Insurance applications are also reviewed by an Insurers Admissions Committee made up of members of the insurance sector, the Registrar of Companies and the Bermuda Monetary Authority. The Act, as last amended in 1995 provides that a body corporate applying to be registered as an insurer carrying on general business must now be registered as a Class 1, Class 2, Class 3 or Class 4 insurer. Minimum Capital Distinct from the statutory capital which the various classes must maintain is the minimum authorised capital. Insurance business may be long-term, general or both. The former consist of life, annuity or accident and disability contracts in effect for not less than five years.
General business is any other kind of insurance.
In addition to having a registered office in Bermuda, every insurer is required to maintain a principal office in Bermuda and appoint a Principal Representative. Every insurer must appoint an approved auditor. If an insurer carries on long-term business, an approved actuary must also be appointed. Mutual Insurance Companies These are not limited by shares and are authorised to carry on as their principal object insurance or re-insurance business on the mutual principle. This exists where persons exposed to a contingency are associated by contributing premiums on the basis that if the contingency affects any member there will be a compensatory payment.