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3 1989

INSURANCE ACT, 1989

PART II

Supervision of Insurers

Submission and publication of returns and documents by insurers.

11. —(1) The Minister may by regulation—

(a) prescribe the returns and documents to be submitted by holders of authorisations,

(b) require any return or document submitted to him to be attested by a person of professional standing specified by the Minister, and by directors and such officers of the company as he may prescribe,

(c) require that any such return or document shall be published in such manner as the Minister sees fit and that any return or document shall be laid before each House of the Oireachtas.

(2) The Minister shall have the right to disclose any such return or document to the supervisory authority of another Member State of the European Communities, where such disclosure is required or authorised by law.

Regulations regarding reserves liabilities, valuation of assets, reinsurance cessions and solvency certificates.

12. —The Minister may make regulations for the proper exercise of his functions under the Insurance Acts in respect of the following—

(a) the calculation of technical or mathematical reserves representing underwriting liabilities,

(b) the valuation of assets of an insurance undertaking,

(c) the nature and spread of assets representing underwriting liabilities and the localisation and matching of such assets,

(d) the calculation of underwriting liabilities,

(e) reinsurance cessions of authorised undertakings including information which undertakings must supply in respect of their reinsurance arrangements,

(f) the procedure, conditions and forms to be involved in the issue of a solvency certificate,

(g) the prohibition or limitation of investments of a specified class or description,

(h) the percentage of distributed surplus allocated to policyholders.

Keeping of records by undertakings.

13. —An undertaking shall maintain at its registered office or place of business in the State proper records of all business carried on by the undertaking in the State under its authorisation.

Separation of assets and liabilities attributable to life assurance business.

14. —(1) Every undertaking authorised to carry on life assurance business—

(a) shall maintain an account in respect of that business and the receipts of that business shall be entered in the account maintained for that purpose and shall be carried to and form the life assurance fund, and

(b) shall maintain such accounting and other records as are necessary for identifying—

(i) the assets representing the fund maintained by the undertaking under paragraph (a) of this subsection, and

(ii) the liabilities attributable to that business.

(2) The provisions of subsection (1) are without prejudice to the obligations of an undertaking to maintain such records as are necessary for the preparation and submission to the Minister of separate accounts and statements for any class or part of a class of business as required from time to time by the Insurance Acts.

Application of assets of undertaking transacting life assurance business.

15. —(1) The assets representing the fund maintained by an undertaking in accordance with section 14 (1)

(a) shall be applied for the purposes of that business, and

(b) shall not be transferred so as to be available for other purposes of the undertaking except where the transfer constitutes reimbursement of expenditure borne by other assets (in the same or the last preceding financial year) in discharging liabilities wholly or partly attributable to life assurance business.

(2) Where the value of the assets mentioned in subsection (1) is shown, by an investigation to which Article 5 of the European Communities (Life Assurance Accounts, Statements and Valuations) Regulations, 1986 (S.I. No. 437 of 1986) applies or which is made in pursuance of a requirement imposed under section 16 or 17 to exceed the amount of the liability attributable to the undertaking's life assurance business the restriction imposed by that subsection shall not apply to so much of those assets as represents the excess.

(3) Subsection (2) shall not authorise a transfer or other application of assets by reference to an actuarial investigation at any time after the date when the abstract of the actuary's report of the investigation has been deposited with the Minister in accordance with Article 9 (1) of the said Regulations of 1986.

(4) Nothing in subsection (1) shall preclude an undertaking from exchanging, at fair market value, assets representing the fund maintained by the undertaking in respect of its life assurance business for other assets of the undertaking.

(5) A mortgage or charge shall be void to the extent to which it contravenes subsection (1).

(6) Money from the fund maintained by an undertaking in respect of its life assurance business shall not be used for the purposes of any business of the undertaking which is not life assurance business notwithstanding any arrangement for its subsequent repayment out of the receipts of that other business.

(7) No undertaking to which this section applies shall declare a dividend at any time when the value of the assets representing the fund or the solvency margin, as determined in accordance with any applicable valuation regulations, is—

(a) in the case of the fund, less than the amount of the liabilities attributable to that business as so determined, or

(b) in the case of the solvency margin, less than the amount required by the Regulations of 1984.

