{\rtf1\ansi\ansicpg1252\uc1\deff0\stshfdbch0\stshfloch0\stshfhich0\stshfbi0\deflang1033\deflangfe1033{\fonttbl{\f0\froman\fcharset0\fprq2{\*\panose 02020603050405020304}Times New Roman;}{\f184\froman\fcharset238\fprq2 Times New Roman CE;} {\f185\froman\fcharset204\fprq2 Times New Roman Cyr;}{\f187\froman\fcharset161\fprq2 Times New Roman Greek;}{\f188\froman\fcharset162\fprq2 Times New Roman Tur;}{\f189\froman\fcharset177\fprq2 Times New Roman (Hebrew);} {\f190\froman\fcharset178\fprq2 Times New Roman (Arabic);}{\f191\froman\fcharset186\fprq2 Times New Roman Baltic;}{\f192\froman\fcharset163\fprq2 Times New Roman (Vietnamese);}}{\colortbl;\red0\green0\blue0;\red0\green0\blue255;\red0\green255\blue255; \red0\green255\blue0;\red255\green0\blue255;\red255\green0\blue0;\red255\green255\blue0;\red255\green255\blue255;\red0\green0\blue128;\red0\green128\blue128;\red0\green128\blue0;\red128\green0\blue128;\red128\green0\blue0;\red128\green128\blue0; \red128\green128\blue128;\red192\green192\blue192;}{\stylesheet{\ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \snext0 Normal;}{\*\cs10 \additive \ssemihidden Default Paragraph Font;}{\* \ts11\tsrowd\trftsWidthB3\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tscellwidthfts0\tsvertalt\tsbrdrt\tsbrdrl\tsbrdrb\tsbrdrr\tsbrdrdgl\tsbrdrdgr\tsbrdrh\tsbrdrv \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1024\langfe1024\cgrid\langnp1024\langfenp1024 \snext11 \ssemihidden Normal Table;}{\s15\ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \sbasedon0 \snext15 Style 1;}{\s16\qc \li3168\ri3024\sb432\sa216\widctlpar\faauto\adjustright\rin3024\lin3168\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \sbasedon0 \snext16 Style 2;}{\s17\qc \li2592\ri2592\sa144\widctlpar\faauto\adjustright\rin2592\lin2592\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \sbasedon0 \snext17 Style 3;}{\s18\ql \fi576\li0\ri0\sa72\widctlpar \tx1008\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \sbasedon0 \snext18 Style 4;}{\s19\ql \fi432\li0\ri0\sl-192\slmult0\widctlpar\tx1008\tx1296\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \sbasedon0 \snext19 Style 5;}{\s20\qc \li0\ri0\sa288\widctlpar\tx2592\tx6768\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \sbasedon0 \snext20 Style 6;}{ \s21\ql \fi-576\li576\ri0\sa144\widctlpar\tx576\faauto\adjustright\rin0\lin576\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \sbasedon0 \snext21 Style 7;}{\s22\ql \fi-720\li720\ri0\sa72\widctlpar\tx720\faauto\adjustright\rin0\lin720\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \sbasedon0 \snext22 Style 8;}{\s23\ql \fi-720\li720\ri0\sl276\slmult0\widctlpar\tx720\faauto\adjustright\rin0\lin720\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \sbasedon0 \snext23 Style 9;}{\*\ts24\tsrowd\trbrdrt\brdrs\brdrw10 \trbrdrl\brdrs\brdrw10 \trbrdrb\brdrs\brdrw10 \trbrdrr\brdrs\brdrw10 \trbrdrh\brdrs\brdrw10 \trbrdrv\brdrs\brdrw10 \trftsWidthB3\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tscellwidthfts0\tsvertalt\tsbrdrt\tsbrdrl\tsbrdrb\tsbrdrr\tsbrdrdgl\tsbrdrdgr\tsbrdrh\tsbrdrv \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \sbasedon11 \snext24 \styrsid14710003 Table Grid;}} {\*\latentstyles\lsdstimax156\lsdlockeddef0{\lsdlockedexcept Normal;heading 1;heading 2;heading 3;heading 4;heading 5;heading 6;heading 7;heading 8;heading 9;toc 1;toc 2;toc 3;toc 4;toc 5;toc 6;toc 7;toc 8;toc 9;caption;Title;Default Paragraph Font;Subtitle;Strong;Emphasis;Table Grid;}}{\*\revtbl {Unknown ;}}{\*\rsidtbl \rsid96069\rsid460876\rsid619795\rsid731441\rsid988153\rsid1323796\rsid1998291\rsid2363835\rsid2516533\rsid2646170\rsid3043640\rsid3371284\rsid3555751\rsid3818767\rsid4029726\rsid4215851\rsid4396699\rsid4526369\rsid4614097\rsid4741647 \rsid5113138\rsid6379689\rsid6387684\rsid7293473\rsid7567499\rsid8203576\rsid8336730\rsid8407605\rsid8407923\rsid9058707\rsid9201571\rsid9311138\rsid9728719\rsid10185185\rsid10190211\rsid10385699\rsid11016231\rsid11088130\rsid11207396\rsid11212660 \rsid12090785\rsid12209250\rsid12219065\rsid12715843\rsid12738232\rsid12794873\rsid12995895\rsid13336334\rsid13762690\rsid13775564\rsid13849150\rsid13968294\rsid14114872\rsid14180695\rsid14710003\rsid15080355\rsid15219061\rsid15630259\rsid15688283 \rsid15749732\rsid16202758\rsid16720893}{\*\generator Microsoft Word 11.0.5604;}{\info{\author pitamama_k}{\operator pitamama_k}{\creatim\yr2012\mo6\dy18\hr10\min14}{\revtim\yr2012\mo7\dy23\hr16\min20}{\version17}{\edmins1209}{\nofpages39}{\nofwords11262} {\nofchars64195}{\*\company scims}{\nofcharsws75307}{\vern24689}}\paperw11678\paperh16598\margl1440\margr1440 \widowctrl\ftnbj\aenddoc\noxlattoyen\expshrtn\noultrlspc\dntblnsbdb\nospaceforul\subfontbysize\hyphcaps0\formshade\horzdoc\dgmargin\dghspace100 \dgvspace120\dghorigin1440\dgvorigin1440\dghshow0\dgvshow3\jcompress\viewkind1\viewscale150\pgbrdrhead\pgbrdrfoot\nolnhtadjtbl\rsidroot13762690 \fet0\sectd \linex0\sectlinegrid272\sectdefaultcl\sectrsid1998291\sftnbj {\*\pnseclvl1 \pnucrm\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl2\pnucltr\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl3\pndec\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl4\pnlcltr\pnstart1\pnindent720\pnhang {\pntxta )}}{\*\pnseclvl5 \pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15080355 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \b\fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid1998291 COOK ISLANDS \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid1998291 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid1998291 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15080355 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid1998291 INSURANCE CODE 2010 \par _______________ \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Sir F. Goodwin, K.B.E. }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid1998291 \par }\pard \qr \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15080355 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Queen's Representative \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15080355 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 ORDER IN EXECUTIVE COUNCIL \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 At Avarua, Rarotonga this}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid1998291 5} {\b\fs24\lang2057\langfe1033\super\langnp2057\insrsid15080355\charrsid1998291 th}{\fs24\lang2057\langfe1033\super\langnp2057\insrsid15080355\charrsid1998291 }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 day of }{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 March }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 2010 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid1998291 