Microsoft Word - 43. Insurance Act No. 54 of 2005
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REPUBLIC OF VANUATU
INSURANCE ACT NO. 54 OF 2005
Arrangement of Sections
PART 1 PRELIMINARY 1 Interpretation 2 Meaning of insurance policy 3 Marine Insurance Act
PART 2 – THE COMMISSION’S ADMINISTRATION OF THE ACT 4 The objectives of insurance supervision 5 Applications to the Commission 6 Powers of the Commission to obtain information and documents 7 On site inspections 8 Variations to an advertisement, brochure or similar document 9 Policy classification 10 Appointment of Inspector 11 Investigation by inspectors 12 Exchange of information with other insurance supervisors 13 Confidentiality
PART 3 LICENCES 14 Licence to conduct insurance business 15 Domestic insurers to maintain assets 16 Licensing of insurance broker, insurance agent and independent insurance salesperson 17 Application for licence 18 Additional information and consideration of a licence application 19 Licence 20 Conditions of licence 21 Variation and cancellation of conditions of a licence 22 A licensee’s obligation 23 Reporting duties of an insurance manager 24 Restriction on activities of insurer 25 Suspension of a licence 26 Revocation of the suspension of a licence 27 Cancellation of licence 28 Failure to commence or continue a licensed business
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29 Prohibition on using certain words or doing certain acts 30 Unlicensed person cannot conduct insurance business
PART 4 CAPITAL ADEQUACY 31 Minimum capital 32 Maintenance of financially sound condition 33 Assets of an insurer 34 Categories of assets 35 Deeming provisions of assets 36 Life insurer’s liabilities 37 General insurer’s liabilities 38 Prohibitions concerning assets and certain liabilities 39 Failure to maintain financially sound condition 40 Guarantee requirements for insurance intermediaries 41 Returns to the Commission
PART 5 AUDITED STATEMENTS, AUDITORS AND ACTUARIES 42 Financial year 43 Appointment of auditor 44 Auditor to give information to Commission 45 Accounting and auditing requirements 46 Appointment of actuary by insurer 47 Appointment of auditor or actuary by Commission 48 Life policy to be actuarially sound 49 Audit, actuarial and risk management committee
PART 6 SHARE CAPITAL AND SHAREHOLDING 50 Shares and debentures 51 Registration of shares in name of nominee 52 Limitation on control and shareholdings or other interest in life or general insurers 53 Providing information on shareholders 54 Effect of registration of shares contrary to Act
PART 7 DIRECTORS AND OFFICERS 55 Duties of Directors and officers 56 Avoiding conflict of interest 57 Director not to avoid conflict of interest situations 58 Situations where conflict of interest s not affecting approval of contract 59 Insurer to notify Commission on appointments and terminations
PART 8 COMPLIANCE AND MAINTENANCE OF RECORDS 60 Compliance officers and compliance arrangements 61 Guidelines 62 Maintenance of records
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PART 9 THE INSURANCE POLICY 63 Summary, inspection and copy of policy 64 Governing law 65 Limitation on provisions of certain policies 66 Certain provisions of agreements relating to life or general policies to be void 67 Misrepresentation 68 Validity of an insurance policy 69 Protection of policy benefits under certain life policies 70 Partial realisation of protected policies
PART 10 PREMIUM AND PAYMENT OF PREMIUM 71 Receipt for premium paid in cash and validity of policy 72 Collection of premiums by intermediaries 73 Policy suspended until payment of first premium 74 Failure to pay premiums 75 Consequences if a premium remains unpaid
PART 11 INSURANCE AGENTS, INSURANCE BROKERS AND INDEPENDENT
INSURANCE SALESPERSONS 76 Insurance agents 77 Disqualification of an insurance agent 78 Insurance broker 79 Independent insurance salesperson 80 The Agreement between the insurer and the insurance intermediary 81 Withdrawal of an independent insurance salesperson’s authority to act for the insurer 82 Personal liability of intermediaries
PART 12 BUSINESS PRACTICE 83 Insurer’s and insurance intermediary’s duty of care
PART 13 TRANSFERS, MERGERS AND ACQUISITIONS 84 Approval of Commission required for transfer, mergers and acquisitions 85 Application to Commission 86 Conditions of approval 87 Approved transaction
PART 14 ANTI MONEY LAUNDERING AND COMBATING THE FINANCING OF
TERRORISM 88 Functions of the Commission in relation to Anti Money Laundering and Combating the
Financing of Terrorism 89 Suspicious transaction reporting
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90 Suspension or cancellation of licence for breach of the Financial Transaction Reporting Act No. 33 of 2000
PART 15 ENFORCMENT 91 Civil remedies 92 Removal of appointees who are not fit and proper 93 Undesirable practices 94 The Commission’s power to intervene
