Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698071937207.pdf (Guyana)
• GUYANA ACT No.

20 of 1998 INSURANCE ACT 1998 I assent.

JANET JAGAN President 1998 3 I st December, ARRANGEMENT OF SECTIONS PART I PRELIMINARY SECTION I.

Short title 2.

Interpretation.

and commencement.

PART 11 COMMISSIONER OF INSURANCE 3.

Commissioner.

4.

Functions.

5.

Disqualification.

6.

Declaration of interest.

7.

Confidentiality.

No 20) L4.

IT�S' OF GUYANA [A.D. 1998 2 PART III MANAGEMENT AND STAFF 8.Staff.

9.Advisers 10.Management 1 1.

Arbitration Board.

and consultants.


and delegation.

PART IV FINANCIAL PROVISIONS of funds.

12.Sources offees 13.Estimate 14.Assessment.

15.Accounts.

16.Annual Report.

collected.

PARTV SUBSIDIARY LEGISLATION 17.Regulations.

18.Appeals.

PART VI OFFENCES AND PENAL TIES 19.Offences 20.Summary and penalties.

conviction.

PART VII REGISTRATION OF INSURERS on insurance business.

21.Restriction 22.Registration.

23.Application 24.Qualifications 25..Registration 26.Revocation Certificate.
of registration.

for registration.

for registration.

PART VIII ACCOUNTS AND DOCUMENTS insurer annual 27.Annual Account.

28.Compliance.

29.External 30.Annual filing.

3 1.

Associated by actuary.

32.Investigation and additional 33.Explanations copy.

34.Shareholder groups.

account.

information.

A.D. 1998) INSUR.

:JNCE [No.

20 3 of documents.

35.Production 36.Mutual insurers 37.Acquisition 38.Directors.

39 .

Licensed .

or redemption of shares.

financial institution.


PARTIX DEPOSIT of the insurer.

of deposit.

40.Deposit.

41.Assets 42.Evidence 43.Accounting 44.Stolen, 45.Substitute deposits.

destroyed of deposit.

or damaged deposit.

PARTX STATUTORY FUNDS fund.

46.Establish statutory 47.Assets.

48.Trusts.

49.Approval 50.Long-term 51.Statutory 52.Unsatisfactory 53.Furnish information.

54.Assets.

55.Investment of Commissioner.

fund.

insurance fund statement.

statement.

in Guyana.


ACQUISITION, TRANSFER AND AMALGAMATION PART XI of scheme.

for confirmation 56.Application 57.Terms of the agreement.

58.Requirements for confirmation.

59.Policy-holder dissent.

60.Notice 61.Acquisition 62.Conversion of a class of business.

companies into mutual of confirmation.

and vice versa.

INTERVENTION, JUDICIAL MANAGEMENT AND WINDING UP PART XII of intervention power.

of intervention.

63.Intervention.

64.Notice 65.Exercise 66.Winding-up.


67.Petition.

68.Insolvency.

69.Appointment of judicial 70.Cancellation of order.

manager.

No.

20) L4 ff'.S' OF GUYANA (A.D. 1998 4 of judicial manager by judicial manager.

report.

71.

Report to Court 72.Acceptance 73.Immunity.

74.Assets 7 5.

Assets 76.Subsidiary insurers.

77.Valuation 78.Reduce amount of contracts.

of insurer.

exceed liabilities.

of policy.

PART XIII CHANGES OF MANAGEMENT 79.Appointment 80.Notice of officers.

to Commissioner.
to Commissioner.

PART XIV BROKERS for registration.

insurance.

81.Registration.

82.Application 83.Indemnity 84.Business name.

85.Restrictions 86.Certificate 87.Impartiality.

88.Code of conduct.

89.Premiums.

90.Broker deemed on application.

of registration.

agent of insurer.

AGENTS AND OTHER INTERMEDIARIES PART XV to Insurance Association of Guyana.

91.Agent.

92.Registration.

93.Qualifications.

94.Delegation 95.Insurers.

96.Restrictions.

97.External agent.

98.Insurer 99.Premiums.


100.Other insurance insurer to file names and addresses with Commissioner.

intermediaries.

PART XVI PENSION FUND PLANS IO l. Registration.

I02.

Purpose of fund.

103.Application I 04.

Amendment for registration.

plan to registered AD.

1999) LV5,'C'R4XCE [No.

20 5 plan.

of Registration 105.Certificate .. 106 .

Winding-up plan.

of a pension 107.Rules of 198.Information 109.Default 110 .

Annual statements.
Annual statements.

l l l. Investigation 112.Investment 113.Perpetuities.

or explanation.

in complying of financial of assets.

condition.

with requirements.

PART XVII ASSOCIATIONS OF UNDERWRITERS 114.Registration.

115.Qualifications.

116.Deposit.

117.Rejection 118.Annual filings.

119.Prohibit new 120.Cancellation 121.Continuation policies.

of registration.

of business.

of application.

PART XVIII CONDUCT OF INSURANCE BUSINESS 122.Misleading, 123.Advertisements.

124.False claims.
124.False claims.

false or deceptive statements.

PART XIX 125.External subsidiary.

126.Compliance.

SUBSIDIARY COMPANIES CONTRACTS FOR LONG-TERM INSURANCE BUSINESS PART XX proof of age.

where company insurance.

for long-term of cancellation.

declines proof.

of policy.

of age, and non-avoidance 127 .

Contract 128.Notice 129.Long-term rates.

130 Notice regarding 13 l. Procedure 132.Misstatement 133.Minors.
134.Designation 135.Irrevocable designations 136.Designation 137.Trusts 138.Beneficiary 139.Enforcement predeceas by beneficiary for beneficiaries.

of beneficiaries ing policy-holder.

of beneficiar.ies generally.

of beneficiaries.

to accept trustee.

in wills.

No.

20] LAWS OF GUYANA //.

D. 1998 6 moneys where there is a designated beneficiary.

where there is a designated beneficiary.


of insurance 140.Status 141.Assignment 142.Entitlement 143.Effect of assignment 144.Provisions of policy to dividends relating of policies to state of health and bonuses.

on beneficiaries.

of insured.

PART XXI PROTECTION OF POLICIES 145.Application to debts.

146.Pro rat a condition .

of average PAID-UP POLICIES, SURRENDER VALUES AND NON-FORFEITURE PARTXXII policy.

147.Paid-up 148.Surrender value.

149.Non-forfeiture.

PARTXXIII MISCELLANEOUS inspection.


150.Document 15 1.

Evidence.

152.Forms.

153.Notice 154.I njury to visitor 155.Non affect of certain provisions Act.

156.Repeal oflnsurance to policy-holder.

or workmen.

of M arried Women's Property Act.


SCHEDULE 1 -CLASSES OF LONG-TERM INSURANCE BUSINESS CLASS 1: GENERAL LIFE CLASS 2: HEAL TH CLASS 3: ANNUITIES AND PENSIONS SCHEDULE 2 -CLASSES OF GENERAL INSURANCE BUSINESS CLASS l: ACCIDENT & LIABILITY CLASS 2: AUTO CLASS 3: MARINE & AVIATION CLASS 4: FIRE SCHEDULE 3 -ASSETS IN WHICH THE STATUTORY FUNDS MAY BE INVESTED SCHEDULE 4 -BROKER'S CODE OF CONDUCT AD.

1998) flV5,'CR4NCE [No.


20 SCHEDULES PART I REQUIREMENTS AS TO THE TRUST DEED AND RULES OF PENSION PLANS PART II-FORMS Form A FormB PART III-ACTUARIAL VALUATION the Insurance Act and to provide AN ACT to repeal insurance industry, thereto in Guyana, the protection or connected therewith.

for the regulation of in the insurance related the promotion of competition of consumers and for purposes Enacted by the Parliament of Guyana:- PART I PRELIMINARY I.
This Act may be cited as the Insurance operation on such date as the Minister Act 1998 and shall come into may by order appoint.

Short title and commencement.

2.
In this Act - Interpretation � (a) "actuary" means a person possessing · actuarial qualifications for the purposes of this Act; as may be approved by the Commissioner (b)"association individual system known as Lloyd's member of a syndicate of the sum secured limited syndicate, secured; thereby underwriters of underwriters" organized whereby means an association to the according every underwriting of part becomes liable for a separate by each policy or proportionate subscribed to by that to the whole sum (c)"auditor" means a person who is a member of and in good standing with the Institute Accountants of Guyana; of Chartered (d) "class of insurance business business" listed in Schedules I and 2; insurance means any of the classes of No.
20] L4 WS OF GUYANA [AD.
1998 8 (e)"Commissioner" under section appointed 3; means the Commissioner of Insurance means a person (f) "controller" indirectly to direct either or if that insurer or control, exercise or more of any class of voting shares; is a body corporate the exercise with shares per cent of twenty-five to having the power directly or of an insurer the management (g)"the Court" means the High Court; (h) "external insurer" on carrying means an undertaking the laws of a which is formed under insurance business country other than Guyana; (i) "financial year" means each period of twelve the end of which the balance is struck, no such balance of accounts year; then the calendar months at or, if is struck, Schedule 2 insurance (j) "general 2: listed in Schedule business" means insurance business (k)"insurance agent" or "agent" means any person who holds an appointment enabling insurer, in writing him to place insurance but does not include from an insurer business with that an insurance broker; ( 1)"insurance broker" an individual the insurance insurance contracts agent; means a person who as or "broker" together, brings contractor persons seeking of risks, undertakings, and carries out work preparing of insurance, with a view to and insurance but does not include an insurance (m)"insurance obligations business, business"means of an insurer the assumption in any class of insurance business, re-insurance and includes in Guyana; of the (n)"insurance company" or "company" on or proposes means a body to carry on corporate which carries in Guyana; insurance business (o)"insurer" and, except means a company carrying on insurance includes where otherwise stated, which is of underwriters of an association all business the members registered as an insurer; (p)"judicial manager" means a judicial by the Court pursuant to subsection manager appointed (1) of section 69; AD.
1998) INSURANCE [No.20 9 (q)"life insurance" Class l of Schedule l ; means insurance of a class specified in Schedule I, (r)"long-term business described in Schedule 1; insurance business" means insurance who is appointed means a person to act as its agent and to carry on (s)"main representative" by an external insurer insurance business from the Commissioner of such external processes external to enter into contracts and upon whom all lawful such against in any action or proceeding in Guyana with express shall be served; insurer insurer on behalf authorization (t)"Minister" means the Minister responsible for Finance; (u)"mutual insurer" means an insurer owned by the (if any) are and whose shareholders policy-holders entitled to interest but not dividends on their capital; {v) "officer" includes treasurer, officer actuary of an undertaking by its rules; or any other person designated as an a director, manager, secretary, (w)"pension fund manager" who registers one or more pension means any person fund plans under Part XVI; {x) "person" shall include:- (i)a natural entity legal personality territory; person and any corporation or other as having or is recognized by the laws of any country or which is given, (ii)any unincorporated association or unincorporated body of persons, elsewhere, or consortium; including whether formed in Guyana or joint venture a partnership, (iii)the government of a country or territory, any local or municipal authority and any international or Guyana or not its members include in Guyana or organimi.on public, elsewhere body, whether and whether or not having (iv)a person who, under the law of any country or legal personality; and together territory, or official position person; hold a fiduciary, representative shall be treated as a single (y)"policy" means any written contract in one or more documents; contained whether of insurance No.
20) LA H:1:.,· OF GUYAl'{4 [AD.
1998 lO (z)"policy-holder" who for the time means the person to a policy, title and includes any person being has legal to whom a policy is for the time being assigned; 2(a) "registration" by the means an authorization issued Commissioner; (b)"regulations" made by the Minister means regulations 17; under section (c)"scheme" means a proposal acquisition or amalgamation of an insurance for the transfer, business; (d)"undertaking" partnership or an means a body corporate, on a trade or association carrying unincorporated business; (e)"underwriter" means any person liable sum secured to pay or contribute by the policy.
towards named in a policy as of the the payment PART II COMMISSIONER OF INSURANCE Commiuioner, 3. appoint shall (1)The Minister for carrying be responsible who a Commissioner of Insurance to out the functions assigned shall the Commissioner (2)The Commissioner conditions, including determine.

by this Act.

shall hold office on such terms and remuneration, as the Minister may (3)The Minister may with the consent remove of the President the Commissioner (4)The Commissioner from office.
may resign his office by notice in writing to the Minister.

Functiona, 4.

The Commissioner Act, and in the exercise or special general with the general conform with any he shall given to him by the Minister.

of his functions directions is charged administration of this .s.

(I)Where the Commissioner becomes he shall immediately a member of the National cease to be the Commiss­ Assembly, ioner.
(2)The Commissioner shall be disqualified shall cease to hold office if he is adjudged convicted offence in relation is convicted whether of an offence involving of an indictable in connection with a business or not.

from holding bankrupt and or is or to a business, fraud or dishonesty, A.O.

1998] INSURANCE [No.

20 11 6.


Where the Commissioner has any financial Commissioner insurer, insurer he shall, or external as Commissioner, declare the nature and shall comply with such directions in re�ard interest thereto.

or a person connected directly or indirectly to the in any Declaration of interest.

before exercising of such interest as the Minister to the Minister may give him any functions 7.
(I)Subject to subsection (3) a person shall not disclose any Confidentiality, duties by him - n obtained informatio (a)while performing (b)as a member of the staff of the .Commissioner; ( c) as a member of any body consulted provision of this Act, while performing such consultation.

or of any in pursuance to any duties relating as the Commissioner; (2) A person who contravenes subsection (I) shall be guilty of an offence.
(3)Nothing in subsection (1) shall prevent disclosure of er or on in a report made to the Commission of the Commissioner to the Minister in connection with information behalf his duties.

PART III MANAGEMENT AND STAFF 8.

(I) The Commissioner as members as to the number of staff and the staff positions.

of his staff with the prior approval may from time to time appoint of the Minister individualsstaff.
(2) An individual on the staff of the Commissioner shall be on such terms and conditions employed may from time to time determine Minister.

of the with the consent as the Commissioner 9.

The Commissioner time engage actuaries, necessary considers may, out of money at his disposal, or managers as he of his office.

advisers of the functions for the discharge consultants, from time to Advilenand c:omultants • 10.
(I) The Commissioner prejudice to his general may, without under this Act, perform responsibilities through person or persons duly authoriz.ed by the Commissioner that behalf.

or by any member of his staff or through another any of his functions in (a) The Commissioner may with the consent of the Minister, delegate functions to members of his staff or other persons duly authori7.ed.

11.
11.

(1) There shall be established within the office of the Arllllnlionac-t. Commissioner an Insurance Arbitration Board which shall consist of three members: the Commissioner or his representa­ tive, a representative of Che Insurance Association of Guyana No.

20) L4 WS OF GUYANA [AD.


1998 12 or a successor chosen by the brokers group representing of Guyana through (2)Where in relation to a policy, any dispute between shall be arbitrated a policy-holder by the Insurance and an insurer and a broker the insurers, fair means.

arises or difference this dispute or broker, Board.

Arbitration (3)Decisions of the Insurance Arbitration Board may be appealed to the High Court.

Cap.

7:03.

(4)The Insurance accordance Arbitration with the Arbitration Act.
Board shall conduct arbitrations in PARTIV FINANCIAL PROVISIONS Sources of funds� 12.

(1) Thirty days before the end of each financial year, the of with the representatives a budget and submit to the Minister shall in cooperation Commissioner the insurers reflectin carry out the provisions formulate g monies that the Commissioner of this Act during will need in order to year.
the following ( 1) shall be approved to in subsection referred with amendments, by of the Minister the submission of the budget to the Minister.

(2) The budget if any, within fourteen days Estimate of fees collected.

13.

(1) Thirty days before the end of each financial year, the an estimate Commissioner registration collected shall prepare fees and other levies by the Commissioner in the following to in subsection that are anticipated year.
(I) shall be approved by days of fourteen referred with amendments, of the amount of to be (2) The estimate the Minister the submission of the if any, within to the Minister.

estimate Assessment.


