Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698072303032.pdf (Guyana)
GUYANA.

ACT NO.

25 OF 1970.

INSURANCE ACT, 1970.

1 assent.

es· -tL ).

o �ovember, 1970.

Arrangement of Sections.

Section 1.

Short title.

2.

Interpretation.

PRELIMINARY 2.

No.

25] THE LAWS OF GUY ANA [A.D. 1970 PART I ADMINISTRATION 3.

4.

5.

6.

7.

8.

Commissioner of Insurance.

Commissio.ner to administer this Act.

Delegation by the Com.missioner.

Annual Report and Returns.

Commissioner may act as arbitrator.

Registers to be maintained by the Commissioner.


PART II REGISTRATION 9. l 0.

11.

12.

13 .

14.

15.

16.

1 7.

18.

19.

20.

21.

22.

23 .

24.

25.

26.

27. to carry on msurance business unless Companies not registered.

Application for registration.

Matters to be taken into account in considering applica- tion for registration.

Company to make deposit before registration.

Registration of company incorporated outside Guyana.

Certificate of registration.


Notification of change in particulars specified in applica tion.

Cancellation of registration.

Appeals.

PART III DEPOSITS Deposit.

Certificate of deposit.

Increase of deposit where securities have depreciated.

Responsibility for lost securities.

Substitution of deposits.

PART IV STATUTORY FUNDS Establishment of statutory funds.

Application of long-ter,m insurance fund.

Particulars of liabilities and assets with respect to statutory fund.
Inaccurate or misleading particulars.

Insurance company to furnish Commissioner with informa tion.

- A.D. 1970] 3 INSURANCE (No.

25 28.

29.

30.

Appeal against direction by Commissioner.

Assets in statement deemed to be assets of statutory fund .

Invet.tment requirements.

PARTY ACCOUNTS AND DOCUMENTS 31.

32.

33.

34.

35.

36.

37.

38.

39.

40.

4 1.

42 .

Accounts and balance sheets.

Actuarial report and abstract.

Statement of insurance business.

Deposit of accounts with Commissioner.


Right of shareholders and policy-holders accounts.

Audit of accounts.

Publication of authorised, subscribed and paid-up capital .

Commissioner may demand information.

Power to make investigations.

Power to obtain information.

Divulging of infor-mation.

Actio11 on completion of investigation.

to copies of PART VI AMALGAMATION OR TRANSFER 43 .

44.

Amalgamation or transfer.

Statement in case of amalgamation or transfer.


PART VII WINDING UP Special provisions as to winding up of insurance companies.

45 .

46.

Winding up of subsidiary companies.

4 7.

48 .

Valuation of annuities and policies.

Power of court to reduce contracts.

PART VIII ASSOCIATIONS OF UNDERWRITERS 49.

50.

51.

52.

53.

Registration of Underwriters.

Documents and information to be furnished to the Com- missioner.

Cancellation of registration.

Notification of Commissioner's decision on application.
Registered association may be prohibited from writing new business.

No.

25] THE LAWS OF GUYANA [A.O.

1970 4 54 .

55.

Policies issued before rejection of application or cance!Ja tioo of registration.

Deposit by association of underwriters.

PART IX MISCELLANEOUS 56.

57.

58.

59.

60.

61.

62.

63 .

Appeals.

Custody and inspection of documents.

Evidence of documents .

Alteration of forms.

Penalties.

Service of notices.

Power to make rules.

Repeal and savings .


FIRST SCHEDULE SECOND SCHED UL E AN AcT to provide for the regulation of insurance business in Guyana and for purposes related thereto or connected therewith .

A .D .

1970 Enacted by the Parliament of duyana· - Short title.

link,;11preta tioo.

l. 2.

Thi Act may be cited as the lmurance Act, 1970 .

PRELIMINARY Tn thb Act.
unl ess the context oth.e rwi se requi res- " actuary" means a person possessing such actuarial quali fications as may be approved by the Minister for the purposes of thi s Act and includes a body comprising persons possessing actuarial qualifications as aforemen tioned and providing actuarial services: "agent" means any persoo, appointed by an insurer and not being an employee of such insurer, to solicit applic ations for insurance or negotiate insurance on its behalf and if authorised to do s o by the insurer.
to effectuate and countersign insurance contracts; "association of underwriters·• means an association of in dividual underwriters organised according to the system known as Lloyd's whereby every underwritin g member of a syndicate becomes liable for a separate part of th t.: sum secured by each policy subscribed to by that syndi cate, limited or proportionate to the whole sum hereby secured ; A.D. 1970] INSURANCE [No.
25 "broker" means any person who for compensation as an independent contractor in any manner solicits, negotiates, or procures insurance or the renewal or continuance thereof on behalf of insurers other than himself or on behalf of agents or who arranges insurance business with such insurers or agents on behalf of prospective policy holders; "carrying on insurance business" includes the receipt of proposals for or issuing of policies of insurance in Guy ana or the collection or receipt in Guyana or renewal premiums on policies issued in Guyana by an insurer or through an agent or as agent but does not include the collection or receipt in Guyana of renewal premiums under a policy issued out ide Guyana to a person resid ent outside Guyana at the date of issue of the policy and who i temporarily resident in Guyana or the making of payments due under any such policy nor insurance business which consists solely of the collection or receipt in Guyana of renewal premiums under policies issued in or outside Guyana prior to the commencement of this Act to persons ordinarily resident in Guyana; "chailiUlan" means the person for the time being presiding over the Board of Directors or other governing bod y of an insurance company; "Commissioner" means the Commissioner of Insurance under this Act; " Court" means the High Court; "filllancial year" means each period of twelve months at the end of which the balance of accounts is struck, or, if no such balance is struck, then the calendar year; "insurance business" means the
 business of, or in relation to, the issue of, or the undertaking of, liability under, policies insuring human to make good or indemnify the insured against any loss or damage, in cluding liability to pay damages or compensation con tingent upon the happening of a specified event, bnt does not include:- lives, or (i) business in relation to the benefits provided by a friendly society or trade union for its members or their dependants; or (ii) business in relation to a scheme under which super annuation benefits, pension or payments to em ployees or their dependants ( and not to any other persons) on retirement, disability or death are pro vided by an employer or his employees.
or by both, wholly through an organisation established solely for those purposes by the employer or his employees or by both; "ins1;1rance ?Ompany" or "company" means a company which carnes on msurance business in Guyana or pro- No.
25} THE LAWS OF GUY ANA [A.D. 1970 6 poses to carry on such business therein registration under this Act; pursuant to "insurer" means a company registered in Guyana and includes n of underwriters; ance business an associatio broker as such nor an insurance case of a person who is both insurer have references to cany 01:1 insur­ an underwnter and but shall not include agent as such nor in the and insurance to business agent, a done as insurance agent; insurance busi­ includes "long-term insurance business" business, business, ness of all or any of the following insurance insurance relation by the company as incidental business; non-cancellable bald investment to any company, insurance sickness and accident and in carried business, on business onty to any such class of classes namely, life "officer" includes the manager, secretary, treasurer, actuary or any other person designated a company by the articles of association, bye-laws other rules regulating as an officer of or its operation; "policy" contained in one or more documents; means any written contract of insurance whether "policy-holder" means the person who for the time being any person has the legal title to the policy and includes to whom a policy is for the time being assigned; "prescribed" means prescribed by rules made under this Act; "underwriter" includes to pay or contribute liabte sum secured by the policy.
any person named in a policy as towards the payment of the PART I �= 3.