PART 16 OFFENCES AND PENALTIES 95 Offences by persons other than a licensee or compliance officer 96 Offences by licensees and compliance officers 97 Penalty for failure to lodge returns, etc
PART 17 INSOLVENCY AND WINDING UP 98 Voluntary winding-up and closure 99 Winding –up by Court
PART 18 TRANSITIONAL AND GENERAL PROVISIONS 100 Existing insurers 101 First Financial year 102 Existing insurers to separate life and general insurance business 103 Appeals against decisions of the Commission 104 Regulations 105 Fees 106 Repeal 107 Commencement
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REPUBLIC OF VANUATU
Assent: 30/12/2005 Commencement: 05/06/2006
INSURANCE ACT NO. 54 OF 2005
An Act to provide for the licensing, regulation and supervision of insurance business and for related purposes
Be it enacted by the President and Parliament as follows:
PART I – PRELIMINARY
1 Definitions (1) In this Act, unless the contrary intention appears:
accident and health policy means an insurance policy:
(a) that covers a disability event, a health event or a death event; and
(b) under which benefits may be other than a stated sum of money; and
(c) under which benefits may be given:
(i) if a person has incurred expenses for a health service for the health event; and
(ii) direct to the provider of the health service.
actuary means a person who is a member of:
(a) the Institute of Actuaries of Australia, or the equivalent body in New Zealand or the United Kingdom; or
(b) a similar professional body approved by the Commission.
associated party, for an insurer, means:
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(a) for an individual:
(i) the person’s spouse, child, parent, stepchild or stepparent; and
(ii) a spouse of a person mentioned in subparagraph (i); and
(iii) a person who has entered into an agreement or arrangement with that
person about acquiring, holding or disposing of, or exercising voting rights in respect of, shares in the insurer; and
(iv) a body corporate whose board of directors acts in accordance with the first
person’s directions or instructions; and
(v) a trust controlled or administered by the first person; and
(b) for a body corporate:
(i) a subsidiary and a holding company; and
(ii) another body corporate whose board of directors acts in accordance with
the first body corporate’s directions or instructions; and
(iii) a trust controlled or administered by the body corporate.
auditor means a person who is:
(a) a member of the Institute of Chartered Accountants in Australia or New Zealand,
the Institute of Chartered Accountants in England & Wales or a Certified Public Accountant in the United States of America; or
(b) a member of a body of accountants established in Vanuatu, or a similar
body in another country recognized by the Commission, and has qualifications similar to those mentioned in paragraph (a) and is experienced in auditing insurance companies; or
(c) authorised by the Commission to be appointed as an auditor because he or she has
similar qualifications obtained elsewhere and is experienced in auditing insurance companies.
captive insurance company means a company that predominately insures interests in its parent company or in companies that it is affiliated or associated with or is organized with in a group or agency relationship.
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company limited by shares means a company having the liability of its members limited by the memorandum to the amount, if any, unpaid on the shares they hold.
company limited by guarantee means a company having the liabilities of its members limited by the memorandum to the amounts the members undertake to contribute to the assets of the company if it is wound up.
Commission means the Vanuatu Financial Services Commission.
death event means the life of a person ending.
disability event means the functional ability of the mind or body of a person becoming impaired.
disability policy means an insurance policy that covers a disability event.
domestic business means an insurance policy insuring:
(a) a person resident in Vanuatu at the date of the policy; or
(b) property of any kind situated in Vanuatu.
engineering policy means an insurance policy that covers:
(a) the possession, use or ownership of machinery or equipment in carrying on a
business, other than a motor vehicle required under a law of Vanuatu to have third party liability insurance; or
(b) the erection of buildings or other structures or the undertaking of other works; or
(c) the installation of machinery or equipment; or
(d) machinery breakdown and boiler pressure plants.
external insurer means an insurer incorporated outside Vanuatu that provides insurance services in Vanuatu.
fund means:
(a) a pension fund organisation; and
(b) a permanent fund, established mainly to provide benefits to members in the event
of sickness, accident or unemployment, or benefits to surviving spouses, children, dependants or nominees of deceased members.
