1   Short title

   2   Interpretation

   3   Application of Act

   4   Commission responsible for administration of Act

   5   Registers


Regulation of Insurance Companies Registration

   6   Only bodies corporate to carry on insurance business

   7   Registration of bodies corporate carrying on insurance business

   8   Restrictions regarding registration

   9   Share capital and deposit required for registration

   10   Application for registration

   11   Conditions for registration

   12   Certificate of registration

   13   Notification of change in particulars specified in application

   14   Suspension of registration

   15   Grounds for cancellation of registration

   16   Implementation of proposal to refuse or cancel registration

   17   Summary cancellation of registration

   18   Effect of cancellation of registration

   19   Display and surrender of registration certificate

   20   Contracts with non-registered companies

   21   Amount and form of deposit by companies


Investment of Funds of Insurance Companies

   22   Investment of funds

   23   Prohibition relating to loans


Administrative and Accounting Requirements for Insurance Companies

   24   Maintenance of principal office and appointment of principal representative

   25   Maintenance and separation of funds

   26   Preparation of annual accounts, etc

   27   Group accounts

   28   Audit of accounts of registered insurer

   29   Keeping of records by insurers

   30   Annual investigations into financial position of insurers carrying on long term business,

   31   Amalgamation and transfer

   32   Regulation of controlling interest after transfer or amalgamation

   33   Application by persons affected by scheme

   34   Effect of decisions of Commission and appeals

   35   Vesting by Minister


Corporate Governance, Appointment of Auditor and Actuary, Establishment of Conduct, Investment and Loan and Audit Committees, Responsibilities of Auditors

