsement made
by a licensed insurer on the original policy after its issue;
and
(b) a record in the possession of the licensed insurer of
any dealings with the policy after its issue.
(2) A certified copy of a life policy, issued under subsection (1),
shall replace the lost or destroyed policy and be evidence of the
contract made.
46. (1) A life policy, issued after the commencement of this Cancellation
of life policy
Act, may be cancelled by the policyholder within thirty days of
receipt of the policy by the policyholder.
(2) A policyholder shall, where a policy is cancelled under
subsection (1), be refunded all premiums paid less any expenses
or medical fee incurred by a licensed insurer and brought to the
notice of the policyholder in writing.
47. (1) Subject to subsection (2), a licensed insurer shall not Discrimination
between life
discriminate or permit any discrimination in the rate of premiums policy
charged or the rate of bonus granted between life policies which
are of the same kind and under which the persons whose lives are
insured have an equal expectation of life.
(2) Subsection (1) shall not apply to a life policy which—
(a) is a contract of reinsurance;
(b) is for large sums at preferential rates in accordance
with the current tariff of the licensed insurer concerned;
(c) insures’ at preferential rates, the lives of—
(i) employees of one or more employers or members
of the families of those employees; or
(ii) a group of persons carrying on the same
occupation; or
(d) is of a prescribed class.
(3) A director, employee or agent of a licensed insurer shall
not accept a proposal for a life policy in respect of which a
promissory note, bill of exchange or other negotiable instrument,
not being a financial instrument payable on the date of issue or an
acknowledgement of debt, not being a stop order, is given in favour
of the licensed insurer or any other person, for the first year’s
premium or a part of the first year’s premium.
(4) A person who contravenes this section commits an offence.
48. (1) A licensed insurer shall not issue a life policy unless Premium rate
on life policy
the—
(a) rate of premium chargeable under the policy is approved
as suitable by an actuary; and
(b) rate and the basis for the rate, together with the actuary’s
certificate, is lodged with the Registrar, at least thirty
days before giving effect to the rate.
(2) The Registrar may direct a licensed insurer to obtain and

furnish the Registrar, within a period as the Registrar may specify—
(a) a report by an actuary regarding the suitability of the
rate of premium chargeable under a class of policy
issued by the licensed insurer; and
(b) where the actuary considers that the rate is not suitable,
a report as to the rate of premium, which the actuary
approved as suitable, in respect of that class of policy.
(3) A licensed insurer directed by the Registrar under
subsection (2), shall not, after the expiry of the period specified by
the Registrar, issue a policy of the class in question until the licensed
insurer has—
(a) obtained the actuary’s written approval of the rate of
premium chargeable under that class of policy;
(b) notified the Registrar, in writing, that the actuary’s
approval has been obtained; and
(c) attached a certified copy of the approval.
(4) An actuary shall, in approving a rate of premium in respect
of a class of policy, consider the maximum rate of commission or
rebate prescribed for that class of policy.
(5) Where a rate of premium is approved by an actuary in
respect of a class of policy, a licensed insurer shall not, except
with the approval of the Authority, pay or allow to be paid for that
class of policy a commission or rebate at a rate greater than the
maximum rate of commission or rebate which the actuary has
considered when approving the rate.
(6) A person who contravenes this section commits an
offence.
PART V
MANAGEMENT AND SHAREHOLDING FOR INSURER,
REINSURER AND INSURANCE BROKER
Shareholding 49. (1) A licensed insurer or reinsurer shall not have less than
thirty percent of the licensed insurer or reinsurer’s subscribed share
capital owned by citizens or a citizen owned company.
(2) A licensed insurance broker shall not have less than fifty-
one percent of the licensed insurance broker’s subscribed share
capital owned by citizens or a citizen owned company.
(3) A licensed insurer, reinsurer or insurance broker, who

immediately before the appointed date was licensed in accordance
with the repealed Act shall, within a period prescribed by the
Minister, comply with this section.
(4) The Minister may, on the recommendation of the Authority,
prescribe the shareholding requirements for licensed microinsurer.
(5) A licensed insurer, reinsurer or insurance broker who
contravenes this section commits an offence and is liable, on
conviction, to a fine not exceeding five hundred thousand penalty
units.
50. (1) A licensed insurer, reinsurer or insurance broker shall— Principal
office for
(a) set up and maintain the licensed insurer’s, reinsurer’s insurance
or insurance broker’s principal office in the Republic; business
and
(b) furnish the Registrar with the details of the address of
the principal office.
(2) A licensed insurer, reinsurer or insurance broker shall not
use the licensed insurer’s, reinsurer’s or insurance broker’s
principal office for transacting business other than the business
for which the licensed insurer, reinsurer or insurance broker is
licensed to carry on.
(3) Where a licensed insurer, reinsurer or insurance broker
proposes to change the address of the licensed insurer’s, reinsurer’s
or insurance broker’s principal office, the licensed insurer, reinsurer
or insurance broker shall, notify the Registrar, in writing, of the
new address at least twenty-one days before the change.
contravenes this section is liable to pay to the Authority one
thousand five hundred penalty units for each day that the
contravention continues.
51. A licensed insurer, reinsurer or insurance broker shall be Representation
represented in the Republic by a chief executive officer who shall by chief
executive
be the principal officer of the licensed insurer, reinsurer or insurance officer
broker.
52. (1) Where the licence of an insurer, a reinsurer or an Acting as
director or
insurance broker is cancelled in accordance with this Act, a director senior officer
or senior officer of that insurer, reinsurer or insurance broker shall
not, without the approval of the Authority, act as a director or
senior officer, or be directly involved in the management of a
licensee.

Appointment 53. (1) A licensed insurer, reinsurer or insurance broker shall
of directors
and officers appoint directors, a chief executive officer and other senior officers.
(2) A licensed insurer, reinsurer or insurance broker shall, within
seven days of appointing a person as a director or senior officer of
that licensed insurer, reinsurer or insurance broker, apply to the
Registrar for the approval of each appointment in the prescribed
manner and form.
(3) An application made under subsection (2) shall be
accompanied by, in the prescribed manner and form—
(a) a certified copy of the resolution of the—
(i) company appointing the director; and
(ii) board appointing the senior officer;
(b) a statement of the following particulars in respect of
each person appointed:
(i) full names;
(ii) date and place of birth;
(iii) citizenship;
(iv) academic and professional qualifications;
(v) work experience, dates and nature of previous
employment;
(vi) whether the person has ever been convicted of
an offence involving fraud or dishonesty; and
(vii) whether the person has previously been declared
bankrupt by a court of competent jurisdiction
or has applied to take the benefit of a written
law for the relief of bankruptcy; and
(c) other information or documents that the Registrar may
require in order to determine the application.
(4) Subject to section 54(4), the appointment of a director or
senior officer by a licensed insurer, reinsurer or insurance broker
shall not become effective until it has been approved in writing by
the Registrar.
54. (1) The Registrar shall, in considering an application made Approval or

refusal to
under section 53, have regard to whether— approve
appointment
(a) a chief executive officer appointed by—
(i) a licensed insurer or reinsurer is a fit and proper
person with not less than ten years’
management experience in the financial sector,
at least five of which are in insurance business;
or
(ii) a licensed insurance broker, is a fit and proper
person with not less than seven years’
management experience in the financial sector,
at least five of which are in insurance business;
or
(b) a senior officer, meets the prescribed qualifications.
(2) The Registrar shall, within ninety days of receipt of an
application made under section 53 for approval to appoint a director
or senior officer, approve or refuse the appointment.
(3) The Registrar shall, where the Registrar considers that a
person appointed as a director or senior officer of a licensed insurer,
reinsurer or insurance broker is not a fit and proper person to be a
director or senior officer and after giving the person an opportunity
to be heard, notify that person of the—
(a) refusal to approve the appointment, stating the reasons
for the decision; and
(b) direct the licensed insurer, reinsurer or insurance broker
to cancel the appointment with effect from the date
specified in the notice.
(4) Where the Registrar fails to inform an applicant of the
Registrar’s decision within the period specified in subsection (2),
the appointment is deemed to have been approved and becomes
effective.
(5) A person whose appointment is cancelled, under subsection
(3)(b), shall not, without the approval of the Registrar, act as a
director or senior officer, to be directly involved in the management
of a licensee.
(6) A person who contravenes subsection (5), commits an
Notice of 55. (1) Where a licensed insurer, reinsurer or insurance broker

termination
of terminates the appointment of a director or senior officer, the
appointment licensed insurer, reinsurer or insurance broker shall, within fourteen
days after the termination, notify the Registrar, in writing, stating
the reasons for the termination.
contravenes this section commits an offence and is liable to pay
the Authority one thousand five hundred penalty units for each
day that the contravention continues.
Absence of 56. (1) A licensed insurer, reinsurer or insurance broker
chief
executive shall, notify the Registrar of the chief executive officer’s absence
officer where a chief executive officer of the licensed insurer, reinsurer
or insurance broker is to be absent from the Republic for a period
exceeding three months, at least seven days before the date of
commencement of the proposed absence.
(2) A licensed insurer, reinsurer or insurance broker shall,
where a chief executive officer of the licensed insurer, reinsurer
or insurance broker is for any other reason unable to perform the
duties of the chief executive officer—
(a) appoint a senior officer of the licensed insurer, reinsurer
or insurance broker who is resident in the Republic to
act as chief executive officer; and
(b) apply to the Registrar, in writing, for the approval of
appointment under paragraph (a).
contravenes this section commits an offence and is liable, on
conviction, to a fine of one thousand five hundred penalty units for
each day that the contravention continues.
Restriction 57. (1) A person shall not be a director or employee of more
on
employment
than one licensed insurer, reinsurer or insurance broker.
(2) Despite subsection (1), a director may sit on two Boards
of different categories of insurance business.
(3) A person who contravenes this section commits an offence
and is liable, on conviction, to a fine not exceeding two hundred
thousand penalty units or to imprisonment for a term not exceeding
two years, or to both.
58. (1) A licensed insurer or reinsurer, a director or subsidiary Restriction on

of the licensed insurer or reinsurer shall not directly or indirectly holding shares
hold shares, or acquire financial or controlling interest in the business
of a licensed insurance broker.
(2) A licensed insurance broker, a director, shareholder or
subsidiary of the licensed insurance broker, shall not directly or
indirectly hold shares in the business of a licensed insurer or
reinsurer.
(3) A person who contravenes this section commits an offence
and is liable, on conviction, to a fine not exceeding five hundred
thousand penalty units.
59. (1) The board of directors of a licensed insurer or reinsurer Board of
shall have at least five members, sixty percent of whom shall be directors of
insurer or
independent directors. reinsurer
(2) The board of directors of a licensed insurance broker shall
have at least three members, one of whom shall be an independent
director.
(3) For the purposes of this section an “independent director”
means a director who has no personal interest in the business of
the licensed insurer or related company of the licensed insurer,
which could reasonably be perceived to be capable of materially
affecting the director’s judgment in serving the best interests of
the licensed insurer or reinsurer.
60. The Authority may issue guidelines setting minimum Corporate
corporate governance standards and practices to be applied by a governance
standards
licensed insurer, reinsurer and insurance broker.
PART VI
FINANCIAL REGULATION OF INSURANCE BUSINESS
61. A licensed insurer carrying on general insurance business Reserves for
shall, in assessing the licensed insurer’s liabilities for purposes of unexpired
risk
annual financial statements, set aside reserves for the unearned
premium to meet liabilities on the unexpired risk at the end of
each financial year, using a method that the Minister may, by
statutory instrument prescribe.
62. A licensed insurer shall make adequate provision in the Reserves for
licensed insurer’s accounts for liabilities in respect of claims outstanding
incurred but not settled at the end of each financial year, including claims
provision for claims not reported but computed as the Minister
may, by statutory instrument, prescribe.
Statutory 63. (1) A licensed insurer carrying on long term insurance

fund business shall, from the date of commencement of the business,
establish and maintain a fund under an appropriate name in respect
of—
(a) each class of long term insurance business carried on
by the licensed insurer; and
(b) the assets identifiable to that fund.
(2) A licensed insurer carrying on general insurance business
shall, from the date of commencement of the business, establish
and maintain—
(a) a fund under an appropriate name in respect of that
business; or
(b) separate funds under appropriate names in respect of
different classes of general insurance business carried
on by the licensed insurer.
(3) For the purposes of this section, primary insurance and
reinsurance business of the same class shall be considered as
different classes of insurance business.
Compliance 64. (1) A licensed insurer or reinsurer shall not carry on
with insurance business unless the licensed insurer’s or reinsurer’s
solvency
requirements available capital exceeds the minimum capital adequacy
requirements as the Minister shall, by statutory instrument,
prescribe.
(2) The Minister may, by statutory instrument, prescribe
minimum capital adequacy requirements in respect of risks inherent
to assets, liabilities, classes and volume of insurance business.
(3) A licensed insurer or reinsurer who contravenes this section
commits an offence and is liable, on conviction, to a fine not
exceeding five hundred thousand penalty units or to imprisonment
for a term not exceeding five years, or to both.
(4) For the purposes of this section, “ available capital ” means
the capital computed using a method that the Minister may, by
statutory instrument, prescribe.
Solvency 65. (1) A licensed insurer or reinsurer shall, within ninety days
statement after the end of each financial year, submit to the Registrar a
solvency statement certified by the insurer’s or reinsurer’s auditor.
(2) Despite subsection (1), the Registrar may, by notice, in