(8) In this section a reference to “the fund” is to the total fund of assets maintained by an undertaking in respect of its life assurance business, not being shareholders' assets.

General powers to require information.

16. —(1) Whenever the Minister considers it necessary in order to satisfy himself whether an undertaking is complying with its obligations under the Insurance Acts he may require the undertaking to prepare and submit to him—

(a) returns and accounts in the form prescribed by the Insurance Acts made up to such date as the Minister may direct;

(b) such other information (including information derived from an actuarial investigation) as he may specify in relation to the undertaking itself;

(c) such other information as the Minister may specify in relation to any connected body of the undertaking which the undertaking may reasonably be expected to provide.

(2) The Minister may require that such returns, accounts or information be certified or attested as to their correctness by any person nominated by him.

(3) For the purpose of this section a connected body shall include—

(a) any connected body within the meaning of section 4 (4), paragraphs (a), (b) and (d) of the Insurance (No. 2) Act, 1983 ,

(b) any body in which the undertaking, either alone or with any associate or associates, is entitled to exercise or control the exercise of one-fifth or more of the voting rights at any general meeting of that body,

(c) any body which, either alone or with any associate or associates, is entitled to exercise or control the exercise of one-fifth or more of the voting rights at any general meeting of the undertaking,

(d) any body which is a fellow subsidiary of the undertaking within the meaning of the Companies Acts, and

(e) any body which is connected to a connected body within the meaning of this section.

(4) For the purposes of subsection (3)body” means a body corporate or an unincorporated body of persons.

(5) A requisition under subsection (1) may specify a date by which it must be met and if it is not met by the specified date the Minister may suspend or revoke the authorisation of the undertaking in any class or part of a class of business in accordance with the procedures provided for in section 58 .

(6) The Minister may by order prescribe a lower figure than that mentioned in subsection (3), paragraph (b) or (c).

Investigations.

17. —(1) Whenever the Minister considers it necessary in order to satisfy himself whether an undertaking is complying, or has the ability to continue to comply, with its obligations under the Insurance Acts, the Minister may direct an investigation of the business of the undertaking or of any aspect of such business.

(2) Where the Minister directs such investigation he may require the undertaking to furnish to him, by a specified date any return, document or account, whether in relation to the undertaking itself or any connected body which the Minister may specify, necessary for the conduct of the investigation, and he may also require the undertaking to furnish to him returns and accounts duly certified, or any document duly attested, necessary to satisfy him as to the financial state of the undertaking.

(3) For the purposes of this section “connected body” has the meaning given to it by section 16 .

(4) If the undertaking fails to comply with subsection (2), the Minister may suspend or revoke its authorisation in any class or part of a class of business in accordance with the procedures provided for in section 58 .

Powers to intervene in cases of doubtful solvency.

18. —(1) If the Minister has reason to believe—

(a) that an undertaking is or may be unable to meet its liabilities, or

(b) that an undertaking whose head office is in the State is or may be unable to provide the required solvency margin,

the Minister may direct the undertaking to take, by a specified date, such one or more of the following measures as he deems appropriate, either indefinitely or for a specified period:

(i) to refrain from taking on new business, or new business of a specified type or class,

(ii) to limit its premium income to a specified amount,

(iii) to refrain from making investments of a specified class or description,

(iv) to realise, within a specified period, investments of a specified class or description,

(v) to maintain in the State assets of a value equal to the whole or a specified proportion of the amount of its liabilities in respect of business carried on in the State,

(vi) to take such further measures as may be specified in the direction.

(2) The powers in subsection (1), paragraphs (i) to (vi), may also be exercisable by the Minister on any of the following grounds:

(a) if the undertaking has failed to comply with a provision of the Insurance Acts,

(b) if the Minister is not satisfied that adequate arrangements are in force or will be made for the reinsurance of risks against which persons are insured by the undertaking in the course of carrying on business, being risks of a class in the case of which he considers that such arrangements are required,

(c) if there exists a ground on which the Minister would be prohibited from issuing an authorisation to the undertaking if it were applied for,

(d) if it appears to the Minister that there has been a substantial departure from any proposal or forecast submitted to him and on the basis of which an authorisation was issued to the undertaking.

(3) In the case of an undertaking whose head office is in another Member State of the Community the Minister shall, before issuing a direction under this section, notify the supervisory authority of the Member State in which the head office is situated.