   36   Duty of care of directors and senior officers

   37   Appointment of auditor

   38   Resignation of auditor

   39   Access to information

   40   Auditor's Report

   41   Auditor's right to attend, requisition meetings

   42   Report by Commission

   43   Amendment of financial statements and reports

   44   Appointment of actuary

   45   Resignation, etc, of actuary


Investigations by the Commission

   46   Commission may demand information

   47   Power to make investigations

   48   Power to obtain information

   49   Entry on premises

   50   Action on completion of investigation



   51   Winding-up

   52   Petition for winding-up

   53   Margin of solvency

   54   Transfer of insurance business

   55   Local treatment in foreign winding-up

   56   Supplemental provisions as to winding up

   57   Ascertainment of value of liabilities under policies

   58   Reduction in contracts as alternative to winding up

   59   Application of deposits

   60   Guaranteed companies


Associations of Underwriters

   61   Associations of underwriters to be registered

   62   Application for registration under this Part

   63   Conditions for registration

   64   Documents and information to be furnished to Commission

   65   Suspension of registration

   66   Grounds for cancellation of registration

   67   Implementation of proposal to refuse to register or to cancel registration

   68   Effect of cancellation of association's registration on insurance contracts

   69   Deposits by associations of underwriters


Registration of Insurance Intermediaries

   70   Registration of insurance intermediaries

   71   Application for registration

   72   General restrictions on registration

   73   Conditions for registration

   74   Certificate of registration

   75   Suspension of registration

   76   Grounds for cancellation of registration

   77   Implementation proposal to refuse to register or to cancel registration

   78   Summary cancellation of registration under this part

   79   Information to be supplied to Commission

   80   Production of certificate of registration

   81   Display and surrender of registration certificate


Miscellaneous Provisions Relating to Insurance Intermediaries

   82   Agents, etc

   83   Fraudulent representations

   84   Liability for unlawful contracts

   85   Compensation to unauthorised person for placing or negotiating insurance

   86   Rebating

   87   Bona fide salaried employees

   88   Returns by insurers

   89   Returns by registered brokers and agents


Long-Term Insurance Business

Issue of Policies

   90   Rates of premium

   91   Notice regarding proof of age

   92   Procedure where company declines to accept proof

   93   Mis-statement of age and non-avoidance of policy

   94   Provisions relating to state of health of insured

   95   Minors

   96   Insurable interests


Designation of Beneficiary or Legal Personal Representative

   97   Designation of beneficiaries generally

   98   Irrevocable designation of beneficiaries

   99   Alteration or revocation of designation on cessation of marriage

   100   Insured person entitled to dividends

   101   Circumstances in which insurance proceeds not part of insured person's estate, etc

   102   Presumption of trust negatived

   103   Appointment of trustee

   104   Beneficiary predeceasing insured person

   105   Right to enforce payment of proceeds

   106   Power of group life insured to sue insurer


Protection of Policies

   107   Interest of insured protected in certain cases


Paid Up Policies, Surrender Values and Non-Forfeiture

   108   Paid-up policies

   109   Surrender of policies

   110   Notice in respect of long term insurance policies by insurer

   111   Insured's right of cancellation

   112   Non-forfeiture of ordinary policies in certain cases of non-payments of premiums

   113   Treatment of debts on grant of paid-up policies


Payment of Policy Moneys

   114   Death of policy-holder not being life insured

   115   Unclaimed moneys



   116   Conversion into mutual companies and vice versa.


Reserves and Dividends

   117   Reserves

   118   Dividend not to impair


General Insurance

   119   Application of this part

   120   Disclosure of pro rata condition of average

   121   Third party rights



   122   Insurance contributory fund

   123   Insurer's duty of care re agents

   124   Register to be kept

   125   Replacement of lost life policy

   126   Effect of suicide or capital punishment on life policy

   127   Liability limitation for war void

   128   Offences by company not to invalidate policies

   129   Local policies governed by Jamaican laws

   130   Payment of moneys in specified currency

   131   Power to pay money into Court

   132   Payment without probate or administration in certain cases

   133   Structured Settlements

   134   Approval required for notice offering shares for subscription

   135   Publication of authorised subscribed and paid-up capital

   136   Inspection of documents

   137   Documents to be admitted in evidence

   138   Authority to sign documents

   139   Printing of documents

   140   Appeal

   141   Gazetting of registration, etc

   142   Restriction on use of insurance terms

   143   Extension of time limits

   144   Regulations

   145   Exemptions

   146   Misleading advertisement

   147   Offences

   148   General penalties

   149   Repeal and saving

   150   Transitional



[Date of Commencement: 21st December, 2001]

Act 26 of 2001

Preliminary (sections 1-5)

1   Short title

   This Act may be cited as the Insurance Act.

2   Interpretation

   (1) In this Act, unless the context otherwise requires-

   "accident insurance business" means the business of effecting and carrying out contracts of insurance (excluding contracts falling within paragraphs (c), (d) and (e) of the definition of "ordinary long-term insurance business") against the risk of the persons insured sustaining injury or dying as a result of an accident, or of an accident of a specified type, which provides for fixed pecuniary benefits or benefits in the nature of an indemnity or both;

   "actuary" means a person who-

   (a)   is a fellow of such professional organisation of actuaries as may be prescribed; and

   (b)   satisfies such other requirements as may be prescribed.

   "adjuster" means a person, not being a salaried employee of an insurer or an attorney-at-law for an insurer or insured, who on behalf of an insurer or insured, for compensation, directly or indirectly-

   (a)   solicits the right to negotiate the settlement of or investigate a loss or claim under a contract or a fidelity, surety or guaranty bond issued by an insurer; or

   (b)   investigates, adjusts or settles any such loss or claim,

and includes a person holding himself out as an adjuster, investigator, loss assessor, consultant or adviser with respect to the settlement of such losses or claims, but does not include a person employed as an appraiser, engineer or other expert solely for the purpose of giving expert advice or evidence, or a person who acts as an adjuster of marine losses only;

   "agent" means any individual, firm or body corporate, not being an employee of an insurer-

   (a)   appointed by that insurer, to solicit applications for insurance or negotiate insurance on its behalf (otherwise than through an agent); and

   (b)   other than a broker, authorised by the insurer, to effectuate and countersign insurance contracts on its behalf;

   "annual return" means the return required to be made under section 121 or 122 of the Companies Act;

   "Appeal Tribunal" means the Appeal Tribunal established under the Financial Services Commission Act;

   "appointed day" means the day appointed pursuant to section 1;

   "associated person" shall be construed in accordance with subsection (4);

   "association of underwriters" means an association of individual underwriters whereby every underwriting member of a syndicate becomes liable for a separate part of the sum secured by each policy subscribed to by that syndicate, limited or proportionate to the whole sum thereby secured;

   "auditor" means a person who-

   (a)   is a registered public accountant as defined in section 2 of the Public Accountancy Act; and

   (b)   satisfies such requirements as may be prescribed,

and includes a firm of such persons.

   "bond investment business" means the business (not being life insurance business) of issuing bonds or endowment certificates by which the company, in return for subscriptions payable at periodic intervals of less than six months, contracts to pay the bond holder a sum at some future date, and includes sinking fund and capital redemption insurance business;

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