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fund policy means an insurance policy that covers the liability of a fund to provide benefits to its members under its rules, other than a policy that relates exclusively to a particular member of the fund or to the surviving spouse, children, dependants or nominees of a particular member of the fund.
general insurer means a person licensed to conduct general insurance business.
general insurance business means the business of providing or undertaking to provide policy benefits under general insurance policies or general reinsurance treaties.
general insurance policy means:
(a) a property policy, an engineering policy, a guarantee policy, a liability policy, a workers compensation policy, an employers liability policy, a miscellaneous policy, a motor policy, an accident and health policy, a marine, aviation and transportation policy or a policy that is a combination of any of those policies; and
(b) a contract that varies a policy mentioned in paragraph (a).
general reinsurance policy means a reinsurance policy for a general insurance policy.
guarantee policy means an insurance policy that covers the failure of a person to discharge an obligation.
health event means an event relating to the health of the mind or body of a person.
health policy means an insurance policy:
(a) that covers a health event; and
(b) under which benefits may be other than a stated sum of money; and
(c) under which benefits may be given:
(i) if a person has incurred expenses for a health service for the health event; and
(ii) direct to the provider of the health service.
independent insurance salesperson means a person who solicits proposals for insurance products and earns commissions for each successful sale, but is neither an employee nor an agent of an insurer or an insurance intermediary.
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inspector means a person appointed by the Commission under section 10 to investigate and report to the Commission on a licensee.
insurance agent means a person who, with the authority of an insurer and not being an employee of the insurer, acts on behalf of the insurer in establishing an insurance policy, including receiving a proposal, issuing a policy, collecting premiums and settling claims.
insurance broker means a person who acts on behalf of a prospective customer and with the prospective customer’s authority arranges insurance business with insurers, including making proposals and paying premiums.
insurance intermediary means a person who renders intermediary service as an insurance agent, insurance broker, or an independent insurance salesperson, and includes an insurance consultant, a loss adjuster or an insurance surveyor, if the service:
(a) requires judgment on the part of the latter person; or
(b) may lead a customer to a specific transaction in respect of an insurance product.
insurer means a general insurer and a life insurer.
insurance manager means a person licensed to act as insurance manager of, or provide managerial services for, external insurers and international insurers.
insurance policy has the meaning given by section 2.
insurance product means:
(a) an insurance policy; and
(b) another product similar in nature to an insurance policy declared by the
Commission to be an insurance product for the purposes of this Act; and
(c) an insurance product issued by a external insurance provider and marketed in
Vanuatu that in nature and character is essentially similar, or corresponds to, an insurance policy.
international insurer means an insurance company that is incorporated in Vanuatu but does not provide domestic insurance products in Vanuatu.
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key individual means a natural person responsible for managing or overseeing, either
alone or with another, the activities of a licensee.
licensed means licensed under this Act.
licensee means a licensed general insurer, life insurer, insurance manager, insurance agent, insurance broker, independent insurance salesperson or a licensed insurance intermediary.
life insured means the person to whose life, or to the functional ability or health of whose mind or body, a life policy relates.
life insurance business means the business of providing or undertaking to provide policy benefits under life policies including an annuity for life or a period, a long-term disability policy, a fund policy, a long-term health policy, a sinking fund policy and a combination of any of those policies.
life policy means an insurance policy on human life or that pays annuities on human life, and includes:
(a) a policy under which the benefits are wholly or partly to be determined by reference to the value of, or the income from, property of any description or by reference to fluctuations in, or in an index of, the value of property of any description; and
(b) an annuity for life or a period; and
(c) a contract that varies a policy of that kind.
linked liabilities means the policy liabilities of a general or life insurer that:
(a) are not a guaranteed certain sum; and
(b) are determined solely by reference to the value of particular assets or categories of
assets that are specified in the policy and are actually held by or on behalf of the insurer specifically for the purposes of the policy.
local insurer means a company incorporated in Vanuatu and providing insurance services inside or outside Vanuatu.