14.The Commissioner is hereby authorized to make an annual each insurer, insurance broker, Fund Plan under the and Manager of a Pension of Association against assessment Underwriters, control of the Commissioner, based upon the revenues shall be approved of registration will be insufficient of the Commissioner credited against assessment unexpended in the following amount.
the assessment by the Minister which assessment of each of the entities shall be pro rata and assessments that the amount by the Commissioner if he determines fees and other levies to cover the annual .

Any amount unexpended collected cost of the office in such year shall be operating in the following year shall be reduced year and the by such Accounts.

15.

(I) The Commissioner shall keep in such form as may be approved received and expended by him.

of by the Minister proper accounts of moneys AD.


1998] INSURANCE (No.

20 13 auditor on the accounts and when so audited be presented shall together with a by the to the Minister to the and copies shall be made available accredited report Commissioner National Assembly months after the end of each financial and shall be published year to which it refers.

not later than six (3) The Commissioner and information shall submit to the Minister may require.

as the Minister reports such other Annual Repon.


shall submit an Annual Report of to the Minister of this Act within year to which it refers.

and the administration days of thirty shall The Minister within Assembly of the Annual Report and shall cause the 16.The Commissioner his activities the end of the calendar place the Annual Report before the National fourteen days of receipt Annual Report to be published.
list of information Commissioner developmen'5 likely and shall specifically in , insurance that are in Guyana and other matters comment on trends and on the functions to have an impact on insurance and activities The Annual Report shall include in Guyana.

of the a PARTV SUBSIDIARY LEGISLATION 17.

The Minister, regulations for carrying of this Act.

out the provisions after consulting with the Commissioner, may make Regulations • 18.

(I) An appeal lies to the Insurance Board of Review from any Appeals.
decision, Act.

direction, under this or order of the Commissioner, (2)The Insurance Board of Review to be appointed by the Min­ ister shall consist of three members, mended by the Commissioner, Insurance Association senting Guyana through the insurers, fair means.

of Guyana or a successor group repre­ and one member chosen by the brokers of one member ohosen by the one member recom­ (3)Members of the Insurance Board of Review shall serve a three year term.
(4)The Commissioner, members of the Commissioner's staff, members of the lnsumce Association successor be members brokers Board of Review.

and registered of the Insurance of Guyana or a to group, shall not be eligible (5)Members financial (6) Members of the Insurance interest of the Insurance Board of Review shalll in Guyana.

business Board ofR�view in the insurance shall be paid for from the budget of the office of the not have a their time and expenses Commissioner.

(7) An appeal High Court.


from the Insurance Board of Review shall lie to the Offences and penalties, Summa,y conviction.

l'ARTVI OFFENCES AND PENAL TIES 19.


(1) Any person who contravenes - (a) any provision (b) any regulations; (c) any direction of this Act; or or requirement made by the Commissioner and, in the case or a person authorized commit such contravention by the Commissioner, shall be guilty of an offence, unless he proves that he did not knowingly of a default in complying requirement, the default continues.
(2)Where an offence against the offence shall be deemed to be continued with any such provision, or so long as or omission this Act is committed by a company and the offence is proved to have been committed with the consent neglect officer or an actuary the company, or connivance on the part of, any director, of, or to have been facilitated officer, or other principal of the company, he, as well as shall be deemed to be guilty of the offence.
or auditor by any direction (3)Where any person signs a document Act which he knows to contain is guilty of an offence.

required false information, by or under this that person (4)Proceedings for an offence shall not be commenced after the expiration (5)Any proceedings of three years from the commission a company in respect against of the offence.
of an offence to any proceedings this Act shall be without management, against for the judicial company or of any part of the business·ofthe may be taken in respect prejudice or the winding-up of the company which of the matter constituting the offence.

20.

(1) The Commissioner shall appoint a Special Prosecutor of this Act.
any violations to be for prosecuting responsible (2)Any offence against prescribed (a) in the case of a company, is punishable as a summary offence; this Act for which no other penalty is by a fine not exceeding one dollars and where the offence is a continuing million offence, by a further fme not exceeding thousand dollars for every day during which the offence continues; one hundred and (b) in the case of an individual, dollars or by a fme not exceeding one imprisonment for a term three years, and where the offence is a ten offence, by a further fine not exceeding hundred thousand not exceeding continuing thousand continues dollars for every day during which the offence after the conviction was first obtained.
A.D. 1998) INSURANCE [No.20 15 PART VII REGISTRATION OF INSURERS 11.

(I) Only companies or Associations registered of Underwriters with and authorized carry on insurance business in Guyana.

which attempts (2)A company or association registering business without by the Commissioner under this Act may to carry on insurance be guilty shall of an offence.

with the Commissioner 22.Every company or association seeking shall pay a filing fee of two hundred the Commissioner.
registration under this Act and fifty thousand dollars to R,pnljon.

23.

(I) Any company or association Commissioner (2)The application for registration for registration may make application under this Act.

shall be in writing, signed by a representative to the of the of the company or principal Applicalioa for replnlion.
Director association, specify - and shall (a) the address association; of the head office of the company or the (b) the names of the directors and the auditors and address of the principal company or association; representative and the name of the (c) the name of the actuary of the company (d) the countries, if any, outside Guyana in which the or association; company or association carries and on insurance business; ( e) the classes of insurance business undertaken or to be (3)The application shall undertaken by the company by- be accompanied or association.
(a)a copy of the instruments constituting the company or or other duly certified proof of association incorporation; (b) a copy of the articles company or association; of association or other rules of the ( c) a copy of the latest revenue account the company or association actuarial valuation the company or association; and balance and a copy of the latest sheet of (d) in the case of a company or association having showing the nominal, share­ subscribed report upon the fmancial position of a statement holders, and paid-up the amount of the capital cash; capital of the company or association and which bas been paid up in ( e) in the case oflong-term a copy of the rate book in use, or to be used by the company insurance business premium or association in Guyana; (f) specimens of the various standard forms of proposals to be issued and policies director or the principal or association to be true and correct; and representative of the company in Guyana, certified by a 16 LAWS OF GUYANA [A.D. 1998 (g) a copy of any reinsurance contract in effect at the time within two months of the commencement, make of application.
(4) The Commissioner making application him with such additional may require for registration information any company or association under this Act to furnish as he may require.

on insurance carrying of this Act the commencement business (5)Every company in accordance or association in Guyana immediately before shall, application ioner for registration.
company the Commissioner deficient, initial or a'lSociation find any portion with this section to the Commiss­ Upon submission of its application, the shall be deemed registered of the application and should to be the company shall be given six months from the shall decide whether to cure such deficiency penalty.

without to grant or refuse an and so inform the information or seek additional in writing deadline filing (6)The Commissioner application applicant application.
Commissioner decision infom1ation which he sought.

within one month of receiving information Where additional shall decide is sought, and inform the applicant the the of the the additional within one month of receiving Qualifications for registration• 24.
(1) Where the Commissioner, of documentary production is satisfied in respect an actuary, that company or association ( a) the requirements of sections applicable, with; have been complied after appropriate evidence, inquiry and upon the advice or by the of of the applicant 21 and 22 in so far they are insurance (b)the company proceedings or association 68; under section is solvent, and not subject to (c)the company or association is likely of the provisions comply with such be applicable to it; (d)the company or association has made adequate of this Act as would to be able to ments for reinsurance or that there is no justification arrangements; of that class of insurance for making such arrange­ business (e) the m:.inagi.ng director or controller person in charge of the association person; of the company or is a fit and proper (f)in the case of a company on, or association to carry on, some other form of business in that carries or proposes addition insurance contrary to insurance business the carrying business, on of both and that other business interest; to the public is not (g) the name of the company or association is not identical the name of an with or does not so closely insurance company or association and deceive; under this Act as to be likely to it - or association, resemble already (h) being a foreign company registered A.D. 1998) INSURANCE [No.
20 17 (i)is lawfully constituted in accordance with the and has laws of the country in which it is incorporated undertaken at least three years before the date of the and application; insurance in that country for business (ii)has appointed resident some person in Guyana and has be its main representative informed the Commissioner of the in writing name and address of that person, in Guyana to either shall, the Commissioner as he may specify, conditions association in respect and shall authorize (2)Where the Commissioner the applicant to such or subject unconditionally or company register of insurance the insurance of such class or classes accprdingly.
is not satisfied, business of insurance business is made, as to one or more of the conditions in relation to all or of which in respect any of the classes the application mentioned company register business for so doing.
in subsection or association it in respect of that he proposes in writing one or more of the classes to refuse to of insurance is made and give his reasons for which application ( l ), he shall notify the insurance 25.The registration (a)specify the class of insurance shall be in the form of a certificate business to carry on insurance is registered in respect which shall- of Registration Cenificate, which the insurer and business; (b) be prima facie evidence that the insurer certificate is registered the class shown on the certificate.
to carry on insurance named on the of business 26.

(l) An insurer which ceases class for which it is registered Commissioner notified, revoke in writing the Commissioner the registration to carry on insurance of a under this Act shall notify the to this effect and on being so to subsection of that class.
shall subject in respect business (4) Revoation of regimation, of the insurer is registered and the Commissioner under this Act to carry on has reason to has not carried on that insurance two years of the grant of registration or has (2)Where an insurer business insurance that the insurer believe business within not done so for a period on the insurer month after the date of service on the registered insurance may revoke (3)The Commissioner is served a notice on which notice insurer satisfy the Commissioner business in Guyana.
of more than two years, requiring it to satisfy of the notice, he may serve him, within that it is carrying one business in Guyana.

the registration (2) where the under subsection of an insurer does not within the time specified in that subsection that it is carrying on insurance (4) The Commissioner insurer in respect of a particular shall not revoke the registration of an business class of insurance so No.

20) LAWS OF GUYANA [A.O.


1998 18 long as the insurer unless that - he is satisfied (a) reasonable provision has been or is being made to meet is under liability to Guyana policy-ho lders and that liability; (b) adequate arrangements in Guyana of premiums have been or are being made for and claims; on those payment policies.
(5)The Commissioner may revoke the registration of an insurer if it appears to him that - (a) the insurer obligations, claims payable (b) the insurer is or is likely or has unreasonably to be unable to meet its delayed by it; issued on policies of settlement has failed to comply with any of the of this Act; provisions has not, within (c) the insurer a period any information of one month from from it in required the date on which the Commissioner which he was entitled writing to require from it under this Act furnished that information duly and satisfactorily; or was procured ( d) the registration or false representation misleading any incorrect information was made or information ).
otherwise of any as a result of or in consequence the representation or wilfully was supplied (whether shall, (6) The Commissioner when the registration of the insurer - is cancelled fourteen (a) within days of the cancellation, give written specifying to the insurer of the registration the of the notice of cancellation reasons for the cancellation and insurer; the insurer to deliver (b) require to him within such shorter twenty-eight.
period as may be specified its certificate of registration or days of the cancellation in the notice.

PART VIII ACCOUNTS AND DOCUMENTS Annual Account.

27.

( 1) An insurer other than an external of each financial each class of insurance year prepare business other than an external (2)An insurer insurer a revenue carried on.
shall at the expiration account in respect of insurer, which carries on shall prepare a insurance business, and general profit and loss account if the long-term both long-term separate account profit) and balance sheet in respect business.

insurance ( or income and expenditure is not.operated business for of long-tenn insurance (3)An insurer other than an external of the insurer report on the affairs policy-holders in respect year.
of the financial insurer shall submit any submitted to shareholders or A.O.

1998) INSURANCE [No.

20 19 28.

(1) other than an external An insurer (a)with sections insurer shall comply - of the of that Act 1991 and with the Sixth Schedule 157 to 169 (Financial Disclosure) Compliance.

No.

29 of 1991, Companies Act as modified for insurance companies; (b)with, in the case of a mutual insurer, disclosure requirements law under which it is established.
as to financial and the equivalent in the contained (2) to the requirements carrying ( 1) and business insurance under subsection on general 27, an insurer In addition section shall state in its accounts for outstanding extent reported.

claims on its balance the basis on which it has provided sheet including incurred the but not for claims to which it has provided 29.
(1) (2) of each financial External insurer annual account • in Guyana, revenue sheet in the in the for insurance and a balance shall at the expiration in relation to its activities a profit and loss account An external insurer year prepare, accounts, format prescribed by the Commissioner country in which its head office is situated.

If not prepared insurer shall prepare profit and loss account the long-term and balance business insurance sheet in respect in accordance business carried on.
is not operated a separate ( or income and expenditure separate if account, revenue account for profit) with subsection ( 1 ), an external of each class of insurance 30.

(1) Annual filing, of in insurer in accordance six months of the end of other than an external shall deposit year.

The said four copies with the Commissioner four copies of each account with section under section 27 and four copies 28 within and shall indicate by the board.
shall be typewritten and the secretary by a director the date on which the accounts with the prepared of the documents insurer shall deposit prepared of the materials six months of the end of each financial An insurer Commissioner accordance prepared each financial and one copy shall be signed the insurer were approved An external copies within four copies by a director, insurer approved The documents prepared subsections auditor, approval the documents and(2).
If in any case it is made to appear to the Commissioner the circumstances with section year.
The said and one copy shall be signed and the main representative (1) and (2) shall be approved by an independent of the insurer, of the independent prepared and proof of the shall be submitted with are such that a longer period the date on which the accounts shall be typewritten paid for at the expense that than six with subsections and shall indicate the secretary, in accordance of the were with in accordance by the insurer by the board.

four 29 auditor ( l ) (2) (3) (4) No.


20) L4 WS OF GUYANA [A.D. 1998 20 months should extend insurer, (5) The written be allowed that period request referred with the Commissioner months expired.

he may, at the written of the request by not more than three months. )

shall be filed to in subsection ( 4 prior to the date on which the six Associated groups 3 1.
Where two or more insurance companies, that operate as separate that can bF wound up in accordance are associated required accounts entities which they are iucorporated, then; in addition Commissioner group to prepare, prescribed in a group, 30, the of the or association year and in the with the law under together each financial at the �n<J ;)f t0 the separate form and manner - way require by section the parent company balance (a)a consolidated the positi•.
or association n1 as a financial year, 1 company sheet showing at the close of the group of the parent wd all its subsidiary companies; showing and loss account (b) a consolidated profit the profit or association or loss as a group of the parent and all its subsidiary companies year; and during the financial company (c) such other documents as may be prescribed, approved hy an auditor sheet and profit and loss account in his opinion as a group at the close of that financial nd the balance ertificate vhether ,osition my be, of the profit and los!> as a group during f the parent company or association anies.
and all its subsidi shall bear a as to year or, as the case that financial year, by the Commissioner it gives a true and fair view of the financial ary com­ Investi�on 32. by actuary, (I)Every insurer carrying on long-term e business shall to be made once in every three years cause an investigation its liabilities, including into its financial actuary and furnish the Commissioner of the investigation.
by an of the result condition, an abstract insuranc (2)The abstract referred to in subsection (1) above shall indicate the basis of valuation deficit.

(3)An insurer adopted and the resulting surplus or carrying on long-term insurance of surplus shall not pay, allocate business with a or view of distribution transfer any part of the assets of its statutory under section and on the basis of the abstract referred to in subsections and (2).
of the Commissioner fund established with approval 46 except (I) Explanationl and additional information, 33, (I)Where it appears to the Commissioner that any account, statement balance sheet, abstract, an insurer in accordance with this Act (a)is in any particular unsatisfactory, or return filed with him by incompkte, incorrect or misleading; or (b) does not comply with th<\ ri:qiifremenls of this Act, A.D. 1998] INSURANCE [No.
20 21 days of receiving notice require such necessary and he may, by written notice served on the insurer, as he considers or additional information explanations the insurer within fourteen shall respond from the Commissioner.

