Insurance Act, 2000

Amendment of section 22 of Act of 1989 (Reinsurance).

5.—Section 22 of the Act of 1989 is hereby amended by the substitution of the following for subsection (1):

“(1) Subject to subsection (1A), it shall not be lawful for a company registered in the State or any other person operating in the State to carry on, in the State or outside the State, the business of reinsuring business of a class to which the Insurance Acts apply unless—

(a) in the case of a person who 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 who does not hold an authorisation, the person has given notice of not less than 30 days to the Minister, in such form and manner and including such information as the Minister may prescribe, of the person’s intention to carry on the business of reinsurance.

(1A) Subsection (1) shall not apply to a company registered outside the State which does not have a place of business in the State.

(1B) (a) The notice referred to in subsection (1)(b) shall include, but not necessarily be limited to, information in respect of the following:

(i) ownership and share capital of the company, where applicable;

(ii) directors and senior management;

(iii) accountants, auditors and solicitors;

(iv) the risks proposed to be covered and related policy and other arrangements.

(b) Any subsequent changes in the information included in a notice referred to in subsection (1)(b) shall be notified to the Minister not later than the end of the year in which those changes occur.

(1C) A person who was carrying on the business referred to in subsection (1) before the commencement of section 5 of the Insurance Act, 2000, shall, not later than 60 days after such commencement, give notice to the Minister, in such form and manner and including such information as may be prescribed, of the person’s intention to continue to carry on that business, and subsection (1B) shall apply to a notice under this subsection as it applies to a notice referred to in subsection (1)(b) with any necessary modifications.

(1D) A person who contravenes subsection (1)(b) or who contravenes subsection (1C) and continues to carry on the business referred to in that subsection shall be guilty of an offence.

(1E) The Minister may direct a company in writing to cease carrying on the business referred to in subsection (1) either indefinitely or for such period as he may specify in the direction if—

(a) the company contravenes subsection (1)(b) or (1C),

(b) information that is, to the knowledge of the company, false or misleading is included in a notice of the company under subsection (1)(b) or (1C),

(c) the Minister considers that, having regard to the risks insured or proposed to be insured by the company, the company is under capitalised,

(d) the Minister considers that one or more of the directors or the senior managers of the company are not suitably qualified to direct and manage the business aforesaid of the company,

(e) the Minister considers that the company has not a sufficient number of suitably qualified employees in the State to carry on effectively the business aforesaid, or

(f) the Minister is in possession of information showing that the company has engaged in unlawful activities in or outside the State.

(1F) Where the Minister proposes to give a direction to a company under subsection (1E)—

(a) he shall notify the company in writing of the proposal and shall include in the notification a statement of the reasons for the proposal,

(b) the company may, within 28 days of the date of the notification, make submissions in writing to the Minister in relation to the proposal,

(c) the Minister shall, before deciding to give a direction and determining its terms, take into consideration any representations made to him pursuant to paragraph (b).

(1G) Subsections (5) to (9) of section 18 shall apply to a direction under this section as they apply to a direction under that section with any necessary modifications.”.