(...) (a) enter into an agreement or understanding with another domestic or foreign
insurance supervisor to share relevant supervisory information or to otherwise work together; and
(b) exchange the following information with another domestic or foreign insurance
supervisor:
(i) relevant supervisory information; and
(ii) relevant financial data about a supervised entity; and
(iii) objective information on individuals holding positions of responsibility in a supervised entity.
(3) Before exchanging or sharing information with another insurance supervisor, the
Commission must take reasonable steps:
(a) to ensure that any information given to another insurance supervisor will be treated as confidential by the receiving supervisor and will be used only for supervisory purposes; and
(b) to be satisfied that the insurance supervisor receiving the information will consult
with the Commission if it proposes to take action on the evidence of the information received from the Commission.
13 Confidentiality (1) Subject to subsection (2), the Commission may:
(a) explain its policy objectives to the public; and
(b) report on its activities and performance in pursuing its objectives; and
(c) provide information to the public on insurers that have problems or have failed in
their operations and the actions taken by the Commission to address these problems and failures.
(2) Any information from which a person or entity can be identified, that is acquired by the
Commission in the course of carrying out its functions, must not be publicly disclosed by the Commission or by its members, officers and staff.
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(3) Information referred to in subsection (2) may only be disclosed publicly by the
Commission, if either of the circumstances in subsection (4) applies and the disclosure appears to the Commission to be necessary:
(a) to enable the Commission to carry out any of its functions; or
(b) for the purposes of the investigation, prevention or detection of crime or with a view to the instigation of, or otherwise for the purposes of, any criminal proceedings; or
(c) in connection with the discharge of any international obligation to which Vanuatu is subject.:
(4) For the purposes of subsection (3), the circumstances are:
(a) each person and entity that can be identified from that information
consents to the public disclosure; or
(b) the disclosure is expressly authorized or required by or under an Act
relating to the Commission’s statutory functions.
(5) Information referred to in subsection (2) must also be disclosed if required by an order of
the Court.
(6) A person must not without reasonable excuse disclose information, or cause or permit
information to be disclosed, in contravention of this section.
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PART 3 – LICENCES
14 Licence to conduct insurance business (1) A person must not act as an insurer or re-insurer unless the person possesses an insurer
licence issued by the Commission under this Act.
(2) Subsection (1) does not require the re-insurer of a licensed insurer to be licensed if the re-
insurer does not carry on other insurance business in or from Vanuatu.
(3) An insurer must not carry on domestic business unless it is authorised to do so in its
licence.
(4) An insurer:
(a) for a mutual company – must be limited by guarantee; and
(b) for any other company - must be limited by shares and have its share capital paid
in full.
(5) For an insurer that is a protected cell company:
(a) the company must be licensed; and
(b) each cell that operates as an insurer must be authorised to do so by the licence;
and
(c) the company must not add an insurer cell without the approval of the
Commission.
(6) An international insurer must have its head office in Vanuatu or appoint a licensed
insurance manager in Vanuatu to represent the international insurer.
(7) A captive insurer must appoint a licensed insurance manager in Vanuatu to represent the
captive insurer.
(8) A licence remains in force for one year and may be renewed on payment of the
prescribed renewal fee.
(9) Lloyd’s is exempted from the licensing requirements in this Act, if the supervisor in its
home country provides the Commission with free access, at all times, to all information about Lloyd’s business in Vanuatu.
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15 Domestic insurers to maintain assets (1) The Commission must not grant to an insurer, a licence to conduct domestic business,
unless the insurer maintains at all times in Vanuatu, assets which are equal to its outstanding claims liabilities, in trust with a bank licensed by the Reserve Bank of Vanuatu.
(2) The assets must be in the form of:
(a) cash; or
(b) securities approved by the Commission.
(3) The Commission may take possession of the assets to pay the insurer’s claimholders if it
determines that the insurer has ceased to pay its claims.
16 Licensing of insurance broker, insurance agent and independent insurance
salesperson (1) A person must not sell insurance, offer insurance for sale or in other ways provide
insurance services unless the person is licensed as:
(a) an insurer; or
(b) an insurance manager; or
(c) an insurance agent; or
(d) an insurance broker; or
(e) an independent insurance salesperson; or
(f) an insurance intermediary.