(2) After considering any explanations or where no explanations made by or on behalf were made within the the may reject balance in the notice, the insurer time specified account, such directions balance have thirty days to comply with the Commissioner's directions.
sheet, as he thinks sheet, abstract, the Commissioner statement shall or return.

The insurer abstract, statement necessary or return and give for varying the account, of (3) If the Commissioner is not satisfied under subsection additional information audit"to out at the expense be carried with the accounts ( l ), he may require of the insurer.
and an (4)If the Commissioner audit to be carried the Commissioner out at the expense to carry out his duties sees fit, he may at any time require an in order for of the insurer under this section.

34.A printed copy of the latest sheet of an insurer Sharel)older copy.

filed with the Commissioner the application by the insurer.
of a shareholder of the insurer, with section 30 shall, on to him be forwarded or balance account in accordance 35.The Commissioner insurer registered may 'under special under this Act to carry on insurance require circumstances an to - business I (a)furnish him at such time and in such manner as he tnay with its inforrpation determine insurance in connection with such business at such time and place as he may determine with its insurance as he m�y specify; such books or papers in connection business as he may specify; forthwith to that person authorized in writing (b) produce ( c) produce or by the Commissioner may specify.
such books or papers as the person of this Act any written law Mutual insuren.

36.

(1) On and after the commencement which establishes insurer shall, effect whereupon auditors of a mutual insurer sections 1991. in so far as it relates or confirms the establishment cease to have to auditors, of a mutual the qualifications, powers and duties of shall be those mentioned in 170 to 172 and 174 to 186 of the Companies Act No.

29 of 1991.
29 of 1991.

(2)References to shareholders in the provisions (I) shall be deemed of the Companies to "members" and "profit reference to any revenue Act 1991 · mentioned in subsection references include insurer customarily presents annual report in order to explain insurer.

which the to its members .

as part of its the state of affairs of the and loss accounts" shali or other account No.

20] LAWS OF GUYANA [A.D. 1998 22 Acquisition or redemption of shares .. No.
29 of 1991. the Companies under this Act unless 37.Sections 38, 39 and 40 (acquisition of Act 1991 shall not apply to an insurer or redemption of own shares) registered the Commissioner decides otherwise.

Directors No 29ofl99J; anything Act 1991, an insurer, 38.Notwithstanding Companies this Act applies be delivered director and the insurer's secretary.
to the contrary other than an external contained in the to which insurer, sheet to and any balance shall be signed by a by it to the Commissioner under this Act shall have at least two directors institutior,, No.

I of 1995.

Licensed financial J 9.

(1 ) An insurer licensed Act 1995, but only in relation certain financial interest").
to which this Act applies institution activities") financial shall be deemed to be a under the Financial Institutions to section and section 14 ("restriction 28 ("conflicts on of (2)In sections 14 and 28 referred to in subsection in so far as insurance companies ( l ), references to which to "the Bank" shall, this Act applies be references to "the Commissioner".

PART IX DEPOSIT 40.
PART IX DEPOSIT 40.

(1) An insurer may not be registered under this Act and may not unless deposit it has made the carry on any class of insurance business under this section.
appropriate to carry on - (2)Where an insurer business, (a)long-term per class subject million to adjustment Commissioner after January 01, 2001 to reflect or inflation; (b)any class of general proposes insurance shall be five by the insurance the deposit dollars business, to twenty percent shall the deposit of the net for that class ( after be an amount equal premium income of the insurer deduction reinsurance) preceding amount is greater.
of any premium by the insurer for year last in Guyana during the financial or five million the deposit, dollars, whichever 41.

(1) All deposits made by an insurer under this Act shall be deemed to form part of the assets of the insurer.

accruing on any securities deposited (2) All interest and dividend under this Act shall be paid to the insurer making the deposit.

(3)Where an insurer ceases to be registered, any deposit or part of it may be retained that liabilities to policy-hold ers have been met.
he is satisfied by the Commissioner until Evidence oCdeposlt, shall, 42.The Commissioner with a certificate on demand by an insurer, out the nature furnish the and extent in writing insurer setting A.D. 1998) INSURANCE [No.20 23 of any deposit securities, with the particulars of the if any, fonning the whole or part of the deposit.

held by him together 43.

(l) If an insurer Aoounlins ofdepoait.

has made a deposit pursuant year, the insurer, to section 40, at the where necessary.
shall, deposit end of each financial or be refunded, an amount equal to the difference deposit the last preceding between net premium income during the deposit (2)A directive percent of the year, except dollars.
the amount the insurer until the Commissioner to be heard in needs to deposit shall not be issued has given an opportunity connection shall not be less than five million to the insurer to the insurer each fmancial dictating and twenty that (3)An insurer to deposit with the Commissioner with the matter.

that fails or both as required securities or approved· section is guilty he deems it necessary cancel the registration in the interest of that insurer.
of an offence and the Commissioner money by him under this may, if of the policy-holders, 44.

If any moneys or securities part of it, are, while the injury occasioned securities the Minister· held by Commissioner stolen, destroyed interested so deposited, to all persons for the purpose.

lost, as the deposit, or or damaged, Slolea, delln>yed cirdlmlpd dopooit.
shall be made good out of moneys to be appropriated by in the moneys or 45. as the deposit, An insurer may, at any time, substitute by the Commissioner .made by the insurer but so that the total amount then deposited by this Act and any security amount required is subject or liability withdrawn.
for any security or part of it, required to be or cash, security is not less than the or cash so substituted under this Act, any approved to the same charge as the security or cash or cash held Sulllllalt ..... PARTX STATUTORY FUNDS 46.

(l)Every insurer registered under this Act to carry on insurance a statutory fund in and maintain business shall establish .
business respect of each class of insurance ...... _, .... (2)TI1e statutory fund shall be established on the date on ·which the carrying on of each class of the insurer commences insurance business or not later than four months after the commencement of this Act, whichever is the later date.
(3)The fund referred to in subsection (1) shall be established and maintained (a)in the manner mentioned in subsections (4), (S) and (6); and (b) under an appropriate name in respect of each class of insurance business referred to in subsection (1).

No.

20J LA Jf!S OF GUYANA [A.O.

1998 24 (4)Every insur�,1 carrying on long-term business in insurance equal to its Guyana shall place in trust in Guyana assets liabilities on account respect to balance last financial year.
and contingency of the insurance its Guyana policy-holders less the amount deposited to this Act with by the as established of its at the end reserves business or association sheet of the company pursuant (5)Every insurer carrying and reserves en non-long-term Guyana shall place liab;lities of the insura:1ce its policy-holders account financial of ihe company yea:-.
insurance in business to its in trust in Guyana assets equal less the amount deposited on account to to this Act with respect in Guyana as established by the revenue or association at the end of its last pursuant business required not mor� than four months after the end of the financial to subsections ( 4) and (5) shall be so pursuant (6)Assets placed year to which the balance company relates.

or association sheet or the revenue account of the Assets, 47.
(1) Subject (2) and (3), the assets tu subsections fund of an insurer to any class of insurance shall not be applied business each or directly other than that in representing of which the fund was established and is being statutory indirectly respect maintained.
in subsection mentioned investigation (2)Where the value of the assets (l) is shown on an actuarial made under this Act to exceed to any class of attributable the amount of the liabilities imposed the restriction insurance shall not apply to so much of those assets ,:xces:;.

(J)Nothing (l) shall be construed business, by subsection as represents an as precluding ( l) the in subsection msurer from exchanging, representing each statutory company or a<;sociation.
at fair market value, assets of the fund for other assets (4)The provisiors of subsection for the subsequent any arrangeme'l.is any money out of the receipts business.

(5)Any mortgage or charge, (1) shall apply notwithstanding to the fund of of insurance of any other class repayment including of a judgment t'J which ;t contravenes by a cr:.!ditor.

of imposed shall be void a charge the provisions court on tte appli:ation ta the extent ( J ).
subs.ection and no insurance (6)No insurer company or association of which is a subsidiary a dividend any suet insura.

'1ce company shall declare reprc:sentmg assets maintained by the company such manner as may be prescribed, the liabilities atttibutable or association at any time when the value of the and in or association to that insurance each statutory is less than the amount of business.

fund established as determined A.O.


1998) INSURANCE [No.20 25 (7)A company or association that carries on more than one class of which it is required to business and maintain in respect a statuft>ry fund shall keep such books as are necessary of insurance establish of accounts of identifying - (a)the assets (b)the liabilities attributable _each statutory and other records respecting for the purpose to each class of insurance fund; and business .

48.
48.

(1) A trust referred shall be created which shall be approved is created prescribed.

to in subsections by a trust (4) and (5) of section deed the contents by the Commissioner and the trustees before the trust 46 of and the deed shall be in such form as may be Trusts.

(2)Notwithstanding the provisions Commissioner Minister thinks in Guyana to be placed may on such terms and conditions to be held in trust fit, allow the assets in trust outside required Guyana.
(1), the of subsection as the (3)The Commissioner may for the purposes to be placed allow of this section required the assets the order of or on behalf shall be deemed to be placed in trust and the bank shall be deemed to be a trustee.

of the Commissioner in trust to be held by a bank to and such assets 49.

(I) A trustee may not deal with any assets or specified held in trust by him approval of the Approval of Commiqioner without Commissioner.
the prior general (2)A trustee shall submit to the Commissioner in such form and a list of the assets held in at such times as may be prescribed, trust by him pursuant to section 46.

(3)A trustee who contravenes shall be under the same liability policy-holders had been beneficiaries the provisions of subsection as if the appropriate of the trust.
(I) 50.The long-term insurance business fund established 46 shall be the security of the policy-holders on no other insurance to an insurer insurance for which it would not have been liable carrying business and is not liable section belonged long-term the insurer business not to be applied, that of long-term of the insurer been only that of long-term or indirectly, business.
directly insurance for any purpose and is other than to pursuant as though it business for any contracts had the insurance insurance, than of Long-term insurance fund, 51.The insurer, shall within thirty fund mentioned of the statutory time as the Commissioner months of the expiration Commissioner with a statement - form showing days after the date of establishment in section 46 or within such further may allow and thereafter of each financial year, furnish the within six in accordance with the prescribed No.
20] LAWS OF GUl�4NA [AD.

1998 26 of the liabilities (a) particulars of the insurer which the fund it established, establishment of the fund; of the assets (b) particulars (c) such additional may require.
the fund; and comprising relating information to the fund as he as at the date of in respect to Unsatisfactory statement, 52.If it dppears to the Commissioner that - to him under section incomplete, 51 is in any inaccurate or mis­ fails to comply with the require­ or furnished (a)a statement unsatisfactory, respect or otherwise leading ments of that section; (b) the value of the assets, class of assets particular insufficient or excessive, or of the assets as shown by the statement included in a is the Commissioner or on behalf writing as he thinks may, after considerating any explanation made by such directions in of the insurer, give to the insurer, necessary for of the statement; (i) the variation or decrease (ii) for an increase and in the value of the assets respectively, and the insurer so given.
shall within thirty days c omply with any directions Furnish information.
53.An msurer shall, if directed by the Commissioner, thirty days or within within may allow, exercising such further with such information 51 and 52. under sections his powers furnish him time as the Commissioner for the purpose as he requires of 54.The assets t furnished shown by a statemen 5 1, or by the statement under section are given by the Commissioner, of the statement, an insurer directions variation shall be deemed to form part of those assets, properly to the Commissioner by as varied, where or on appeal, for the of any statutory fund, they more of some other statutory unless fund.
form part of the assets as being assets Investment in Guyana, 55.

(1) Subject carrying on (2) and (4), every insurer to subsections insurance invested such assets invested per cent of its that for each percentage fund, provided in Guyana under this Act shall however in the common stock or long term the eighty-five business long-term.
in Guyana and shall maintain have assets in an amount of not less than eighty-five statutory point of its assets debt of a company in Guyana, minimum may be reduced maximum of a ten percentage carrying Guyana may, for the purpose requirements Guyana and keep invested eighty respect (I), invest therein per cent of its net premium of long-term by one percentage point reduction.
business in insurance with the of complying in an amount not less than income in that year in each year in assets of subsection on long-term percent point, up to a insurance in Guyana until policies issued (2)An insurer A.O.

1998) JN,S'URANCE [No.20 27 the amount so invested (IO).
required carrying (3)Every insurer by subsection is equal to the amount of investment on long-term each year in securities business in insurance by the approved to such terms and conditions as may be subject Guyana shall invest Commissioner imposed increase in that year of its statutory subsection reckoned be made by the insurer.
as part of the investment ( l) of section fund as mentioned 46 and the amount so invested by this section required in is to by him an amount equal to twenty per cent of the (4)The assets of a statutory in fund shall not be invested except the securities specified may amend by order Schedule in Schedule 3.

3.

( 5)The Minister schedule 1.


PART XI ACQUISITION, TRANSFER AND AMALGAMATION 56. shall not tr�sfer or amalgamate any class of its in whole or in part, to or with the except in pursuance Applicati"" for cor,firmation of scheme.
of with this Part and confirmed of a scheme shall be made by or on behalf of any insurer transfer or amalgamation, engaged and an application in with a scheme or a scheme may be made at any time before it is of the by the scheme or the any person who, in the opinion to be affected (l) (2) for the confirmation either of any other insurer, in accordance An insurer business, insurance insurance business a scheme prepared by the Commissioner.
An application to the Commissioner the acquisition, with respect to any matter connected proposed confirmed, by Commissioner is likely scheme.

proposed Where an application Commissioner the date of the application At the hearing appear and to be heard either through other evidence in the opinion the scheme is entitled {5) In the case of an external of the application through an attorney-at-law.

as he considers of the Commissioner to be heard.


for the hearing insurer, (3) (4) (2), the is made under subsection shall set a date not less than two months from thereof.

the insurer is entitled to one of its officers or may hear such The Commissioner necessary and any person who, is likely to be affected by shall apply only to the acquisition, of insurance to policies business relating in Guyana.
transfer or amalgamation the provisions of this section 57. shall set out the terms of the agreement or deed under J., -�i:-heme wh; (.

t, it is proposed amalg11mation necessary to give effect thereto.

and shall contain to effect the acquisition, transfer or as are such further provisions Terms ofllle ............ ,.

No 201 LI/IS OF <iULli\',l [A.D. 1998 28 RequirementJ for confirmation,.

Policy-bolder diaent.
58.Before a scheme for the acquisition, of an insurer class of insurance business Commissioner transfer or amalgamation of any by the is confirmed (a)certified copies of the assets and liabilities of the companies amalgamation engaged in the acquisition, transfer or to the Commissioner; shall be submitted {b) a copy of the scheme together with copies of the if any, upon which the actuarial scheme was founded, shall be submitted to the Commissioner; and other reports, (c)copies of the scheme and of every report to submitted directs, or summaries otherwise of any class ofin;urance of the scheme and unless the shall, approved by the Commissioner to every be transmitted affected the Commissioner reports Commissioner policy-holder by the scheme by the companies acquisition, days before the application scheme is to be heard; business engaged in the transfer or amalgamation, of the for confirmation at least fifteen to make the application (the {d) notice notice shall, scheme is submitted in the Gazette approved of the intention to contain such particulars not less than one month after the copy of the to the Commissioner, as may be and in such local newspapers by the Commissioner; be published as may be prescribed) ( e)the scheme shall be open for inspection by it, for a period or shareholder policy-holder of fifteen days after the publication office of each insurer transfer of the notice, engaged in the acquisition, or amalgamation; affected by any at the (t) the Commissioner may cause a report on the scheme to be made by an independent of the report engaged and transfer in the acquisition, actuary and shall cause copy to be sent to each of the companies or amalgamation; (g)the Commissioner may give directions of advertisements concerning - of the scheme; (i) th� publication (ii} the giving of notices or creditors holders (iii)the holding of meetings to shareholders, policy­ of the companies; of any insurer with by the shall be complied or affected arid such directions person to whom they are given.
59.The Commissioner shall not sanction a scheme unless (a)the provisions (b)subject with; of this Part are complied to paragraph (c), a number of policy-holders representing amount assured scheme dissent no more than ten percent in any one portfolio therefrom; involved in the of the total AD.

