Insurance Act, 1989

Keeping of separate bank accounts.

48.—(1) An insurance intermediary shall keep a separate bank account for each of the following classes of business—

(a) an account in connection with premiums payable to insurers under contracts of non-life insurance, or money paid or payable to policyholders by undertakings authorised under the Regulations of 1976;

(b) an account in connection with premiums payable to insurers under contracts of life assurance, or money paid or payable to policyholders by undertakings authorised under the Regulations of 1984, and

(i) all moneys, other than commission payments and service charges, received by him in connection with either such class of business shall be paid into the appropriate account, and

(ii) neither the State nor any person shall have or obtain any recourse or right against money standing to the credit of such account or accounts in respect of a claim or right against an insurance intermediary until all proper claims against these moneys have been satisfied.

(2) The account to be kept—

(a) under subsection (1) (a) shall be designated in all financial records maintained by the intermediary as “ section 48 —Non-life insurance account”,

(b) under subsection (1) (b) shall be designated in all financial records maintained by the intermediary as “ section 48 —Life Assurance account”.

(3) This section shall not apply as respects a tied insurance agent insofar as moneys received by him in connection with premiums payable to undertakings under contracts of insurance or moneys payable to policyholders by undertakings, relate to a tied agency agreement or arrangement entered into by the tied insurance agent.

(4) For the purposes of this section—

“service charge” means an amount payable, or payable in certain circumstances, by a client to an intermediary in respect of his services in relation to contracts of insurance but does not include any premium or part thereof payable to an undertaking;

“tied agency agreement or arrangement” has the meaning assigned to it in section 51 ;

“tied insurance agent” has the meaning assigned to it in section 51 .