(I) There shall be a Commissioner ·shall be a public ADMINISTRATION office.

of Insurance whose office (2) If the Commissioner it may be necessary, whenever for .

adv1swg t?e services o� 3;11 actuary the Comnuss1oner on matters shall cause arrangeme�ts to be mad� to be �v�ilable for the purpose of ansmg under this Act.

is not an actuary the Minister Oommiaionu to administer thia Act.

mm1stration • • 4. .


The �ommissioner of this Act, and in the exercise of his duties he shall conform with any general shall be charged with the general ad- of his powers and the or special performance directions given to him by the Minister.

Odcp1ion 5 (I) Th C i,, the .

c-ui oner.

m the M�stry respoosibte • • • • e omm1Ss1oner may delegate to any officer or officers for finance any of his powers or functions under !his Act, except the power of delegation subsecuon.

conferred by this · ' AD.


1970] ' INSURANCE [No.

25 (2) A delegation under this section shall not prevent the review and alteration by the Com.missioner of any decision made by an officer pursuant to such delegation.

6.

( 1) The Commissioner shall, within three months after the =~ and 31st DeceID'ber in each year, furnish to the Minister- rctums.
(a) a report on the working of this Act during that year; and (b) printed copies of summaries of the documents, lodged with him under this Act, copies of which shall be laid before the National Assembly by the Minister as soon as practicable after the receipt thereof.

(2) The Commissioner ,may attach to any such copy or sum mary any note which he thinks proper to make with reference to the document, together with a copy of any correspondence relating to the document.

7.
7.

( 1) Where in relation to a policy, any dispute or difference O>nsn.illionec arises between an insurer and a policy-holder, the Commissioner=~- • may act as arbitrator of the dispute or difference.

(2) An arbitration under this section shall be conducted in Cap.

3t.

accordance with the Arbitration Ordinance.

8.

The Commissioner shall maintain- .

f .

.


ed RO&it1ers tt> be maiDtaioed the Com- by • ( ) a registers o compames register Guyana the various classes of insurance business specified in the first schedule; to carry on m mi5.io.ncr.

(b) registers of associations of underwriters, and, such to him or the other registers as may appear Minister requisite cfor tt}le proper administration of this Act.

PART II REGISTRATION .

.

G 9.

(1) Subject to this Act, no person shall car.ry on insurance C<>mpanies .
to e&lll'Y b at person IS a company mcorporate 00 insurance usmess m under the Companies Ordinance or by virtue of any other law in force .~mess roa:i> in Guyana or is a company incorporated outside Guyana which has tere4 established a place of business within Guyana.

uyana u ess d not th nl .


(2) A company pientioned in subsection (1) shall not carry on insurance business of any of the classes listed in the first scnedule as insurer unless it is registered by the Commissioner under this Act in respect of that class of business and has made the deposit, if any, required by virtue of section 18.

No.
No.

25] THE LAWS OF GUYANA [A.D. 1970 8 (3) Subsection (2) shall not apply to a company carrying :,n insurance business in Guyana immediately before the commence ment of this Act so as to require that company to make a deposit before the expiration of one month after the coilliJ]lencement of this Act or so as to require registration, subject to section 10, before the end of three months from that commencement.
( 4) A company carrying on insurance business in Guyana immediately before the commencement of this Act shall not, at any time after the expiration of three months after the commencement of this Act carry on any such class of insurance business in Guyana unless it has been registered iby the Commissioner to carry on such insurance business.
(5) Any person who contravene this section shall be liable on swnmary conviction to a fine of ten thousand dollars or to im prisonment for two years or to both such fine and imprisonment and, in the case of a continuing offence, to a further fine of one thousand dollars for each day on which the offence 1s continued after conviction thereof.

(6) Where a person convicted.


of an offence against this soc.tion is a body corporate, every person who at the time of the commission of the offence, was a director or officer of the body corporate, shall be deemed to be guilty of that offence unless he proves that the offence was committed without his knowledge, or that he exercised all due diligence to prevent the convrussion of the offence.

(7) The Minister may, by order.

amend.

a'lter or vary 1hc provisions of the first schedule.
· AR,Ucaitrion tor Retistra tloa, 10.

( 1) Any company may make application to the Commissioner for registration under this Act.
(2) The application which shall be in writing, and igned by a Director or by the principal representative of the company, shall specify- (a) (b) (c ) (d) (e) the situation of the head office of the company; the names of the directors and the auditors and the name and address of the principal representative (if any) of the company; the naime of the actuary (if any) of the company ; the countries (if any) outside Guyana in which the company carries on insurance business; and the classes of insurance business undertaken or to be undertaken by the company.
(3) The (a) (b) application shall be accompanied by- a copy of the instruments constituting the company or other duly certified proof of incorporation; a copy of the memorandum of the company; A.D. 1970] INSURANCE [No.
25 9 ( c)a copy of the articles of association or other rules of the company; (d)a copy of the latest revenue sheet of the company prepared in accordance the forms prescribed and, a oopy of the lateist �si­ report upon the financial actuaria:1 tion of the company; valuation a�ount and balance with ( e)in the case of a company having shareholders, the nominal, subscribed and showing a statement paid-up the capital capital of the company and the amount of which has been paid up in cash; (f)in the case of long-term business insurance rate book in use, or to be used a copy of the premium by the CQmpany in Guyana; (g)specimens of the various standard forms of pro­ posals and policies to be issued in Guyana, certified to be true and correct.
by a director or the principal representative of the company application additional ( 4)The Commissioner for registration information as he may require.

may require any company making under this Act to furnish him with such (5)Every company carrying on insurance business immediately prior to the commencement months of such commencement, this section to the Commissioner Act, the Commissioner the application, the provisions if satisfied of this Act, register the company.
foe registration make application that the application is of this Act shall, of with in accordance shall, within two months after the receipt with in accordance and, subject to this in Guyana within two 11.

In considering the application of a company for registra- tion under this Act, the Commissioner other relevant r ... 6'"A .. to-- ..,.

.. -1 have due QOMideriaa matter which he may take into consideration, BR>licatlon lclr reslroi-a­ tioD.
shall, without prejudice Mauer, 1o be to any =�.JD�� (a)whether the application i, in acconfance with the of this Act; provisions (b)whether the company with such of the provisions applicable to it; is lil:ely to be able to comply of this Act as would be ( c) the financial resources of the company; (d)whether business to carry on, in addition to insurance business, is not contrary to the public �terest; the carrying �bich a company carries on, or proposes on of some other form of No.
25] THE LAWS OF GUYANA [A.D. 1970 10 (e) whether the compan_y in carrying on insurance business in Guyana is, in the opinion of the Com missioner, likely to contribute substantially to the economic development of Guyana.

to Coinpany m ake a de posit before rcaistration.

12.

A company shall not be registered in respect of any class of insurance business listed in the first schedule unless it has paid the deposit, if any, required by virtue of section 18.
Registration of Co~ny incorporated outside Gu1- a1111 .

13.

A company incorPorated outside Guy_ana which esta~lishes a place of business within Guyana shall not be registered under this Act unless it has furnished the Commissioner in writing with the name and address of the person resident in Guyana who is authorised to accept on its behalf service of process and any notice required to be served upon it.