(2) A licence under this Act must state the activity covered by the licence.
(3) The holder of a licence may only carry on the activity covered by the licence.
(4) An insurance agent, insurance broker or insurance salesperson can be a natural person, a
partnership, a company limited by shares or a company limited by guarantee.
17 Application for licence (1) An application for a licence must be:
(a) in the form approved by the Commission; and
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(b) signed by the applicant; and
(c) given to the Commission.
(2) The application must contain:
(a) a description of the business the applicant intends to conduct; and
(b) for a body corporate – information on the background, competency, experience
and qualifications of the applicant’s significant owners, board members and senior management, to assist the Commission to determine, whether each of them is a fit and proper person to lead the entity, in terms of personal character, such as honesty and integrity and their competence to understand and be able to fulfill the responsibilities imposed by this Act; and
(c) a copy of the applicant’s business plan projected for a minimum of three years,
including, for an insurer -the classes of business, source of business, financial projections, proposed capital, projected development of business and reinsurance arrangements; and
(d) for an insurer - other than a captive insurer:
(i) the applicant’s risk management systems, including internal control systems, information technology systems and the policies and procedures adequate for the nature and scale of the proposed business; and
(ii) information on the applicant’s reporting arrangements to its own
management; and
(iii) if the insurer is a subsidiary of a foreign company, a written statement
from the applicant’s home supervisory authority about the applicant’s status; and
(e) information on contracts, with affiliates and outsourcing arrangements; and
(f) for an insurance agent, the agency agreement with the insurance company.
18 Additional information and consideration of a licence application (1) Before making a decision on an application for a licence, the Commission may require the applicant to give the Commission any additional information necessary to assist the Commission to make a decision on the application and may also require the applicant to verify that information.
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(2) In making a decision on an application, the Commission may take into consideration any other information about the applicant, whether obtained from another insurance supervisory authority or elsewhere.
(3) Before considering an information referred to in subsection (2), the Commission must:
(a) provide the information to the applicant; and
(b) allow the applicant to respond to the information within a reasonable time.
(4) After considering an application, the Commission must, within 90 days of receiving all
additional information required under subsection (1):
(a) grant the application on the condition that the applicant must take any necessary steps to comply with this Act and pay the prescribed fee; or
(b) refuse the application.
(5) If the Commission refuses an application, the Commission must:
(a) inform the applicant in writing of the refusal; and
(b) provide the applicant with the reasons as to why the Commission has refused the
application; and
(c) inform the applicant that he or she may appeal against the decision under section
102.
19 Licence (1) After the Commission has granted a licence to an applicant, the Commission must issue
to the applicant a licence of the kind applied for within 14 days of being satisfied that the applicant is in a position to comply with this Act..
(2) A licence must:
(a) be in the form approved by the Commission; and
(b) state that the applicant is entitled to act as a domestic insurer, captive
insurer, international insurer, insurance manager, insurance agent, insurance broker, independent insurance salesperson or other insurance intermediary, as the case requires; and
(c) state whether the licensee may or may not conduct domestic insurance business.
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(3) The Commission must give the licensee a certified copy of the licence.
20 Conditions of licence (1) A licence is subject to any condition the Commission imposes, having regard to:
(a) the information available to the Commission about the licensee and any of its key individuals; and
(b) the products and services that the licensee could provide or intends to provide;
and
(c) the category of the licence; and
(d) any guidelines issued by the Commission.
(2) A licence is also subject to the conditions set out in this section.
(3) It is a condition of a licence that:
(a) the licensee obtain the Commission’s approval before replacing a key individual, or appointing a new key individual; and :
(b) the licensee must inform the Commission:
(i) of any change in the information on which the licence was granted as soon as the licensee becomes aware of the change; and
(ii) if there is a change in the personal circumstances of a key individual that may result in the key individual no longer meeting the fit and proper requirements of this Act.