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15080355 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Present}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid1998291 :}{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 HIS EXCELLENCY THE QUEEN'S REPRESENTATIVE }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid988153 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 IN EXECUTIVE COUNCIL \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 PURSUANT}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 to Section 96 of the Insurance Act 2008, His Excellency the Queen's Representative, acting by and with the advice and consent of the Executive Council, hereby makes the following Code: \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15080355 {\fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid1998291 ___________________ \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid1998291 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15080355 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 ANALYSIS \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid988153 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15080355 {\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid2646170 PART 1 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid988153 PRELIMINARY \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid1998291 1. Title and commencement \par 2. Application of Code \par 3. Definitions \par 4. Meaning of "subsidiary"," holding company" and "group" \par 5. Meaning of "connected person" \par 6. Meaning of "key functionary" \par 7. Persons qualified to act as auditor \par 8. Persons qualified to a}{\fs24\lang2057\langfe1033\langnp2057\insrsid12715843 ct}{\fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid1998291 as actuary \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid1998291 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid2646170 PART 2 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid988153 PRINCIPLES FOR BUSINESS \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid1998291 9. Principles for business \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid1998291 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid2646170 PART 3 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid988153 PROVISIONS APPLICABLE TO LICENSED INSURERS \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11207396\charrsid1998291 \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid12995895\charrsid1998291 Financial Resources Requirements \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid1998291 10. }{\fs24\lang2057\langfe1033\langnp2057\insrsid12995895\charrsid1998291 Application of financial resource requirements.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12995895\charrsid1998291 11. Licensed insurer to maintain adequate capital resources \par 12. Minimum capital requirement and minimum shareholders' fund \par 13. Solvency margin \par 14. Valuation of assets \par 15. Liabilities and technical provisions \par 16. Investment strategy, policies, systems and controls \par 17. Responsibilities of board for investment strategy and}{\fs24\lang2057\langfe1033\langnp2057\insrsid1323796 policies, systems and controls}{\fs24\lang2057\langfe1033\langnp2057\insrsid12995895\charrsid1998291 \par 18. Investment risk management \par 19. Reinsurance \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid12995895\charrsid1998291 Corporate Governance \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12995895\charrsid1998291 20. Corporate governance framework \par 21. Directors and board of a licensed insurer \par 22. Internal controls \par 23. Information system \par 24. Monitoring of internal controls \par 25. Responsibilities of board and senior management \par 26. Internal audit function \par 27. Risk management \par 28. Business continuity plans \par 29. Underwriting policies, systems and controls \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid12995895\charrsid1998291 Obligations of Long-Term insurers \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12995895\charrsid1998291 30. Appointment of actuary \par 31. Actuarial investigations \par 32. Powers and rights of actuaries \par 33. Segregation of assets and li}{\fs24\lang2057\langfe1033\langnp2057\insrsid1323796 abilities attributable to long-}{\fs24\lang2057\langfe1033\langnp2057\insrsid12995895\charrsid1998291 term business \par }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid12995895\charrsid988153 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid12995895\charrsid988153 PART 4}{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid2646170 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid11207396\charrsid988153 PROVISIONS APPLICABLE TO LICENSED INSURANCE MANAGERS AND INTERMEDIARIES}{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid12995895\charrsid988153 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid11207396\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12995895\charrsid1998291 34.}{\fs24\lang2057\langfe1033\langnp2057\insrsid11207396\charrsid1998291 Restrictions on persons who may be licensed and on directors and others}{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid12995895\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12995895\charrsid1998291 35.}{\fs24\lang2057\langfe1033\langnp2057\insrsid11207396\charrsid1998291 Professional indemnity insurance}{\fs24\lang2057\langfe1033\langnp2057\insrsid12995895\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid11207396\charrsid1998291 36. Minimum capital requirements \par 37. Corporate governance \par 38. Other strategies, policies, systems and controls \par }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid11207396\charrsid988153 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid2646170 PART 5 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid11207396\charrsid988153 PROVISIONS APPLICABLE TO ALL LICENSEES \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid11207396\charrsid1998291 \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11207396\charrsid1998291 Licence \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid11207396\charrsid1998291 39. Application for licence \par 40. Display of licence \par 41. Delivery of licence to Commission \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11207396\charrsid1998291 Fit and Proper Criteria}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid12995895\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid11207396\charrsid1998291 42. Key functionaries \par 43. Responsibility of licensee with respect to fit and proper assessment \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11207396\charrsid1998291 Accounting Records, Financial Statements and Audit \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid11207396\charrsid1998291 44. Application of paragraphs 45 }{\fs24\lang2057\langfe1033\langnp2057\insrsid988153\charrsid1998291 to}{\fs24\lang2057\langfe1033\langnp2057\insrsid988153 51}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11207396\charrsid1998291 \par 45. Meaning of "financial year" \par 46. Preparation of financial statements \par 47. Appointment of auditor \par 48. Audit and auditor's report \par 49. Submission of financial statements to Commission \par 50. Submission of quarterly financial statements and reports \par 51. Amendment of financial statements \par 52.