(4) If the undertaking does not comply with a direction under this section the Minister may suspend or revoke its authorisation in any class or part of a class of business in accordance with the procedures provided for in section 58 .

(5) The Minister may apply to the Court for an order confirming a direction under this section or for an order confirming and extending the period of operation of such a direction for such time as the Court may, having regard to all the circumstances, consider appropriate, and the Court may grant such an order.

(6) The Court may, in addition to or in lieu of making an order under subsection (5), make such order in relation to the matter as may appear to it to be necessary.

(7) The whole or part of proceedings under this section or of an appeal in relation thereto may be heard in chambers.

(8) An undertaking to which a direction is given under this section may apply to the Court for an order setting aside the direction and the Court may grant such an order.

(9) The Minister may from time to time vary or revoke a direction given under this section.

Prior notice and display of policy terms and premium rates.

19. —(1) The Minister may require an undertaking authorised in the State or an insurance undertaking which, while not authorised in the State, issues cover from abroad for a risk arising in the State and is legally entitled to do so, to furnish particulars to him at any time of the general and specific policy conditions and premium rates attaching to specified types of contracts of insurance and he may require such particulars to be furnished before any such insurance contracts are issued.

(2) The Minister may require similar information from persons seeking an authorisation to establish within the State.

(3) The Minister may require insurers carrying on insurance of any specified class or description to display or provide information on their policy conditions and rates in such manner as he may prescribe.

Qualifications of directors, managers and authorised agent.

20. —(1) The Minister may require an insurer to submit to him such information as he may require concerning the qualifications and experience of its directors and of the holders of such managerial posts as he may specify, or of the insurer's authorised agent in the State.

(2) Where it appears to the Minister that a person holding a position as director, manager or authorised agent is not a person suitably qualified or experienced to hold that position (“a qualified person”) he may direct that, as long as that person holds the position, the insurer shall take such one or more of the measures specified in section 18 (1) as the Minister deems appropriate and the insurer shall comply with that direction and that section shall have effect accordingly.

(3) Every proposal to appoint a director, chief executive or authorised agent of the insurer shall be notified to the Minister and shall not be made if the Minister objects to the proposal on the ground that the person proposed to be appointed is not a qualified person.

(4) (a) An applicant for an authorisation shall supply the Minister with such information as he may require concerning the qualifications and experience of any person proposed to be a director of the undertaking and of each person proposed to be the chief executive or to hold any other management position of responsibility in the undertaking, or of the person who is proposed to be the authorised agent of the undertaking.

(b) The Minister shall not grant an authorisation if it appears to him that such person is not a qualified person.

(5) In the case of an undertaking whose head office is not situated in the State this section shall apply only to persons carrying on functions of the undertaking in the State.

(6) No claim shall lie against the Minister for any loss of office arising directly or indirectly from any of the provisions of this section.

(7) An undertaking may appeal to the Court against a direction or objection of the Minister under this section. The appeal may be heard in chambers.

Revocation of authorisation where no business is being done.

21. — (1) Subject to the provisions of this section, the Minister may—

(a) revoke an authorisation in any class or part of a class of life or non-life insurance if he is satisfied that no business has been carried on under the authorisation for the last two consecutive years, or if the holder of an authorisation has reduced the scale of its business in a class or part of a class of life or non-life insurance so as to amount in effect to a cessation of the carrying on of business in that class or part of a class;

(b) suspend an authorisation in any class or part of a class of life or non-life insurance if he is satisfied that business has ceased temporarily or if the undertaking has so reduced the scale of its business in that class or part of a class of business as to amount in effect to a temporary cessation of the carrying on of such business, and he may lay down conditions for the removal of the suspension of the authorisation.

(2) For the purpose of this section the carrying on of insurance business shall be taken to mean the issue in the State of policies of insurance.

(3) Subsection (1) shall not apply to cessation or reduction of business or revocation or suspension of authorisations required by direction of the Minister under section 18 .

(4) The revocation or suspension of an authorisation under this section shall be carried out in accordance with the procedures provided for in section 58 .

Reinsurance.