writing, direct a licensed insurer or reinsurer to submit to the
Registrar a solvency statement within thirty days from the date of
the notice.
(3) A licensed insurer or reinsurer who fails to comply with
this section commits an offence and is liable to pay one thousand
five hundred penalty units for each day that the failure to comply
continues.
(4) For the purpose of this section, “ solvency statement ”
means a statement that the Minister may, by statutory instrument,
prescribe.
66. (1) Despite this Act, the Registrar may, by notice in writing, Furnishing
direct a licensed insurer, reinsurer or insurance broker to furnish of
information
the Registrar with information, specified in the notice, relating to a on assets
and
liability or asset of the licensed insurer, reinsurer or insurance liabilities
broker.
(2) A licensed insurer, reinsurer or insurance broker shall
deliver to the Authority in the prescribed manner and form specified
by the Authority—
(a) a statement showing assets and liabilities as at the close
of the last business day of that month;
(b) a statement showing the status of policies;
(c) a statement showing the status of any loan facility; and
(d) other statement, further detail or evidence relating to
the operations, financial condition and resources as may
be prescribed.
(3) The Authority may request a licensed insurer, reinsurer or
insurance broker to provide periodic reports showing information
on its operations, financial condition and resources as may be
prescribed.
(4) The Registrar may, where the Registrar considers it
necessary that the value of a liability or asset of a licensed insurer,
reinsurer, or insurance broker is not correctly determined by the
licensed insurer, reinsurer or insurance broker for purposes of this
Act, direct the licensed insurer, reinsurer or insurance broker to
make representations, in writing, on the matter.
(5) The Registrar shall, where the Registrar requests an

independent valuator to produce a valuation of a liability or asset
of a licensed insurer, reinsurer or insurance broker, inform the
licensed insurer, reinsurer or insurance broker, in writing, of the
request and direct the licensed insurer, reinsurer or insurance broker
to bear the cost of the valuation.
(6) The Registrar shall, when a valuator under subsection (5)
produces a valuation of a licensed insurer, reinsurer or insurance
broker liability or asset to the satisfaction of the Registrar, direct
the licensed insurer, reinsurer or insurance broker to substitute
the valuation submitted by the licensed insurer, reinsurer or
insurance broker with the valuation produced by the independent
valuator.
(7) A licensed insurer, reinsurer or insurance broker who fails
to comply with a directive under subsection (5), commits an offence
and is liable, on conviction, to a fine not exceeding five hundred
five years, or to both.
(8) The Authority may issue guidelines on valuation of assets
and liabilities in accordance with generally accepted insurance
principles, practices and standards.
Publication 67. A licensed insurer, reinsurer or insurance broker shall,
of
authorised where the licensed insurer, reinsurer or insurance broker intends
capital, to publish a statement or issue a document in which a statement of
subscribed
capital and the licensed insurer’s, reinsurer’s, insurance broker’s authorised
paid-up
capital capital is mentioned, ensure that the statement also indicates the
amount of the subscribed capital and paid-up capital.
Investment 68. The Minister may, on the recommendation of the Authority,
of funds by statutory instrument, issue investment guidelines for insurers
relating to the limits for each investment category.
Licensee to 69. (1) A licensed insurer shall appoint a qualified actuary who
appoint
actuary shall be accredited as a Fellow by the Zambia Qualifications
Authority to carry out the duties imposed or conferred on the
actuary under this Act before commencing insurance business.
(2) A licensed insurer shall, within seven days of appointing
an actuary under subsection (1), notify the Registrar, in writing, of
the appointment.
(3) The Registrar shall, where a licensed insurer fails to appoint

an actuary, under subsection (1), appoint an actuary for the licensed
insurer who shall be considered to be appointed by the licensed
insurer.
70. (1) A licensed insurer who ceases to have an actuary shall, Notification
of ceasing to
within seven days of the cessation, notify the Registrar, in writing. have actuary
(2) A licensed insurer shall not carry on insurance business
for more than three months without an actuary.
(3) A person who contravenes subsection (2), commits an
offence and is liable, to pay the Authority one thousand five hundred
penalty units for each day that the contravention continues.
71. (1) An actuary of a long term licensed insurer shall— Actuarial
investigations
(a) at the end of each third financial year, conduct an
investigation into, and prepare a report on, the financial
conditions of the licensed insurer’s long term insurance
business for purposes of ascertaining any surplus for
distribution; and
(b) prepare an estimate of the present value of the liabilities
of the long term licensed insurer using methods and
assumptions that are based on generally accepted
actuarial principles and practice, having regard to the
circumstances of the licensed insurer, the insurer’s
policies or any other method that the Minister may, by
statutory instrument, prescribe.
(2) An actuary shall, where a long term licensed insurer has
an actuarial deficit, annually or within a period that the Registrar
may direct, investigate the financial conditions of the licensed
insurers long term insurance business.
(3) Despite subsection (1), the Registrar may review or
appoint an independent actuary to review the assumptions and the
calculations of liabilities made by the actuary of a long term
licensed insurer and where the circumstances so warrant, order
the substitution of the values obtained by the actuary of the long
term licensed insurer with those of the independent review.
(4) The actuary of a long term licensed insurer shall, within
ninety days after the end of each third financial year, furnish the
directors of the licensed insurer and the Registrar with a report,
prepared in accordance with subsection (1), to enable an abstract
of the report to be circulated to shareholders at the same time as
the accounts of the company for that financial year.
(5) An actuary shall, where an actuary fails to obtain

information for an investigation, state that fact in the report under
subsection (4).
(6) An actuary of a long term licensed insurer shall—
(a) during normal working hours, have a right of access to
the accounting records, including registers of the licensed
insurer, and to request from the chief executive officer
or other senior officer of the licensed insurer, information
and explanations that the actuary considers necessary
for the performance of the actuary’s duties; and
(b) be entitled to—
(i) attend general meetings of the licensed insurer
and to receive notices and other communications
relating to a general meeting which a shareholder
of the licensed insurer is entitled to receive; and
(ii) be heard, at a general meeting, on business under
consideration in relation to the duties of the
actuary.
(7) An actuary of a long term licensed insurer shall report to
the Registrar where the actuary considers that—
(a) the licensed insurer has contravened or failed to comply
with this Act; and
(b) the circumstances are such that, in the actuary’s opinion,
the contravention or failure to comply has not been or
shall not be adequately dealt with by
(i) a comment in the actuary’s report; or
(ii) bringing the matter to the notice of the directors
of the licensed insurer or, if the licensed insurer
is a subsidiary, to the directors of the holding
company of the licensed insurer.
Distribution 72. Where a report, prepared by an actuary in accordance
of surplus
to with section 71, shows a surplus in the statutory fund maintained in
policyholders respect of a long term licensed insurer, the licensed insurer shall
distribute not less than ninety percent of the surplus to policyholders
as the Minister may, by statutory instrument, prescribe.
73. (1) The board of directors of a licensee shall inform the Notification
where
Registrar, in writing, where the board of directors has reason to capital
believe that the licensed insurer, reinsurer and insurance broker— requirements
unlikely to
(a) may not be able to conduct business as a going concern; be met
(b) appears to be, or is likely in the near future to be, unable

to meet the licensed insurer, reinsurer and insurance
broker’s obligations as they fall due; or
(c) does not or may not be able to meet the licensed insurer,
reinsurer and insurance broker’s capital adequacy
requirements as prescribed.
(2) Where the board of directors fail to comply with subsection
(1)—
(a) the Registrar may suspend or remove the board; and
(b) each director, shareholder and senior manager who had
knowledge of the failure to comply commits an offence
and is liable, on conviction, to a fine not exceeding two
hundred thousand penalty units, or to imprisonment for
a term not exceeding two years, or to both.
PART VII
REINSURANCE
74. A licensed insurer shall, before the beginning of each Reinsurance
financial year, submit to the Registrar particulars relating to the programmes
licensed insurer’s reinsurance programmes for the following year
in the prescribed manner and form.
75. (1) The Registrar may, by notice in writing, direct a licensed Submission
of
insurer to submit to the Registrar, for examination, reinsurance reinsurance
treaties and other contracts of reinsurance entered into by the treaties and
contracts
licensed insurer and furnish the Registrar with certified copies of
documents under section 74.
(2) The Registrar may refuse to approve a reinsurance treaty
or other contract of reinsurance where, on examination of the
contract, the Registrar considers that the terms or conditions of the
contract are not—
(a) favourable to the licensed insurer;
(b) in the interest of the Republic’s economy or insurance
industry; or
(c) in the public interest.
Promotion 76. (1) The Minister shall, by statutory instrument, prescribe

of local
cessions and the promotion of local cessions among insurers and placement of
conduct of reinsurance with reinsurers licensed under this Act.
reinsurance
business (2) The Authority may issue guidelines for the conduct of
reinsurance business.
National 77. (1) The National Reinsurance Company shall be
Reinsurance designated by the Minister and shall be an entity in which the
Company
Government of the Republic of Zambia holds an interest as
prescribed.
(2) Mandatory cessions shall be made to a National
Reinsurance Company according to thresholds prescribed by the
Minister.
Mandatory 78. (1) A licensed insurer shall offer a minimum mandatory
cessions cessions made according to thresholds prescribed by the Minister
to place with the—
(a) Reinsurance Corporation; and
(b) Reinsurance Company.
(2) Despite subsection (2), a licensed insurer shall not be
prevented from entering into direct reinsurance arrangements with
the Reinsurance Corporation, Reinsurance Company or National
Reinsurance Company in respect of the whole or part of the risks
undertaken by the licensed insurer or from making other
arrangements which are mutually acceptable to the licensed insurer
and the Reinsurance Corporation, Reinsurance Company or
National Reinsurance Company.
(3) The Reinsurance Corporation, Reinsurance Company or
National Reinsurance Company may accept or decline all or part
of the business offered to be placed with the Reinsurance
Corporation, Reinsurance Company or National Reinsurance
Company in accordance with this Act.
(4) Where a placement is declined as provided in subsection (3),
the Reinsurance Corporation, Reinsurance Company or National
Reinsurance Company shall furnish the insurer concerned with the
reasons for the refusal.
PART VIII
MERGERS AND TAKEOVERS OF INSURANCE BUSINESS
79. (1) Despite any other written law, a licensed insurer, Prohibition on
mergers and
reinsurer or insurance broker shall not, without the written approval takeovers
of the Authority—
(a) agree to a merger with another licensed insurer, reinsurer
or insurance broker; or
(b) agree to a takeover or transfer of the whole or part of
the licensed insurer’s, reinsurer or insurance broker’s
insurance business by another licensed insurer, reinsurer
or insurance broker.
(2) An approval of a merger or takeover by the Authority in
accordance with this Part shall not relieve any parties to the merger
or takeover from complying with any other applicable law.
(3) For the purposes of this Act, an arrangement entered into
by two or more licensed insurers, reinsurers or insurance brokers
shall be a scheme for the takeover of the insurance business, except
where the Authority is satisfied that all the policyholders are made
aware of the nature of substitution and has the Authority’s consent
in writing, where—
(a) the liability of a licensed insurer, reinsurer or insurance
broker towards policyholders is to be substituted for
another licensed insurer, reinsurer or insurance broker’s
liability towards the policyholders, whether the liability
of the licensed insurer, reinsurer or insurance broker is
expressed in or created by, existing or new policies; or
(b) the terms of the new policy under paragraph (a), are
the same as, or different from, those of the original
policies.
80. (1) Where it is proposed that the insurance business of a Approval of
merger or
licensed insurer, reinsurer or insurance broker be merged with, or a takeover or
takeover be undertaken by, another licensed insurer, reinsurer or transfer
insurance broker, the licensed insurer, reinsurer or insurance broker
concerned shall, prior to the merger or takeover, apply to the
Authority for approval of the merger or takeover.
(2) An application made under subsection (1) shall be
accompanied by—
(a) a draft agreement or deed containing proposed terms of

