29. (1)

An insurer shall make and maintain arrangements consistent with sound insurance principles for reinsurance of liabilities in respect of risks insured or to be insured by the insurer in the course of his carrying on insurance business.

The Authority may by notice in writing require an insurer to produce for his inspection, and review within a period specified in the notice, treaties on reinsurance, such other detailed information pertaining thereto and any other such reinsurance arrangements as he may in any particular case require.

Where as a result of a review of reinsurance treaties, contracts or arrangements, the Authority is of the view that it is in the public interest to do so, the Authority shall direct the insurer to cause amendments to be made to the reinsurance treaties, contracts or arrangements when they come up for renewal.

Any person who fails to comply with subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000, and in the case of a continuing offence to a further fine not exceeding $1,000 for every day during which the offence continues after conviction.