Oc rtificate of rcgistrat10n.

14.


The Commissioner shall furnish every company ,registered under this Act with a certificate that the company has been so regis- tered , and the certificate shall state the class of insurance for which it is registered and shall be prima f acie evidence that the company specified in the certificate has been so registered .

r-:o tlfJ cation of chanae ln pa rliculara ,~'Cci ficd In application .

15.

(1) Subject to ubsection (2), if, subsequent to the registration of.
any company under this Act, any change occurs in the particulars specified in the application of the company for registration or in the particulars of the information or documents required to accompany the the company shall, within one month of such change, application , notify the Commissioner or furnish to the Commissioner in writing of the change.
(2) No change in the particulars contained in the premium rate book of the company mentioned in section 10(3) (() the effect of which would result in an increase in the rate of premium payable under any class of policy issued in Guyana by the company shall become operative and no policy of that class shall be issued by the company, unless the approval of the Commissioner has been obtained.

Cancellation of reai•tra tio n. 16.


(1) When a company ceases to carry on insurance business of any class listed in the first schedule, the company shall forthwith notify the Commissioner in writing and, subject to sub ection (4), the Commissioner shall thereupon cancel the registration of the compan in respect of that class of insurance business.
(2) Where a company has been registered under this Act and the Commissioner has reason to believe that the company - (a) has not carried on insurance business within one year of its registration; or A.D. 1970] INSURANCE [No.
25 11 (b)has not carried on insurance than one year; or of more business for a period (c)is not, in the opinion of the Commissioner, contri· ot buting substantially Guyana, to the economic development on the company be may serve notice one month after the date of service of the notice, that it is carrying insurance general him within on to the in Guyana or is contributing requesting it to satisfy substantially development of Guyana.
business (3)If a company on which a notice is served under subsection (2)d� not, within the time specified Commissioner contributing Commissioner may cancel the in that subsection, satisfy in Guyana or is development the of Guyana, of the company.
to the general the registration substantially that it is carrying on insurance business (4)So long as a company remains under any liability to the Commissioner in Guyana in respect of policies shall not cancel he is satisfied policy-holders business, in respect of that class unless has been or will be made for that liability ments will exist for payment in Guyana of premiums and claims those policies; has not been cancelled from writing new policies in any class of insurance the company' that reasonable and that adequate arrange­ on but notwithstanding the Commissioner of the company the company business.
of any class of insurance s registration that the registration may prohibit provision (S)When the registration of a company is cancelled, the Commissioner shall - of the cancellation and (a)give notice to the company; (b) require the comoany to deliver to him within one month.

or such shorter period as ·he mav sneclfv.

the certificate ,14. furnished to the company under section (6)If the Commissioner or in respect of a particular either generally section (3), the Commissioner reasons therefor.
10 or ca.noels the registration shall within fourteen days state in writing his refuses re�stratio n of a comnaay under class of insurance of a company under subsection (7)The Commissioner shall cause notice to be published of the cancellation and in in the Gazette of the registration, a newspaper of a company circulating in Guyana.

17.
17.

(1) Any company sioner given under section manner prescribed by section 56. aggriev1:d by the decision of the Com.mis-A,,pcai.. 10 or 16 may a_ppcal therefrom in the 12 No.

25] THE LAWS OF GUY ANA [A.D. 1970 (2) On any suoh appeal the Minister may confirm or disallow the decision.

PART UT DEPOSITS 18.


(1) There shall be paid to the Commissioner by an insurance company carrying on any of the classes of insurnnce business specified in paragraphs 1 to 4 of the first schedule a deposit of $250,000 which may be either in the form of cash or in the form of securities approved by the Minister or partly in one and partly in the other.
(2) The Minister may, by order which shall be subject to affirmative resolution of the National Assembly - (a) prescribe other classes of insurance busines in respect of which a deposit shall be paid to the Commissioner; (b) prescribe different amounts as deposits in respect of the classes of insurance business prescribed under paragraph (a); ( c) vary the amount of the deposit required by sub section ( 1) or of any deposit prescribed under this subsection.
(3) For the purposes of thi section, the insurance company carrying on more than one class of Jong-term insurance business shall be regarded as carrying on only one cla<i<i of long-term insurance business.

(4) All interest and dividends accruing clue on any securities deposited pursuant to this Act .

hall be paid to the company.


(5) All deposit made by a company pursuant to thls Act shall be deemed to form part of the assets of the company; and the denosit made in rsepect of long-term insurance business shall be de.emed to form part of the statutory fund of the insurance company and shall comtitute oart of the minimum investment required to be made in Guyana under this Act.

cap .

239.

(6) Where, at the commencement of this Act, any amount or SPcwitv is.
in oursuancc of the Life Assurance Companies Ordinance.

held by tbe Minister by way of deposit on account of a compan,.A carrying on insurance business, the Minister shall forthwith pay th~ amount, or transfer the security.

to the Commissioner.

(7) Any amount or security on account of a company which is paid or transferred to the Commissioner in compliance with sub section (6) shall, to the extent of the deposit required to be lodged by the company under thi section.
be held by the Com.mi sioner as part of the deposit so required.

A.D. 1970] 1.

-INSURANC� [No.
25 1s (8)A deposit made under this section in respect of any claM business shall be retained by the Commissioner until either of insurance the company ceases to be registered in respect of rtbat class of insurance business or the deposit and if the company ceases to be registered as aforesaid, the deposit or part of it may be further with any such provision by subsection for the purpose of and in accordance in -respect of policies as is required is -required in the winding up of the company; for liabilities ( 4) of section retained 16 .
(9)Upon making application for its deposit the company shall in Guyana Wlhose a list of all policy-holders and it shall at the same time publish for or who have not surrendered and continue the publica­ file with the Commissioner risks have not been so provided policies, tion at least once in every week for twelve consecutive weeks, in the Gazette in Guyana and approved by the Commissioner, missioner four months after the date of the publication opposing ing upon the policy-holders with the Commissioner opposition a notice for the release of its deposits on a certain day not less than of the first notice and c.all­ on or before the day so named.
and in at least one newspaper circulating such release to file their that it will apply to the Com­ their (10)After the day oo named in the said notice, if the Com­ on reasonable grounds that the deposit of the is satisfied with him is substantially missioner company Act in respect of the continuing currence portion of the excess as be deems proper in the circumstances, of the deposit for the protection shall continue of the continuing policy-holders as is by this Act provided.
in excess of the requirements of this from time to time release to hold the remainder policy-holders, of the Minister, to the company such he may, with the con­ and (11)Thereafter from time to time as such policies lapse or proof is adduced that they have been satisfied further amounts may be released on the authority aforesaid.
(12)Notwithstanding this section, if the company is in liquida­ tion the deposits having jurisdiction released made by the company may, on the order of any court under this Act or the Companies Ordinance, be by the Commi55ioner .to the liquidator.

(13)Where the registration of a company menced 1o carry on insurance pursuance any moneys, the company to the company and deliver to the company any securities, deposited by in pursuance of this section.
in Guyana is cancelled shall refund 16, the Commissioner of section business that has not com­ in 19.

The Commissioner shall, on demand, with a certificate nish the company and extent in resoect of that company ties (if.

any) forming the whole or part of the of any deposit held by the Commissioner in writing, with the particulars to1?ethcr setting deposit.

by a company, fur-cen.1r1ea1e ot out the nature depout.

under this Act of the securi- A.D. 1970] INSURANCE [No.