(4) The conditions the Commission may impose on an insurer include:
(a) permitting the insurer to enter into only certain life or general policies determined by the Commission; and
(b) permitting the insurer to enter into certain life or general policies determined by
the Commission only if those policies contain, or do not contain, particular terms or conditions determined by the Commission; and
(c) limiting the amount or value of the policy benefits to be provided by the insurer to
an amount or value determined by the Commission; and
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(d) limiting the amount of premium the insurer may receive, during a period determined by the Commission, for all or certain life or general policies determined by the Commission; and
(e) requiring the insurer to enter into reinsurance policies to reinsure a portion
determined by the Commission of the liabilities incurred by it for all or certain life or general policies determined by the Commission during a period determined by the Commission; and
(f) any other conditions reasonably necessary to ensure that the insurer’s insurance
business is carried on soundly and the insurer is able to meet its liabilities.
21 Variation and cancellation of conditions of a licence (1) The Commission may at any time after the issue of a licence:
(a) cancel or vary a condition of a licence, on application by the licensee or on the Commission’s initiative; and
(b) impose new conditions on the licence or vary an existing condition if the insurer appoints a new key individual, or there is a change in the personal
circumstances of a key individual so that the key individual no longer satisfies the fit and proper person requirements of this Act.
(2) Before varying the conditions of a licence, the Commission must:
(a) inform the licensee about the variation; and
(b) allow the licensee to make comments on the variation within a reasonable time; and
(c) consider the licensee’s comments.
22 A licensee’s obligation (1) A licensee must:
(a) maintain a principal office in Vanuatu where the licensee’s books and records are kept; and
(b) ensure that all business documents, advertisements and other promotional material
refer to the fact that the licensee is licensed; and
(c) ensure that the licence is at all times available to a person asking for proof that the
licensee is licensed.
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(2) The Commission must approve a change of insurance manager by a licensee that is a company.
23 Reporting duties of an insurance manager (1) An insurance manager must give the Commission as soon as practicable, any information
he or she may have that indicates that an insurer he or she manages:
(a) is conducting business in a manner that exposes the insurer to a risk of insolvency; or
(b) is not complying with this Act or the Regulations; or
(c) has defaulted on a payment of any of its liabilities; or
(d) is experiencing difficulties that may prejudice the interests of the policyholders or
creditors of the company; or
(e) is acting in a manner that may be detrimental to the interests of the policyholders
or shareholders of the company; or
(f) is subject to criminal investigations or proceedings in any country; or
(g) is carrying on business that is not covered by its licence; or
(h) has ceased to carry on business.
(2) An insurance manager who ceases to manage an insurer must inform the Commission as soon as practicable.
24 Restriction on activities of insurer (1) A licensed insurer may conduct either general insurance business, or life insurance
business, but may not conduct both general insurance business and both life insurance business.
(2) A licensed insurer that is a re-insurer may provide either general reinsurance business, or
life reinsurance business, but may not operate simultaneously, a general reinsurance business and life reinsurance.
(3) A licensed insurer may only carry on the insurance business that it is authorized to carry
on by its licence, unless in accordance with and subject to the conditions the Commission determines otherwise for:
(a) a particular insurer; or
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(b) insurers generally.
25 Suspension of a licence (1) The Commission may, subject to sub-section (2), at any time suspend a licence if it is
satisfied, on the basis of available facts and information, that the licensee no longer meets the licensing requirements.
(2) Before suspending a licence, the Commission must give the licensee notice in writing
stating:
(a) that the Commission intends to suspend the licence; and
(b) the grounds for the suspension; and
(c) the intended period of the suspension; and
(d) any conditions to be attached to the suspension, as set out in subsection (3).
(3) The conditions that may be attached to a suspension include:
(a) a ban on accepting any new business by the licensee from the date
of the suspension; and
(b) for existing business - the measures the Commission determines necessary to protect the interests of customers of the licensee; and
(c) what the licensee needs to do so that the suspension may be lifted.
(4) The Commission must give the licensee a reasonable opportunity to respond to the notice
of suspension.
(5) The Commission must consider the licensee’s response and may decide to suspend or not to suspend the licence.
(6) The Commission must notify the licensee in writing of its decision.
(7) The Commission may provisionally suspend a licence without notice to the licensee if:
(a) the Commission has reasonable grounds to consider that substantial prejudice to customers or the general public may occur; and
(b) the circumstances are urgent.
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(8) As soon as practicable after provisionally suspending a licence, the Commission must, in writing, inform the licensee:
(a) that the licence has been provisionally suspended; and
(b) of the grounds for the provisional suspension; and
(c) of the period of the provisional suspension.