}{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 Provision of financial statements to policyholders}{\fs24\lang2057\langfe1033\langnp2057\insrsid11207396\charrsid1998291 \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 Record keeping \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid11207396\charrsid1998291 53.}{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 Maintenance of records}{\fs24\lang2057\langfe1033\langnp2057\insrsid11207396\charrsid1998291 \par 54.}{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 Records retention policy}{\fs24\lang2057\langfe1033\langnp2057\insrsid11207396\charrsid1998291 \par 55.}{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 Restrictions on outsourcing}{\fs24\lang2057\langfe1033\langnp2057\insrsid11207396\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 56. Outsourcing policy \par 57. Outsourcing systems and controls \par 58. Outsourcing arrangements \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 Returns and notices \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 59. Annual return \par 60. Judgments \par }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid988153 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid988153 PART 6 }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid2646170 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid988153 MISCELLANEOUS PROVISIONS}{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid11207396\charrsid988153 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid11207396\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 61. Service of notices \par \par Schedules \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15080355 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 _________________}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid988153 ________________________}{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid15080355\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15219061 {\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 CODE \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid2646170 PART 1}{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 PRELIMINARY \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 . }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 Tit}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 le and commencement}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - This Code may be cited as the Insurance Code 2010 and comes into operation on the date of assent by the Queen's Representative. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 2}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 A}{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 ppl}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 ication of Code}{\fs24\lang2057\langfe1033\langnp2057\insrsid4741647\charrsid1998291 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (1) Subject to subparagraph (2), this Code applies, to the extent specified, to: \par \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15219061 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) licensed insurers; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) licensed insurance managers; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) licensed insurance intermediaries. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) The provisions of this Code specified in Schedule 2 are disapplied or modified to the extent specified in the Schedule with respect to }{ \fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15219061 {\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) an insurer holding a category B insurance licence; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) an approved external insurer. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 (3}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 ) The Provisions of Parts 4 and 5 of this Code specified in Schedule 3 are disapplied or modified with respect to a licensed external insurance intermediary to the extent specified in the Schedule. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 3}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Definitions}{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (l) Unless the context otherwise requires, for the purposes of this Code }{ \fs24\lang2057\langfe1033\langnp2057\insrsid4741647\charrsid1998291 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15219061 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 "Act" means the Insurance Act 2008; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par ''}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 admissible asset" means an asset }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 specified i}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 n Schedule 1 as an admissible asset; \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15219061 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 "board"', in relation to a company, means }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646170 - }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid1323796 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) the board of directors, committee }{\fs24\lang2057\langfe1033\langnp2057\insrsid1323796 of management, council or other }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 governing authority of the company; or \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid15219061 {\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) if the c}{\fs24\lang2057\langfe1033\langnp2057\insrsid1323796 ompany has only one director, }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 that director; \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15219061 {\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 "calendar quarter" has the meaning specified in subparagraph (2); \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 "capital resources", in relation to a licensed insurer, means