25 14 ���c- Iacn:� o1 20.


(1) U the CoDllllksioner c1cc,cna1 accun1ic1 aatton ID e v ue o securities wtacre .

• • th al f deposited and approved of the value required by this Act, he shall, by notice in writing, re­ quire the company to deposit with him or both to a value deemed by him to be -sufficient of the deposit to the value required by this Act.

is satisfied or o er cause e ue o money th th val f by a company that by reason of depre- securities .

.
.

with him falls shon to bring the amount money or approved securities (2)A notice under this section shall not be issued until the Commissioner in connection has given an opportunity to the company to be heard with the matter.

(3)Any company or appro�d sioner money this section shall be guilty of if he deems it necessary the registration of such company.
securities which fails to deposit with the Commis­ by him under or both as required may, ,an offence and the Commi9Sioner cancel of the policy-holders, in the interest Rell'OlllillWlr 21.

U any moneys or securities .

!:':uf=.

or pa.tit of, the deposit required Act, are, while so deposited, lost, stolen, destroyed or damaged, the in the moneys or securities to all persons interested injury occasioned shall be made good out of moneys to be appropriated for the purpose.
held by the Commmioner as, to be made by a company under this by Parliament Substitution .., IMl'06!115.

22.

A company may at any time substitute for any security by the Commissioner or cash held quired to be made by the company rity or cash, but so that the the amount required by this Act and any security or liability to the same charge shall be subject withdrawn.
as, or as part of, the deposit re­ under this Act any appro� secu­ total amount then deposited is not less than or cash so substituted as ithe security or cash PART IV STAnITORY FUNDS company shall establish, as at the date on to carry on long-term carrying on long-term insurance business or, in the insurance business of this Act as at the date of the com­ immedi­ year next after the commencement e.s1abliahmcn.1 23.
(1) Every insurance tno.�010 � which it commences case of a company ately before the commencement of its financial mencement Act, and shall maintain, insurance with respect to policies issued as established insurance business year.
pany for the last preceding in Guyana in relation by the revenue account of the com­ fund) in respect of its liability a statutory fund of this (to be called the long-11erm a. and contingency reserves W to its long-tenn (2)For the purposes of subsection (1), an insurance company carrying on more than one class of long-term be regarded as carrying on only one class of long-term insurance bmincss, insurance business shall No.
25] THE LAWS OF- GUY ANA (A.D. 1970 tj (3)In the case of an insurance company transacting other insurance business, that of long-term insurance, business besides be kept of the long-term shall be carried fund.

separate (4)The long-term insurance investments from any other fund and a separate kept in res peot of the long-term insurance fund.

fund shall be invested in separate balance sheet shall be to and form the loog-term �urance fund as a a separate account shall and the said receipts 24.
The long-tenn insurance fund established pursuant to �e� the security of the policy-holders insurance as though section 23(1) shall be as absolutely long-term no other business liable not have been liable had the business of the company long term insurance, directly any purpose other than that of long�1crm insurance it belonged to a company than long-term insurance business of the insurance company for which it would been only that of or inclirectly, for business.
-and shall not be applied, for any contracts carrying and shall not be on of =:•cc within fund mentioned thirty days after the ::aO:.C:!

:"8.� may allow and there-�� '° in section 23 ( t) a•e1a wllh 25.
The insurance company shall, of the statutory date of establishment or within such further time as the Commissioner after within six months of the expiration the Commissioner - form showing (a) particulars wrth a statement in accordanoe of the liabilities of each financial year, furnish with the prescribed in respect of which the fund is emblisbed, date of the establishment of the fund; of the insurance company as at the (b)particulars of the assets comprising the fund; (c)such additional information relating to the fund as he may require.
26.
If it appears to the Commissioner that - Inaccurate misleadln1 or (a)a statement furnished to him under section 25 is in partlc:ulan, any respect unsatisfactory, incomplete, inaccurate or misleading or otherwise fails to oomply with the requirements of thait section; or (b) the value of the assets, or of the assets included as shown by the statement in class of assets a particular is insufficient or excessive, may, after considering the Commissioner on behalf of the oompany, give writing as he thinks n�ary- any explanaitlion made by or to the company, such directions in (i)for the variation of the statement; (ii)for an increase or decrease in the value of tho asset1 respectively, and .
the company shall within dlirty days comply with aay directiou IO pYCII.

A.D. 197U] INSURANCE [No.

25 16 =:.e to An insurance company shall, if directed by the Commis fu~h Oom- sioner, furnish him within thirty days or within such further time as the ~onna- Commissioner may allow, with such information as he requires for the 0 : : 27. lion.

purpose of exercising his powers under sections 25 and 26.

~ ; ; dlree lion of ~ ioa - provided by seotion 56.

28.
28.

(1) An insUTance company aggrieved by any direction of the · Commi ioner under section 26 may appeal therefrom in the manner ill As.5elS statcmeffl deemed to be a59eb of scatutory fun d (2) On any such appeal the Minister may confirm, disallow or vary the direction.

29.
29.

The assets shown - (a ) by a statement furnished to the Conunissioner by an insurance company under section 25; or (b) where directions are given by the Commis ioner, or on appeal, by the Minister, for the variation of the statement, by the tatement as varied , 111\-Cs!ment r cquiremClll!a, as being assets of any statutory fund, shall be deemed to form part of those assets, unless they more properly form part of the as et.is of some other statutory fund.

30.
30.

(1) Subject to subsection (2), every insurance company carry ing on long-term iI11Surance business in Guyana hall at 1st January, 1971, have invested in assets in Guyana and keep invested therein an amount not less than ninety-five per cent of it statutory fund as men tioned in section 23(1).
(2) An insurance company carrying on long-term insurance business in Guyana may, for the purpose of complying with the require ments of subsection (1), invest each year in assets in Guyana and keep invested therein an amount not less than ninety per cent of its premium income in that year in respeot of policies issued in Guyana in respect of long-term insurance before making deduction of fees and other ex· penses until the amount so invested is equal to the amount of invest ment required by subsection (1).
(3) Every insurance company carrying on long-term insur ance business in Guyana shall invest each year in securities approved by the Milllister subject to such terms and conditions as may be imposed~ by him an amount equal to twenty per cent of the increase in tha,t ye~rw of its statutory fund as mentioned in section 23(1), and the amount :-o invested shall be reckoned as part of the investment requiTed by ltihis section to be made by the company.
(4) The Minister may, if he thinks fit, from time to time, by order which shall be subject to affirmative resolution of the National tlhe assets in O Jyana for the purposes of this Assembly, prescribe section.

No.

25] THE LAWS OF GUYANA [A.D. 1970 17 PART V ACCOUNTS AND DOCUMENTS.

31.

· 1 Every insurance company shall, at the exprration of eac B lance ,h eets.

fi nanc.1a year prepare - .

.
.

h Accou nt, and (a) (b) (c) (d) a revenue account for the year in the prescribed form; a profit and loss account in the prescribed form, except where the insurance company carries on only long-term insurance business; a balance sheet or balance sheets in the prescribed form; a statement containing ,the name of every person who during the year was a member of the board of directors or other governing body or was manager or secretary or held any similar office by whatever name called.

• .

.

32.
• .

.

32.