1998] 'E J.

'fv',\'UR4.N( [No.


20 29 (c) in the case ofa group policy, a number of policy-holders not more than twenty-five representing total group in any one portfolio relates, ( d) he is satisfied therefrom; or or that the acquisition, dissent percent of the amalgamation to which the scheme 60.

(I) (2) notwithstanding to the policy-holders.

transfer is not detrimental shall give notice Notice of confinnation.
he confirms regarding the scheme shall be by the Commissioner, the insurer or in the The or disapproves on the scheme.

to the insurers one of the scheme within and shall have effect constituting on all persons in the instruments of association of any insurer The Commissioner whether month of the hearing When confirmed binding anything or in any rules of the insurer.

articles affected directors copy of the scheme to be filed with the Registrar Companies.
All expenses ·report the Commissioner amalgamation engaged sum due in respect summarily companies as a civil debt by the Commissioner either by the companies and any transfer or amalgamation, by the Commissioner of any actuary on the scheme or any other expenses that acquisition, or transfer shall be defrayed in the acquisition, to approving the by the scheme shall cause a of those expenses may be-recovered in obtaining or severally.
has related incurred jointly from the the of (3) 61. transferred to or amalgamated.

business on by an insurer carried is AC!IIJiaition of a cliua of buaineu.
business with the insurance is business to which the insurance Where any class of insurance acquired, of another acquired, insurance transfer insurer, transferred business the insurer shall, within one month after the acquisition, submit or amalgamation, to the Commissioner - copy of the agreement or deed under which transfer or the amalgamation is effected; (a) a certified the acquisition, and or the insurer carrying on the amalgamated (b) a statutory declaration of the made by the Chairman or by the principal representative of Board of Directors the insurer - (i) specifying every payment or transfer in respect of the acquisition, made or to be made to any person and amalgamation; (ii) stating and belief that to the best of his knowledge other than those specified no other payment, has bonds, been or is to be made in money, policies, or property securities valuable any other valuable consideration, knowledge transfer or amalgamation.
by or with the of any description of any parties to the acquisition, 62.

(I) Notwithstanding anything of incorporation instruments in its .

memorandum or other or in its articles or other rules or Convenion into mulllalcomponi• and vice versa.

No.
20] [A.D. l99R 30 long-term insurance business, in Guyana incorporated of ito; shareholders with any other class or association and that is registered whether of insurance in this Act, a company that has a share capital transact combination with the approval three fourths of the number of its shareholders holding the permission a plan for the conversion mutual company the conversion with such conditions as (2)A company may be demutualised in subsection under this Act to alone or in business, may, not less than constituting and together and with and implement into a or of the company not less than three-fourths of the Commissioner, by means of the procedure may be prescribed.
of the company or association into debentures by the purchase in accordance share capital of the shares establish specified of shares of its ( 1 ).

PART XII INTERVENTION, JUDICIAL MANAGEMENT AND WINDING UP lnlevention.

63.

( l) Subject to subsection (2) and to sections may at any time intervene 64 and 65, the in the affairs of an Commissioner insurer registered (2)The power of intervention under this Act.
conferred by subsection (1) shall be exercisable (a)the exercise where the Commissioner that - is satisfied of the power is essential policy-holders in order to protect of the insurer the risk of the insurer's inability to meet its or potential policy-holders against liabilities insurance of policy-holders or, where an insurer business, or potential to fulfill the reasonable is carrying on long-term expectations (b)the insurer has failed to satisfy policy-holders; imposed any obligation on it by this Act; (c)the insurer information purposes or inaccurate of any provision has furnished misleading to the Commissioner of this Act; for registration were made at the time of the proposed would be refused if such under or for the ( d)an application an application intervention; (e)an insurer business is deemed to be unable which is carrying on general to pay its debts; which is carrying on long-term the value of the assets representing business, insurance (f) in the case of an insurer insurance the statutory insurance insurance business business; fund maintained in respect of such class of does not exceed the liabilities of that (g)there has been unreasonable delay in the settlement of claims under policies issued by the insurer; or A.O.
l998J J.VSliR-lNCE LNo.

20 31 (h) it is in the best interests of the policy-holders for him to intervene.

64.

(I) The Commissioner shall, conferred notice (a) he is considering on him by section to the effect that - before exerc1smg 63 serve on the insurer the power Notic:e of intavenlion, a written exercising the power and the ground on which it may be: exercised; and (b) the insurer may within is served the notice Commissioner.
thirty days of the date on which make written to the representations (2) Before exercising shall take into consideration pursuant ( l ).

to paragraph (b) of subsection any representations made to him his power of intervention the Commissioner 65.
(I) The Commissioner require intervention, may, where he exercises the insurer his power of - in writing by instrument (a) to refrain, as of the date specified any contracts in the instrument- of insurance either (i) from effecting generally whether within insurer (ii) from.varying or with respect to a specified class or not the effectin g of the contract falls a class of insurance business to carry on; or is authorized which the any existing contracts; (b) to limit to a specified amount the aggregate amount of by the insurer whether the to premiums to be received by the to be written premiums aggregate relates insurer payable consideration or to the aggregate by the insurer after deducting for reinsuring any premiums the liabilities in ( c) to refrain of which premiums are to be received; of a specified class from naming investments or description; ( d) to realiz.e, before the expiration of the period specified in the instrument, investments the insurer; the whole or a specific proportion of of a specified class or description held by (e) to prepare and submit.
the documents at earlier and with greater required to be prepared under frequency section 27; (f) to have an actuary or any other person appointed by the position of the or any part a report of the financial in respect of its insurance business and to submit Commissioner insurer thereof the investigation to the Commissioner on or before a specified date; investigate or (g) to take such action as appears to him to be necessary for the purpose of protectin g policy-holders or potential policy-holders i$ or is likely insurer or, in the case of an insurer to be unable '° meet its liabilities of .the insurer against �ing on long-term the risk that the No.
20] LAWS OF GUYANA (AD.

1998 32 insurance business, of policy-holders or potential to fulfill the reasonable policy-holders.

expectations (2) The Commissioner may, where he considers it desirable do rescind insurer or vary any requirement (l ).

to subsection imposed pursuant of the imposition (3)Notice or variation such local Commissioner.
thereof newspapers may be published of a requirement or of the rescission in the Gazette and in by the as may be approved so to by him on an (4)Any costs 10 the Commissioner or to the Commissioner's with respect office incum:d under this section the insurer.

Procedures the Commissioner's for which the Commissioner for the reimbursement had to intervene.

of the Commissioner and by the Minister.


office shall be determined to the Commissioner's 63 and 64 shall be paid for by and sections duties Winding-up« 66.

(I) The Court may order the winding in accordance up of an insurer to which No.

29 of 1991 to the modification with Part V of the Companies may be that the insurer to be.

wound up on the petition mentioned this Act applies Act 199 l, subject ordered (2) The petition policy-holders.
except shall not be presented until a prima facie case has been shall not be granted established for costs for such amount as the court may think reasonable has been given.

of ten or more in subsection of the court and until security by leave of the Court and leave to the satisfaction (l) Petition.

67.
( J) Where the Commissioner proper that leave of the court, (a) for the winding the insurer present a petition: is satisfied that it is necessary or ought to be wound up, he may, with the up by the Court, of the insurer on the ground ( i)that the insurer (ii)in the case of an insurer, section 21; has contravened that·was on in Guyana before the carrying business insurance commencement which insurer it is in the interest be wound up; insurer (iii)in the case of an insurer of this Act and registration under this Act has been refused, of that of the policy-holders that the the registration under this Act has been cancelled, that it is in the interest be that the insurer of the policy-holders wound up; of which (iv)that any officer of the insurer or· its holding company refuses 46; under section to comply with any requirements (v)that the results of an investigation are such that it is in the interest that the insurer policy-holders be wound up; or of the insurer of the _A.D.
1998] JXSl!R.

:J.l'v' CE [No.
20 33 (vi)that the insurer is insolvent pursuant to section 68; or (b)for an order that the insurer business management of the insurer on the ground or any part of the insurance be placed under judicial - difficulties; (i)that the insurer of the insurer (ii)that the insurance business with sound is in fmancial being conducted insurance in accordance and practice; or principles in the interest order be made, that such an holders (iii)that it is otherwise is not of the policy­ (2)An insurer and the Court may order accordingly.
of itself, may, in .respect in writing notice one month's the Court for any order specified Commissioner to do, petition (I).

after g1vmg the of its intention so in subsection (3)Both the insurer on any petition ( 4)Where a petition are entjtled and the Commissioner presented to be heard to the Court under this section.
under this section for an order in of all by it shall,, all actions and other processes and the execution is presented against respect of any insurer, summonses writs, virtue of this section, with unless, the Court otherwise directs.

be stayed and shall not be proceeded the leave of the Court is first obtained or unless 68.

(I) An insurer shall be deemed insolvent - on long-term (a)in the case of an insurer carrying business, insurance Insolvency.
insurance and no general business of its assets the value of the assets an independent (b)in the case of an insurer does not exceed actuary; if the value the amount of its liabilities, being certified by and liabilities carrying on general insurance and no long term insurance if the does not exceed the amount of its business, by business value of its assets liabilities (i)one million or currency; (ii)twenty-five respect preceding is, the greater dollars or an equivalent sum in other percent of its premium income in its last insurance business in of its general year, fmancial whichever amount; ( c)in the case of an insurer carrying on both long-term if the insurance business, and general does not exc�ed its total business insurance value of its total assets liabilities subparagraphs by the greater of the amounts (i) and (ii) of paragraph fails to furnish if the insurer by required any of the information in specified the contrary is proved, to the Commissioner section 30 within the specified time period.
(b); or ( d)until No.
201 f.lWS OF c;r.T.INl IAD 1998 14 (2) For the purposes of this section - (a)in computing of an insurer, the amount of the liabilities liabilities and prospective shall be taken in respect of share but not liabilities all contingent into account, and capital; business insurance income of an insurer of its in respect (b) the premium in each financial general year shall be taken to be the net amount (after deduction of any premiums ) of the premiums by that insurer in of all insurance business l. for re-insurance that year in respect in Schedule paid by the insurer received specified of a class Schedule I.
Appointment of manager , judicial 69.

(I) Where an order for the judicial business under section 70 to 73, inclusive, of part of the insurance hearing section of a petition and of sections management ofan insurer of an insurer is made after the 67, the provisions of this or shall the Commissioner apply.

as judicial (2) The Court shall appoint manager.

(3)The Court may direct and expenses charges and may, if it.
thinks charges order of priority as it thinks property and expenses manager how and by whom the remuneration, of the judicial fit, charge on the property and those that remuneration in such of the insurer on that charges to any existing shall be borne in relation fit.
of the insurer, of the insurer or of such part of the as the order of the Court in the order, on a date specified appointed (4)The management business insurance shall, directs, judicial manager any person before that date; but, except judicial manager existing policy (5) The Court shall shall or enter not issue any new policy into any new contract.
issue such directions of with any such management with the leave of the Court, the or renew any to the judicial vested vest in the manager as it deems desirable in the by the Court to the exclusion immediately as to his powers and duties of the case.

circumstances manager shall (6) The judicial act under the control of the Court as to the and may apply to the Court at any time for directions management conduct manner or of the judicial arising in relation management.
in which he shall to any matter the judicial in the course Cancellalion of order, 70.Where at any time, on the application of the judicial an interest manager or of it in the matter, of the order for the judicial appearing to the Court that of the insurer has been fulfilled, to the Court to have the purpose or of part of the insurance or that for any reason any person appears management insurer the order should thereupon that in force, the Court may cancel the order and be divested manager shall of the management of the business it is undesirable the judicial remain AD.
1998) Jl'I/SURANCE [No.20 35 which shall again vest in the board of directors body of the insurer.

or other governing 71.

(1) is in the circumstances, the management of the Report to Court by judicial with efficiency compatible manaser.
file with the Court a report as soon as practicable, shall conduct economy manager with the greatest The judicial insurer and shall, stating in his opinion, the policy-holders of (a) the transfer which of the following - the insurer courses most advantageous to the general of interests of all or.
any part of the insurance business to some other insurer by the judicial in pursuance and annexed manager of a to prepared of the insurer scheme the report; (b) the carrying business by the insurer on of its insurance unconditionally as to such conditions or subject may suggest; or of the insurer; either the judicial manager ( c) the winding-up (d) such other course The report or a copy of the report shall by any person working the Court in which the report is filed or at such place as the Commissioner as he considers determines.
advisable.

be open for inspection at the Registry official hours, during of (2) 72.

(1) and after considering the Commissioner, who in the opinion The Court shall on an application after hearing other person heard; make an order giving not to any of the courses section advantageous insurer.
made under section 67(a) Acceptance fl{judicial and any manager the judicial man...,- rq,on of the Court is entitled to be manager, the report of the judicial effect to the course similar or mentioned in subsection ( 1) of to be most in the circumstances ers of the of the policy-hold 71 which it considers to the interests whether (2)The order of the Court is binding anything notwithstanding insurer insurer or in the articles contract.
or in any on all persons in the instruments of association the constituting or other rules of the and has effect 73.The judicial manager shall not be subject demand by, or liability to, omitted to be done in good faith with the discharge, manager under this Part.

of the functions any person in respect in the discharge to any action, claim or llnlllllllity.
done or of anything or in connection conferred on the judicial 74.In the case of an insurer - business insurance general - which carries on both long-term and !--a1i-.

(a)�-assetS representing long-term insurance business funds shall be available of the insurer auributable to that insurance business; and only for meeting the liabilities No.

20] LAWS OF GUYANA [A.O.

1998 36 (b) the other assets meeting other insurance of the insurer the liabilities business.
shall be available only for to its of the insurer attributable Assets exceed liabilities.

Subsidiary insurers, 75.Where the value of the assets mentioned (a) or (b) of in paragraph in pursuance shall not apply to so much of the amount of liabilities in that mentioned to another of which the first business has been transferred or any part of the insurance insurer 74 exceeds section paragraph those assets thereof insurer, of an insurer imposed the excess.

the restriction as represents 76.
(1) Where the insurance business under an arrangement mentioned or the creditors to which the transfer insurer, under the supervision there�after mentioned, wound up in conjunction by the same be liquidator such other matters to the companies (2) The commencement then if the principal in this section called has or have claims was made, in this section insurer the subsidiary against called of the Court, is being wound up by or subject as the Court shall, insurer order the suf>sidiary to be insurer, with the principal and may, to the same person order appoint for and make provision as seem to the Court necessary, or a subsequent for the two companies, with a view being wound of winding up as if they are one insurer.
insurer up of the principal by the Court, be the ordered the insurer shall, commencement of save as otherwise the winding up of the subsidiary insurer.
insurer, principal between the rights into between companies or as near thereto of contributors of the members of the the Court shall have and to the in the same (3) In adjusting and liabilities themselves, several of the companies, regard to the constitution the companies arrangements entered of to the rights manner as the Court has regard and liabilities in the case of winding different up of a admit.
as circumstances single of is not in process insurer to the subsidiary all objections, its is up of insurer classes insurer, (4)Where an insurer being wound which it is subsidiary, insurer if any, that are urged by or on behalf being wound up, the Court is of the opinion subsidiary the insurer in equitable.
the Court shall not direct after hearing insurer, with the principal and that the winding is just and up at the same time to be wound up or unless, to be subsidiary to the principal conjunction that the insurer as the principal alleged of the insurer against (5)An application subsidiary creditor insurer.
insurer may be made in relation in conjunction to the winding up of a insurer with a principal by a or subsidiary in, the principal of, or person interested stands in the relation of a principal to some insurer of a subsidiary the relation to insurer (6) Where an insurer one insurer, and in other insurer, the relation insurer, or where there are several of subsidiary in companies standing to the one principal companies the Court may deal with any number of such principal A.O.