22. —(1) It shall not be lawful for any person to carry on from or at a place of business or an establishment in the State the business of reinsuring business of a class to which the Insurance Acts apply unless—

(a) in the case of an undertaking which holds an authorisation to carry on business in one or more classes, the authorisation extends to those classes of business in which reinsurance is being accepted, or

(b) in the case of a person not holding an authorisation, that person has notified the Minister in such form as the Minister may prescribe that it carries on the business of reinsurance, and files with the registrar of companies its accounts in such form as the Minister may specify.

(2) Nothing in this section shall prevent an undertaking from accepting reinsurance in a class or classes to which its authorisation does not extend, where the business of such class or classes is ancillary to the main reinsurance business being accepted, provided always that—

(a) in the case of an undertaking which holds an authorisation under the Regulations of 1976, the class or classes of business in which reinsurance is being accepted is confined to insurance of a class or classes specified in Schedule 1 to the said Regulations, or

(b) in the case of an undertaking which holds an authorisation under the Regulations of 1984, the class or classes of business in which reinsurance is being accepted is confined to assurance of a class or classes specified in Schedule 1 to the said Regulations.

(3) Reinsurance acceptances by an undertaking shall be subject to the provisions of the Insurance Acts.

Minimum share capital requirements.

23. —(1) The Minister shall not grant an authorisation unless—

(a) in the case of a company incorporated in the State under the Companies Acts, the paid up share capital of the company is not less than £500,000, and

(b) in the case of a society registered under the Industrial and Provident Societies Acts, 1893 to 1978, the paid up share capital is not less than £500,000 and such share capital is not withdrawable by, or repayable to, members of the society.

(2) The Minister may make regulations concerning the form in which share capital may be issued by the bodies referred to in subsection (1) and may by order amend the requirements as to the required value of paid up share capital referred to in that subsection.

Power to attach conditions to authorisations.

24. —(1) Where the Minister considers it expedient in the public interest or in the interest of policyholders, he may, at the time of the issue of an authorisation or at any other time, require the holder of an authorisation to give undertakings by a specific date as to the manner in which its business shall be conducted, and such holder shall give and shall comply with the undertakings so required.

(2) The holder of an authorisation shall furnish to the Minister annually or at such more frequent intervals as the Minister may request such returns and documents or other information in such form and manner as he may require as are necessary to enable the Minister to verify that the undertakings mentioned in subsection (1) are being complied with.

(3) Where the holder of an authorisation fails to comply with subsections (1) or (2) the Minister may suspend or revoke the authorisation in any class or part of a class of business in accordance with the procedures provided for in section 58 .

Industrial assurance business.

25. —(1) Notwithstanding anything to the contrary in the Assurance Companies Act, 1909, or the Insurance Act, 1936 , the industrial assurance and life assurance funds maintained by an insurer before the commencement of this section may be amalgamated and the combined fund shall be liable for any contracts of the insurer for which any of the funds would previously have been liable.

(2) In the case of contracts of industrial assurance business, the obligation to collect premiums, whether arising from contracts, expressly or impliedly, or by statutory implication, and whether such contracts existed at or were entered into after the commencement of this section, shall be satisfied if collection is effected not less frequently than once every two months.

(3) (a) Section 50 (5) of the Insurance Act, 1936 , is hereby amended by the substitution of “£1,200” for “twenty-five pounds”.

(b) Section 51 (2) of the Insurance Act, 1936 (maximum sums which can be assured on the lives of children under 10 years) is hereby amended by the substitution of “£1,000” for “twenty pounds” (inserted by the Credit Union Act, 1966 ) and of “£1,000” for “thirty pounds” (inserted by the Credit Union Act, 1966 ).

(c) The Minister may by order alter the provisions of this subsection regarding sums assured under policies of industrial assurance.

Insurance of unnamed persons.

26. —(1) Section 2 of the Life Assurance Act, 1774, as applied by the Life Insurance (Ireland) Act, 1866, shall not invalidate a policy of insurance for the benefit of unnamed persons from time to time falling within a specified class or description if the class or description is stated in the policy with sufficient particularity to make it possible to establish the identity of all persons who, at any given time, are entitled to benefit under the policy.

(2) This section shall apply to all policies effected whether before or after the commencement of this section.

Application of Act of 1978.