( l) Every msurance company carrymg on long-term IJilsurancc rtpo, business in Guyana shall, once in ~very five years or at such shorte.

,b, ira c t. intervals as are prescribed by the instrument constituting the compan_ or by its regulations or bye-laws, cause an investigation to be mad~ into its financial condition, including a valuation of its liabilities, b) an a:ctuary, and shall cause an abstract of the report of such actuary to be made in the prescribed form.
Ac uarlal a <1 (2) The provisions of subsection (1) regarding the making of an abstract shall apply also, whenever at any o1Jher time an investigation into the financial condition of an insurance company is made with a view to distribution of profits, or whenever the results of any such investigations are made public.

33.
33.

(1) ~very insurance comp~y shall prepare a statement of its husin~~-· insurance business at ,the date to wh ich the account·s of the company are made up for the purposes of any such investigation as aforesaid in the prescribed form.

~· "lteme t of - (2) If the investigation is made annually by any insurance company, the company may prepare such statement at any time, so that it is made at least once in every five years.

34.
34.

( 1) Every account, balance sheet, abstract or statement here- Depo•it of inbefore required to be made shall be printed or typewritten and fo nr ~.~~~u~~e copies thereof one of which shall be signed by the chairman and two <;omrnfa directors of the company, and by the principal officer of the company uoner.
and if the company has a managing director, by the managing direc- tor, shall be deposited with the Commissioner within six months in the case of accounts and balance sheets required· by section 31 and within one year in other cases after the close of the period to which the account, balance sheet, abstract or statement relates.

A.D. 1970] 18 INSURANCE [No.


25 (2) If in any case it is made to appear to the Commissioner that the circu,mstances are such that a longer period should be a1- 1owed, he may extend that period by such period not exceeding six months as he thinks fit.
(3) The Commissioner shall make an examination into each account balance sheet, abstract or statement, deposited as aforesaid, either aione or with an actuary from time to time appointed by the Minister for the purpose; and the Commissioner, or if an actuary is appointed, then the Commissioner and such actuary shall make such report to the Minister on such accounts, balance sheets, abstracts or statements as he or they may think fit, and every such report shall be published in the Gazette.
( 4) Any report on the affairs of the company, submitted to the shareholders or policy-holders of the company in respect of the financial year to which the account and balance sheet relate, shall be deposited with every revenue account and balance sheet of a com pany.

35.

A printed copy of the last-deposited accounts, balance Right of shareholders sheet, abstract or statement shall, on the application of any share ~~;e/001 ac- holder or policy-holder to the company, be forwarded to him by the counts.
company by post or otherwise.

Audit of accounts.

36. ed annually.

The accounts of every insurance company shall be audit- 3 7.

Where any notice, advertisement or other official public Publdcation ~b~rW,<~ted, ation of an insurance company contains a statement of the amount of ·~ vaid-,up the authorised capital of the company the publication shall also con- cap,tal tau_1 a statement of the amount of the capital which has been sub- · scribed and the amount paid up.
• · ' Commis6io ner =rm=:nd furnish him with information relating to any µiatter in connection The Commissioner may require any insurance company to 38. with its insurance business carried on by it in Guyana.

Powc.r make iations.

to invcst.i 39.
( 1) If it appears to the Commissioner that - (a) (b) (c) (d) an insurance company is, or is likely to become unable to meet its obligations; an insurance company has failed to comply with any provisions of this Act; an insurance company has not, within a period of one month from the date on which the Commis- sioner required from it in writing any information which he was entitled to require from it under this Act, furnished that information duly and satis factorily; requires an any investigation into the whole or any part of the business of the insurance .
:ompany, in his possession information - No.
25] THE LAWS OF GUYANA [A.D: 1970 19 he may serve on the company a notice in writing calling upon it to show cause, within such period, being not less than thirty days from the date of the notice, as is specified in the notice, why be should not, on the grounds so specified investigate the whole or any part of the business of the company or appoint a person as an Inspector to make such an investigation and report to the Commissioner the results of his investigation.
(2) If the company fails, within the period specified in the notice, to show cause to the satisfaction of the Commissioner, be may make the investigation or may cause it to be made by the Inspector.

40.

( 1) In making an investigation under section 39 the Com missioner or the Inspector- Power to obtain mation.
infor may require tne company to produce any securities, books, accounts, documents or statistics of the com pany tor his inspection and to allow hltm to make such extracts from them as he deems fit; (b) lCJ may examine on oath or affirmation in relation to the company's business, any person who is, or has at any ume been, a director, auditor, officer, agent, servant or shareholder of the company or the holder or a poucy 1ssuect by the company or the personal representauve of the holder; and tor tne purpose ot paragraph (b) may administer oatns or make affirmations.
Cl) A person specified in paragraph (b) of subsection (1) shall produce to the Commissioner or the Inspector at his request any secunties, books, accounts, documents or statistics of the com pany which are available to him and shall give to the Commissioner or the Inspector, at his request any information in his possession relating to the business of the company.
( 3) A person so specified who refuses to be sworn or to make an affirmation or to give information on his examination on oath or affirmation or who gives any false information in reply to a request made under subsection (2), shall be liable on summary conviction to a fine of one thousand dollars or to imprisonment for two years or to both such fine and imprisonment.

41 .
41 .

(1) A person shall not either directly or indirectly except in Divulging of the performance of any duty under this Act, make a record of or information.

divulge or communicate to any person, any information acquired as n result of an investigation.

.

.

(~) A person performing any duty for the purpose of an mvesugation shall take an oath or make a declaration, in the manner ~?

form pr~scribe?-, to maintain secrecy in conformity with the pro v1s1ons of this section.

A.D. 1970] 20 INSURANCE [No.


25 (3) Any person who contrave°:es_ any of the provisions of thi section shall be liable on summary convtctioo to a fine of one thousand dollars or imprisonment for twelve months or to both such fine and imprisonment.

Action on 42.
Action on 42.

(I) After an investigation in respect of any insurance com- ,onof pany has been completed, the Commissioner- (a) shall transmit to the company a summary of the conclusions arrived at by him as a result of th e investigation; and (b) may issue such directions in writing to the com pany as he considers appropriate having regard to his conclusions from the investigations.
(2) No direction issued to a company under this section shall remain in force for more than twelve months, but nothing in this subsection shall prevent the Commissioner from issuing any further direction to the company.

( 3) A company aggrieved by any direction issued under this section may appeal therefrom in the manner prescribed in section 56.

( 4) On any such appeal, the Minister may confirm or disallow the direction; or ( a) (b) vary the direction.
PART VI AMALGAMATION OR TRANSFER Amalea ma t ion or transfer.

43.