(9) The Commission must give the licensee a reasonable opportunity to respond to the notice of provisional suspension.
(10) The Commission must consider the licensee’s response and may decide to:
(a) revoke the provisional suspension; or
(b) make the provisional suspension final.
(11) The Commission must notify the licensee in writing of its decision.
(12) The Commission must publish a notice of the suspension or provisional suspension in a
newspaper circulating in Vanuatu and in any other way it considers appropriate.
26 Revocation of the suspension of a licence (1) The Commission must revoke the suspension of a licence as soon as practicable after:
(a) the licensee has complied with the Commission’s requirements; or
(b) the circumstances that led to the suspension have ceased to exist.
(2) The Commission must publish a notice that the suspension has been revoked in a
newspaper circulating in Vanuatu and in any other way it considers appropriate.
27 Cancellation of a licence (1) The Commission may at any time, cancel a licence, if the Commission is satisfied on the
basis of facts and information available to the Commission, that the licensee:
(a) when applying for the licence, did not make a full disclosure of all the relevant information to the Commission; or
(b) when applying for the licence, gave false or misleading information; or
(c) has made a material misrepresentation to members of the public in connection
with its business; or
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(d) has failed to comply with a material condition of the licence; or
(e) has contravened or failed to comply with a material provision of this Act.
(2) Before canceling a licence, the Commission must give the licensee notice in writing
stating:
(a) that the Commission intends to cancel the licence; and
(b) the grounds for the cancellation.
(3) The Commission must give the licensee a reasonable opportunity to respond to the notice
of cancellation.
(4) The Commission must consider the licensee’s response and may decide to:
(a) cancel or not cancel the licence; or
(b) suspend the licence.
(5) The Commission must notify the licensee in writing of its decision.
(6) The Commission must publish a notice of the cancellation in a newspaper circulating in
Vanuatu and in any other way it considers appropriate.
28 Failure to commence or continue a licensed business (1) The Commission may cancel a licence if the licensee:
(a) fails to commence its business within 6 months after the licence is granted; or
(b) has ceased to carry on its licensed business to an extent that does not justify the
continuation of the licence; or
(c) requests the Commission in writing to cancel the licence because the licensee
intends to cease to carry on its licensed business.
(2) Before canceling a licence on the grounds set out in paragraph (1)(a) or (1)(b), the
Commission must give the licensee notice in writing stating:
(a) that the Commission intends to cancel the licence; and
(b) the grounds for the cancellation; and
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(c) that the licensee:
(i) must not conduct any more insurance business; and
(ii) must make arrangements satisfactory to the Commission to discharge its
insurance-related obligations before the date specified in the notice; and
(d) that the Commission will cancel the licence when it is satisfied that the licensee no longer has any insurance-related obligations.
(3) The Commission must provide the licensee with an opportunity to respond to the notice
of cancellation.
(4) The Commission must consider the licensee’s response and may decide to cancel or not to cancel the licence.
(5) The Commission must notify the licensee in writing of its decision.
(6) The Commission must cancel a licence if a licensee’s insurance business has ceased
because of a merger or transfer to another licensee or if the licensee has been liquidated.
(7) The Commission must publish notice of the cancellation in a newspaper circulating in
Vanuatu and in any other way it considers appropriate.
29 Prohibition on using certain words or doing certain acts (1) Subject to subsection (2), a person other than a licensee must not use the word "insure
"assure” "underwrite", “indemnity”, “guarantee” or “surety”, or a derivative of any of those words, in the title or description of his or her business.
(2) The Commission may permit a specific business to use any of the words referred to in
subsection (1).
(3) When describing its business, a licensee must explicitly state whether it is a general insurer, life insurer, insurance manager, insurance agent, insurance broker, an independent insurance salesperson or an insurance intermediary.
(4) A licensee must not change its name without the prior approval of the Commission.
30 Unlicensed person cannot conduct insurance business (1) A person must not carry on insurance business of any kind unless the person is licensed
to carry on insurance business of that kind.
(2) A person must not use a licence or a copy of a licence for business purposes if:
31
(a) the licence has lapsed or has been cancelled; or
(b) the licence is suspended or provisionally suspended.
Language:English
Score: 1126613.3
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https://www.wto.org/english/th..._e/vut_e/WTACCVUT14_LEG_43.pdf
Data Source: un
