Insurance Order, 2006 · As enacted
Section 31
Official textFrom Attorney General's Chambers, unchanged
Subject to subsections (2) and (3), no insurer shall assume any risk in respect of any general insurance business unless -
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;
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(a} the premium payable is received by the insurer or is guaranteed to be paid by such person in such manner and within such time as may be prescribed; or
a deposit in advance has been made of such amount and in such manner as may be prescribed.
Where the premium payable pursuant to subsection {1) is received by any person, including an insurance agent or insurance broker, on behalf of an insurer, such receipt shall be deemed to be receipt by the insurer for the purposes of that subsection and the onus of pro'V'iliing that the premium payable was s 2'/o7
insurance agent
"insurance agent" means a person who does all or any of the following- {a} solicits or obtains a proposal for insurance on behalf of an insurer; 999 20th. MARCH, 2006 {b) offers or assumes to act on behalf of an insurer in negotiating a policy; {c) does any act on behalf of an insurer in relation to the issuance, renewal or continuance of a policy;
received by a person, including an insurance agent or insurance broker, who was not authorised to receive such premium shall lie on the insurer.
insurance broker
"insurance broker" means any company who, for compensation as an independent contractor, in any manner solicits, negotiates or procures insurance or the renewal or continuance thereof on behalf of an insured other than himself;
Subsections (1) and {2) shall apply to such description of general insurance business as may be prescribed.
{4)
Notwithstanding subsections {1) and (2), an insurer shall not grant credit to insurance agents or insurance brokers and insured in respect of motor vehicle insurance business.
{5)
Where any person, including an insurance agent or insurance broker receives on behalf of an insurer a premium on a policy of insurance of a description for the time being prescribed pursuant to subsection {3), such person shall deposit with, or despatch by post to, the insurer the premium so collected within such period as may be prescribed in relation to policies of the description.
{6)
Any refund of premium, in relation to a policy of insurance of a description as may be prescribed under subsection {3) which may become due to an insured on account of the cancellation of a policy or alteration in its terms and conditions or for any other reason, shall be paid by the insurer directly to the insured and a proper receipt shall be obtained by the insurer from the insured and such refund shall not be paid or credited to any other person, including an insurance agent or insurance broker.
Any person who fails to comply with this section shall be guilty of an offence and shall be liable on conviction to a ftne not exceeding $10,000.
Appointment of actuary.
Terms defined in s 2
insurance agent
Defined · s 2"insurance agent" means a person who does all or any of the following- {a} solicits or obtains a proposal for insurance on behalf of an insurer; 999 20th. MARCH, 2006 {b) offers or assumes to act on behalf of an insurer in negotiating a policy; {c) does any act on behalf of an insurer in relation to the issuance, renewal or continuance of a policy;
insurance broker
Defined · s 2"insurance broker" means any company who, for compensation as an independent contractor, in any manner solicits, negotiates or procures insurance or the renewal or continuance thereof on behalf of an insured other than himself;
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;