the proposed merger or takeover;
(b) audited accounts for the last five years, or a shorter
period that the Registrar may permit, in writing, in respect
of the insurance business of each of the insurers,
reinsurers or insurance brokers concerned;
(c) documents containing particulars of other arrangements
giving effect to the proposed merger or takeover;
(d) an application for—
(i) a new licence, where the proposed merger will
result in the formation of a new company; or
(ii) amendment of an existing licence, in the case
of a takeover of insurance business that shall
require amendment of the licence of the licensed
insurer, reinsurer or insurance broker taking over
the business;
(e) a report made by the actuary of the licensed insurer,
where a party to a proposed merger is a long term
licensed insurer or the business to be taken over includes
life insurance, which shall contain information on the
state of each—
(i) statutory fund affected by the proposed merger
or takeover; or
(ii) fund that would result from the division, where
only part of the licensed insurance business of
a licensed insurer is to be taken over; and
(f) any other report or document the Registrar may require.
(3) The accounts and reports, under subsection (2), shall relate
to the period specified in subsection (2)(b) ending on the date of
the agreement for the proposed merger or takeover of insurance
business.
(4) The parties to a proposed merger or takeover of insurance
business shall, after making an application to the Authority in
accordance with this section, cause to be published in the Gazette
and in a daily newspaper of general circulation or in other electronic
media in the Republic, notice of the proposed merger or takeover.
(5) A notice, under subsection (4), shall invite the public to
submit objections to the proposed merger or takeover of the
insurance business on the grounds that a person objecting has
reasonable grounds to believe that the person would be adversely
affected by the merger or takeover.
(6) An objection provided for in subsection (5) shall be made

to the Authority in a prescribed manner and form within thirty days
of the date of the publication of the notice of the proposed merger
or takeover of insurance business.
81. The Authority may, where the Authority considers it Inquiry into
effect of
necessary, appoint a person to inquire into, and report to the Authority, merger or
the effect of a proposed merger or takeover of insurance business, takeover
and the cost of that inquiry shall be met by the parties to the proposed
merger or takeover.
82. (1) Where a long term licensed insurer is party to a merger, Notice to
or the business to be taken over includes long term insurance policyholders
business, the licensed insurer concerned shall, subject to subsection
(2), send to each holder of a life policy—
(a) a statement on the nature of the merger or takeover;
(b) an abstract of the material—
(i) facts contained in the agreement for a merger
or takeover of the insurance business; and
(ii) findings of the actuary’s report; and
(c) details of an address at which a copy of the documents
lodged with the Registrar may be inspected.
(2) A long term licensed insurer shall not send to a policyholder
statements and abstracts of an actuary’s reports that have not been
approved by the Registrar.
(3) Where a licensed insurer who is party to a proposed merger
is a general insurer, or the insurance business to be taken over is
general insurance business, the licensed insurers concerned shall
send to the policyholders—
(a) a statement, approved by the Registrar, on the nature of
the proposed merger or takeover; and
(b) details of an address at which a copy of the documents
lodged with the Registrar may be inspected.
83. (1) The Authority shall, within ninety days of receipt of an Determination
application made under section 80, approve or refuse to approve a of
application
merger or takeover of the insurance business and inform the
applicants, by notice in writing.
(2) The Authority shall not approve a merger or takeover of
insurance business unless the Authority is satisfied that the—
(a) policyholders and shareholders of the licensed insurers

concerned, and any other person the Authority considers
entitled to be heard, shall not be disadvantaged by the
merger or takeover;
(b) transaction is consistent with this Act; and
(c) Commission has approved the merger or takeover.
(3) Where the Authority refuses to approve a merger or
takeover of an insurance business, the notice under subsection (1)
shall contain, or be accompanied by, a statement of the reasons for
the refusal.
(4) Where the Authority fails to respond to an application for
approval of a merger or takeover of insurance business, within the
period specified under subsection (1), the merger or takeover is
deemed to have been approved.
Notification 84. A licensed insurer, reinsurer or insurance broker in a
on
finalisation proposed merger or takeover shall, within fourteen days of the date
of merger or of finalisation of a merger or takeover of insurance business, notify
takeover
the Registrar, in writing accompanied by—
(a) written approval by the Commission of the merger or
takeover; and
(b) evidence that the requirements of the Competition and
Act No. 24 Consumer Protection Act, 2010, and the Companies Act,
of 2010 2017 in relation to the merger or takeover have been
Act No. 10
complied with.
of 2017
Effect of 85. The Authority shall, on approval of a merger or takeover
merger or
takeover on of an insurance business—
insurer
(a) cancel the licence of a licensed insurer, reinsurer or
insurance broker that has been merged with, or taken
over by, another licensed insurer; and
(b) grant a new licence to a licensed insurer, reinsurer or
insurance broker formed as a result of the merger or
takeover with effect from the date of approval of that
merger or takeover.
Effect of 86. Where a merger or takeover has taken place, in accordance
merger or with this Part, a policyholder shall no longer have a claim against
takeover on
policyholder the original licensed insurer, reinsurer or insurance broker but against
the licensed insurer who is granted a licence under section 85 after
the merger or takeover.
PART IX
AUDITORS, ACCOUNTS AND RETURNS
87. (1) A licensed insurer, reinsurer or insurance broker shall Appointment
appoint an individual or firm as an external auditor. of external
auditor
(2) An external auditor appointed under subsection (1) shall
be a member of the Zambia Institute of Chartered Accountants,
and meet other conditions that the Authority may determine.
(3) A person that contravenes this section commits an offence
and is liable, on conviction, to a fine not exceeding two hundred
two years, or to both.
(4) The Minister may, by statutory instrument, exempt certain
classes of insurance businesses from the requirements of this
section.
88. Where a licensed insurer, reinsurer or insurance broker Appointment
of firm or
appoints a firm or body corporate as external auditor, the firm or body
body corporate shall designate a dealing partner or person who corporate
shall, for purposes of this Act and without limitation of the obligations
and liabilities of other partners, carry out the responsibilities and
obligations as if the partner or person were appointed by the licensed
insurer, reinsurer or insurance broker.
89. An external auditor shall audit the financial statements of Duties of
a licensed insurer, reinsurer or insurance broker and make a report external
auditor
to the shareholders of the licensed insurer, reinsurer or insurance
broker and express an opinion, in accordance with this Act, any
other relevant written law and standards promulgated by the Zambia
Institute of Chartered Accountants on the—
(a) statement of financial position, statement of
comprehensive income,statement of cash flow and other
financial statements required to be submitted by the
licensed insurer, reinsurer or insurance broker in
accordance with this Act; and
(b) compliance of the licensed insurer, reinsurer or insurance
broker with requirements of this Act or any other relevant
written law, with respect to financial statements.
90. (1) An external auditor shall report to the Authority, in the External
prescribed manner and form within fourteen days, where the auditor, auditor’s
duty to
in the course of carrying out the auditor’s duties, under section 89, report
finds that—
(a) the licensed insurer, reinsurer or insurance broker’s

financial soundness is prejudiced;
(b) there is a material change in the business of the licensed
insurer, reinsurer or insurance broker which is likely to
jeopardise the ability of the licensed insurer, reinsurer or
insurance broker to continue as a going concern;
(c) the licensed insurer, reinsurer or insurance broker has
contravened this Act in relation to the keeping of
accounting records, or has committed an offence
involving fraud or dishonesty;
(d) the licensed insurer, reinsurer or insurance broker’s
program to counter money laundering, financing of
terrorism and proliferation or any other associated serious
offence is inadequate or lacking;
(e) the licensed insurer, reinsurer or insurance broker is
unable or unlikely to meet the margin of solvency; or
(f) an irregularity has occurred which jeopardises the
interests of the policyholders of the licensed insurer.
(2) An external auditor that reports on the matters under
subsection (1) in good faith, is not in breach of a duty owed to a
licensed insurer, reinsurer or insurance broker.
Immunity 91. Where an external auditor of a licensed insurer, reinsurer
of external or insurance broker, in good faith, certifies or makes a report in
auditor
accordance with this Act—
(a) the external auditor shall not be in contravention of any—
(i) enactment or code of professional conduct to
which the auditor is subject to; or
(ii) contractual provision binding the auditor to
confidentiality whether to the licensed insurer,
reinsurer or insurance broker or other party; and
(b) civil, criminal or disciplinary proceedings shall not be
instituted against the external auditor.
Disqualification 92. An external auditor shall not be appointed as an external
of external auditor of a licensed insurer, reinsurer or insurance broker if the
auditor
auditor is—
(a) a director, senior officer or other employee of the
licensed insurer, reinsurer or insurance broker or of any
person associated or affiliated with the licensed insurer,
reinsurer or insurance broker;
(b) an associate of a director or senior officer of the licensed

insurer, reinsurer or insurance broker; or
(c) a person who personally, or through that person’s partner
or employee, regularly performs the duties of secretary
or book keeper to the licensed insurer, reinsurer or
insurance broker.
93. The accounts of a licensed insurer, reinsurer or insurance Auditing of
broker shall be audited annually by an external auditor appointed in account
accordance with this Part.
94. The Registrar may, where the Registrar considers it Request for
extended
necessary, direct an external auditor of a licensed insurer, reinsurer scope audit
or insurance broker at the licensed insurer’s, reinsurer’s or insurance
broker’s expense, to—
(a) carry out an extended scope audit or other examination
and make necessary comments and recommendations
to the Registrar;
(b) submit to the Registrar additional information in relation
to an audit, extended scope audit or other examination
that the Registrar considers necessary;
(c) submit to the Registrar a report on the financial
accounting systems and internal controls of the licensed
insurer, reinsurer or insurance broker; or
(d) submit to the Registrar a report as to whether, in the
auditor’s opinion, the licensed insurer’s, reinsurer’s or
insurance broker’s provisioning against liabilities and
maintenance of assets is being done in accordance with
this Act.
95. An external auditor of a licensed insurer, reinsurer or External
insurance broker shall, in a certificate relating to the accounts and auditor’s
statements of the licensed insurer, reinsurer or insurance broker, in certificate
respect of a financial year, state whether—
(a) the accounts and statements to which the certificate
relates appear to the auditor to be in accordance with
the requirements of this Act and shall give particulars of
matters that appear not to be in accordance with the
requirements;
(b) the accounting records of the licensed insurer, reinsurer
or insurance broker appear to the auditor to have been
properly kept and shall give particulars of accounting
records that do not appear to have been properly kept or
of transactions that do not appear to have been properly
recorded;
(c) the external auditor obtained from the licensed insurer,

reinsurer or insurance broker all information and
explanations that the auditor requested for purposes of
performing the auditor’s duties;
(d) the licensed insurer, reinsurer or insurance broker has
failed to provide information or explanations requested
by the auditor and shall set out the particulars of the
information and explanations;
(e) the auditor is satisfied that the accounts and statements
under paragraph (a)—
(i) conform to the accounting records of the licensed
insurer, reinsurer or insurance broker; and
(ii) appear to the auditor to be in accordance with
the generally accepted accounting principles;
(f) management expenses incurred in respect of the licensed
insurer, reinsurer or insurance broker’s business, directly
or indirectly, have been fully debited in the licensed
insurer, reinsurer or insurance brokers revenue account
or profit and loss account, and give particulars of
expenses not so debited; and
(g) every reserve is calculated in accordance with section
61 and 62 or any other prescribed methods.
Information 96. (1) The Authority may, request an external auditor of a
by external licensed insurer, reinsurer or insurance broker, whether current or
auditor to
Authority in the past, by notice, to provide information about the licensed
insurer, reinsurer or insurance broker, a subsidiary or an affiliate of
the licensed insurer, reinsurer or insurance broker.
(2) An external auditor who fails, refuses or neglects to provide
the information under subsection (1) or provides false or misleading
information, commits an offence and is liable, on conviction, to a
fine not exceeding two hundred thousand penalty units or to
imprisonment for a term not exceeding two years, or to both.
Access to 97. An external auditor of a licensed insurer, reinsurer or a
Information insurance broker has the right to access all the books, accounts and
by external
auditor records of a licensed insurer, reinsurer or insurance broker and is
entitled to require from directors, senior officers and agents
information and explanations that the external auditor requires to
perform the external auditor’s duties under this Act and any other
relevant written law.
98. (1) A report made by an external auditor for the purposes External
auditor’s
of this Act shall— report
(a) express whether, in the external auditor’s opinion, the
licensed insurer, reinsurer or insurance broker made
available all information necessary for the external
auditor to comply with the requirements of this Act or
other relevant written law;
(b) state whether, in the external auditor’s opinion, any of
the statements in the annual financial statement—
(i) exhibits a true and fair statement of the licensed
insurer, reinsurer or insurance broker’s financial
condition; and
(ii) requires an explanation or information from the
board, senior officer or agent of the licensed
insurer, reinsurer or insurance broker or receives
a satisfactory response;
(c) state whether in the external auditor’s opinion the
licensed insurer, reinsurer or insurance broker has
complied with this Act and any other relevant written
law; and
(d) state the transactions or conditions that have come to
the attention of the auditor affecting the well-being of
the licensed insurer, reinsurer or insurance broker that,
in the opinion of the external auditor, are not satisfactory
and require rectification including—
(i) a transaction of the licensed insurer, reinsurer
or insurance broker that has come to the
attention of the external auditor and which in
the opinion of the external auditor, has not been
within the powers of the licensed insurer,
reinsurer or insurance broker or which was
contrary to the Act or any other relevant written
law; and
(ii) a non-performing loan that is outstanding, is
restructured or the terms of repayment are
extended, if the principal amount of the loan is
five percent or more of the regulatory capital of
the licensed insurer, reinsurer or insurance
broker.
(2) The board of directors shall submit to the Authority a copy
of the report of the external auditor, together with a copy of the
financial statement.
Dismissal of 99. (1) The Authority may cause the dismissal of an external
external
auditor by auditor of a licensed insurer, reinsurer or insurance broker for failure
Authority to perform the auditor’s responsibilities under this Act, or auditing
standards approved by the Zambia Institute of Chartered
Accountants.
(2) Where an external auditor to a licensed insurer, reinsurer
or insurance broker is dismissed, under subsection (1), the licensed
insurer, reinsurer or insurance broker shall appoint another external
auditor, subject to requirements determined by the Authority.
Resignation 100. Where an external auditor of a licensed insurer, reinsurer
of external
auditor or insurance broker resigns, the external auditor shall prepare and
deliver to the Authority, a written statement specifying the reasons
for the resignation, within ten days after submission to the licensed
insurer, reinsurer or insurance broker of the auditors resignation.
Termination 101. (1) Where a licensed insurer, reinsurer or insurance broker
of
appointment terminates the appointment of the external auditor, the licensed
of external insurer, reinsurer or insurance broker shall submit to the Authority
auditor by
insurer, and the external auditor, within ten days of the decision to terminate
reinsurer or the appointment, a written statement setting out reasons for the
insurance
broker termination.
(2) An external auditor may, within ten days of receiving the
statement under subsection (1), submit to the Authority and the
licensed insurer, reinsurer or insurance broker a written statement
responding to the reasons set out by the licensed insurer, reinsurer
or insurance broker.
Audit 102. A licensed insurer, reinsurer or insurance broker shall
committee establish an audit committee and appoint persons that the licensed
insurer, reinsurer or insurance broker considers necessary as
members of the committee.
Financial 103. (1) A licensed insurer, reinsurer or insurance broker shall,
statements
and other within ninety days after the end of each financial year, cause to be
returns prepared the following documents, in accordance with applicable
financial reporting standards and regulations made in accordance
with this Act:
(a) a statement of financial position;
(b) a statement of comprehensive income;
(c) a cash flow statement for the financial year in relation