1998] INSURANCE [No.


20 17 companies together expedient upon principles laid down in this section.

or ln separate groups as it thinks most 77.
(I) Valuation of policy_ to the is being wound up by or subject of the Court or voluntarily, the value of a policy to be required by an actuary; by the appearing to or to be entitled under a policy up shall be determined 1n the windfog in the case of all persons Where an insurer supervision of any class or of a liability valued and the liquidator, books of the company or association by the company interested shall give notice of that value to such persons manner as the Court directs.
Any person to whom· notice bound by the value ascertained subsection notice, of his intention within fourteen he gives notice in policies unless, granted is given under subsection in accordance days of receipt to dispute ( l) is· with that of the the value.

or association, and in such a (2) 78. to pay its debts, The Court, in the case of an insurer may, ifit thinks unable cif the insurer upon such contracts conditions as the Court thinks just, order.
that has been proved fit, reduce the terms and subject amount of the to such in place of making a winding up Reduce amount of contracts.

to be PART XIII CHANGES OF MANAGEMENT 79.

(1) shall appoint No insurer chief actuary as a main representative (a)the insurer - unless insurer or controller or the external a person its chief executive or in the case of an external officer, Appointment ofofficen.
insurer as the case may be has to that it proposes advised appoint the Commissioner and such a person; in writing (b)the Commissioner of three has before the expiration such with the date of his receiving the insurer advice, notified months beginning written is no objection period has elapsed served that there to that person being appointed or that having of objection.
without a written oner may serve notice the Commissioner notice of objection officer, chief actuary, on the insurer if it appears in writing to the position The Commissi to him that the chief executive controller to be appointed The Commissioner representations executive tive concerned him.

be served by officer, chief actuary, in relation may take into account made to him by the insurer in question.
controller to a notice of objection or to served or main representative is not a fit and proper person and the chief or main representa­ any written or oral (2) (3) No.

20) L4U:\' OF GUl:4NA [A.D. 1998 38 to Notice Commissioner.

80.An insurer shall give written that any person actuary, insurer has ceased controller, first becoming or main representative aware of such cessation.
within one month of the notice to be a chief executive to the Commissioner of the fact officer, chief PART XIV B�OKERS Registration.

81.

(I) Only corporations authorized business (2)An existing as a broker broker in Guyana.

must register or partnerships registered with and by the Commis'sioner may carry on insurance within three months of the commencement of this Act.

Application for registration, 82.


(I) An application for registration in the prescribed shall be made to the Commissioner accompanied (2)Each application shall be accompanied payable form and shall be as may be prescribed.

by a filing fee of fifty to the Commissioner.


by such documents thousand dollars (3)On receipt of the application such additional information as he may consider the Commissioner (4)The Commissioner he is satisfied unless controller or officer shall not register an applicant that the applicant of the applicant, is sufficiently qualified.

may request necessary.

as a broker or any partner, Indemnity insurance" Busineu name- 83.
(I) The Commissioner shall not register of a broker a policy such broker renew the registration maintains broker indemnify respect broker and in respect deals.
(2)The broker of civil liability or by employees shall be required of any class of against unless or policies a broker and shall not that the he is satisfied which shall of insurance losses arising of any description or former employees insurance in from claims by the incurred of the broker, with which the broker to have a minimum often million dollars in indemnity (3)The Commissioner than two hundred insurance.

insurance.
insurance.

shall not require and fifty million the broker to have more in indemnity dollars 84.

A firm applying for registration or "risk broker" words "insurance by the Commissioner, and shall include material approved to the broking under this Part shall include manager" in the insurance or other terms approved name of the firm and promotional words on letterhead in relation business business.

the Restrictions on applitation.

85.

(1) No controller, registration as a broker.


officer or employee of an insurer may apply for A.D. 1998) J.\',\'l R4.X< 'E [No.
20 39 (2) (3) the as broker unless is restricted thereto, to that of business contemplated ancillary directly No firm may apply for registration insurance broking and activities It shall be an offence for any person "insurance brokers" on letterhead or firm is As from January the Commissioner every person shall issue a Certificate under this or in promotional registered registered O l following under this Part.

manager" material or "risk unless Part.


or firm to use the words name, in their business the said person the commencement to of this Act, Certificate of registration.

of Registration 86.

(l) (2)The certificate shall be in prescribed one year and shall be renewable annually date of its issue.

(3)An application in the prescribed fee prescribed form and shall be accompanied form, shall be valid for for renewal by a renewal shall be made to the Commissioner on the anniversary by the Commissioner.
shall be prominently (4) The certificate place of business of the person who fails to display (5)A person at the principal displayed to whom it is issued.

a valid certificate to a fine of ten thousand dollars.

shall be guilty of an offence, subject as broker 87.Any person who is registered relating agreement which is likely disadvantage offence.
a principal disadvantaged to impair his impartiality of his principal and who enters offer of insurance to the or operate of an shall be guilty to attaching affect the civil rights into an Impaniality.

business to the preferential offence shall not or prejudiced or prejudice as aforesaid.

Such an 88.The Commissioner for brokers Codeofconduct, to in content under this Part whith is substantially shall issue a code of conduct similar registered that set out in Schedule 4.
Schedule 4 • in negotiating, who receives a premium and fails to pay the premium 89.Any broker, insurance insured time after receipt insurer, written renewing or continuing a contract from the for such a contract such over to the insurer within him and the and any oth�r deductions by to which, of an offence.

less his brokerage consent, by him as may be agreed between he is entitled, is guilty of Premium., .

90.
90.

A broker shall for the purpose contract of insurance notwithstanding insurer shall the broker of receiving Broker dellned apntof�.

be deemed to be the agent of the insurer to the contrary, for a any premium and the any premium received by any conditions be deemed to have received or stipulations .

No 20] L4.

H'.\' OF (iUJ:4.N4.

[AD.

1998 40 PART XV AGENTS ANO OTHER INTERMEDIARIES Agent.
91.In this Part, a person who is directly commission employed by an insurer on a or renewed on business introduced basis which includes by him is referred to as an agent.

Registration 92.

(I) No person he is registered may carry on insurance to do so under this part.

business as an agent unless (2)An existing agent must register within three months of the of this Act.

commencement Qualifications.

93.


(I) An application shall be made annually fom1 ar.d shall he accompanied to the Commissioner in by evidence of as may be fee and such documents of the prescribed the prescribed payment prescri�Pd.

(2)Each application fee of two thousand payable or renewal dollars shall be accompanied by a filing of the application, such additional infonnation to the Commissioner.

the Commissioner as he may consider may (3) Upon receipt request necessary.
(4) The Commissioner shall not register he is satisfied that the applicant an applicant as an agent to qualified is suitably unless be an agent.

to Delegation Insurance tion of Guyana Associa­ 94.
Jn catrying Commissioner the Insurance that the Insurance out his duties under subsection may, at his discretion, Association (4) of section his responsibilities to provided or its successors, delegate 93, the Association of Guyana, of Guyana of organization and by-laws with the (a) files its articles Commissioner; (b) is open to membership in.
registered Guyana on a non-discriminatory in a by all insurers basis; and education for agents of continuing ( c)provides a course manner satisfactory t0 the Commissioner.

Insurers.
95. status be the responsibility as a registered agent in Guyana, it a of each insurer having Notwithstanding an agent's shall nevertheless with an agent contrae:t (a) to consider competent whether person or not the agent is a fit, proper and to fa Ifill the post of agent; ( b)in the case of an agent with w horn a contract subsisted prior to the commencement whether insurance business or not that agent has been carrying on his in an efficient manner; or continuing of this Act to consider of an suitability (c) to consider the svitability or omitted agent who has failed tion organized to sit for any examina­ and received (d)to have regard to any complaint in relation of the insurer; from a or policy-holder by or on behalf propo:;er to an agent.
AD.

1998) JN.\'URANCE [No.

20 41 96.

(I) No person person's in this Act.

broker (2) Any insurer shall carry on insurance business insurance falls within the definition as an agent if that Reslrictions, of business which transacts after the to whom of this Act with an agent in relation insurance business is aware or ought to be aware that subsection (I) commencement that insurer applies shall be guilty of an offence .
97. acting incorporated An insurer comprises purposes shall comply with the requirements main representative in Guyana whose insurance business External insure.-agent • for the and a of this Act and shall appoint of this Act.

of this Act, be deemed to be a branch as agent for an external of that insurer for the purpose insurer shall, 98.
(l) (2) to advise the Commissioner to whom this Act applies er, along with the documents shall file with the referred to in with whom Insurer to file nameoand addresses with Commiuioner .. 30, a list of names and addresses of agents Every insurer Commission section the insurer It shall be the duty of an insurer in writing of any - (a)change (b)of any misconduct has a contract.
in the employment status of the agent; and breach of the agency or material the insurer and any agent, including agreement failure between (3) to pay over premiums.

Where the Commissioner subsection insurer agent be banned from serving discontinue (2)(b) receives he shall have the power to require any advice under that the with that agent and that the its association as an agent in Guyana.

99.
99.

(I) agent acts in negotiating of insurance from the insured and receives and fails to pay the premium or renewing a premium or continuing Premiums, between Where any a contract contract the insurer within agreed any other deductions entitled, the agent is guilty Notwithstanding an insurer received by an agent such time after receipt him and the insurer, to which, by written of an offence.
for such a over to by him as may be and less his commission he is consent, any conditions or stipulations to the contrary, any premium shall be deemed to have received a_p£9inted by that insurer .
(2) 100.No person may carry on or purport to carry on in Guyana tne Other iJllunnce intcnnediaries, business assessor, function similar registered promulgated of an insurance insurance consultant, sub-agent, surveyor, adjustor, or any other salesman, loss insurance to the business pursuant of insurance to regulations unless to be with the Commissioner by him at such time as he sees fit.

related No.

20) LAWS OF GUYANA [A.O.

1998 42 PART XVI PENSION FUND PLANS Registration.

IO I.
IO I.

(I) No person may establish or operate a pension (2) A plan at the time of the commencement of this Act referred to as "a plan") in Guyana unless under this Part.

(hereinafter is registered that exists shall be registered within this Act.
three months of the enactment of fund plan the plan Purpose of fund, Part I of Schedule S, 102.Subject of this Part, where a plan establishes to the provisions under trusts which are subject with an undertaking or partly wholly in connection of undertakings or a combination on carried of that fund is purpose in Guyana and the main to the Laws of Guyana, a fund of superannuating (a) the provision ment to persons combination the fund is established; employed allowances on retire­ or in the in the undertaking with which in connection of undertakings (b) the provision of pensions to the spouses of persons who and of periodical allowances (c) the assurance are or have been employed to or in respect of the children of capital of such persons; or sums on the death of persons such a plan shall be qualified who were so employed, for registration comply with the requirements 5.
Schedule under this Part if the rules of the plan set out in Part I of Application for registration, for the registration of a plan under this Part 103.
(l) An application shall be addressed (a) be in the form prescribed; (b) be signed ( c) specify the address by the managers of the plan; and shall to the Commissioner at which communications concern­ ing the plan will be received and "the address ( d) be accompanied (i) two copies of the plan"); by of the trust deed and the rules of the (thereinafter referred to as plan; (ii)a copy of the actuarial report on which the plan is based; (iii) a list of the names and addresses of the managers of the plan; (iv) in the case ofan insured plan, a copy of insurance plan; and related to benefits of the policy by the provided (v) such other documents or further information as may be prescribed.
(2)Each application shall be accompanied payable dollars and fifty thousand hundred by a filing fee of two to the Commiss- A.D. 1998) INSURANCE [No.

20 43 however, ioner, provided plan may consolidate fee.

that a manager his application of more than one and pay a single filing (3)Self-administered plans for fewer than twenty-five shall be exempt from the filing fee mentioned (2).
employees in subsection (4)Where an application of this Part for the shall register provisions Commissioner where he is satisfied registration.

(5)The Commissioner is made in accordance of a plan, the with the registration the plan and the rules thereof that the plan has qualified shall on registering the address a plan under this Part of the plan and the names and for enter in the register addressees of the managers.
(6)Where - (a)the trust deed or the rules, or both, of a plan registered to a "registered referred under this Part (hereinafter or Qian") are amended; (b)there is any change in the address of the managers twenty-one names or addresses shall, within of the plan or in the thereof the managers or the change, for the correction days of the amendment of the amendment of the change.

or apply for the registration of the register in respect respect of the change.
(7)An application for an amendm�nt or for the correction in respect of a change shall be addressed of the to the register and shall - Commissioner (a)be in the form prescribed; (b)be signed by one of the managers ( c)shall be accompanied by - of the plan; and (i)in the case of an amendment, by two copies thereof signed by one of the managers; as may or by such particulars (ii)in the case of a change, be necessary for the correction of the register.

(2) 104.
(2) 104.

(l) to a trust deed or rules, or both, of a registered An amendment plan shall not be valid unless Where an application made in accordance Commissioner satisfied would not have disqualified this Part.

shall register the amendment is registered.

of an·amendment for the registration with subsection (7) of section is l 03, the where he is the amendment that the trust deed or the rules, or both, as amended the plan from registration under 105.
(I) The Commissioner amendment registered Certificate Certificate").

shall on registering a plan or any to the trust deed or the rules, or both, of a a plan under this Part, issue to the applicant of Registration (hereinafter referred to as "a CatiliClleof Jtaaislndoa • No.
20) LAWS OF GUYANA (A.D. 1998 purporting ( 1) and purporting shall be received or sealed signed to be signed under issued to be a Certificate or sealed by the and be deemed to proof unless the of the fact in evidence further without (2) Any document subsection Commissioner be so issued, contrary certified.

lJ) The managers is shown, of a registered plan shall be exempt from pay- and shall be conclusive evidence ing taxes with regards to that plan.

Winding-up a pension plan , of 106.


(1) The registration of a plan shall not be cancelled unless the plan has been wound up.

(2) The managers of the completion Commissioner completed.
(3) On receiving notice of a registered of the winding plan shall, fourteen days within up of the plan, notify the up has been that the winding in writing in writing plan has been that a registered shall cancel the registration of wound up, the Commissioner the plan where he is satisfied that - (a)the plan has been wound up; and (b) the assets with the rules of the plan.
of the plan have been applied in accordance Ru les of plan is made under this Part for the of a plan the rules of which were made before the of this Act, and the Commissioner which were 107.
(I) Where an application registration commencement that the rules of the plan contain embodied the trusts of the plan of the rule of law relating he may, at the request application (a) amend the rules by deleting (b) make any further and which are, in his opinion of the managers who made the those provisions; only for the purpose provisions amendments of avoiding to - is satisfied the application to perpetuities necessary as a result of the deletion.
(2)Where the rules of a plan are amended pursuant have effect subject to subsection (I), the rules shall, to the amendments.

by the Commissioner when registered, Information or .. planatjon • 108.
(1) The Commissioner may require any person who is employed as an insurer, application any registered or otherwise, necessary of the Commissioner Tor tfie proper a manager or an officer of a plan for which an for registration has been made under this Part, or plan, to furnish either any information by statutory which may be or explanation declaration pertormance ofthe powers and duties under this Part.
of a registered (2) Where the managers investment trust by making an unauthorized any rule of the plan, where the rule is necessary registration same remedies were a person for the breach in the plan.

beneficially interested shall have the under this Part, the Commissioner in all respect of trust as if he plan commit a breach of or by violating for A.D. 1998) INSUR4NCE [No.