( 1) Where it is intended to amalgamate t ance companies, or to transfer the insurance busint to another, the directors of any one or more of su apply to the Court, by petition, to sanction the prd , or 11 re in~ur th ~ urt- (a) (b) (2) Before any such application is made a notice of the intention to ma shall be served on the Commiss.

published in the Gazette, at least the application is f!
!ade; a statement of the nature of the transfer, as the case may be, abstract containing the material the agreement or deed under wh ation or transfer is proposed to copies of the actuarial or other re the agreement or deed is foundec port by an independent actuary, Court otherwise directs, be policy-holder of each company; ar c tfa; r. No.
25] THE LAWS OF GUY ANA [A.D. 1970 21 (c ) the agreement or deed under which the amalgam ation or transfer is effected shall be open for the inspection of the policy-holder and shareholde rs at the offices of the companies for a period of fifteen days after the last publication of the notice.
(3 ) The Court, after hearing the directors, the Commissioner and other persons whom it considers ~titled to be heard upon the petition, may sanction the arrangement if it is satisfi~d that no suffi cient objection to the arrangement has been established .
( 4) 'I'he Court shall not sanction the amalgamation or trans fer in any case in which it appears to the Court that the life policy holders representing one-tenth or more of the total amount assured in any company which it is proposed to amalgamate or in any com pany the business of which it is proposed to transfer dissent from the amalgamation or transfer.
(5) No insurance company shall amalgamate with another, or transfer its business to another, unless the amalgamation or transfor is sanctioned by the Court in accordance with this section.

44.

Where an amalgamation takes place between any insur- ance companies, or where any insurance business of one such com- ;"~ pany is transferred to another company, the combined company or transfer.
the purchasing company, as the case may be, shall, within one month from the date of the completion of the amalgamation or transfer, deposit witli the Commissioner- :ate ~nt in ·~~ a~:1 • ( a) certified copies of statements of the assets and lia'bilities of the companies concerned in such amalgamation or transfer, together with a state ment of the nature and terms of the amalgamation or transfer; ( b) a certified copy of the agreement or deed under which the amalgamation or transfer is effected; ( c) ( d) certified copies of the actuarial or other reports upon which that agreement or deed is founded ; and a declaration under the hand of the chairman of each company, and the principal officer of each company, that to the best of their belief every pay ment made or to be made to any person whatsoever on account of the amalgamation or transfer is therein fully set forth, and that no other payments beyond those set forth have been made or are to be made either in money, policies, bonds, valuable securities or other property by or with the know ledge of any parties to the amalgamation or trans fer.
A.D. 1970] 22 INSURANCE PART VII WINDING UP [No.

25 sr,,ciaI pro- visions as w, r.di r. g u,p of i·&urancc corr4)anios.

45.

The Court may order the winding up of an insurance to company in accordance with the Companies Ordinance, and the pro- , owever, visions of that Ordinance shall apply accor n y, su J to the modification that the company may be ordered to be wound up- b·ect h di gl , Wi ndjrg up o f compani es.
subSlidiary (a) on the petition of ten or more policy-holders; pro vided that such a petition shall not be presented except by the leave of the Court and leave shall not be granted until a prima facie case has been established to the satisfaction of the Court, and until security for costs for such amount as the Court thinks reasonable has been given ; or (b) on application made by the Commissioner showing that from a consideration of the documents de posited with him under this Act, it appears to him that the company is insolvent.
46.
( 1) Where the insurance business or any part of the insur ance business of an insurance company has been transferred to an other company under an arrangemeot in pursuance of which the first mentioned company, in this section called the subsidiary company, or the creditors thereof has or have claims against the company to which such transfer was made, in this section called the principal com pany, then if the principal company is being wound up by or under the supervision of the Court, the Court shall, subject as hereinafter mentioned, order the subsidiary company to be wound up in conjunc tion with the principal company, and may, by the same or any sub sequent order appoint the same persoo to be liquidator for the two companies, and make provision for such other matters as seem to the Court necessary, with a view to the companies being wound up as if they were one company.
(2) The commencement of winding up of the principal com pany shall, save as otherwise ordered by the Court, be the commence ment of the winding up of the subsidiary company.
(3) In adjusting the rights and liabilities of the members of the several companies between themselves, the Court shall have regard to the constitution of the companies, and to the arrangements entere< into between the companies in the same manner as the Court has re gard to the rights and liabilities of different classes of contributories in the case of the winding up of a single company, or as near thereto as circumstances admit.
( 4) Where any company alleged to be subsidiary is not in process of being wound up at the same time as the principal company to which it is subsidiary, the Court shall not direct the subsidiary com- No.
25] THE LAWS OF GUYANA [A.D. 1970 pany to be wound up unless, after hearing all objections, if any, that are urged by or on behalf of the company against its being wound up, the Court is of opinion that the company is subsidiary to the principal company, and that the winding up of the company in conjunction with the principal company is just and equitable.
(5) An application may be made in relation to the winding up of any subsidiary company in conjunction with a principal com pany by any creditor of, or person interested in, the principal or sub s101ary company.
( 6) Where a company stands in the relation of a princip:il company to one company, and in the relation of a subsidiary company to some other CQmpany, or where there are several companies standing in the relation of subsidiary companies to the one principal company, the Court may deal with any number of such companies together or in separate groups as it thinks most expedient upon principles laid down in this section.

47.
47.

Where an insurance company is being wound up by the ~~~fS:s° of Court, or subject to the supervision of the Court, or voluntarily, the am d policies.

value of a policy or ,"'f a liability under a policy requiring to be valued in such winding up shcll be estimated in manner applicable to policies and liabilities provided bj-· the second schedule.

48.

The Court, in the case of an insurance company which ~~tr 1~t re- has been proved to be unable to pay its debts, may, if it thinks fit , ~':.s.
con reduce the amount of the contracts of the company upon such terms and subject to such conditions as the Court thinks just, in place of making a winding up order.

PART VIII ASSOCIATION OF UNDERWRITERS 49.