to the licensed insurer’s, reinsurer’s or insurance
broker’s business; and
(d) an insurance account statement for that financial year
end.
(2) A licensed insurer, reinsurer or insurance broker shall effect
a reconciliation between the statements specified in subsection (1)
and the company accounts for that year.
(3) An auditor shall prepare—
(a) a report of the insurance accounts, the reconciliation
and the company accounts; and
(b) supplementary report to the report on the company
accounts, stating that, in the auditor’s opinion, the
insurance accounts—
(i) are properly prepared under this Act; and
(ii) give a true and fair view of the state of the
licensed insurer, reinsurer or insurance broker’s
business in that financial year.
(4) A licensed insurer shall lodge with the Registrar a copy of
the insurance accounts and the auditor’s report, together with a
copy of the company accounts and the external auditors report
circulated to the shareholders under the Companies Act, 2017. Act No. 10
of 2017
(5) A holding company shall provide a copy of the group
accounts to the Registrar, where a licensed insurer is a subsidiary
of a holding company which is—
(a) not an insurer; and
(b) required, in accordance with the Companies Act, 2017, Act No. 10
to prepare group accounts. of 2017
(6) Where a licensed insurer, reinsurer or insurance broker of

foreign origin is required, in accordance with the law of the licensed
insurer, reinsurer or insurance broker’s country of origin, to prepare
and submit to an authority in that country an abstract, account or
return, the licensed insurer, reinsurer or insurance broker shall, within
three months of submission of that abstract, account or return to
that authority, submit certified copies of the abstract, account or
return to the Registrar.
(7) Amounts that a licensed insurer, reinsurer or insurance

broker is required to show in an account or balance sheet shall be
shown in the currency of the Republic to the nearest kwacha or in
like manner in a foreign currency approved by the Authority.
(8) A licensed insurer, reinsurer or insurance broker shall not
change the licensed insurer, reinsurer or insurance broker’s balance
sheet without prior notification to, and written approval of, the
Registrar.
(9) For the purposes of this section—
(a) “ company accounts ” means the financial statements
for the financial year of a company prepared in
Act No. 10 accordance with the Companies Act, 2017;
of 2017
(b) “ group accounts ” means—
(i) a set of consolidated accounts for a group of
companies; or
(ii) a combination of sets of consolidated accounts
and separate accounts covering a group of
companies; and
(c) “ insurance accounts ” means the annual insurer, reinsure
or insurance brokers return prepared in the prescribed
manner and form.
Financial 104. The financial year for a licensee is a period of twelve
year calendar months ending on 31st December in each year or other
date that the Registrar shall approve in writing.
Submission 105. (1) A licensed insurer, reinsurer or insurance broker shall
of signed
financial submit to the Registrar a copy of financial statements and insurance
statements accounts, signed in accordance with section 109, within three months
after the end of the period to which the account, balance sheet,
return or statement relates.
submit to the Registrar a certified copy of a report made to its
shareholders or policyholders, as applicable, on the affairs of the
licensed insurer, reinsurer or insurance broker within one month
after the making of the report.
(3) A licensed insurer, reinsurer or insurance broker who fails
to comply with this section commits an offence and is liable to pay
to the Authority one thousand five hundred penalty units for each
day that the failure to comply continues.
106. (1) A licensed insurer or reinsurer shall prepare and furnish Insurer and
reinsurer
to the Registrar a quarterly return in the prescribed manner and quarterly
form. returns
(2) The quarterly return under subsection (1) shall be—

(a) signed by the chief executive officer of the licensed
insurer or reinsurer; and
(b) furnished to the Registrar not later than—
(i) 30th April for the first quarter;
(ii) 31st July for the second quarter;
(iii) 31st October for the third quarter; and
(iv) 31st January for the fourth quarter.
(3) A licensed insurer or reinsurer who contravenes this section
is liable to pay to the Authority a fine of one thousand five hundred
penalty units for each day that the failure to comply continues.
107. (1) A licensed insurance broker shall prepare and furnish Broker’s
to the Registrar quarterly returns in each financial year in quarterly
returns
accordance with this section.
(2) The quarterly return under subsection (1) shall be—
(a) signed by the chief executive officer of the licensed
insurance broker;
(b) signed by the chief executive officer of the licensed
insurer; and
(c) furnished to the Registrar not later than—
(i) 31st May for the first quarter;
(ii) 31st August for the second quarter;
(iii) 30th November for the third quarter; and
(iv) 28th February for the fourth quarter.
(3) A licensed insurance broker who contravenes this section
is liable to pay the Authority a fine of Authority a fine of one
thousand five hundred penalty units for each day that the failure to
comply continues.
108. (1) A licensed insurer carrying on more than one class of Separate
accounts for
insurance business in a category of insurance business shall keep classes of
separate accounts of receipts and payments in respect of each class. insurance
business
(2) A licensed insurer shall, where an amount is received or
paid by the licensed insurer for the purposes of this section, apportion
between the classes of insurance business in respect of which the
amount is received showing premium per class, investment income
per class, claims per class, reinsurance cost per class administration
and management costs or taxes per class of business.
Signing of 109. (1) Financial statements and insurance accounts prepared
accounts
and under this Act by a licensed insurer, reinsurer or insurance broker
statements shall be signed, in the case of—
(a) the licensed insurer, reinsurer or insurance broker, by
the auditor and two directors;
(b) the licensed insurance broker—
(i) by the auditor and two directors; or
(ii) where the licensed insurance broker has only
one director, by the auditor and that director; or
(c) a foreign licensed insurer, reinsurer or insurance broker,
by an agent authorised in writing by that licensed insurer,
reinsurer or insurance broker.
(2) Financial statements and annual returns shall, in the case
of a foreign licensed insurer, reinsurer or insurance broker, be signed
by the authorised agent, under subsection (1)(c), unless the Registrar
directs that it be signed by the auditor of the licensed insurer,
reinsurer or insurance broker.
Publication 110. (1) A licensed insurer, reinsurer or insurance broker shall
of returns publish, in a newspaper of general circulation, or other electronic
and
statements media in the Republic, its quarterly financial statement and audited
annual financial statements.
(2) The Authority shall prescribe the manner and form of
publication of the financial statements under subsection (1).
display, in a conspicuous place in each branch, at all times when
the branch is open for business, a copy of the licensed insurer’s
quarterly and audited annual financial statement.
Unauthorised 111. (1) Subject to subsection (2), a licensed insurer, reinsurer
publication
of returns or insurance broker shall not publish, whether in the Republic or
and elsewhere, a return or statement required in accordance with this
statements Act in a form other than the form in which the return or statement
is furnished to the Registrar.
(2) Despite subsection (1), a licensed insurer, reinsurer or
insurance broker is not prevented from publishing a true and accurate
abstract from the return or statement submitted to the Registrar in
accordance with this Act.
112. (1) The Registrar may, for the purposes of ascertaining Examination
of returns
the accuracy or completeness of a return or report furnished by a and reports
licensed insurer, reinsurer or insurance broker, by notice in writing,
direct the licensed insurer, reinsurer or insurance broker, or the
auditor of the licensed insurer, reinsurer or insurance broker, to—
(a) furnish the Registrar, within a period specified in the
notice, with further information that the Registrar
considers necessary; or
(b) submit to the Registrar, within the period specified in
the notice, documents that the Registrar considers
necessary.
(2) The Registrar may, where a licensed insurer, reinsurer or
insurance broker fails to provide information or submit a document
to the Registrar, within the period specified under subsection (1),
reject the return or report and shall notify the licensed insurer,
reinsurer or insurance broker in writing.
(3) Where the Registrar rejects a return or report, under
subsection (2), the licensed insurer, reinsurer or insurance broker is
considered to have failed to comply with this Act in relation to
submission of returns or reports to the Registrar.
(4) A person commits an offence if that person for the purposes
of subsection (1)—
(a) provides information or a document which the person
knows to be false in a material particular; or
(b) recklessly provides information or a document which is
false in a material particular.
(5) A person convicted of an offence under subsection (4) is
liable to a fine not exceeding one hundred thousand penalty units or
to imprisonment for a term not exceeding one year, or to both.
PART X
INSPECTIONS AND CO-OPERATION
113. The Authority shall establish an inspectorate to administer, Establishment
of
monitor and enforce measures for the effective supervision of the inspectorate
insurance industry.
114. (1) The Authority shall appoint suitably qualified persons Appointment
as inspectors to ensure compliance with this Act. of
inspectors
(2) The Authority shall provide an inspector with an
identification card which shall be evidence of the inspector’s
appointment as inspector.
(3) An inspector shall, in performing a function under this Act—