27. — The Insurance (Amendment) Act, 1978 , is hereby amended by the substitution, for section 2, of the following section:

“2.— (1) This Act applies to any bond or any contract of suretyship or guarantee which is given, or is entered into, as surety or guarantor by—

(a) a licensee in the course of his banking business, or

(b) Industrial Credit Corporation Public Limited Company in the course of its business, or

(c) Fóir Teoranta in the course of its business,

or which is in the course of his banking business given or entered into, as surety or guarantor, by a person resident outside the State to satisfy, and only for the purposes of, a requirement which is both—

(i) a requirement of a licensee or Industrial Credit Corporation Public Limited Company or Fóir Teoranta, and

(ii) made solely for the purposes of securing financial facilities to be made available by that licensee, or Industrial Credit Corporation Public Limited Company or Fóir Teoranta.

(2) For the purposes of this section—

banking business’ has the meaning assigned to it by section 2 of the Central Bank Act, 1971 ;

licensee’ means the holder of a licence granted under the Central Bank Act, 1971 .”.

Amendment of Friendly Societies Act, 1896.

28. —The Friendly Societies Act, 1896, is hereby amended by the insertion of the following section after section 8:

“Restrictions on registration.

8A. Notwithstanding section 8 of this Act:

(1) No society shall be registered under this Act for any of the purposes referred to in section 8 (1) (a) or section 8 (1) (e) of this Act unless the registrar of friendly societies is satisfied that the society is a society to which Article 2.2 (b), Article 2.2 (c) or Article 3 of Council Directive 73/239/EEC1 refers.

(2) No society shall be registered under this Act for any of the purposes referred to in section 8 (1) (b) or section 8 (1) (d) of this Act unless the registrar of friendly societies is satisfied that the society is a society to which Article 2.2, Article 2.3 or Article 3 of Council Directive 79/267/EEC 2 refers, or is a society in respect of which the Minister for Industry and Commerce has indicated that he will issue an authorisation under the European Communities (Life Assurance) Regulations, 1984.

(3) No society registered under this Act shall be authorised to carry on any insurance business falling under the description of insurance of Class III, IV or VII of Schedule 1 to the European Communities (Life Assurance) Regulations, 1984, unless it has obtained an authorisation under those Regulations for that purpose.”.

Application of exemptions in the 1976 and 1984 Regulations on life and non-life insurance.

29. —It is hereby declared for the avoidance of doubt that—

(a) the provisions of Regulation 3 (2) (b) of the Regulations of 1976 and Regulation 3 (2) (b) of the Regulations of 1984 apply only in relation to the operations mentioned in the said subparagraphs where such operations are carried out by a body registered under the Acts relating to friendly societies or trade unions, and

(b) the reference in Regulation 3 (2) (c) of the Regulations of 1976 to mutual associations and the reference in Regulation 3 (2) (c) of the Regulations of 1984 to organisations and mutual associations are references to mutual associations and organisations registered under the Acts relating to friendly societies or trade unions.

Winding up of insurers.

30. —Where a petition for the winding up of an undertaking is presented by a person other than the Minister, a copy of the petition shall be served on the Minister and he shall be entitled to be heard on the petition.

Insurance Compensation Fund.

31. —(1) Subsection (1A) (inserted by the Act of 1983) of section 3 of the Insurance Act, 1964 , shall not apply to the liquidator of an insurer (within the meaning of the Act of 1983) the winding up of which is commenced by the Court after the commencement of this section.

(2) Section 3 of the Insurance Act, 1964 , is hereby amended by the insertion of the following subsections after subsection (1A):

“(1B) (a) Subject to the provisions of this section, there may, with the approval of the High Court, be paid out of the Fund to the liquidator of an insolvent insurer (including an insurer whose authorisation has been revoked by the Minister) the winding up of which has been commenced by the High Court after the commencement of section 31 of the Insurance Act, 1989, such amount or amounts (subject to the limit provided for in paragraph (b)) as the Court may from time to time authorise in respect of any sum (other than a sum payable in respect of the refund of a premium) due to a person under a policy issued by the insurer in the State in respect of a risk situated in the State, together with the costs and expenses (if any) necessarily and reasonably incurred by the person in endeavouring to secure payment of the sum.

(b) The total amount which may be paid out of the Fund under paragraph (a) in respect of any sum due to a person under a policy shall not exceed (whether as one payment or as the total of a series of payments) sixty-five per cent. (or six hundred and fifty thousand pounds, whichever is the less) of such sum.