10 45 (3) The Commissioner or any person authorized by him in writing any books; records or time.
examine may at any reasonable other documents relating respect of which an application this Part, or any securities fund moneys of such plan are invested.

for registration or obligations any plan in is made under in which pension to a registered plan or 109.
(I) of a registered of that plan, there is default in plan are guilty Default in oomplyins with requirements• with any of the requirements of this Part relating and the secretary The managers of an offence where in respect complying to - (a) (b) and reports; for the registration accounts the making of applications amendment the plan or, the correction change in the address addres�es of any or both, of ofa in respect of the plan or in the names and to the trust deed or to the rules, of the register of the managers of notice or thereof; to the Commissioner or the winding (c)the giving up of the plan.
(2) and the secretary instituted under subsection plan of a registered their consent without or on their by anv neglect and was not facilitated It is a defense to any proceedings (I)against the managers to prove that the default occurred connivance part.

Any person who, within notice, requested reasonable by the Commissioner, is guilty diligence, fails to provide of an offence.

fourteen days of receiving any information written which could be obtained or explanation with (3) 110.
(1) of each plan registered The managers (a)submit annually and statement six months of the expiration (b)file with the Commissioner to the Commissioner for each financial of that financial annually under this Part shall - Annual 1tatemen11.

sheet a balance year within year; and or at such periods of accounts and in such form as may be prescribed to such plan.
or return relating any information (2) sheet and statement The balance subsection (a)before they are submitted approved by an auditor (I) shall - audited (b) be prepared by him; and of accounts to in referred respectively in accordance with Forms A and B, 5. in Part 11 of Schedule Part JI of Schedule S, to the Commissioner be Ill. (I) of each registered The managers to make an investigation plan and to report on his findings.

An investigation three years or at such shorter intervals may determine.
under subsection into the financial (2) plan shall appoint an actuary of the condition Invatiplioo of fUIIIICial condition.

(I) shall be made every as the Commissioner No.

20] LA If�\' OF GUYANA [A.D. 1998 46 (3) A copy of the report signed by the actuary shall be furnished to the Commissioner.

(4) The provisions plan insured shall obtain plan has been valued (5) The certificate .
by the managers of subsections with an insurer, from the insurer (I) and (3) shall not apply to a of such a plan but the managers to the effect that the a certificate by an actuary.

required by subsection (4) shali be deposited with the Commissioner.

Inwstmenl of-.

Perpelllitia , �- 112.

(I) No manager may invest fund in the equity, indebtedness the employer subsidiary or an associate.
of the employet or of any company of or any subsidiary or associate which the employer is a the assets debentures or other evidence of a pension or provident of of (2)Every plan shall invest in Guyana eighty percent invested total assets, assets company in Guyana, the eighty reduced point, percentage provided that for each percentage in the common stock or long tenn debt of a percent minimum may be up to a maximum of a ten by one percentage point reduction.
of the plan's point of its 113.The rule of law relating deemed never to have applied to perpetuities shall not apply and shall be to the trusts of a registered plan.

PART XVII ASSOCIATIONS OF UNDERWRITERS 114.

(I) No associations business (a)unless (b) except in Guyana it is registered under in accordance with the provisions this Part; and of this Part.

of underwriters may carry on insurance (2)An association of underwriters shall not carry on long-term insurance.
for registration (3)An application accompanied (a) a copy of its deed of association; (b)a certificate stating by - in the case of an association estab­ of an association shall be outside lished (i) that the association of Guyana - has been established for at least five years; ( ii)that the law of the country in which it was estab- 1 ished provides of underwriters; and for the regulating of associations (iii)that the association is operating in accordance with the law; ( c) a list of the names and addresses or brokers in Guyana; and its agents (d) any further (4)Each application information shall be accompanied the Commissioner may require.
as ppointed of persons a by a filing fee of two to the payable dollars hundred and fifty thousand Commissioner.

A.D. 1998] INSURANCE [No.

20 47 (5)An existing association of underwriters within must register of this Act.

three months of the commencement 115.

( l ) Where the Commissioner, of documentary examination that- (a)the relevant requirements of this Part have been after appropriate evidence, inquiry or after the QualiflCllioal.
or both, is satisfied with; complied (b) the association is likely of this Act; provisions to be able to comply with the ( c) being an association of underwriters constituted outside Guyana (i)it has made or has caused to be made with the Commissioner (l)of section 40; and the deposit required by subsection (ii)there are one or more persons resident in Guyana who are authoriz.ed to accept on behalf of the members of the association service of process in any legal proceedings; ( d)the persons who manage the association are of good and character and are otherwise fit and proper persons to manage the association: employees (e)the applicant·s that insurance the Commissioner shall, such conditions underwriters business either and notify the applica in an efficient are capable of carrying manner.
or subject unconditionally the association register to of as he may specify, on (2)Where the Commissioner is not satisfied set out in subsection in writing the conditions association refuse to register refuse to register of underwriters it, giving it, giving his reasons his reasons for so doing.

for so doing.

nt accordingly.

as to one or more of ( l ), he shall notify the that he proposes to 116.
(l) Subject to subsection (2) of section 40, an association of Dlpolil, may not be registered under this Part to carry on underwriters it has deposited with the unless any class of insurance business Commissioner dollars or an amount equal to five million twenty per cent of the premium income of its' members with respect to Guyana insurance business the date of the deposit, last preceding greater .
during the financial.year whichever amount is (2)Where an association of underwriters has made a deposit as by subsection ( l ), it shall at the end of each financial required year where necessary, deposit or be refunded an amount equal between the last preceding deposit and to the difference twenty per cent of the relevant premium income during such financial shall not have as a deposit with the Commissioner an amount less than five million that an association of underwriters year, except dollars.

No.
No.

20] LAWS OF GUYANA rAD 1998 48 (3)A deposit to this section made pursuant form of cash or in the form of approved in the may be either or both.

securities Rejection of application ., 117.

(l) An applicant who applies 'shall of for registration as an association by the Commissioner be notified in writing underwriters whether application.

he proposes to register his him or to reject (2)Where the Commissioner proposes to reject he the application shall state in writing his reasons for so doing.
Annual filings* 118.An association registered of underwriters six months of the end of each financial in the case of an association as he may require, and information established outside within Commissioner, such documents of an association under this Part, shall year furnish to the in Guyana established and in the case of Guyana - in the country to the insurance copy of such returns during of its members to be made to the Minister relating year as are the preceding or other public in which the association (a)a certified business required Commissioner established; (b) a certificate, signed officer of the association responsible association law governing associations country or other presiding and by or on behalf of the that the which states of the in the with the requirements of underwriters regulatory has complied by the Chairman authority is in which it is established� list of the names of its members (c) a current and the names or other governing of the members of its committee body;and ( d)a statement Guyana during the preceding of receipt and expenditure by its members in year.
.

119.

(I) The Commissioner may prohibit in any class of insurance a registered from association where business or of policy-holders new policies writing he is satisfied prospective policy-holders that it is in the interest so to do.

exercises (2)Where the Commissioner him by subsection tion in writing of.

(I), he shall notify of hisdecision the power conferred the registered associa­ there­ the reasons and shall state on Prohibit new policies , Cancellation of registration.

120.
120.

(1) The Commissioner - association (a)where he is not satisfied may cancel the registration of an is being conducted of that the insurance business with in accordance its members sound insurance principles; (b) where the association fails to comply with any require­ ments imposed (c)where he is satisfied upon it under this Part; have not commence that the members insurance business within one year of the association A.O.

1998) JN.

'WJRANCE [No.


20 49 of registration business in Guyana; or or have ceased to carry on insurance ( d)at the request of the association.

(2)Where the Commissioner he shail association, in writing state cancels the registration of an his reasons for so doing.

121.An association of underwriters, of the application for registration Continuation ofbusineu.

or the registration of which has been shall which has been rejected cancelled, policies issued nottfied satisfied under such policies.
of the rejection that it has made suitable continue by it before the date on which the business to carry on insurance business relating to unless or cancellation was the Commissioner arrangements for its obligations is PART-XVIII CONDUCT OF INSURANCE BUSINESS 122. agent, other insurapce or pension of underwriters, promise broker, Any insurer, the association who, by any statement, employee or deceptive wilfully misleading, facts or is reckless concealment induces enter into any contract an offence.
false of material or attempts to induce another of insurance intermedi ary , member of , Milleodina.

fllle or deceptive fund plan manager or statcmen11.

or forecast which -is dishonest or otherwise), ( dishonest .or which includes with an insurer shall be guilty of person to enter into or otfer to ary , , � ...

123.
123.

(1) Any insurer, broker, agent, member of the association plan manager or employee be issued booklet or tending or other document to mislead any advertisement, other insurance intermedi of underwriters, or pension fund who wilfully statement, which contains is guilty insurance issues circular, material of an offence.

contracts the name or address of the constitute an offence under either (2)Any advertisement to mention if it fails shall, person placing the advertisement this Act.
the public offering or permits to or services descriptive misleading 124.Any person who claims to be or intimates agent for the purpose of misleading complied with Part XIV or Part XV, shall a consumer, if he has not of an offence.

be guilty that he is a broker or an Flllec1ai1D1.


PART XIX SUBSIDIARY COMPANIES 125.Where an insurer ("the subsidiary than Guyana then the insurer Commissioner whose head office is in Guyana acquires whose head office is in a country other insurer') the first' referred to shall advise as to - an insurer No.

20) LAWS OF GUYANA [AD.
1998 50 insurer with the regulatory Commissioner is registered of the country or not the subsidiary (a)whether insurer in which its head office is situated; or persons (b)the name of the person as regulatory as an acting in the country aforesaid and the address (c)whether Commissioner may be sent; to which communications or not the subsidiary of the regulatory requirements country aforesaid to in relation funds; (i) statutory (ii)deposits ; (iii)statutory and reserves; (iv)filing ofaccounts, the most recent insurer has complied Commissioner with in the as regards insurer (d)whether in respect financial of which compliance year of the subsidiary is required.
of the regulatory or not any necessary approval Commissioner and, if so on what terms and conditions in the country aforesaid (if any); and has been given (e)any other information that the Commissioner may require.

Compli111CO, 126.The Commissioner shall decide, to which he may require the extent with this Act and may communicate Commissioner referred to in section 125 for this purpose.
with the regulatory in the light of the advice insurer the subsidiary to comply received, PART XX CONTRACTS FOR LONG-TERM INSURANCE BUSINESS Con1nc:t for Ion•· 127.
(1) Subject term illlunnce· to subsection (3) of section 128, an insurer of carrying for the purpose - the insurer enter into a contract insurance unless business (a)at the time the contract is entered iota: or is entered (b)not later than seven days after the contract shall not on long-term into, on the other party to the contract serves in subsection the information specified (2).
a notice containing in subsection (2)A notice mentioned (I) - (a) shall specify the nature (b)shall have annexed cellation and type of the policy; a form of notice thereto and of can- for use by the other party to the contract.

of an offence who contravenes this section (3)An insurer is guilty the contract.

hut contravention does not invalidate Notice of cancellllioa 12A.
(I) A person who has entered into a conlract for long-term an insurer insurance with the insurer - (a)not later then ten days from the date on which may serve notice he of cancellation on receives a notice mentioned 127; or in section A.O.

1998) INSURANCE [No.20 )1 (b)not later then ten days from the expiration of the day on which he first became aware that the contract was entered (2)Subsection into, whichever is the later.
( l ) does not apply where an insurer subsection ( 1) of section ought to have 127 and failed served a notice under to do so but does so before cancellation of cancellation need not be in the form attached (3)A notice of the contract.

to (I) of to be served under subsection the notice required section 127 a desire indicates ( 4) Service of a notice and it is sufficient to withdraw from the contract.
- operates of cancellation of a contract, (a)as a rescission if it is served after th� if the notice of cancellation contract has been entered into; and (b)as a withdrawal of the offer in any other case.

(5)Where a contract has been rescinded or an offer has been of the service of a notice of cancellation, as a result withdrawn any moneys paid by way of premium or otherwise, insurer the moneys, are recoverable for the purpose of receiving from the insurer as a debt in civil proceedings.
to the 129.An insurer carrying on long-term insurance any policy under Schedule chargeable actuary as being suitable belongs.
I to this Act unless by its under the policy is a rate which has been approved for the class of policy to which the policy business shall not issue Lon1-1erm.­ the rate of premium Schedule I. where a company issues to section 131, that proof of age of the person whose life is insured 130.Subject provides condition precedent shall, been admitted stating that proof of age of the person whose life is insured required before the payment of the sum insured, the age of the person whose life is insured has already notice issue on or with the policy a printed a life policy that is a of the sum insured.
to the payment the company by it, unless may be Notice repnlina proofoh11.

131.

( l ) the proof of age tendered of this Act, the policy-holder Where a company declines to accept in res� of a policy, whether issued before or after the commencement may apply to a Judge in chambers, by summons for an order directing the company to accept the proof tendered.
made to him The Judge in chambers may upon an application under subsection (I), make such order in relation application Every order under this section shall be binding on the company and shall be complied with.

as he thinks just.

to the (2) (3) 132.

(1) The following,9&ve person has been misstated in respect of a policy - (a)a policy is not avoided by reason only of a misstatement effect in instances where the age of a M--..or ........ _........ orpalicy.
of the age of the person whose life is insured; No.

20) LAWS OF GUYANA [A.O.
1998 (b)where the true age as shown by the proof is greater is based, to, the policy so that, as varied, than the company may (if any) they bear the that on which the policy vary the sum insured by, and the bonuses allotted same proportion (if any) allotted amount of the premiums under the policy premiums had been based on the true age; to the sum insured by, and the bonuses before variation to, the policy that have become payable bears to the amount of the that would have become payable if the policy as issued as the ( c)where the true age as shown by the proof is less than as issued bears was based, to the sum inst'.rred shall - (if any) they bear by, and the that on which the policy (i)vary the sum insured to, the policy the company by, and the bonuses so that, as varied, to, the policy before that have allotted the same proportion (if any) allotted bonuses as the amount of the premiums variation become payable under the policy to the amount of the premiums become payable the true age; or (ii)reduce, premium been payable true age and repay the policy-holder the amount of overpayments has been paid as the cash value of bonuses excess of the cash value that would have been paid if the policy the to the amount that would have had been based on the that would have had been based on of premium less any amount that had been based on the true age.
as from the date of issue of the policy, if the policy if the policy payable in (�) A policy issued after the commencement only if any incorrect of this Act shall not ( other statement as to the age of the person whose life is be avoided by reason than a statement made in any proposal or other document insured) was issued or reinstated of which the policy unless - the statement (a)was fraudulently untrue; or (b) �ing a statement on the faith by the company to the risk of the material under the policy, in relation was made within the period preceding company of three years immediately the policy death of the person whose life is insured, whichever the earlier.
the date on which or the date of the is is sought to be avoided Minon.

133.

(I) A minor who has attained the age of sixteen the age of ten years but has not years may, with the written attained of his parent or of a person standing in loco parentjs to the mioor- (a)effect• PQlicy upon his own life or upon another's life in consent which he has an insurable ofa policy.

(b)take an assignment interest; or AD.


1998) INSURANCE [No.20 (2)A minor who has attained years may the age of sixteen (a)effect a policy upon his own life or upon another's which he has an insurable of a policy; interest; life in or (3), is as competent (b)take an assignment to subsection the powers and privileges of which he is the holder and, subject and exercise to a policy full age.
(3)A minor who has attained in all respects to have of a policy-holder as he would be if he were of in relation or mortgage parent a policy or of a person the age of sixteen with the prior consent standing of his jn loco parentjs to the minor.

years may assign in writing 134.

(I) 135 to 143, and sections Daisnllion or benellciaria to the contrary contained general ly.

whether of policies of this Act.


taken out in may at the time the policy of this section to anything apply in respect The provisions inclusive, subject these sections, before or after the commencement A policy-holder any time thereafter named person to section subject declaration A designation similar personal representative in "favor of heirs", 136, alter or revoke designation designate in writing.
shall (2) (3) or a and may, to be the beneficiary under his personal is taken out or at representative his policy the designation by "next of kin", "estate" be deemed to be a designation or of the of the policy-holder.

135.