(1) No association of underwriters may carry on insurance !Registration business in Guyana unless it is registered in accordance with this Part.
~~~ .. ~i_er- (2) A m~mber of an assoc1at1on of underwriters shall not carry on in Guyana after the date to be declared by order of the Minister, insurance 1business of any class the carrying on of which by a company requires the company to be registered under this Act, unless the association has been registered in accordance with sub section ( 3) : Provided that - (i) a member of an association of und,erwriters shall not carry on iong-term insurance business in Guyana; (ii) no date shall be so declared which is earlier than one month after the commencement of this Act (3) The Commissioner may register as an insurer an asso ciation of underwriters, provided the provisions of this Part are com plied with.
A.D. 1970] 24 INSURANCE [No.
25 ( 4) An application by an association of underwriters fo r registration shall be made to the Com.missioner and shall be accom panied by the following documents- ( a) (b) ( c) ( d) a copy of its statute or deed of association; in the case of an association constituted outside Guyana a certificate stating that it has been estab lished for at least 5 years, that the law of the country in which it is constituted provides for the regulation of an association of underwriters and that it is operating in accordance with that law ; a list of the names and addresses of persons appointed as its agents or brokers in Guyana; and a list of the names of the members of the asso ciation, and by such further information as the Commissioner may require.
( 5) In considering the application of an association of under wrirers for registration the Commissioner shall, without prejudice to any other relevant matter which he may take into consideration, have due regard to whether the association in carrying on insurance business in Guyana is, in the opinion of the 'Commissioner, likely to contribute substantially to the ecoillomic development of Guyana.
D,-,ru=ma An association of underwriters registered in accordance 1 rei atir: •- with this Part ( in this Part referred to as a "registered association") 50. to ·e ~ball wi hin six months of the end of each financial year furnish to the ' b usi ~e 56 h t:1 t mlssioT; er.
Com- ,i Commissioner:- (i) in the case of an association cc11stitu ted ou :sidc Guyana - ( a) a certified copy of such returns relating to the insurance business of the members during the preceding year as are required to be made to the responsible Minister or public authority in the country in which the association is con stituted; (b) a certificate, signed by the Chairman or other presiding officer of the association and by or on behalf of the responsible Minister or other public authority, stating whether the association has complied with the requirements Qf the law for the regulation of association of underwriters in the country in which it is constituted; ( c) the latest annual list of members and the name.
of its Committee or other governing body; and (d) a statement of receipt and expenditure by its members in Guyana during the preceding year.

(ii) in the case of an association constituted in Guyana such documents and information as the Commissioner may require.

No.

25) THE LAWS OF GUY ANA [A.D. 1970 51.

( 1) The Commissioner m.ay cancel the registration of ::i.n ~;~!

'!~~ t.ioo.
association of underwriters- (a) if he is not satisfied that the insurance business of its members is being conducted in accordance with sound insurance principles; or if the association has failed to comply with any requirements imposed upon it in accordance with this Part; or if he is satisfied that the members of the associa tion have not commenced business within one year of registration or have ceased to carry on business within Guyana; or if, in his opinion, the association is not contributing substantially to the economic development of Guy ana; or at the request of the association.
(b) ( c) (d) (e) (2) If the Commissioner cancels the registration under this oction, he shall state, in writing his reasons for doing so.

(3) An association aggrieved by the decision of the Com missioner may appeal therefrom in the manner prescribed in sectioo 56.

( 4) On any such appeal the Minister may confirm or dis allow the decision.
(5) The Commissioner shall cause notice of the cancellation of the registration of an association of underwriters to be published in the Gazette and in a newspaper circulating in Guyana.

52.

( 1 ) The Comimlssioner shall notify the applicant for registra- Noill'lcation tion as an in urer in writing whether he proposes tb register the appli- ~0~ cant or to re1· ect the application.

decisio: on ~ti.on.

- (2) If the Commissioner propo es to reject the application, he shall state his reasons for doing so.
(3) An association aggrieved by the decision of the Com missioner may appeal therefrom in the manner prescribed in section 56.

53.

(1) The Commissioner may prohibit a registered association Reslstered from writing new policies in any class of insurance business if he is asi;ocia,tion satisfied that it is in the interest of the policy-holders or prospective mrrege l~ policy-holders to do so wri~ng new bUSlDCSS.
• (2) The Commis ioner shall notify the registered association in writing of a decision taken under the terms of subsection ( 1) and shall state the reasons for his decision.

(3) A registered association aggrieved by the decision of the Commissioner may appeal therefrom in the mannec prescribed in section 56.

A.O.

1970] INSURANCE [No.

25 Pottcie.

11- 54 An association bas been for registration whose application d�c� with � in accor has � cancell �e�u�:r rejected .
ap,phcatl�n relating canccllataon • • '!r rc,iistra-by it prior to the date on which 1t was no ed o sue reJection or tifi f h · · 11011• unless the Commissioner or whose registration or this Part shall continue to carry on busmess to pobetes issued cancellation suitable arrangements for its obligations is satisfied under these policies that it has made to be met.

u 1 1 11 oc a on of 0 ,s� 2 ,m�rwr1ter1.

b:, 55.


( 1) An association • mencement carry on, or carry on, insurance deposited with the Commissioner of underwriters of this Act may not registere at the com- io existence be • d d • 49 business un er section to in Guyana unless it has an amount e,qual to $250,000.
(2)At the end of each financial having made a deposit deposit writers where necessary, equal to the difference between Commissiooer ing such financial year, provided of underwriters have a deposit $250,000.
or be refunded, as required year an association of under­ by subsection as the case may be, an amount held by the the last preceding deposit ( 1) shall, that at no time shall an association with the Commissioner less than and forty per cent of the relevant premium income dur­ which is constituted on, insurance of underwriters (3)An association after of this Act, may not be registered under section with the Commissioner the commencement 49 to carry on, or carry has deposited to forty per cent of the gross premium income of the members of the association ciation the greater, ana during the with respect to the insurance year last preceding ( derived and underwritten carried on in Guy­ the date of deposit, by the members thereof), an amount equal to $250,000 or fr�m insurance issued by the asso­ financial business policies whichever is business in Guyana unless it ( 4)Such deposits may be either in the form of cash or in the form of securities partly in the other.
approved by the Minister or partly in one and (5)All deposits made by a registered association pursuant to this Act shall be deemed to form part of the assets ciatio�.

of the asso- (6)Sections 18(4), 18(8) to (13), and 19 to 22 (inclusive) shall apply to a deposit made pursuant to this section except that fDr the word "company" the words "association of Ullderwriters" substituted.

shall be PART IX MISCELLANEOUS Appeals.

.

:>�.


l l) direction, An appeal shall li� f:O the Minister from any decision, or order of the Commiss10ner, under this Act.

(2)Notwithstanding that an appeal lies under this Act from any decision, direction or order, auc:h decision, direction or order sball No.

25] THE I4WS OF GUY.ANA [A.O.


1970 27 upon the insurer in respect of which_ the deci�io�, or order bas been made unless that insurer withm be binding direction fiheen d'ays of fue receipt of the notification or order serves on the Commissioner to appeal therefrom fifteen days thereafter diligence prosecutes direction the matter.
setting fOl'th the grounds of appeal and within files the appeal with the Minister and with due the same in which case action on such decision, or order shall be suspended until the Minister bas determined of the decision, direction notice of the insurer's intentio11 ( 3)On any such appeal, may appear and shall be entitled the insurer to be beard by the Minister.

and the Com.missioner 57.

( 1) Every document required under this Act, �� on•'!,1 to be deposited shall be kept by the Commissioner.

documents.
documents.

or certified copies thereof, (2)Such documents and copies shall be open to inspection.

and copies thereof may be procured by any person on payment of such fees as the Minister directs.

58.

( 1) Every document deposited missioner, deposited, and certified by the Commissioner, shall be deemed to be a document so deposited.
to be a document so under this Act with the Com-=�s or (2)Every document purporting to be certified by the Com­ to be a copy of a document so deposited shall and shall be received in evidence missioner be a copy of that document, were the original original document is proved.

be deemed to as if it it and the document unless some variation between 59.
The Commissioner may, on the application of an insur-Akeratlon of ance company, alter all or any of the prescribed forms, in respect of tom.. that company, of that company.

for the purpose of adapting them to the circumstances 60.

(1) Any insurance company or person who contravenes or "enalll•.
