ANÁLISIS E INTERPRETACIÓN DE RESULTADOS

This Part shall apply to insurers carrying on long-term business.

Insurer carrying on long-term business to maintain separate accounts

An insurer to which this Part applies shall keep its accounts in respect of its long-term business separate from any accounts kept in respect of any other business.

All receipts of such an insurer’s long-term business shall be carried to, and form part of, a special fund with an appropriate name, in this Act referred to as a “long- term business fund”.

Such an insurer shall maintain books of account and other records such that—

the assets in its long-term business fund; and the liabilities of its long-term business,

22 (1) (2) (3) (4) (5) 23 24 (1) (2) (3) (a) (b)

No payment from such an insurer’s long-term business fund shall be made directly or indirectly for any purpose other than a purpose of the insurer’s long-term business, notwithstanding any arrangement for its subsequent repayment out of receipts of business other than the long-term business, except in so far as such payment can be made out of any surplus certified by the insurer’s approved actuary to be available for distribution otherwise than to policy-holders.

No insurer to which this Part applies shall declare or pay a dividend to any person other than a policy-holder unless the value of the assets of its long-term business fund, as certified by the insurer’s approved actuary, exceeds the extent (as to certified) of the liabilities of the insurer’s long-term business; and the amount of any such dividend shall not exceed the aggregate of—

that excess; and

any other funds properly available for the payment of dividend, being funds arising out of business of the insurer other than long-term business. This section shall not apply in relation to an insurer which, immediately before 1 January 1980—

either—

was an exempted company within the definition in section 1 of the Exempted Companies Act 1950; or

had a permit under section 69 of the Bermuda Immigration and Protection Act 1956 [title 5 item 16] or under section 3 of the Non- Resident Insurance Undertakings Act 1967 [title 5 item 17]; and was carrying on both long-term and general business in or from within Bermuda.

Transfer of long-term business

Any scheme under which the whole or any part of the long-term business of any insurer to which this Part applies (in this section referred to as the “transferor”) is to be transferred to another insurer (in this section referred to as the “transferee”) shall be void unless it is made in accordance with this section and the Court has sanctioned the scheme thereunder.

Either the transferor or the transferee may apply to the Court, by petition, for an order sanctioning the scheme, and the Court shall have power to make such an order subject to this section.

The Court shall not entertain such a petition unless the petition is accompanied by a report on the scheme prepared by an approved actuary and the Court is satisfied that sufficient notice of the scheme has been served on each policy-holder affected and been published in the Gazette, and also that copies of the petition and the report have been served on the Authority.

On any petition under this section— (4) (5) (a) (b) (6) (a) (i) (ii) (b) 25 (1) (2) (3) (4)

any person who alleges that he would be adversely affected by the carrying out of the scheme; and

the Authority, shall be entitled to be heard.

[subsections (5) and (6) deleted by 1985:1]

Subsections (1) to (4) shall not have effect in relation to the transfer of long-term business that is re-insurance business.

[section 25 amended by 2001:27 effective 1 October 2001; and by 2001:33 effective 1 January 2002]

Appointment of approved actuary

Every Class A, Class B, Class C, Class D and Class E insurer shall appoint an individual approved by the Authority under subsection (3) as a person qualified to assess the adequacy of total long-term insurance reserves, as that insurer’s approved actuary.

Before making any such appointment an insurer shall submit particulars of such person to the Authority for approval.

The Authority, on being satisfied that a person is fit and proper to hold such an appointment shall approve the appointment as that insurer’s approved actuary.

Subject to subsection (5), the Authority may revoke an approval of an approved actuary in respect of any insurer, if it is satisfied that he is no longer a fit and proper person to hold the appointment.

The Authority shall not revoke its approval unless it has first notified the approved actuary and the insurer of its intention to do so.

[section 26 amended by 2001:27 effective 1 October 2001; amended by 2001:33 effective 1 January 2002; repealed and replaced by 2012 : 36 s. 14 effective 1 January 2013]

Actuarial certificates of long-term business liabilities

An insurer to which this Part applies shall include in the insurer’s statutory financial return called for by section 18 a certificate prepared by the insurer’s approved actuary in the prescribed form as to the amount of the insurer’s liabilities outstanding on account of its long-term business.

Notwithstanding subsection (1) the Authority may in writing at any time direct an insurer to which this Part applies to cause to be produced to the Authority a valuation of the insurer’s liabilities outstanding at the date specified in the direction on account of its long-term business, together with a certificate prepared by the insurer’s approved actuary in the prescribed form relating thereto; and the insurer shall comply with any such direction.

[section 27 amended by 2001:27 effective 1 October 2001; and by 2001:33 effective 1 January 2002] (a) (b) ((5) and (6)) (7) 26 (1) (2) (3) (4) (5) 27 (1) (2)

PART IVA