(I) Subject to subsections (4), (5) and (6) a policy-holder may, in Irrevocable claiJ11111iona of the at the time beneficiariel.
to be a named person subject is taken out designate irrevocably to section and, in such a case - the insurer filed with under the policy by declaration writing, policy beneficiary 145, may not during (a)the policy-holder of the named beneficiary or revoke the life-time and without designation (b)the moneys payable the control policy-holder (2)Notwithstanding the beneficiary former spouse and the marriage case may be, the common law union has come to an end.
of (a) of subsection where the beneficiary is a or, as the ended in divorce the consent under the policy are not subject paragraph is not required and do not form part of his estate.
of the policy-holder (1), consent of the beneficiary; or the creditors to of the alter the (3)Where the insured purports to designate a beneficiary in a declaration that has not been filed with the as required by subsection has the same effect as if the insured had not (1) or in a will, the irrevocably insurer designation purported to make the designation (4)An irrevocable designation in favor of a spouse, irrevocable.
may only be made by a­ or to a common law spouse policy-holder a child, including (5)A designation words creating unequivocal shall not be regarded� the irrevocable and are prominently a child born out of wedlock.

designation displayed the irrevoca�le are clear and unless on the proposal No.

20) LAWS OF GUYANA [A.D. 1998 54 fonn and signed evidence designation by the policy-holder and there is sufficient to the policy-holder that the that it was explained was irrevocable.
of Designation beneficiaries in wills, policy.

136.A designation by a will does.

not affect a designation made under a Tlllltl for beneficiaries.

137.

(1) A policy-holder a trustee appoint appointment may, in writing, for a beneficiary by contract and may alter in writing.

the or revoke or by declaration (2)A payment to a trustee for a named beneficiary by declaration by an insurer the insurer from payments discharges extent of the payment.
to the to the beneficiary Baieficiary predeceuins policy-holder, 138.
(I) Where under section 134, by a contract, or a declaration, filed under a is made and no provision for the disposition a person has been named as beneficiary and the person or agreement so named as beneficiary the policy-holder with the insurer, under a policy policy predeceases in the contract of moneys payable beneficiary limiting moneys payable under persons in the following (a) in the surviving (b) in the surviving the application the policy order - or declaration under the policy in the event of the the policy-holder 135, the beneficiary, if any; beneficiaries predeceasing in equal shares, or affecting of section if there is shall vest in the following then, without more than one surviving ( c) in the policy-holder beneficiary; or his personal beneficiaries.
no surviving there are representatives, if (2)Where two or more beneficiaries chan alternatively, shares of their respective policy, then, they are entitled are designated otherwise is made as to the quantum under the to the moneys in equal shares.
of the moneys payable and no provision Enforcement by beneficiary -· may for his own benefit and a trustee appointed 137 may, in accordance with the terms of the to section or declaration, under a policy 139.A beneficiary pursuant contract moneys payable contract, trustee any defense against representative.

but the insurer as the case may be, enforce payment ev;n though there is no privity may invoke against the policy-holder the beneficiary or his personal of of or ofinsurance 140.
( I ) Statu, moneys where there is a designaled beneficiary.

has been designated, the insurance Where a beneficiary money, from the time of the happening which the insurance part of the estate of the creditors (2) While a designation or child of a policy spouse the rights and interests of the insured of the insured.
money becomes holder payable, and is not subject in favor of a spouse, a common law of the event upon does not form or any of them, is in effect, of the policy-hold er in the insurance to the claims A.O.

1998] IN.S'UR4NCE [No.

20 money and in the contract seizure .

are exempt from execution or 141.

(I) I. h Id Where a beneficiary po icy-o er may assign, or otherwise of, surrender therein insurer is not designated .

.

.

gh d .
.

.

gh d .

exercise deal with the contract policy where there ; ...... ..,_. as provided , bmeficwy.

or in this Part or as may be agreed upon with the n ts un er or m respect irrevocably, .

the �anmentof (2)Where a beneficiary may not assign the policy, policy-holder seeurity, surrender it or otherwise deal with it without of the designated consent the beneficiary.

is designated use the policy as a in writing irrevocably the 142.

(I) Notwithstanding the policy-holder bonuses provides.
the designation is entitled, declared on a contract, while living, unless or dividendl and to the dividends """'-· otherwise the contract of an irrevocable beneficiary, Enlid-111 (2)Unless the policy-holder otherwise directs, apply the dividends purpose or bonuses the contract declared in force.

of keeping the insurer may for the on the contract 143.
( I ) An assignee of a contract who gives notice to the head office of the insurer assignment interest (a)any assignee other than one who gave notice in earlier - as against of the l!ft"eccor of mipmmtof has priority .

policieo CNl benellciariea • in writing like manner; and (b)a beneficiary provided gave notice manner prescribed other than one designated irrevocably as in section 135 prior to the time the assignee in the to the insurer of the assignment in this subsection.
(2) Where a contract is assigned as security, beneficiary necessary assignee.

under the contract are affected to give effect to the rights the rights of a only to the extent and interests of the (3)Where a contract the rights contract policy-holder.
is assigne(\ and interests absolutely, the assignee has all given to the policy-holder by the and by this Part and shall be deemed to be the (4)A provision in a contract to the effect that the rights or interests insurance, of the policy-holder, the group life insured, or, in the case of group are not assignable is valid.

144.
144.

(I) Nothing in any term or condition of this Act or in the law relating to ....... -1/111111111 of a life policy issued after,___ the commencement insurance liability company under the policy relating insured, shall operate to exempt an insurance company from of .... , or to reduce the liability under the policy on the ground of any matter of the person whose life is to the state of health when other than the ground of the proposer's having, of the No.

20] I.JAWS OF GUYANA [A.O.


1998 56 App lication lo debtJ.

tuwta condition ofavenge.

or thereafter making the proposal the contract, ( a)made an untrue statement the matter; or regards and before the making of as of his knowledge and belief (b)failed to disclose to the company known or something believed by him as regards (2)An insurer subsection too onerous may petition (I) in situati a burden on the insurer.

that matter.

the Commissioner of ons.


where subsection for a waiver (I) may place PARTXXI PROTECTION OF POLICIES 145.

(I) The property and interest of any person in a policy effected before or after the commencement (whether his own life is not liable payment Court.
to be applied of his debts by any judgment, in of any order or process of this Act) upon or made available a policy on his own of this Act, the moneys of such policy shall �fhis debts by who has effected after the commencement upon his death under or in respect (2)In the event of a person life dying payable �ot be applied any judgment, an executor ever, except person whose life is insured direction instrument policy contained executed shall be so applied.
or administrator by virtue of a contract n�-��1e available_ in_pay_ment order or process of any Court or by retainer by or in any other manner whatso­ in his will or other testamentary from the by him that the moneys arising or charge made by the or by virtue of an express (3)A direction to pay debts, the whole of debts upon or any part of the testator's debts, shall not be deemed to be such an express of direction.

for the payment or a trust or a charge estate, 146.
(I) Where a contract contains of insurance a pro rata condition average, contract the policy approved the.

nature (2)With respect of is of no effect unless, before the the condition can cancel into or before the policy-holder is entered without on a form in writing penalty, informs the policy-holder by the Commissioner and effect of the condition.
properties, only in cases where the insured to residential the insured of average of the condition value of the less than the fair value of the shall be effective is a certain property percentage The Commissioner property.

percentage level, value and the insured can apply.

(3)This section insurance the difference entered value, does not apply in respect of a contract of this Act.
into before the commencement of shall determine in percentage in which the condition between the of average the minimum fair A.D. 1998] JN.S'URA.NCE [No.

20 57 PARTXXII PAID-UP POLICIES, SURRENDER VALUES AND NON-FORFEITURE 147.
{I) to discontinue further on which not less than three years of has a cash if the policy premium Paid-up policy, to the company be entitled to who desires on a policy have been paid shall, value, A policy-holder payments premiums on application surrender receive, instead a paid-up of that policy, shall be payable policy The paid-up contingency upon the happening under the original policy upon the happening of which the amount of the insured would have been payable.

policy.
policy.

(2) 148.Notwithstanding the terms of a particular that has been in force for at least entitled policy to the company, less than the cash surrender any debt owing to the company the owner of a three years is, on application and to receive the policy less the amount of value of the policy by, the policy.
to surrender or secured policy, under, Surrender value, not 149.The Commissioner may, on application in cash of surrender to the financial of the policy-holders by a company, if in his as required by of the stability of that company, to such conditions the payment 148 would be prejudicial opinion section company suspend the Commissioner thinks those surrender values.
or to the interests or vary, for such period as to pay of the company fit, the obligation and subject values • Non.forfeiture PARTXXIII MISCELLANEOUS 150.

{I) (2) required copies Every document certified The documents thereof fee as the Minister of it, shall and copies may be procured may direct.

to be deposited Document inspection.

be kept by the Commissioner.

under this Act, or are open to inspection and copies of such by any person on payment 151.
( l) Every document deposited Commissioner, document deposited.

and certified so deposited, under this Act with the Evidence• by the Commissioner, to be a shall be deemed to be a document so (2)Every document purporting to be certified by the to be a copy of a document Commissioner be deemed to be a copy of that document, received some variation proved.

as if it were the original it and the original in evidence between so deposited shall and shall be document unless is document No.
20) LAWS OF GUYANA [A.O.

1998 58 Forms.

152.The Commissioner or all of the prescribed purpose of adapting the'll may, on the application fonns, in respect to the circumstances of an insurer, alter any for the of that insurer, of that insurer.

Notice to policy-holder, 153.


(I) Any notice or other document that is by this Act required to be sent to a policy-holder to whom notices person and a notice to be notice (2)Where a person so addressed to the holder claiming and sent shall be deemed and taken of the policy.
to be interested in a policy may be addressed respecting and sent to the are usually sent, the policy of his interest, in writing to the insurer notice by this Act required to be sent to policy-holders sent to such person at the address notice.

shall also be by him in his specified a notice has given which is to or Injury visitor workmen, anything 154.
(I) Notwithstanding contained in this Act, where contractor, are insured premises independent a visitor workmen, is entitled premises insurer without independent by an owner or occupier, or by an or to against risk of injury to visitors injury on those or a workman who sustains to claim directly, reference under a policy to the owner, occupier contractor.
from the or by him either before or at any stage of legal (2)A person who is entitled to a claim against (1), may demand that the owner, occupier or a copy thereof contractor under an insurer or the policy produce subsection independent for examination proceedings instituted for the enforcement of the claim.

is produced occupier or a copy of a policy (3)Where a policy claiming owner, expressed produced claiming any time that it comes to his notice.
to a person by virtue of a claim made under subsection (2), the to rely on any matter is not entitled in any supplementary that was not hut the person so so claiming, to the person.

may rely on any such supplementary or insurer document document at Non effect of certain provisions of Married Women's Property Act.

Cap.

145·04 • 155.The Married Women's Property relating women's to married tory trust of a life policy, 143 of this act.
in force Act or any legislation in so far as it creates a statu­ 134 to to sections has no effect in relation property, 156.The Insurance Act is hereby repealed.

A.O.

1998) JM<;,URANC'E [No.

20 59 SCHEDULE I SS.


2, 68(2)129, CLASSES OF LONG-TERM INSURANCE BUSINESS CLASS 1: GENERAL LIFE SUB-CLASS NATURE OF INSURANCE Life and Annuity Effecting contracts each case) contracts and carrying to pay annuities BUSINESS on contracts on human life, but excluding (in on human life or Linked Long-Term Effecting long-term sub-class.
the linked on human life or within and carrying to pay annuities on insurance where the benefits by reference contracts partly to be determined income from, specified in, or in an index of, the value of property of any description or not so specified) in the contracts) or by reference (whether to the value of, or property of any description (whether or not to fluctuations are wholly or CLASS 2: HEALTH SUB-CLASS NATURE OF INSURANCE Permanent Health Effecting and carrying BUSINESS on contracts against of insurance risks of persons pro- of sustaining or class or sickness as a result of a specified that - being contracts in consequence benefits viding specified becoming incapacitated injury infirmity not less than to be in effect for a period of (a)are express five years, or until the normal retirement age for the persons or without (b)either insurer, special or are expressed circumstances to be terminable by the only in to be so terminable limit are not expressed in the contract.
concerned, mentioned of time; and NATURE OF INSURANCE ANNUITIES BUSINESS CLASS 3: AND PENSIONS SUB-CLASS Pension Fund Management Effecting and carrying out -(a) contracts to manage the of pension funds; or (b) contracts of the in paragraph (a) above that are with contracts of insurance investments kind mentioned combined conservation interest, other than contracts in relation funds.

.
.

or local authority Effecting and carrying on capital of capital or repayment covering either of a minimum to Government redemption contracts.

Capital Redemption No.

20] L4 WS OF GUYANA [A.O.
1998 60 SCHEDULE 2 s. 2 CLASSES OF GENERAL INSURANCE BUSINESS CLASS 1: ACCIDENT AND LIABILITY SUB-CLASS NATURE OF INSURANCE BUSINESS Accident Sickness Goods in transit of insurance of a specified of an accident on contracts in the nature of risks of the benefits of both) against and carrying fixed pecuniary ( or a combination Effecting providing indemnity - person insured (a)sustaining as the result injury class; accident or of an acciden\ or (b)dying as the result a specified ( c)becoming of disease relating exclusive below or within of disease or of contracts but disease and occupational the sickness within I (Health).
injury to industrial falling of contracts incapacitated in consequence class 2 in Schedule of an accident sub-class or class; or of an of of a specified class, inclusive and carrying fixed pecuniary Effecting providing of indemnity of loss to the persons infirmity, in Schedule but exclusive I (Health).
on contracts or benefits of the two) against attributable in the nature risks or to sickness 2 ( or a combination insured of contracts falling within class of insurance benefit and carrying on contracts Effecting loss or damage to merchandise, goods in transit, and all other of the form of transport.
irrespective of insurance baggage against General Liability on contracts and carrying insured risks in question Effecting risks of the persons parties, Motor Vehicle Liability not being risks to which the or the the Aircraft relate.

for ships sub-classes liability, against to third liabilities of insurance liability incurring Credit Suretyship and carrying Effecting risks of loss to the persons insolvency ( otherwise pay their debts when due.
than through of debtors on contracts of insurance from the arising against insured of theirs insolvency) or from the failure of debtors of theirs to on - and carrying of insurance Effecting (a)contracts insured persons arising contracts of guarantee (b)contracts custom bonds or similar contracts performance or bonds, of guarantee.

from their having to perform risks of loss to the for fidelity into by them; or against entered bonds, A.O.

1998] INSURANCE [No.


20 61 Miscellaneous loss financial against of insurance namely - on contracts and carrying risks, Effecting any of the following (a)risks of loss to the persons interruptions carried (b) risks incurring on of insurance on; or on by them or to carried insured of loss to the persons unforeseen of the carrying insured expense.
to their attributable to business attributable Legal Expenses SUB-CLASS Land Vehicles and carrying Effecting risks of loss to the persons incurring insured attributable of insurance against to their of litigation).

legal expenses (including costs on contracts CLASS 2: AUTO of insurance against used on land, including on contracts and carrying NATURE OF INSURANCE BUSINESS Effecting loss of or damage to vehicles motor vehicles.
Effecting and carrying loss of or damage arising use of motor vehicles and carriers liability.

on contracts of insurance out of or in connection against with the on land, including third-party risks Motor Vehicle Liability CLASS 3: MARINE & AVIATION SUB-CLASS Aircraft Ships ·Aircraft Liability Liability for Ships of insurance upon furniture or tackle, of insurance upon on contracts or upon the used on the sea or inland water, furniture r equipment on contracts of insurance of such vessels.
against and carrying of aircraft.

and carrying NATURE OF INSURANCE BUSINESS Effecting on contracts aircraft or upon the machinery, equipment Effecting vessels machinery, Effecting damage arising aircraft, Effecting damage arising vessels party risks and carrier's including and carrying and carrying third-party tackle, out of or in connection with the use of risks and carrier's on contracts out of or in connection of insurance with the use of on the sea or on inland water, including liability.
third- liability.

against No.