(1C) Where any sum referred to in subsection (1B) relates to the liability of the insured to a third party, the limitation prescribed by that subsection on payment out of the Fund applies to the sum required to meet the liability of the insured to that third party.

(1D) Subsection (1B) does not apply to any sum due to a body corporate or unincorporated body of persons unless the sum is due in respect of the liability of such body to an individual or in respect of the liability of an individual to such body.

(1E) Where any amount is paid out of the Fund to a liquidator under subsection (1B) the liquidator shall pay such amount to the person in respect of whom it is due.”.

(3) Subsection (2B) (inserted by the Act of 1983) of the said section 3 shall not apply to the administrator of an insurer (within the meaning aforesaid) the administration of which is commenced after the commencement of this section.

(4) Section 3 of the Insurance Act, 1964 , is hereby amended—

(a) by the deletion from subsection (2C) (b) (inserted by section 9 of the Act of 1983) of “the Minister may at any time waive all or any part of the said debt on behalf of the Fund” and the substitution of “the Minister may with the consent of the Minister for Finance at any time waive all or any part of the said debt on behalf of the Fund”; and

(b) by the substitution of the following subsection for subsection (2A) (inserted by section 9 of the Act of 1983):

“(2A) Where an amount is paid out of the Fund to the liquidator of an insurer under subsection (1A) or (1B) of this section in respect of a sum due under a policy issued by the insurer and the costs and expenses (if any) incurred in relation to the sum, or, where subsection (1A) applies, in respect of a refund of a premium, the Accountant shall, as respects the amount paid out of the Fund, be a creditor of the insurer, and that amount shall be admitted in the proceedings for the winding up as a proved debt of the insurer having priority to any sum remaining due under the policy or in respect of the refund of the premium, as the case may be.”.

(5) Section 6 (2) (d) of the Insurance Act, 1964 (inserted by section 10 of the Act of 1983) is hereby amended by the deletion of the definition of “aggregate income” and the substitution of the following definition:

“‘aggregate income’ in relation to an insurer in respect of any period, means the gross amount of premiums paid or payable to the insurer in respect of policies issued by him in the State in that period in respect of risks situated in the State;”.

(6) In this section “the Act of 1983” means the Insurance (No. 2) Act, 1983 .

(7) A risk shall be deemed to be situated in the State for the purposes of sections 3 and 6 of the Insurance Act, 1964 , as amended by this section, where the policy or other instrument of insurance relates to—

(a) property consisting of buildings or buildings and their contents, insofar as the contents are covered by the same policy or other instrument of insurance, if the property is situated in the State;

(b) vehicles, including land vehicles, railway rolling stock, aircraft, sea, lake, river and canal vessels, if the vehicle is registered in the State;

(c) travel or holiday risks, whatever the class concerned, if the policy or other instrument of insurance is issued in the State;

or, in any other case, if the policyholder is ordinarily resident in the State or if the policyholder is a legal person and the establishment to which the policy or other instrument of insurance relates is situated in the State.

Preferential payments of debts out of technical reserves of undertaking.

32. —(1) In every winding up, the assets, wherever situated, of an undertaking representing technical reserves required to be established and maintained pursuant to the Regulations of 1976 or the Regulations of 1984, as the case may be, shall, without prejudice to any right of priority under the Companies Acts, or any other enactment, be utilised to discharge debts arising under contracts of insurance made pursuant to its authorisation in priority to other debts.

(2) For the purpose of this section any amount recovered from a reinsurer under a contract of reinsurance relating to a contract of insurance mentioned in subsection (1) shall form part of the said technical reserves.

Administrator's power of sale.

33. —(1) It is hereby declared for the avoidance of doubt that an administrator appointed under section 2 of the Insurance (No. 2) Act, 1983 , shall have, and shall be deemed always to have had, power to dispose of all or any part of the business, undertaking or assets of the insurer and to carry on any remaining business including the settlement of liabilities, with a view to the orderly completion of the administration.

(2) Where any such administrator appointed prior to the commencement of this Act has disposed of all or any part of the business, undertaking or assets of an insurer, there may, with the approval of the High Court, be paid out of the Fund to the administrator such amounts as are, in the opinion of the High Court, required to enable the administrator to continue the administration with a view to its completion in an orderly manner.