fails to comply with - (a)any provision of this Act; (b) any direction or �uirement given or made by the Commissioner under section 39, or a person appointed as an Inspector agent of the company who is knowingly a party to the shall be guiky of an offence and every director, manager, secretary or other officer or default, shall also be guilty to an offence, and shall, where no other penalty is provided, be liable to a fine of one thou�and dollars case of a continuing day during which the default to a fine of five hundred dollars for every or in the default continues.
28 A.D. 1970] INSURANCE [No.

25 (2) If de.fiault continues for a period of three months after notice of default lby the Com mi sioner which notice hall_ be_ published m one or more new paper a~ the Minister, upon the application of one or 1more policy-holders, or shareholders directs, the defaults shall be a ground on which the Court may order the winding up of the company, in accordance with the Companies Ordinance.

Cap.

328.

(3) If any account, balance sheet, abstract.


statement or other document required by thi Act is false in any particular to the knowl edge of any person who igns it, uch person shall be liable on summary conviction to a fine of one thousand dollars or to imprisonment for a term of two years, or to both such fine and imprisonment.

Service of notices.

61.


( 1) Any notice or other document which i by this Act re quired to be sent to any policy--holder may be addressed and sent to the person to whom notice respecting such policy are usually sent, and any notice so addressed and sent hall be deemed and taken to be notice to the holder of such policy.
(2) Where any person claiming to be interested in a policy h:i · given to the company notice in writing of his interest, any notice which is by this Act required to be sent to policy-holders shall also be sent to such person at the address specified by him in his notice.

Power to make rule,.

62.

(1) The Minister may make rules for the purpose of carrying out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing power such rules may - (a) prescribe the qualifications to be possessed by audi tors, and the manner in which ,the accounts of an insurance company hall be audited; (b) prescribe the manner in which the provisions of this Act as to winding up of in urance companies are to be given effect to, .and revoke, alter or amend any of the rnlcs contai ned in the second schedule.

Ropeal a nd Savings.

Oap.

329.

63. repealed.


(1) The Life Assurance Companies Ordinance is hereby - (2) In the case of a company carrying on Jife assurance business at the commencement of this Act, ection , 9, 10, 11 and 29 of the Life Assurance Companies Ordinance shall continue to apply a if this Act bad not been enacted in relation to 'accounts, balance sheets, abstracts and statements for an) period.

or relating to anv date before the first financial year under thi.

Act , · ' No.
Act , · ' No.

25) THE LAWS OF GUYANA [A.O.

1970 (3) Notwithstanding subsection (1), the right of any person under section 12 of that Ordinance to any document deposited under that Ordinance shall cease / on the accounts for the fust financial year being deposited with the Commissioner under this Act.
(4) The repeal by this Act of the Life Assurance Companies Ordinance shall not affect the operation of sections 20, 21 and 22 of that Ordinance in relation to -the winding up of a company carrying on life assurance business before the commencement of this Act, which having made a deposit under that Ordinance, is not registered under this Aot, and where the winding up commenced before the commence menit of this Act.
(5) So long as under this ;ection any other provision of the Life Assurance Companies Ordinance is continued in force for any purpose, section 3.1 of that Ordin~ce (whic~ rela~s to the m~~g of rules) shall continue to have effect m connection with that prov1s1on.

FIRST SCHEDULE aasses of Insurance Business Sections 9, 12, 16, 18.

1.

(a) Ordinary Life Insurance Business and General Annuity !

:nsurance Business.

(b) Industrial Life Insurance Business.
In this paragraph and where the context so requires - "Life Insurance Business" means insurance of human lives and insurance appertaining thereto or connected therewith and includes the granting of annuities, endowment benefits in the event of death or dismemberment by accident or accidental means and the granting of benefits in the event of -total and _permanent disability, provided that such insurance against dis ability caused by accident or sickness is included as an additional benefit in a life policy and that the additional benefit doe not exceed the following : - (i) the waiver of premiums falling due during the continuance of such disability; or tii} a disability benefit payable for a period or periods not exceeding one hundred weeks at a weekly rate 11ot exceeding one-half of one per cent of the sum assured on t:be date of the occurrence of such disability payable in the event of death; or (iii) a lwnp sum disability benefit in respc<:t of total and permanent disability not exceeding the sum assured; and provided also that insurance against accidental death, accidental dis memberment or accidental loss of sight in one or both eyes included as an additional benefit in life policy does not exceed twice the sum assured in the event of accidental death or the sum assured in the event of acci dental dismemberment or accidental loss of sight; and provided also that it lihall not include cancellable group life insurance business. "
Ordinary Life Insurance Business" means insurance business whereby an insurer assumes in return for the payment of a sum or sums of money a contingent obligation dependent on human life but does not include industrial life insurance, personal accident, sinking fund or cancellable group life insurance. '

A.I>.

19701 INSURANCE [No.


25 90 - "General Alflnuity Insurance Business" does not include superannuation allowances and annuities payable out of any fund applicable solely to the relief and maintenance of per ons engaged or who have been engaged in any particular profession, trade or employment or of the dependants of such persons provided such scheme, fund or annuity has been approved under the Income Tax Ordinance.
"Industrial Life Insurance Business" means the business of affecting insurance upon human life, premiums in respect of which are contracted to be paid at intervals of less than two months and which are received by means of collectors.

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Bond Investment Business, that is to say, the busine s of issuing bonds or endowment certificates by whiah the company, in return for subscriptfons payable at periodic Inter vals .of less than six months, oontracts to pay the bond holder a sum at some future date, not being life assurance busine s but include sinking fund and oapital redemption insurance business.

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Non-cancellable Sickness and Accident Insurance Bu iness, that is to say, the issue of or the undertakmg of liability under policies of ill!l'llfanoe upon the happening of J>CI' onal accidents, whether fatal or not, disease or sickness, or any class of per10nal accidents, disea,se or sickness and where the policy could only be cancelled at the option of the insured.

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4.

Property Insurance Business, that is to say, the business of effecting contraots of insur ance against lo s of or damage ito real or persoool property of eYel'Y kind and interest therein, from all or all hazard of cause and against loss oonsequential upon lluch loss or damage, but does not include risks the insuitaDce of which is Motor Vehicles Insur ance Business or Marine, Aviation and Transit Insurance Business.

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5.

Oancellahle Group Life Insurance B'usiness, that is to say, the business of insuring the lives of a group of persons where it is written on a yearly renewable term basis and where tbc contract can be terminated by either the insured or the in urer at any policy anniversary.

• 6.

All other classes of Insurance but docs not include Motor Vehicle, Marine, Aviation and Transit Insurance Business.

SECOND SCHEDULE Section 47 Rules for Valuing Annuities, Life Polides and Liabilities.
Rule for valuing an Annuity.

An annuity shall be valued according to the tables used ·by the company which granted such annuity at ·the time of granting the same, and, where such tables cannot be asscertaincd or adopted to the satisfaction of the Court, then according to such rate of interest and table of mortality as the Court may direct.

Rule for valuing a Policy.


The value of the policy is to be the difference between the present value of the reversion including any in the sum assured according to the contingency upon which it is payable, bonus or addition thereto made before the commencement of the winding up and the present value of the future annual premiums. '

In calculating such present values interest is to be assumed at such rate, and the rate of mortality according to such tables, as the Court may direct.
The premium to be calculated ia to be such premium a!!

according to the said rate of interest and rate of mortality is sufficient to provide for the risk incurred by the office in iuuing the policy, exclusi~ of any addition thereto for office expcmcs and other cha~.

- it No.

2-SJ THE U.WS OF GUYANA.

[A.D. 1970 Rule for Ylllala, • LlalllltJ.


The liquidator, in the c:ase of all penlOm appearing by tho boob of the ·company to 1,o entitled to or intorestDd in policies granted by such c:ompany is to a.,certain the value ot tbo liiability of.
tho company to each such peRIOn, and gi� ootice of auc:h value to suc:b person in suc:h manner as the Court may dlroct, and any i,erson to whom DOllice iJ so given shall ho gives notice of his inteDlion to dispute aum be bound by the value ao aac:cctained unleas value in manner and within a time to be prescribed by a rule or ordlr at.

the Court.

Passed by the National Assembly 1970. on the 2nd of November, �-Clerk of th4 National Assembly.

(Bill No.

20/1970) (1/2)