(a) be in possession of the identification card under
subsection (2); and
(b) show the identification card to a person who requests
to see the identification card or is the subject of an
investigation under this Act.
Conduct of 115. (1) For the purposes of ensuring compliance with this Act,
inspections
an inspector may during normal working hours enter premises used,
or which the inspector reasonably believes to be used, by a licensee
for conducting business, and—
(a) inspect the business and affairs of the licensee, including
the licensee’s systems, procedures and controls;
(b) inspect assets, including cash, belonging to or held by
the licensee on behalf of another person;
(c) examine and make copies of documents, including
accounting records, belonging to, or in the possession of
the licensee;
(d) demand information, explanation or clarification from
the licensee on a matter under paragraph (a), (b) or (c);
(e) record or make copies of information kept by the
licensee in an electronic form; and
(f) undertake other actions that the inspector considers
necessary for the effective carrying out of an inspection
under this Act.
(2) An inspector shall, when undertaking an inspection, have
regard to matters which are relevant to the supervision of licensees,
including—
(a) verifying the capital, solvency and reserves of a licensed
insurer, reinsurer or intermediary;
(b) determining that a licensed insurer or intermediary has
adequate procedures in place for purposes of preventing
money laundering, financing of terrorism or proliferation
or any other serious offence;
(c) determining whether the licensee is treating policyholders
fairly; or
(d) determining whether a licensee is complying with this
Act, or with conditions on which the licence was granted.
(3) Without limiting the generality of subsection (1), the Authority

shall carry out an inspection in respect of a licensee at a time that
the Authority may determine.
(4) A person shall not, directly or indirectly, hinder an inspector
from carrying out the functions of the inspector under this Act.
(5) A person commits an offence if that person—
(a) delays or obstructs an inspector in the performance of
the inspector’s functions;
(b) refuses to give an inspector reasonable assistance that
the inspector may require for the purpose of carrying
out the inspector’s functions; or
(c) knowingly gives an inspector information which is
misleading or false in a material particular.
liable to a fine not exceeding two hundred thousand penalty units or
to imprisonment for a term not exceeding two years, or to both.
116. (1) The Registrar may request a licensee to furnish the Request for
Registrar with any information, books, papers or any other documents information
within a period that the Registrar shall determine.
(2) The information, books, papers or any other documents
furnished under this Part shall be certified by a principal officer or
any other employee of the entity authorised to certify the production
of that information, books or papers as provided for under any other
relevant written law.
(3) Subject to this Act, the Registrar may request or provide
information furnished in accordance with subsection (2) to other
local and foreign regulatory authorities in accordance with
agreements that may be in force.
(4) A person commits an offence if that person—
(a) furnishes information, books, papers or other documents
which the person knows to be false in a material
particular; or
(b) alters, mutilates, damages, destroys, conceals or removes
the information, books, papers or other documents from
their lawful custody with intent to conceal the information
requested for.
liable to a fine not exceeding two hundred thousand penalty units or
to imprisonment for a term not exceeding two years, or to both.
Appointment 117. The Registrar may appoint a number of expert
of expert
investigators investigators that the Registrar may consider appropriate to carry
out investigations for purposes of this Act.
Consolidated 118. (1) The Authority shall, where it considers necessary for
supervision the safety and soundness of the licensed insurer, reinsurer or
intermediary or policyholders, or to determine whether this Act is
being complied with, request, in writing, an affiliate, associate holding
or subsidiary company or a person that controls the insurer, reinsurer
or intermediary, to provide the Authority or its appointed agent
information or documents that may be necessary, including financial
statements and other financial records of that affiliate, associate,
holding or subsidiary company or person in control, within the period
specified in the notice.
(2) The Authority may appoint a competent person to
undertake an examination of the operations and affairs of an
affiliate, associate, holding or subsidiary company of a licensed
insurer, reinsurer, intermediary or any person that controls a licensed
insurer, reinsurer or intermediary in order to determine whether the
operations and affairs of the affiliate, associate, holding or subsidiary
company or the person in control are detrimental to the safety and
soundness of the licensed insurer, reinsurer or intermediary.
(3) The Minister may, by statutory instrument, prescribe
methods for group wide supervision and regulation.
Co-operation 119. The Registrar may liaise and cooperate with relevant
with other institutions in conducting investigations of insurance businesses
institutions
licensed and regulated under this Act.
PART XI
SUPERVISORY ACTION
Supervisory 120. (1) The Authority may take supervisory action against a
action by
Authority licensee that—
(a) contravenes this Act, code of practice or market
conduct rules made under this Act or any other relevant
written law;
(b) is carrying on business in a manner that is unsafe and
unsound;
(c) is likely to become insolvent;
(d) fails to comply with a directive given or a regulatory
statement issued by the Authority;
(e) is in breach of a condition of a licence;

(f) provides the Authority with false, inaccurate or misleading
information, whether on an application for a licence or
subsequent to the grant of the licence;
(g) carries on the business in a manner contrary to the sound
principles of insurance;
(h) in the case of a licensed insurer, lacks adequate
arrangements for the reinsurance of risks against which
persons are insured by the licensed insurer;
(i) effects a corporate restructuring transaction without the
prior written approval of the Authority;
(j) ceases to fulfill the eligibility requirements in accordance
with this Act;
(k) refuses to permit, or obstructs an investigation or
inspection made under this Act;
(l) without reasonable justification, fails to cooperate with
the Authority in relation to findings of an inspection
conducted under this Act;
(m) six months after being granted a licence, fails to
commence the business to which the licence relates;
(n) is convicted of an offence involving fraud or dishonesty,
or any other offence under this Act; or
(o) is declared bankrupt by a court of competent jurisdiction.
(2) The Authority may exercise its authority over a licensee
where the Authority considers that it is necessary to implement
supervision for the purposes of prevention and combatting of money
laundering and financing of terrorism or proliferation or any other
serious offence related to money laundering and financing of
terrorism or proliferation.
121. (1) The Authority may take supervisory action in respect Nature of
of a licensee, including— supervisory
action
(a) taking possession of the licensed insurer, reinsurer or
intermediary in accordance with the Act;
(b) suspending, for a period not exceeding six months, a
licence granted to the licensee;
(c) imposing restrictions on a licence granted to licensee;
(d) revoking a licence granted to the licensee;

(e) making directions, in writing, that the licensed insurer,
reinsurer or intermediary takes remedial action to comply
with any rule or regulatory statement;
(f) issuing a regulatory statement or measure to be taken to
improve the management, financial soundness or business
methods of a licensed insurer, reinsurer or intermediary;
(g) requiring the board or senior officers to execute an
agreement on implementation of a regulatory statement
issued under paragraphs (e) and (f);
(h) performing or appointing an agent to perform a special
investigation of a licensee to determine the financial
condition of a licensee at the cost of the licensed insurer,
reinsurer or intermediary; or
(i) publish in a newspaper of wide circulation or other forms
of public media the nature of supervisory action taken
against a licensee.
(2) The Authority may, where a licensed insurer, reinsurer or
intermediary fails, refuses or neglects to comply with a regulatory
statement issued or an agreement made, under subsection (1)—
(a) issue a cease and desist order, of temporary or indefinite
duration, requiring a licensed insurer, reinsurer or
intermediary and its board to—
(i) stop the unsafe or unsound practice;
(ii) limit its investments or borrowing;
(iii) stop any declaration or payment of dividends;
or
(iv) stop any other activity that may be specified by
the Authority;
(b) remove or suspend a person from the management of
the affairs of the licensed insurer, reinsurer or
intermediary;
(c) impose an administrative penalty on the offending senior
officer, which shall be paid by that senior officer;
(d) appoint a person who is suitably qualified and competent
to advise and assist the licensed insurer, reinsurer or
intermediary, generally or for the purposes of
implementing the orders, made under paragraph (a), (b)
or (c);
(e) appoint a person who is suitably qualified and competent

to manage the affairs of the licensed insurer, reinsurer
or intermediary for a period that shall be necessary to
rectify the problem;
(f) require the licensed insurer, reinsurer or intermediary to
reconstitute its board within a period that shall be
specified;
(g) withhold approvals on establishment of new branches;
(h) restrict or vary the licensed insurer, reinsurer or
intermediary’s licence;
(i) require the licensed insurer, reinsurer or intermediary to
increase its capital to levels that may be specified; or
(j) impose any administrative penalty as the Authority may
consider appropriate in the circumstance.
122. Despite section 120, the Authority may, by notice in writing, Restrictions
restrict a licensed insurer, reinsurer or intermediary from— on classes of
transactions
(a) entering into transactions of a class or description
specified in the notice, except in circumstances or to an
extent specified in the notice;
(b) soliciting business from persons of a class or description
specified in the notice or from persons other than persons
of a class or description; or
(c) carrying on business in a manner specified in the notice.
123. The Authority may, in taking supervisory action, relating Prohibition
to the assets of a licensed insurer, reinsurer or intermediary, by from dealing
with assets
notice in writing—
(a) prohibit the licensed insurer, reinsurer or intermediary
from disposing of, or dealing with, the licensed insurer,
reinsurer or intermediary’s assets in a manner specified
in the notice; or
(b) direct the licensed insurer, reinsurer or intermediary to
deal with the licensed insurer, reinsurer or intermediary’s
assets in a manner specified in the notice.
124. Where it appears to the Authority that a restriction or Variation or
prohibition imposed on a licensed insurer, reinsurer or intermediary, rescission
of
under this Act is no longer necessary, the Authority may, either on restriction
its own motion, or on application by the licensed insurer, reinsurer or
prohibition
or intermediary, by notice in writing vary the restriction or rescind
the prohibition.
Notice of 125. (1) The Authority may, where the Authority considers it
taking
possession necessary for the protection of policyholders take possession of a
licensed insurer, reinsurer or intermediary.
(2) The Authority shall, when taking possession of a licensed
insurer, reinsurer or intermediary—
(a) notify the licensed insurer, reinsurer or intermediary, in
writing of the action;
(b) specify the date, hour and minute at which the possession
shall take effect; and
(c) where the intended possession relates to insolvency
Act No. 9 of proceedings under the Corporate Insolvency Act, 2017,
2017 transmit a copy of the notice to the court.
Powers of 126. (1) Despite any other relevant written law, the Authority
Authority
on taking shall, on taking possession of a licensed insurer, reinsurer or
possession intermediary under section 125, be vested with full and exclusive
powers of management and control of the licensed insurer, reinsurer
or intermediary, including the power to—
(a) continue or discontinue operations of the licensed insurer,
reinsurer or intermediary;
(b) employ, re-employ or retain in employment officers or
other employee of the licensed insurer, reinsurer or
intermediary, or professional advisors that the Authority
considers necessary;
(c) terminate the employment of a director or employee of
the licensed insurer, reinsurer or intermediary;
(d) terminate the interests of shareholders and refer the
determination of the value of the shareholders’ interests
to the court or arbitrator; or
(e) enforce the personal liability of the directors and
shareholders of the licensed insurer, reinsurer or
intermediary incurred in the ordinary course of the
licensed insurer, reinsurer or intermediary business on
unpaid shares.
(2) Despite subsection (1), the Registrar may, where the
Registrar considers it proper to do so, take possession of the licensed
insurer, reinsurer, or intermediary where the Registrar finds that—
(a) the assets of a licensed insurer, reinsurer or intermediary
whose voluntary winding-up or liquidation or dissolution
will not be sufficient for the full discharge of its
obligations; or
(b) the completion of the winding-up, liquidation or dissolution
is unduly delayed.
127. (1) The Authority shall, on taking possession of a licensed Statement of

assets and
insurer, reinsurer or intermediary, prepare a statement of affairs liabilities
showing the financial position of the licensed entity and take actions
under subsection (2).
(2) The Authority shall, where a statement made under
subsection (1) shows a licensed insurer, reinsurer or intermediary
to be—
(a) solvent—
(i) restructure or reorganise the licensed insurer,
reinsurer or intermediary;
(ii) sell the licensed insurer, reinsurer or intermediary
as a going concern;
(iii) close the licensed insurer, reinsurer or
intermediary;
(iv) transfer all or part of business to another licensed
insurer, reinsurer or intermediary;
(v) initiate a purchase and assumption transaction;
(vi) dispose of some of the assets of the licensed
insurer, reinsurer or intermediary; or
(vii) take the action that the Authority considers
necessary to enable the Authority carry out its
functions in accordance with this Act.
(b) insolvent, subject to the Corporate Insolvency Act, Act No. 9 of
2017— 2017
(i) revoke the licensed insurer’s, reinsurer’s or

intermediary’s licence and place the licensed
insurer, reinsurer or intermediary under
compulsory liquidation under Part XII; or
(ii) take appropriate action in accordance with
subsection (2)(a).
128. A licensed insurer, reinsurer or intermediary, or an Petition to
interested person acting on behalf of the licensed insurer, reinsurer Minister
against
or intermediary may, within twenty-one days after the date on which possession
the Authority takes possession of the licensed insurer, reinsurer or
intermediary, petition the Minister to establish the Tribunal to inquire
into the decision of the Authority to take possession thereof.
Effect of 129. Where the Authority takes possession of a licensed

possession
insurer, reinsurer or intermediary—
(a) despite any relevant law relating to extension of time, a
term, whether statutory or contractual, on the expiration
of which a claim or right of the licensed insurer, reinsurer
or intermediary would expire or be extinguished, shall
be extended by six months of the date of that expiration
or extinction;
(b) an attachment or lien which has been in existence for
less than twelve months shall be vacated, and no
attachment or lien shall attach to an asset or property of
the licensed insurer, reinsurer or intermediary during the
period that the possession continues; and
(c) a writ of execution, attachment, garnishee order or other
process of a similar nature shall not be issued or made
against an asset of the licensed insurer, reinsurer or
intermediary during the period that the possession
continues.
Restructuring 130. (1) The Authority shall, where the Authority decides to
and re-
organisation
restructure or reorganise a licensed insurer, reinsurer or intermediary,
under subsection (2), cause to be published in the Gazette and in a
daily newspaper of general circulation, or in other electronic media
in the Republic a notice—
(a) accompanied by the restructuring or reorganisation plan;
and
(b) inviting interested persons to submit to the Registrar,
within thirty days from the date of publication of the
notice, written objections to the plan and the reasons for
objecting.
(2) The Authority shall proceed to carry out the restructuring
Act No. 9 of or reorganisation, in accordance with the Corporate Insolvency Act,
2017 2017, if—
(a) no objection is received by the Registrar, within the period
specified in subsection (1), or the Authority is not satisfied
with the reasons for the objection; and
(b) the court does not order a stay of proceedings.
131. Any expenses incurred by the Authority in the application Expenses