Appointment, duty and qualifications of actuary.

34. —(1) An insurer which has its head office in the State and which at the commencement of this Part has an authorisation to undertake life assurance shall, if it has not already done so, within two months of such commencement, appoint a suitably qualified person as actuary to the insurer, and particulars of the identity, experience and qualifications of the person so appointed shall be notified to the Minister on his appointment.

(2) An insurer which has its head office in the State shall within one month of being granted an authorisation to undertake life assurance appoint a suitably qualified person as actuary to the undertaking, and information as to the identity, experience and qualifications of the person so appointed shall be notified to the Minister on such appointment.

(3) It shall be the duty of the person appointed as actuary to an undertaking to carry out any function relating to the business of that undertaking which is required by the Insurance Acts to be undertaken by an actuary.

(4) The Minister may by order prescribe the qualifications and experience of the person to be appointed as actuary to an undertaking.

Duties of auditor.

35. — (1) If an auditor of an insurer—

(a) has reason to believe that there exist circumstances which are likely to affect materially the insurer's ability to fulfill its obligations to policyholders or meet any of its material financial requirements under the Insurance Acts, or

(b) has reason to believe that there are material defects in the financial systems and controls or accounting records of the insurer which are likely to have that effect, or

(c) proposes to qualify any certificate which he is to provide in relation to financial statements or returns of the insurer under the Companies Acts or the Insurance Acts, or

(d) decides to resign or not seek re-election as auditor,

he shall report the matter to the Minister in writing without delay.

(2) The auditor shall send to the insurer a copy of any report made by him to the Minister under subsection (1).

(3) Whenever the Minister is of the opinion that the exercise of his functions under the Insurance Acts or the protection of the interests of policyholders so requires, he may require an auditor of an insurer to supply him with such information as he may specify in relation to the audit of the business of the insurer and the auditor shall comply with the requirement. The Minister may require that in supplying such information the auditor shall act independently of the insurer.

(4) In the case of an insurer having its head office outside the State, the duties imposed on an auditor under this section shall apply in respect of business written by the insurer at its establishment in the State.

(5) No duty to which an auditor of an insurer may be subject shall be regarded as contravened, and no liability to the insurer, or to its shareholders, creditors or other interested parties, shall attach to the auditor, by reason of his compliance with any obligation imposed on him by or under this section.

Powers of Court with respect to amalgamation or transfer of insurance business.

36. —(1) Whenever the Court sanctions under section 13 of the Assurance Companies Act, 1909, the amalgamation of two or more insurance companies or the transfer of insurance business of any class from one insurance company to another or an amalgamation or transfer as aforesaid is to be effected which does not require the sanction of the Court under that section, the Court shall, having had regard to all the liabilities of the companies, by the order granting the sanction, or where sanction under the said section is not required, upon application being made to it, provide for such of the following matters as the circumstances require:

(a) the transfer to the transferee company of the whole or any part of the undertaking and of the property or liabilities of any transferor company;

(b) the allotting or appropriation by the transferee company of any shares, debentures, policies or other like interests in that company which under the amalgamation or transfer are to be allotted or appropriated by that company to or for any person;

(c) the continuation by or against the transferee company of any legal proceedings pending by or against any transferor company;

(d) the dissolution, without winding up, of any transferor company;

(e) such incidental, consequential and supplementary matters as are necessary to secure that the amalgamation or transfer shall be fully and effectively carried out.

(2) Where any order made under subsection (1) provides for the transfer of property or liabilities, that property shall, by virtue of the order, be transferred to and vest in, and those liabilities shall, by virtue of the order, be transferred to and become the liabilities of, the transferee company, and in the case of any property, if the order so directs, freed from any mortgage or charge which is by virtue of the amalgamation or transfer to cease to have effect.

(3) Where the Court sanctions or approves an amalgamation or transfer to which subsection (1) relates, the transferee company shall, within ten days from the date on which the order is made or such longer period as the Minister may allow, deposit two office copies of the order with the Minister.

(4) In this section—

liabilities” includes duties;

property” includes property, rights and powers of every description;

transferor company” means the company the whole or part of the undertaking or property of which is to be transferred under the amalgamation or transfer and “transferee company” means the company to which such transfer is to take place.

1OJ L228/3 of 16.8.73

2OJ L63/1 of 13.3.79