20] LAWS OF GUYANA (A.O.

1998 62 CLASS 4: FIRE SUB-CLASS NATURE OF INSURANCE BUSINESS forces Effecting and carrying Fire and natural on contracts of insurance to ( other than property loss of or damage to property which the Land Vehicles, Aircraft, Ships or Goods in transit sub-classes stonn, relate) due to fire, explosion, natural subsidence.
forces other than stonn, nuclear energy or land against Damage to Property Effecting and carrying loss of or damage to property which the Land Vehicles, transit sub-classes relate) the Fire and natural on contracts of insurance ( other than property to Ships or Goods in other than those mentioned in Aircraft, forces sub-class above.

against A.O.
against A.O.

1998) INSURANCE (No.20 63 SCHEDULE 3 s. 55(5) ASSETS IN WHICHTHE STATUTORY FUNDS MAY BE INVESTED An insurer guidelines may invest its statutory funds pursuant to the following I.
An insurer may invest in - stocks, or other evidence of or guaranteed by the Government of - (a} the bonds, debentures, indebtedness of (i)Guyana; (ii)any Commonwealth Republic of Ireland; country or dependency or the (iii)the country in which the head office of the company is situate province or state thereof; or by the Minister.
(iv)any country approved (b)the bonds, debentures or other evidence of indebtedness of a corporation incorporated in Guyana which are fully secured by a statutory property or upon the charge upon immovable plan or equipment or other tangible assets of the corporation used in the transaction of its business; ( c) the bonds, debentures or other evidence or other body without of indebtedness share capital of, provide or operate highway, tunnel, transportation, and empowered pursuant to a statute of Guyana to regulate the administration issued by an authority established administer, port, harbor, airport, bridge, communication, or facilities taxes, rates, fees or other charges which may be used only in carrying on the object of the authority sufficient to meet its operation, charges; sanitation, water, electricity, and for any of these purposes to levy and impose or other body and are maintenance and debt service or gas services ( d) the bonds, debentures or other securities of, or those guaranteed by any international by the Minister; financial institution approved (e)guaranteed investment certificates incorporated in any country listed in subparagraph at the date of vesting thereof in trust, complied with the requirements payment of dividends; set out in subparagraph (t) in respect ofthe issued by a trust·company (a) which (t) the fully paid ordinary shares, preferred shares, bonds debentures or other evidence incorporated of indebtedness of a company in any country listed in subparagraph (a) which No.
20) LAWS OF GUYANA [A.O.
1998 64 less than one year before paid a dividend in each or had earnings in each or had earnings in each upon such of a dividend value at which the average of five years thereof ending has either shares shares for the payment of at least four per cent of during a period the date of purchase such year upon its ordinary such year upon its ordinary such year available shares, the shares company which the company dividends, were carried as the case may be; during in the capital the year in which the dividend had earnings available stock account was paid or in of for the payment of the (g) ordinary shares, preferred shares, bonds or debentures company incorporated Minister.
in Guyana and ·approved of a by the 2.
An insurer may invest in mortgages and other titles for repayment of by - loans secured for a term of years or other property in Guyana where the with the amount of indebtedness property or interest in immovable or leaseholds (a) immovable estate amount of the loan together under any mortgage property the loan does not exceed the immovable exception or interest therein seventy-five or interest - that a company property ranking or other charge on the immovable to or superior equally with per cent of the value of subject therein, to the (i) may upon the sale of immovable property for in which its accept funds are invested, repayment ment and secured thereon cent of the sale price of such immovable property; on such immovable property, or other title as part pay­ for more than seventy-five a mortgage per or (ii) may invest in a mortgage property or other title for repaymem on ranking therein on such immovable or interest to the loan does not exceed where the amount of indebtedness or other charge immovable under any mortgage property superior the value of the immovable portion cent of the value of the immovable property guaranteed registered carry on that class of insurance business.
with or equally per cent of as long as that per is under this Act to in excess of the indebtedness of seventy-five by a company property ninety (b) immovable property or leaseholds in Guyana notwithstanding the amount which the company may that the loan exceeded otherwise or insured by the Government or tprough an agency of the Government of Guyana.

invest in, if the excess is guaranteed AD.

1998] INSURANCE [No.


20 65 ( c)ground property or hypothec mortgages on immovable or hypothecs in Guyana or in the country in which the head where the amount of the rents, or leaseholds office of the company mortgage indebtedness immovable superior not exceed three quarters covered property is situated, together under any mortgage or leasehold or hypothec property to the mortgage with the amount of or hypothec on the with or equally in does ranking which is invested or leasehold thereby.
of the value of the immovable 3.
An insurer may invest in - (a)immovable property or leaseholds in Guyana for the of income either production company any other company alone or jointly business in Guyana where - incorporated transacting insurance in Guyana or with with any other property or the Government by the Government or leasehold is made of Guyana or an (i)a lease of the immovable to or guaranteed agency and the lease provides interest yield a reasonable the lease and to repay at lease eighty-five amount within years from the date of investment; or a municipality in Guyana sufficient to the period of per cent of the or leasehold thirty of the lease but not exceeding for a net revenue return during invested the period in the immovable property or (ii)the immovable in the date therein preceding has produced in an amount which, the date of investment, net revenue in each year following or leasehold property each of the three years immediately of investing received would be sufficient on the amount invested and to repay at least leasehold the portion amount within the improvements leasehold exceeding to yield a reasonable return property in the immovable or eighty-five of that percent of lifetime of the economic: property or but not which remain forty years from that date.
at the date of investment to the immovable interest if property or reasonably in Guyana required use or occupation (b)immovable its actual natural expansion of its business natural expansion of its business on immovable mortgage investment investment income the company or for the use and natural - exceed shall not where the mortgage under this Act, save that the total amount of in immovable for by the company required by it for the by it for the by foreclosure of a is an for the production of the business either expansion or acquired property property or acquire of of No.
20) LAWS OF GUYANA [A.D. 1998 66 (i)in the case of a company carrying per cent of the total on long-term value of, fund requirement; the statutory insurance assets or business, to satisfy required twenty (ii)in the case of a company carrying by the such amount as may be approved to in referred business, Supervisor subparagraph not exceeding the amount on general (i).

insurance 4.

An insurer may invest in cash balances deposited with - (a)any bank in Guyana; No.
I or 1995, (b)any financial Act, 1995; or Institutions institution licensed under the Financial (c)any building approved society by the Minister.

which may from time to time be 5.

The total value of the statutory fund assets of any company accepted invested in ordinary cent of the accepted the company.

shares value of the total shall not at any time exceed forty per of such assets in Guyana of 6.
The total accepted invested in accordance value of the immovable with this Schedule property shall not exceed - or leaseholds of a company carrying on long-term (a)in respect business satisfy the twenty per cent of the total value or assets statutory for; fund requirement insurance to required (b)in respect of a company business insurance Supervisor.

carrying on other than long-term such amount as may be approved by the 7.
No single mortgage company may exceed included ten per cent of the total fund of a of the company.

as an asset in the statutory assets 8.

A company evidence in default.

shall not invest of indebtedness in trust bonds, on which payment or other debentures of principal or interest 9.

A company shall ordinary shares of any corporation.

not purchase more than thirty per cent of the I 0.


A company registered of that business, to carry on life insurance the shares purchase business shall not, of a company, in respect incorporated in Guyana and carrying on such business.

A.O.

1998] INSURANCE [No.20 67 SCHEDULE 4 s. 88 BROKER'S CODE OF CONDUCT I.

The provisions the conduct public their conduct.


which is considered of this Code shall be construed as only illustrative to be in the best interest of and other persons of the with concerned and the Insurance Brokers 2.
Brokers shall - (a) at all times conduct integrity; their business with utmost good faith and (b) do everything their clients all other and shall place and considerations; possible to satisfy the insurance the interest of those of requirements before clients ( c) refrain from making any misleading representations in their advertising.

3.
Without prejudice are specific of which either unprofessional to the generality of practices examples singly or jointly - conduct of the foregoing the following breach which must be observed, as constituting may be regarded (a) brokers shall not directly directly or indirectly, or indirectly nor shall they allow to pay or allow, in the policy, as any agent of theirs other inducement whatsoever not specified nor will they make any misrepresentation or incomplete of any a client comparison their insurance company therein; for the purpose of inducing or surrender to convert, forfeit lapse, (b) in the conduct of their business and independently and shall use all due care and brokers shall provide advice objectively diligence when so doing; (c) brokers shall ensure that all work carried with their business ensure that their employees regulations; shall be properly out in connection and they shall supervised, are made aware of these ( d) brokers shall on request from explain the client cost of, the principal types of insurance the differences in, and the relative which in the opinion.of the broker needs; might suit a client's ( e) although judgment, interest the choice of an insurer brokers shall use their skill objectively can only be a matter of in the best of their client; No.
20) L4 WS OF GUYANA [A.O.

1998 68 (f) brokers shall not withhold from the client relating and justifiable evidence insurance disclosed withholds the reason of documentation adequate without If a broker in writing and without a documents shall provide int he manner required above; delay to the client.
that broker of to the contract being from a client reasons any written (g) brokers shall inform a client of insurance whom a contract be given at the inception thereafter client; shall be advised of the name of all insurers This information is placed.
and any changes opportunity of the contract at the earliest with shall to the (h) before any work, involving to carry on business a charge, is undertaken or an shall is concluded, brokers to charge to the to the payable any amount they propose to the premium which will be in addition and identify agreement disclose client insurer; (i)brokers shall have proper seeks to terminate make no attempt Jetter of appointment; for the wishes regard any agreement to induce any client of a client who with them.
Brokers shall an existing to rescind acquired by brokers except confidential G) any information treated as strictly negotiating consent required from their clients in the normal course or unless of insurance, shall be of the is jurisdiction; or the information of the client by a Court of competent has been obtained or renewing a contract (k) in the completion l form, or any other materia of the proposal shall make it clear that all the answers or The client own responsibility.
brokers document, statements are the client's should always be asked to check the details may result inclusion repudiated; of incorrect information and told that the in a claim being ( l) the content shall be restricted the reasons advertisement approved made by or on behalf of advertisement to the policies for such restriction of one insurer in the are fully explained except where of brokers the insurer and the price of the insurer obtained; and named therein, (m) when advertising their services brokers directly shall disclose in either or indirectly their identity, person or in writing and purpose.
occupation A.O.

1998) JN.S'URANCE [No.

20 69 SCHEDULE 5 s. 102 PART I REQUIREMENTS AS TO THE TRUST DEED AND RULES OF PENSION PLANS I .
The trust deed and rules of a plan qualified for the following this Act shall make provision for registration - matter under (a) the whole of the objects for which the plan is established; (b) the appointment and removal of trustees; ( c) the vesting in the trustees of all property belonging to the plan; (d) the investment in the names of the trustees of all capital to the plan and for, authorizing the moneys belonging investments, which the trustees may invest plan may provide for the if any, in addition deposit by law, in to those authorized such moneys; but the rules of a of such moneys with a bank; (e) the making of contributions persons employed undertakings in connection to the plan by the employers of or combination of in the undertaking with which the plan is established; (t) the contributions payable to and the rates of benefits payable from the fund or the method of calculating payable; benefits so (g) the conditions on which persons to be contributors to and entitled may become and may cease to benefits from the fund; (h) the protection of the vested rights of contributors to the plan; (i)the preparation required and reports by this Act to be prepared; of all statements of accounts, balance sheets (j) the supply in ( on demand) to every person having any rights a person who is or has been employed in the the plan, being undertaking in connection with which of a copy of the rules of the plan and of all statements and requirements accounts, balance sheet of this Act: of the plan is established, (k)the circumstances in which the the event of the winding-up annuities immediate for contingent the use of the plan to purchase and pensioners; plan may be wound up and in (I)the method by which the rules may be amended.
No.

20) LAWS OF GUYANA (A.D. 1998 70 PART 11 FORMS s. l 10(2Xb) Fonn A Revenue Account for the Period ...................... ................... To ............................. ........ .

Pension Fund Plan s Expenditures s I.Amount of the Fund at the beginning I.Superannuation Revenue Benefits of the period* 2.Contribution by employees.

(a) pension employees to retired 3.Contributions by employers.
(b) widow's pensions 4.Any additional contributions employer service liabilities to meet deficiency by or back (c) orphans' pensions gratui- (d} retirement ties 5.Interest dividend and rents 6.Other income (to be specified) 2.Death grants 3.Return of contribution on withdrawal 4.Other expenditure (to be specified) 5.Amount Fund at the end of the period* •May be omitted for an insured pension fund plan.

A.O.
A.O.

1998] INSURANCE [No.20 71 Form B s. l 10(2)(b) (Not to be completed for an insured pension fund plan) Balance Sheet as at .

.

.

.. .

.

.

.. .

.

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.. .

.. .

.

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.. ... .

.

.

.

.

.

.. .

.

.. .

19 ..... for ................. Fund Pension Liabilities $ Assets $ Amount of fund as at Mortgage Pension due but not yet paid Stock Exchange Securities Other benefits , not yet paid.
due but (to be specified) Other assets (to be specified) DETAILS OF MORTGAGE Name of Nature Original Date Method Rate of Amount Date or borrower of amount ofrepay-Interest out- out- security ofloan ment standing standing on the period of valuation repay- date ment DETAILS OF STOCK EXCHANGE SECURITIES Security Date of Nominal Rate of Market Book Value redemption amount interest or value as value used in dividend at the valuation valuation date PART III ACTUARIAL VALUATION � I.
The first part of the report (a) Changes as follows- shall contain statistics as at the valuation - the intervaluation date in respect period of the following in the membership of the fund during a well as the membership of the fund ont he valuation date Number of Number of members at beginning of period new entrants Age Group NUMBER OF CESSATIONS OF MEMBERSHIP Transfer on Withdrawal Death Retirement deferred pensions [or benefits] t � '-"' C "'lj -.l N > b '° '° oc Under25 ......... 25 -30 ............. 30 -35 ·············· 35 -40 ············· 40 -45 ............. 45 -50 ............. 50 -55 ············· 55 -60 ............. 60 -65 ............. Total ................
Number of at members the end of the period (b) changes m the number of pensioners of the fund during the mtervaluation period as follows - Number Age Group Number of Number of Number of members at pensioners on pensioners died Pensioners beginning of period pension during during to receive Number of Number of ceasing pensioners at end pension of period Health I Age Health I Age Health I Age Health I Age Bealth I Age for other causes No.

20) LAWS OF GUYANA [AD.


1998 74 ' <r, ..... 0 ... 0 <r'I <r'I -0 ��;�� E ,r, ,r, ,r, ,r, ,.... M 'St <r'I I' ] 0 f- A.O.

1998] JN5,'URANCE [No.

20 75 2.
The second part of the report shall contain the following information (a) regarding general observations retirement from service intervaluation factors entering into the valuation; period and general mortality, and withdrawal of salary during on any other observations and progression (b) a description (specimen of the mortality and all other rates used rates to be shown in and appendix to the report); (c) rates of interest average whether invested intervaluation period; realized by the assets of the fund or not during each year and the (d)the rate of interest assumed in the calculations of for purpose the valuation; and (e)a statement indicating - (i)whether and how it has been secured net liability in respect of any employer that the estimated is not negative, (ii)the amount of and the reason for any special reserves which has heen <:Pt 11n 3.
The tinal part or the report shall contain information about the and analysis resu Its of the valuation.

shown and a recommendation reg.arded as disposable.

deficiency can be liquidated.

of the surplus as to how much of the surplus the manner in which the or.

if a deficiency, can be or deficiency 4.

The report shall close with any further observations the actuary may wish to offer on the valuation.

Passed by the National Assembly on 28th December.

1998.

Clerk of the National Assembly.

F.A.

NARAIN.


(l31LL No.

23'1998)