incurred in
of this Part shall be defrayed from the funds of the licensed insurer, taking
reinsurer or intermediary concerned. possession
132. The Authority may appoint an agent to carry out the Power of
Authority to
functions of the Authority on taking possession of the licensed appoint
insurer, reinsurer or intermediary. agent on
taking
possession
PART XII
INSOLVENCY, DISSOLUTION AND LIQUIDATION OF
INSURER, REINSURER OR INTERMEDIARY
133. The Corporate Insolvency Act, 2017, shall apply where Application
of Corporate
a licensed insurer, reinsurer or intermediary is insolvent, unless the Insolvency
Authority determines that the winding up or dissolution shall proceed Act, 2017
in accordance with this Part. Act No. 9 of
2017
134. (1) Subject to section 133, a licensed insurer, reinsurer or Prohibition
from
intermediary shall not, while insolvent, except where it is necessary conducting
or incidental to the orderly realisation, conservation or preservation business
while
of the assets of the licensed insurer, reinsurer or intermediary, enter insolvent
into or continue to conduct business which— Act No. 9 of
2017
(a) the insurer, reinsurer or intermediary is licensed to carry
on; or
(b) is ancillary to the business which the licensed insurer,
reinsurer or intermediary is licensed to carry on.
(2) A shareholder, director, senior officer or other employee
of a licensed insurer, reinsurer or intermediary commits an offence
if that shareholder, director, senior officer or other employee knows
or, in the proper performance of duties, could reasonably be
expected to know of the insolvency of the licensed insurer, reinsurer
or intermediary and causes or permits an act in contravention of
this section.
liable to a fine not exceeding five hundred thousand penalty units,
or to imprisonment for a term not exceeding five years, or to both.
135. Where a licensed insurer, reinsurer or intermediary Power of
becomes insolvent, the Authority may— Authority
on
insolvency
(a) take possession of the licensed insurer, reinsurer or of insurer,
intermediary in accordance with this Act; or reinsurer or
intermediary
(b) order compulsory winding up or dissolution of the licensed
insurer, reinsurer or intermediary in accordance with
section 142.
Approval of 136. (1) A licensed insurer, reinsurer or intermediary shall not,
voluntary
winding-up except with the written approval of the Authority, pass a resolution
or
dissolution for voluntary winding-up or dissolution in accordance with the
Act No. 10 Companies Act, 2017, the Corporate Insolvency Act, 2017 or any
of 2017 other written law.
Act No. 9 of
2017 (2) A licensed insurer, reinsurer or intermediary seeking
approval for voluntary winding-up or dissolution shall submit to the
Registrar an audited declaration of solvency by the directors of the
licensed insurer, reinsurer or intermediary, accompanied by a
statement of affairs of the licensed insurer, reinsurer or intermediary
showing the—
(a) assets and total amount expected to be realised from
those assets;
(b) liabilities; and
(c) estimated expenses of the winding-up, made up to the
latest practicable date before the intention to wind-up
was arrived at.
(3) The Authority may, by notice in writing, grant a licensed
insurer, reinsurer or intermediary the Authority’s approval to
voluntarily wind up or dissolve the licensed insurer, reinsurer or
intermediary business if the Authority is satisfied that the licensed
insurer, reinsurer or intermediary is solvent and has sufficient liquid
assets to repay in full and without delay, in the case of—
(a) the licensed insurer or reinsurer, its policyholders and
other creditors; and
(b) the licensed intermediary, the creditors of the licensed
intermediary.
(4) Where a licensed insurer, reinsurer or intermediary passes
a resolution for voluntary winding-up or dissolution, the licensed
insurer, reinsurer or intermediary shall record the date, hour and
minute of the passing of the resolution.
(5) A director, senior officer or other employee of a licensed
insurer, reinsurer or intermediary who, in relation to subsection (2),
makes a false declaration, or causes or permits a false declaration
to be made, commits an offence and is liable, on conviction, to a
137. (1) Where a licensed insurer, reinsurer or intermediary Duties of

insurer,
receives written approval of the Authority for voluntary winding- reinsurer or
up or dissolution, the licensed insurer, reinsurer or intermediary shall, intermediary
on voluntary
within twenty-one days of receipt of the approval— winding up
(a) pass the resolution for voluntary winding up or dissolution;
(b) surrender the licensed insurer, reinsurer or intermediary
licence to the Registrar;
(c) cease to carry on business, except so far as is required
in the opinion of the liquidator, in consultation with the
Registrar, for purposes of effecting an orderly winding
up;
(d) in the case of—
(i) the licensed insurer or reinsurer, repay or transfer
to the licensed insurer’s policyholders and
creditors amounts due to them; or
(ii) the licensed intermediary, repay or transfer to
the licensed intermediary’s creditors amounts
due to them; and
(e) wind up the licensed insurer ’s, reinsurer’s or
intermediary’s operations.
(2) Despite subsection (1), the corporate state and powers of
a licensed insurer, reinsurer or intermediary shall not cease until
the licensed insurer, reinsurer or intermediary is dissolved.
(3) A director or senior officer of a licensed insurer, reinsurer
or intermediary who causes or permits a contravention of subsection
(1), commits an offence and is liable, on conviction, to a fine not
exceeding two hundred thousand penalty units or to imprisonment
for a term not exceeding two years, or to both.
138. (1) A licensed insurer, reinsurer or intermediary shall, Notice of
within seven days after receiving the approval of the Authority for voluntary
winding up
voluntary winding up, cause to be published in the Gazette and in a or
daily newspaper of general circulation or other electronic media in dissolution
the Republic a notice of the licensed insurer, reinsurer or
intermediary intention to wind up, which shall include information
that the Authority may specify in the notice given under section
136.
(2) A licensed insurer, reinsurer or intermediary shall display,
in a conspicuous place at each branch of the licensed insurer,
reinsurer or intermediary, a copy of the notice published in
accordance with subsection (1).
Rights of 139. (1) An approval by the Authority for the voluntary winding
policyholders, up or dissolution of a licensed insurer, reinsurer or intermediary
creditors
and other under this Part shall not prejudice the right of—
persons
(a) a policyholder or creditor of the licensed insurer to the
payment in full of a claim;
(b) a creditor of the licensed intermediary to the payment
in full of a claim; or
(c) an owner of funds or other property held by the licensed
insurer, reinsurer or intermediary to the return of those
funds or property.
(2) A lawful claim against a licensed insurer, reinsurer or
intermediary shall be paid promptly by the licensed insurer, reinsurer
or intermediary and all funds and other property held by the licensed
insurer, reinsurer or intermediary shall be returned to the rightful
owners within a period that the Authority may direct in writing.
(3) Without prejudice to the generality of subsection (2), a long
term licensed insurer or general licensed insurer shall, in the
distribution of assets other than those identified with a statutory
fund for purposes of a voluntary winding up or dissolution, ensure
that the holders of policies issued by the licensed long term insurer
or general licensed insurer have preference to all other unsecured
creditors.
Cancellation 140. (1) The Authority shall, where the Authority is satisfied
of licence on that a licensed insurer, reinsurer or intermediary has discharged its
voluntary
winding up obligations specified in this Act cancel the licensed insurer, reinsurer
or intermediary licence.
(2) A licensed insurer, reinsurer or an intermediary whose
licence is cancelled under subsection (1) shall distribute the
remainder of the licensed insurer, reinsurer or intermediary assets
among the shareholders of the licensed insurer, reinsurer or
Act No. 9 intermediary in accordance with the Corporate Insolvency Act,
of 2017 2017.
(3) A distribution of a licensed insurer’s, reinsurer’s or
intermediary’s assets, under subsection (2), shall not be made
unless—
(a) in the case of—
(i) a licensed insurer, all lawful claims of
policyholders and other creditors of the licensed
insurer are paid; or
(ii) a licensed intermediary, all lawful claims of

creditors of the licensed intermediary are paid;
(b) in the case of a disputed claim, the licensed insurer,
reinsurer or intermediary, or the liquidator of the licensed
insurer, reinsurer or intermediary, has turned over to the
Authority sufficient funds to meet any liability that may
be judicially determined; and
(c) the licensed insurer, reinsurer or intermediary has turned
over to the Authority, unclaimed funds to be dealt with
in accordance with section 150, and uncollected funds
that are payable by the—
(i) licensed insurer or reinsurer to a policyholder or
creditor; or
(ii) licensed intermediary to a creditor.
141. The Authority may, where it considers just and appropriate, Powers of
take possession of a licensed insurer, reinsurer or intermediary Authority
where assets
whose voluntary winding up or dissolution is approved by the insufficient
or
Authority if it becomes known to the Authority that the— completion
unduly
(a) assets of the licensed insurer, reinsurer or intermediary delayed
are not sufficient to fully discharge the licensed insurer,
reinsurer or intermediary obligations; or
(b) completion of the winding up or dissolution is unduly
delayed.
142. (1) Subject to the Corporate Insolvency Act, 2017, or any Compulsory
other law, the Authority may order the compulsory winding up or winding up
dissolution of a licensed insurer, reinsurer or intermediary, and cause Act No. 9 of
2017
to be recorded the date, hour and minute that the order shall take
effect.
(2) The Authority shall, within seven days of making an order,
under subsection (1), notify each director, shareholder, policyholder,
creditor and any other interested party of the order in the prescribed
manner and form.
143. (1) A licensed insurer, reinsurer or intermediary, or an Appeal
against order
interested person acting on behalf of the licensed insurer, reinsurer of
or intermediary may, within twenty-one days of publication of a compulsory
winding up
notice under section 142, appeal to the court against the order of or
the Authority. dissolution
(2) The Court shall render its decision within thirty days of
hearing an appeal made under subsection (1), and may make any
order it considers just in the circumstances.
Powers of 144. (1) The Authority may, in effecting a compulsory winding
Authority in
compulsory up or dissolution of a licensed insurer, reinsurer or intermediary
winding up under this Act, in addition to any other powers, exercise the powers
of the licensed insurer, reinsurer or intermediary concerned.
(2) Without limiting the generality of subsection (1), the power
of the Authority as liquidator of a licensed insurer, reinsurer or
intermediary is to—
(a) bring, carry on or defend an action or legal proceeding
in the name and on behalf of the licensed insurer,
reinsurer or intermediary; and
(b) carry on the business of the licensed insurer, reinsurer
or intermediary only for the beneficial winding-up or
dissolution of the licensed insurer, reinsurer or
intermediary.
Act No. 9 of (3) Subject to the Corporate Insolvency Act, 2017 and any
2017 other relevant written law, the Authority shall after a decision to
compulsorily wind-up or dissolve a licensed insurer, reinsurer or
intermediary—
(a) take all necessary steps to terminate safe custody
functions performed by the licensed insurer, reinsurer
or intermediary and shall return to each owner all assets
and property held by the licensed insurer, reinsurer or
intermediary as a bailee in relation to the owner; and
(b) cause to be made available at each branch for collection
for each policy holder, creditor, safe custody services
customer and bailer of property held by the licensed
insurer, reinsurer or intermediary a policy holder’s
statement of the nature and amount for which each one’s
claim is shown in the licensed insurer, reinsurer or
intermediary’s records and shall cause to be published
in a newspaper of general circulation in the Republic, a
notice informing all persons of the availability for
collection of the policyholder’s statement at their
respective branches.
(4) A policyholder’s statement under subsection (2), shall state
that—
(a) a claim by the policyholder or creditor shall be filed with
the Authority within sixty days from the date of the
customer’s statement being made available; and
(b) policyholders shall be required to withdraw their property
within sixty days of the date of the policy holder’s
statement being made available.
(5) Any property held in safe custody, on the premises of a
licensed insurer, reinsurer or intermediary that has not been
withdrawn before the date specified in the customer’s statement
shall be taken into possession by the Authority in the manner
prescribed by the Authority.
(6) Any unclaimed funds and property held by a licensed
insurer, reinsurer or intermediary as a bailee, together with inventories
that are withdrawn, in accordance with this section, shall be
unclaimed funds for the purposes of this Act and shall be dealt with
accordingly.
145. The Authority shall, within six months after the last day Limitation
specified in a customer’s statement, for the purpose of the filing of on filing
claims
claims under section 144(4)(a)—
(a) defer payment of any claim that is out of time;
(b) determine the amount, if any, owing to each known
policyholder or creditor and the priority class of the claim
in accordance with this Act;
(c) file into court, a liquidation schedule showing the steps
that the Authority proposes to take;
(d) reject any claim that appears to be of doubtful validity
and notify, each person whose claim has not been allowed
in full in the prescribed manner and form; and
(e) publish once a week for three consecutive weeks, in the
Gazette, a newspaper of general circulation, or in other
electronic media in the Republic where the licensed
insurer, reinsurer or intermediary had a branch, a notice
of the date and place where the liquidation schedule is
available for inspection and the date, not earlier than
thirty days after the date of the third publication of the
notice, on which the Authority or person appointed shall
file the liquidation schedule into court.
Objection to 146. (1) A policyholder, creditor or owner of a licensed insurer,

