Insurance Order, 2006 · As enacted
20. 11)
Official textFrom Attorney General's Chambers, unchanged
Every insurer registered under this Order shall establish and maintain in accordance with this section an insurance fund in respect of the class or each of the classes of insurance business carried on by the insurer in Brunei
insurance business
"insurance business" includes the business of effecting and carrying out contracts {a} protecting persons against loss or liability to loss in respect of risks to which such persons may be exposed; or {b) to pay a sum of money or render money and includes reinsurance business;
Darussalam so far as that business relates to Brunei Darussalam policies.
The Authority may require any registered insurer to establish and maintain, in addition to the insurance funds under subsection ( 1) such other insurance fund as the Authority may determine for different types of policies in respect of each class of business.
Authority
"Authority" means such person as is appointed by His Majesty the Sultan and Yang Di-Pertuan under subsection 11) of section 4 to be the Authority for the purposes of this Order;
( 3)
There shall be paid into an insurance fund all receipts of the insurer properly attributable to the business to which the fund relates {including the income of the fundL and the assets comprised in the fund shall be applicable only to meet such part of the insurer's liabilities and expenses as is properly so attributable.
In the case of a fund established in respect of life business, no part of the fund shall be allocated by way of bonus to participating policies, except with the approval of a qualified actuary and out of a surplus of assets over liabilities as shown on the last statutory valuation of the fund; and on the making of any such allocation that surplus shall be treated for the purposes of this section as reduced by the amount allocated.
statutory valuation
"statutory balance-sheet" and "statutory valuation" mean respectively a balance-sheet lodged with the Authority in order to comply with subsection (1) of section 59, and a valuation of which the results are shown in a valuation balance-sheet lodged with him on an actuarial investigation made in order to comply with subsection (1) of section 60. Any reference to the last statutory balance-sheet or to the last statutory valuation shall be construed as referring to that last prepared or made and not superseded by the arrival of the date as at which another is to be prepared or made. Any reference to there being shown in a statutory balance-sheet or on a statutory valuation a surplus of assets over liabilities of an insurance fund shall be construed accordingly by reference to the prescribed form of balance-sheet or valuation balance-sheet and to the rules to be followed under this Order and the regulations in preparing it;
If on the last statutory valuation in the case of a fund established in respect of life business there was shown a surplus of assets over liabilities of the fund, there may, subject to the approval of a qualified actuary and to any provision to the contrary in any instrument or contract binding the insurer, be withdrawn from the fund an amount not exceeding the surplus, and on the making of any such withdrawal that surplus shall be treated for the purposes of this section as reduced by the amount withdrawn:
Provided that no part of the surplus attributable to participating policies other than reinsurance policies shall be withdrawn in excess of one quarter of the amount allocated thereout by way of bonus to participating policies.
If in the last statutory balance sheet in the case of an insurance fund established in respect of general business there was shown a surplus of assets over liabilities of the fund, there may, subject to any provision to the contrary in any instrument or contract binding the insurer, be withdrawn from the fund an amount not exceeding the excess of the surplus over any fund margin of solvency prescribed for that fund under section 21, and on the making of any such withdrawal that surplus shall for the purposes of this section be treated as reduced by the amount withdrawn.
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In respect of any policy belonging to the insurer's life business which is under subsection (4) of section 19 removed from the insurer's register of Brunei
Darussalam policies there may be withdrawn from an insurance fund to which the policy relates an amount not exceeding the prescribed amount.
Any amount withdrawn from an insurance fund under subsection (5),
(6} or (7) and, in a winding-up, any part of an insurance fund remaining after meeting the liabilities and expenses to which the fund is applicable may be dealt with as if it had not formed part of the fund except that in the case of a winding-up where any other insurance fund of the insurer under this Order is in deficit the surplus remaining after the winding-up shall first be applied to make good the deficit in that fund.
In a winding-up, assets comprised in the deposit made by an insurer under section 16 in respect of either class of business may be allocated by the
Authority to any insurance fund established by the insurer for that class of business in such manner and proportion as it sees fit, and assets so allocated shall be treated as assets of the insurance fund, and subsections (3) and (8) shall apply to those assets accordingly.
Any insurance fund established by an insurer for any class of business shall, notwithstanding that the insurer at any time ceases to carry on that class of business in Brunei Darussalam, continue to be maintained by the insurer so long as the insurer is required by this Order to maintain the register of policies belonging to that class.
In the case of an existing insurer, an insurance fund shall be established as at the date of establishment of the register under subsection (9} of section 19 and by reference to the policies registered or required to be registered in it as at its establishment, and by reference to the assets and liabilities of the insurer as at that date; and
existing
"existing" means existing immediately before the commencement of this Order;
{a} there shall be allocated to the fund assets of a value not less, after allowing for any charges to which the fund is not applicable, than the aggregate of the amounts specified in subsection (12); and
{b)
all such matters as would subsequently have affected the fund if established at that date shall be brought into account accordingly.
The amount~ referred to in paragraph {a} of subsection (11) are as follows-fa}
the amount, determined in the prescribed manner, of the liability of the insurer in respect of the policies referred to in subsection ( 11);
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the amount of any other liabilities of the insurer in so far as the assets allocated to the fund will be applicable or be treated as having been applicable to meet those liabilities; and
{c) the amount of the fund margin of solvency, if any, required to be maintained for the fund under section 21.
The assets of any insurance fund established by an insurer under this
Order shall be kept separate from all other assets of the insurer.
Terms defined in s 2
Authority
Defined · s 2"Authority" means such person as is appointed by His Majesty the Sultan and Yang Di-Pertuan under subsection 11) of section 4 to be the Authority for the purposes of this Order;
existing
Defined · s 2"existing" means existing immediately before the commencement of this Order;
insurance business
Defined · s 2"insurance business" includes the business of effecting and carrying out contracts {a} protecting persons against loss or liability to loss in respect of risks to which such persons may be exposed; or {b) to pay a sum of money or render money and includes reinsurance business;
registered insurer
Defined · s 2"registered insurer" means an insurer which has been registered by the Authority under this Order;
statutory valuation
Defined · s 2"statutory balance-sheet" and "statutory valuation" mean respectively a balance-sheet lodged with the Authority in order to comply with subsection (1) of section 59, and a valuation of which the results are shown in a valuation balance-sheet lodged with him on an actuarial investigation made in order to comply with subsection (1) of section 60. Any reference to the last statutory balance-sheet or to the last statutory valuation shall be construed as referring to that last prepared or made and not superseded by the arrival of the date as at which another is to be prepared or made. Any reference to there being shown in a statutory balance-sheet or on a statutory valuation a surplus of assets over liabilities of an insurance fund shall be construed accordingly by reference to the prescribed form of balance-sheet or valuation balance-sheet and to the rules to be followed under this Order and the regulations in preparing it;