liquidation
schedule reinsurer or intermediary and any other interested party may, within
twenty days, after the filing of a liquidation schedule as specified in
section 144, file with the court an objection to any step proposed.
(2) The court shall consider an objection filed under subsection
(1) and may—
(a) order that appropriate modification of the schedule be
made; or
(b) set aside the objection.
(3) The Authority may, after the filing of the liquidation
schedule, under section 144, partially distribute to the holders of
undisputed claims or claims that have been allowed by the court,
on condition that a proper rescue account is established for the
payment of disputed claims.
Priority of 147. (1) Subject the Corporate Insolvency Act, 2017, or any
creditors Act
No. 9 of other written law, in any compulsory winding up or dissolution of a
2017 licensed insurer, reinsurer or intermediary, the following shall be
paid in priority to all other debts in the order set:
(a) expenses incurred in the process of compulsory winding
up or dissolution;
(b) policyholders;
(c) taxes and rates due;
(d) wages and salaries of employees of the licensed insurer,
reinsurer or intermediary, excluding senior officers, for
a period of three months;
(e) charges and assessments due to the Authority; or
(f) other claims against the licensed insurer, reinsurer or
intermediary in an order of priority that the court may
determine on application by the Authority.
(2) After payment of all claims are submitted and accepted,
the remaining claims that are not submitted within the time allowed
in accordance with this Act shall be paid in the order of priority to
their submission and at a rate to be fixed by the Authority.
(3) If the amount available for payment for any class of claims
under subsections (1) and (2) is insufficient to provide full payment,
the claims within a class shall abate in equal proportions.
(4) Where the amount available for payment for any class of
claims under subsection (1) is insufficient to provide full payment,
the amount shall abate in equal proportions.
(5) For the purposes of this section, subsection (1) constitutes
a separate class of claims and the claims under subsection (2)
constitute another separate class of claims.
148. Any undistributed funds remaining after final distribution, Undistributed
under this Act, shall be taken into possession and held by the funds
Authority and subsequently dealt with in accordance with this Act.
149. Any asset remaining after all claims are paid in a Final
distribution
compulsory winding up or dissolution of a licensed insurer, reinsurer in
or intermediary shall be distributed among the shareholders. compulsory
winding up or
dissolution
150. The Authority shall take into its possession any unclaimed Unclaimed
funds
funds remaining after the final distribution of the assets of a licensed
insurer, reinsurer or intermediary in accordance with the Corporate Act No. 9 of
2017
Insolvency Act, 2017, and those funds shall form part of the
Insurance Fidelity Fund and be administered as if they were part of
the Insurance Fidelity Fund.
151. A person, other than the Authority, shall not where the Restriction
on action by
Authority takes possession of a licensed insurer, reinsurer or third party
intermediary, under this Part, commence proceedings for the winding
up or dissolution of the licensed insurer, reinsurer or intermediary,
except where the proceedings are commenced by a licensed insurer,
reinsurer or intermediary.
152. (1) Where an application is made to the court for an order Other
for the winding up of a licensed insurer, reinsurer or intermediary person’s
applications
by a person other than the Authority, the court shall not consider to court for
the application unless the court is satisfied that a copy of the winding up
application is served on the Registrar.
(2) The Authority is entitled to file documents in court in relation
to an application under subsection (1).
153. Any necessary and reasonable expenses incurred by the Recovery of
Authority in the application of this Act is defrayed from the funds expenses
of the licensed insurer, reinsurer or intermediary concerned.
154. Nothing in this Part is taken to impute liability, or place an Immunity of
obligation, on the Authority to meet a claim by a policyholder or Authority
against
creditor of a licensed insurer, reinsurer or intermediary that has claims
been wound up or dissolved.
155. The Authority may appoint an agent to carry out the functions Power of
of the Authority under this Part. Authority to
appoint agent
PART XIII
COMPLAINTS
Initiation of 156. (1) The Authority may investigate a complaint—
investigation
(a) on the Authority’s own initiative; or
(b) on receipt of a complaint made by a complainant—
(i) acting in the complainant’s own interest;
(ii) that is an association acting in the interest of its
members;
(iii) who is a person acting on behalf of a
complainant;
(iv) who is a person acting on behalf, and in the
interest, of a group or class of persons; or
(v) who is making a complaint anonymously.
(2) A complaint, made as provided in subsection (1) shall be in
the prescribed manner and form.
(3) Subsection (2) shall not apply to a complaint made by a
person specified in subsection (1)(b)(v).
Refusal to 157. (1) The Authority may refuse to investigate a complaint
investigate
or or, having commenced an investigation, discontinue the investigation
discontinue if the—
complaint
(a) complaint is frivolous, vexatious or not made in good
faith;
(b) complainant does not have sufficient interest in the action
complained of, except that this paragraph shall not apply
to a complaint made by a person specified in section
156(1)(b)(v);
(c) complainant has a right of appeal, review or remedy
that has not been exhausted;
(d) conduct or involvement to which the complaint relates
is or has been the subject of an investigation or other
action by any other appropriate authority under any other
law; or
(e) complaint has been withdrawn.
(2) The Authority shall not investigate a complaint unless the
complaint is made within a period of one year from the date on
which the complainant exhausted the complainant’s rights as
prescribed.
(3) Despite subsection (1)(c), the Authority may investigate a

complaint where the Authority is satisfied that the complainant has
been prevented from exercising the complainant’s rights as specified.
(4) The Authority shall, where it decides not to conduct an
investigation or discontinue an investigation, inform the complainant,
in writing, within fourteen days of its decision and give reasons for
the decision.
158. Where the Authority is of the opinion that is in public Continuation
interest to do so, the Authority may continue an investigation initiated of
investigation
by a complaint despite the withdrawal by the complainant of the where
complaint
complaint. withdrawn
159. The Authority may, at any stage of investigating or dealing Referral of
with a matter as provided in this Act, refer the matter to an appropriate matter
authority.
160. The Authority may, where the Authority commences an Collaboration
investigation or is investigating a matter and the matter is being on
investigation
dealt with by an appropriate authority—
(a) continue to investigate or decide on the matter and share
its findings with the appropriate authority concerned;
(b) refer the matter to the appropriate authority concerned
and request a report on the matter, once the matter has
been finalised; or
(c) join the appropriate authority investigating the matter and
produce a joint report.
161. (1) The Authority may issue an enforcement notice Enforcement
directing a licensed insurer, reinsurer or intermediary to carry out notice
steps that the Authority considers appropriate, within a specified
period where, after undertaking an investigation under this Act, the
Authority is of the opinion—
(a) that the action which was the subject matter of the
investigation is contrary to this Act or any other written
law, based wholly or partly on a mistake of law or fact;
(b) that—
(i) the matter should be given further consideration;
(ii) an omission should be rectified;
(iii) a decision should be cancelled, reversed or
varied;
(iv) the practice on which the act, omission, decision
or recommendation was based should be
altered;
(v) reasons should have been given for the decision;
or
(vi) any other steps should be taken.
(2) Where, on the expiry of the period, specified under an
enforcement notice, a licensed insurer, reinsurer or intermediary
fails to comply with the enforcement notice without reasonable
cause, the Authority shall make a decision to give effect to the
steps specified in the enforcement notice.
Variation or 162. (1) The Authority may, on its own initiative or on an
cancellation
of application of a licensed insurer, reinsurer or intermediary, vary or
enforcement cancel an enforcement notice issued in accordance with section
notice
161.
(2) Where the Authority varies or cancels an enforcement
notice, as provided in subsection (1), the Authority shall immediately
notify the concerned licensed insurer, reinsurer or intermediary, in
writing, stating the reasons for the variation or cancellation.
PART XIV
INSURANCE TRIBUNAL
Right to 163. (1) A person who is aggrieved by a decision of the
appeal
Authority may, within thirty days of receipt of the decision of the
Authority, notify the Minister, in the prescribed manner and form,
of the intention to appeal against the decision.
(2) Lodgment of an appeal under this Part does not stay the
effect of the Registrar’s decision against which the appeal is made.
Appointment 164. (1) The Minister shall, within thirty days after receipt of
and
convening of a notice made under section 163, appoint and convene an ad hoc
appeals
tribunal appeals tribunal consisting of a chairperson who is an advocate of
the High Court of not less than ten years standing and two other
persons having qualifications and experience in insurance, securities,
commerce, finance, accounting or any other specialised field relating
to the matter which is the subject of the appeal.
(2) The Tribunal shall have jurisdiction to hear and determine—
(a) appeals from decision of the Authority or a person
exercising the functions or powers of the Authority;
(b) proceedings relating to conduct in the insurance market;
and
(c) other matters as may be specified in, or prescribed in
terms of this Act or any other written law.
(3) A person aggrieved with a decision of the Tribunal may
appeal to the Court of Appeal.
165. The Chief Justice shall prescribe rules of procedure for Tribunal
an ad hoc tribunal convened under this Act. Rules
PART XV
GENERAL PROVISIONS
166. (1) Subject to subsection (2), assets, liabilities and interests Insurance to
be placed
situated in the Republic shall be insured with an insurer licensed within
under this Act. Republic
(2) Despite subsection (1), the Registrar may, in writing and

on terms and conditions that the Registrar may prescribe, authorise
the placing outside the Republic of an insurance policy which is not
available within the Republic.
(3) A person who fails to comply with this section commits an
(4) The Minister may prescribe, by statutory instrument, classes
of insurance, businesses to be placed within the Republic including
transport and property insurance.
167. (1) Subject to the Electronic Communications and Documents
to be signed
Transactions Act, 2021, a document furnished to the Registrar by a and copies
licensee is signed, in the case of— supplied
Act No. 4
of 2021
(a) a document in a prescribed form, by the person specified
in the form; and
(b) any other document where the licensee is a company,
by the chief executive officer of the company.
(2) Where a document furnished to the Registrar is a copy of
the original document, the Registrar shall not accept the copy unless
it is certified to be a true copy of the original document in the
prescribed manner.
168. (1) The Registrar shall establish and maintain a register Register of
licensees
of licensees, which shall contain particulars of licensees and the
licences issued under this Act as prescribed.
(2) The register shall be kept by the Registrar at the offices of
the Authority and shall be open for inspection by members of the
public during office hours on payment of a prescribed fee.
(3) The Registrar may, on an application by a person, issue to
that person a certified extract from the register or a copy of a
licence issued to a licensee under this Act, on payment of a
prescribed fee.
Display of 169. The Registrar may, where the Registrar considers it
information necessary in the public interest, direct a licensee to display, in a
conspicuous place in which the licensee carries on the business
authorised by the licence, information or particulars that the Registrar
shall specify.
Publication 170. (1) A licensed insurer, reinsurer or insurance broker shall
on change of
name not change the licensed insurer, reinsurer or insurance broker’s
name without the Registrar’s approval in writing.
(2) The Registrar shall not approve a change of name, under
subsection (1), if the Registrar reasonably considers that the change
will be contrary to public interest.
(3) The Registrar shall, where the Registrar approves a change
of name under subsection (1), cause notice of the change to be
published in the Gazette and in a daily newspaper of general
circulation in the Republic.
Alteration of 171. The Registrar may, where the Registrar considers it
prescribed
forms necessary, alter a form prescribed under this Act for the purpose
of adapting the form to meet the circumstances of a licensee or a
person applying for a licence under this Act.
False 172. (1) A person shall not issue a document, provided for in
documents this Act, which is false in a material particular.
(2) A person who contravenes subsection (1) or who, knowingly
falsifies a document, takes part in the preparation, issue or signing
of the document, commits an offence and is liable, on conviction, to
a fine not exceeding two hundred thousand penalty units or to
Offence by 173. Where an offence under this Act is committed by a body
principal
officers of corporate or unincorporate body, with the knowledge, consent or
body connivance of the director, manager, shareholder or partner of the
corporate or
unincorporate body corporate or unincorporate body, that director, manager,
body
shareholder or partner commits the same offence as the body
corporate or unincorporate body and is liable, on conviction, to the
penalty specified for that offence under this Act.
174. A person who is not licensed in accordance with this Act Prohibition
of use of
shall not use in the description or title under which the person is certain titles
carrying on business in the Republic—
(a) any of the following words, when applied to or used in
respect of insurance business:
“ assure ”, “ assurer ”, “ assurance ”, “ broker ”, “
consultant ”, “ guarantee ”, “ indemnity ”, “ insure ”, “
insurer ”, “ insurance ”, “ reinsurer ”, “ reinsurance
broker ” or “ international ”;
(b) a literal translation of any of the words mentioned in
paragraph (a); or
(c) a combination of letters in which any of the words
mentioned in paragraph (a) appears.
175. (1) A licensed insurer or reinsurer shall be a member of Membership
the Insurers Association of Zambia and shall subscribe and conform to
associations
to the Association’s code of conduct.
(2) A licensed insurance broker shall be a member of the
Insurance Brokers Association of Zambia and shall subscribe and
conform to the Association’s code of conduct.
(3) The Registrar may suspend a licensed insurer, reinsurer or
insurance broker licence for a period of not less than one year if—
(a) the licensed insurer, reinsurer or insurance broker
refuses, neglects or fails to join the association specified
in subsection (1) or (2) within ninety days of being granted
a licence; or
(b) the membership of the licensed insurer reinsurer or
insurance broker to the association specified in subsection
(1) or (2) is suspended or otherwise terminated.
(4) The Authority may, where the reason specified in
subsection (3) for the suspension of the licence of an insurer, reinsurer
or insurance broker continues to exist for thirty days after the
suspension is lifted, cancel the licence in accordance with this Act.
176. A person who contravenes this Act or fails to comply General
penalty
with a directive made under this Act, for which no specific penalty
is provided, commits an offence and is liable, on conviction, to a
Administrative 177. (1) An administrative penalty imposed under this Act shall
penalty be paid to the Authority within the period specified by the Registrar.
(2) The Registrar may, where a person fails to pay an
administrative penalty within the period specified in subsection (1),
by way of civil action in a court, recover the amount of the
administrative penalty from that person as an amount due and owing
to the Authority.
Immunity of 178. An action or other proceeding shall not lie or be instituted
officer, agent
or employee against an officer, agent or employee of the Authority in respect of
of Authority any act done or omitted to be done by that officer, agent or employee
in good faith in the exercise or performance, of any powers,
functions or duties conferred by or under this Act.
Regulations 179. (1) The Minister may, on the recommendation of the
Board, by statutory instrument make Regulations for carrying out
or giving effect to this Act.
(2) Despite the generality of subsection (1), the Regulations
made under subsection (1) provide for—
(a) the forms for applications required for the purposes of
this Act, and the fees to be paid in respect of that
application;
(b) standards and conduct for licensees;
(c) prescribing or prohibiting business practices or methods;
(d) imposition of licence fees to be paid by licensees;
(e) types of licences that the Authority may issue;
(f) prohibiting unsafe and unsound practices by licensees;
(g) the Registrar’s exercise of powers to request information
from—
(i) former and current shareholders, directors, senior
officers or other employees of a licensee; or—
(ii) a former licensee;
(h) guidelines setting out criteria for the assessment of a fit
and proper person to be a shareholder, director or senior
officer;
(i) prescribing a period within which a licensee shall
commence the business to which the licence relates;
(j) the procedure to be followed where a licensee is the
subject of possession under this Act;
(k) prescribing requirements for the conduct of the business
of insurance to ensure customers are treated fairly, both
before and after a contract is entered into upto the point
where obligations under a contract are discharged;
(l) formulating capital adequacy requirements for licensees;
(m) formulating licensing, supervision, procedures and
standards for the conduct of medical scheme fund
management businesses;
(n) formulating procedures for hearing persons required to
appear before the Authority;
(o) categories of insurance businesses;
(p) anti-money laundering and countering terrorism and
proliferation, financing or any other associated serious
offence relating to money laundering countering of
terrorism and proliferation financing by licensed insurer,
reinsurer and intermediary;
(q) requirements for supervision, regulation and conduct of
microinsurance business
(r) any savings or transitional provisions the Authority
considers necessary or convenient to be made after the
commencement of this Act; and
(s) the effective administration and implementation of this
Act.
180. (1) The Insurance Act, 1997, is repealed. Repeal of
Act No. 27
of 1997
(2) Despite subsection (1), a licence issued in accordance with
the repealed Act shall on the commencement of this Act continue
to exist for the unexpired period as if issued in accordance with this
Act.
(3) Despite subsection (1) the—
(a) Committee, established in accordance with section 106 of
the repealed Act is continued in existence as if
established in accordance with this Act; and
(b) Insurance Fidelity Fund established in accordance with
section 109 of the repealed Act, 1997, is continued in
existence as if established in accordance with this Act.
(4) The Schedule applies to the Committee and the Insurance
Fidelity Fund.
SCHEDULE
(Section 180(4))
CONTINUATION OF POLICY HOLDERS’ PROTECTION COMMITTEE AND

INSURANCE FIDELITY FUND
PART I
POLICY HOLDERS’ PROTECTION COMMITTEE
Functions 1. The Committee shall—
of
Committee (a) subject to the direction of the Board, be responsible for
the—
(i) administration of the Insurance Fidelity Fund; and
(ii) settlement of claims against the Fund; and
(b) perform other functions as may be directed by the Board.
Constitution 2. (1) The Committee shall consist of the following members
of
Policyholders’ appointed by the Minister:
Protection
Committee (a) a representative of the ministry responsible for finance,
as Chairperson;
(b) a representative from the Zambia Institute of Chartered
Accountants;
(c) a person nominated by an organisation representing
insurers;
(d) a person nominated by an organisation representing
insurance brokers;
(e) a person nominated by the Law Association of Zambia;
and
(f) two other persons representing policyholders.
(2) The ministries, institutions or organisations under
subparagraph (1)(a) to (e) shall nominate their representatives for
appointment by the Minister.
Appointment 3. The Minister shall appoint the Vice-Chairperson of the
of Vice- Committee from among the members referred to in subparagraphs
Chairperson
of (1)(b) to (e).
Committee
Tenure of 4. Subject to paragraph 5, a member of the Committee shall
office of hold office for a period of three years from the date of the member’s
Committee
appointment, but the member may be re-appointed for a further
period of three years.
5. A person shall cease to be a member of the Committee, and Vacancy in

the office of
the person’s office as a member becomes vacant if that member— member of
Committee
(a) without reasonable cause, absent from three consecutive
meetings for which the member had notice;
(b) dies;
(c) is declared bankrupt by a court of competent jurisdiction;
(d) is legally disqualified from a mental condition which makes
the member incapable of performing the functions of a
member of the committee; or
(e) is convicted of an offence against any written law and
sentenced to imprisonment for a period exceeding six
months without the option of a fine.
6. Where a vacancy occurs, as provided in paragraph 5, the Appointment
of new
Minister may appoint a new member, in accordance with paragraph member to
2, and the member shall hold office for the unexpired period of the fill vacancy
term of the person in whose place the member is appointed.
7. A member of the Committee is paid an allowance Allowances
determined by the Emoluments Commission, on the recommendation
of the Minister.
8. (1) The Committee shall meet for the transaction of business Proceedings
of
at least once in three months at a place and time the chairperson of Committee
the Committee may determine.
(2) The quorum at a meeting of the Committee is four of the
members present.
(3) The chairperson shall preside at a meeting of the Committee,
except that where —
(a) the chairperson is absent, the vice chairperson shall
preside at the meeting; or
(b) both the chairperson and the vice chairperson are absent,
the members present shall, for purposes of transacting
the business of the meeting, elect a member from among
themselves to act as chairperson.
(4) The determination of a matter to be considered by the
Committee is by a majority of the members present and voting at
the meeting, and in the event of an equality of votes, the person
presiding at the meeting shall have a casting vote, in addition to that
person’s deliberative vote.
(5) The Committee may invite a person, whose attendance the

Committee considers necessary, to attend and participate in the
deliberations of the meeting but the person shall have no vote.
Minutes of 9. The Committee shall cause to be kept minutes of the
meetings
proceedings of every meeting of the Committee.
PART II
INSURANCE FIDELITY FUND
Constitution 10. The Insurance Fidelity Fund shall consist of—
of Insurance
Fidelity (a) moneys paid to the Authority by way of annual or other
Fund
periodic licence fees charged in accordance with this
Act;
(b) moneys recovered by, or on behalf of the Authority by
exercise of a right of action conferred by this Act; and
(c) all other moneys accruing to the Fund.
Purpose of 11. (1) The Insurance Fidelity Fund is held and applied on terms
Fund and conditions that the Minister may, on the recommendation of
the Board, by statutory instrument determine, for the purposes of
compensating persons who suffer pecuniary loss occasioned by a
licensed insurer or insurance broker.
(2) The Board may invest amounts constituting the credit of
the Fund, which are not immediately required for purposes of the
Fund, in securities or in any manner authorised by law for investment
of trust funds.
(3) Despite subsection (1), the Fund shall apply to individuals
and the micro small and medium enterprises as prescribed.
Disbursements 12. There is paid out of the Insurance Fidelity Fund as and
from
Insurance when required and in an order that the Board considers
Fidelity appropriate—
Fund
(a) the amount of claims, including costs,allowed by the
Board;
(b) legal and other expenses incurred in—
(i) investigating or defending claims;
(ii) relation to the Fund; or
(iii) the exercise of the rights, powers and authority
vested in the Board by this Act in relation to the
Fund;
(c) premiums payable in respect of insurance or indemnity
entered into by the Board;
(d) expenses incurred or involved in the administration of
the Fund; and
(e) any other moneys lawfully payable out of the Fund in
accordance with this Act or regulations made in
accordance with this Act.
13. The Minister may, on the recommendation of the Board, Management
of the
make Regulations prescribing matters and things that are necessary Insurance
or expedient to be prescribed with respect to the administration, Fidelity
Fund
management and application of the Insurance Fidelity Fund.
14. The payment out of the Insurance Fidelity Fund is limited, Limit of the
payments
in respect of a licensed insurer, reinsurer or insurance broker in under the
default, to amounts that the Minister may, by statutory instrument, Insurance
Fidelity
prescribe. Fund
15. A disbursement from the Insurance Fidelity Fund that is Recovery of

disbursements
accountable to the default of a licensed insurer or insurance broker from
is a debt due to the Fund from that licensed insurer or insurance defaulting
insurer or
broker. insurance
broker
508

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Insurance [No.

133. Application of Corporate Insolvency Act

152. Other person’s applications to court for winding-up

An Act to provide for the regulation of the insurance industry;

Act No. 24 of (g) the Competition and Consumer Protection Act,

“ citizen owned company ” means a company where one

“ general insurance business ” means a business of a class

an insurer or reinsurer, acting independently and carries

“ legal practitioner ” has the meaning assigned to the word

Act No. 10 (a) an entity incorporated under the Companies Act,

“ regulatory statement ” means a directive, guideline, order,

“ take-over ” has the meaning assigned to the words in the

4. The seal of the Authority kept in terms of the Pension Seal of

Categories 8. Subject to section 9, a person may engage in—

(3) The Authority shall, where an application fails to comply

(5) The Authority may suspend or cancel a licence if the

(2) The Registrar may, in writing, direct a licensed insurance

(4) Despite this section, the Authority shall not be prevented

(3) Where a policy does not provide expressly or by implication

(iii) the realisable value of a life policy under

(2) A benefit conferred or purported to be conferred on a

(b) the holder of two or more life policies or assets in respect

(2) A court of competent jurisdiction may, where a premium

(2) The Registrar may direct a licensed insurer to obtain and

(3) A licensed insurer, reinsurer or insurance broker, who

(2) A person who contravenes subsection (1) commits an

54. (1) The Registrar shall, in considering an application made Approval or

Notice of 55. (1) Where a licensed insurer, reinsurer or insurance broker

58. (1) A licensed insurer or reinsurer, a director or subsidiary Restriction on

Statutory 63. (1) A licensed insurer carrying on long term insurance

(2) Despite subsection (1), the Registrar may, by notice, in

(5) The Registrar shall, where the Registrar requests an

(3) The Registrar shall, where a licensed insurer fails to appoint

(5) An actuary shall, where an actuary fails to obtain

(b) appears to be, or is likely in the near future to be, unable

Promotion 76. (1) The Minister shall, by statutory instrument, prescribe

(a) a draft agreement or deed containing proposed terms of

(6) An objection provided for in subsection (5) shall be made

(a) policyholders and shareholders of the licensed insurers

(a) the licensed insurer, reinsurer or insurance broker’s

(b) an associate of a director or senior officer of the licensed

(c) the external auditor obtained from the licensed insurer,

(c) a cash flow statement for the financial year in relation

(6) Where a licensed insurer, reinsurer or insurance broker of

(7) Amounts that a licensed insurer, reinsurer or insurance

(2) The quarterly return under subsection (1) shall be—

(3) An inspector shall, in performing a function under this Act—

(3) Without limiting the generality of subsection (1), the Authority

(e) is in breach of a condition of a licence;

(d) revoking a licence granted to the licensee;

(e) appoint a person who is suitably qualified and competent

127. (1) The Authority shall, on taking possession of a licensed Statement of

(i) revoke the licensed insurer’s, reinsurer’s or

Effect of 129. Where the Authority takes possession of a licensed

131. Any expenses incurred by the Authority in the application Expenses

137. (1) Where a licensed insurer, reinsurer or intermediary Duties of

(ii) a licensed intermediary, all lawful claims of

Objection to 146. (1) A policyholder, creditor or owner of a licensed insurer,

(3) Despite subsection (1)(c), the Authority may investigate a