the aggregate of the insurer's admissible assets; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 "connected person" has the meaning specified in paragraph 5; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4741647\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid1323796 "Cook I}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 slands office" means }{\fs24\lang2057\langfe1033\langnp2057\insrsid2646170 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid15219061 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) in the case of a licensed insurer that has a category A licence, its principal office in the Cook islands as notified to the Commission; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) in the case of a licensed insurer that has a category B licence, the office of its representative in the Cook Islands; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) in the case of licensed insurer that has a category C licence, the office of its insurance manager in the Cook Islands; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15219061 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 "dollar" or "$", unless expressly provided otherwise, means the New Zealand dollar; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 "financial year" has the meaning specified in paragraph 45; \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15219061 {\fs24\lang2057\langfe1033\langnp2057\insrsid4741647\charrsid1998291 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 group", in relation to a company, means a group of companies of which the company is a member within the meaning of paragraph 4(3); \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 "holding company" has the meaning specified in paragraph 4(2); \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 "Insurance Regulations" means the Insurance Regulations 2009; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 "key functionary" has the meaning specified in paragraph 6, \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 "licensed external insurance intermediary" means an external insurance intermediary who holds an insurance intermediary's licence; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 "licensed insurer" includes an approved external insurer, and "licensee" shall be construed accordingly; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 "licen}{\fs24\lang2057\langfe1033\langnp2057\insrsid2646170 see" means a person who holds -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid15219061 {\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) an insurer's licence; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) an insurance intermediary's licence; or}{\fs24\lang2057\langfe1033\langnp2057\insrsid731441 \par \par (c) }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 an insurance manager's licence: \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15219061 {\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 "outsourcing" means an arrangement between a licensee and a service provider whereby the service provider, or another person acting for the service provider, undertakes an activity on a continuing basis that would normally be undertaken by the licensee, and "outsource" shall be construed accordingly; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 "representative" means the person appointed under paragraph 8 of Schedule 2 as the representative of an insurer holding a category B licence;}{ \fs24\lang2057\langfe1033\langnp2057\insrsid6387684 }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 "senior management"}{\fs24\lang2057\langfe1033\langnp2057\insrsid731441 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 when used with respect to a licensee, means the senior managers of the licensee collectively or where the context requires, those senior managers having responsibility for particular senior manager functions and, in the case of a licen sed insurer required to appoint a licensed insurance manager. includes the licensed insurance manager appointed; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 "senior manager", in relation to a licensee, means an individual employed under a contract of employment who }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \endash }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid15219061 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) acts as chief executive officer, or the equivalent under a different name; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) holds any position in which he is answerable directly to the board or the Chief Executive; or \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) has responsibility for e}{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 ither or both of the following f}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 unctions: \par \par }\pard \ql \li2160\ri0\nowidctlpar\faauto\adjustright\rin0\lin2160\itap0\pararsid15219061 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (i) compliance, including anti-money laundering compliance; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (ii) internal audit; \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16202758 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 "service provider'", in relatio}{\fs24\lang2057\langfe1033\langnp2057\insrsid16202758 n to an outsourcing arrangement}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 , means any person other than }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15219061 {\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid15219061 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) a director of the licensee acting in his capacity as a director; or \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) an employee of the licensee acting in his capacity as an employee; \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid460876 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 "solvency margin" has the meaning specified in paragraph 13; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 "subsidiary" has the meaning specified in paragraph 4(l): \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15219061\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16202758 {\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 technical provisions", in relation to an insurer, means the amount}{\fs24\lang2057\langfe1033\langnp2057\insrsid16202758 }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 provided for in the insurer's balance sheet to meet liabilities arising out }{\fs24\lang2057\langfe1033\langnp2057\insrsid16202758 of insurance contracts}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 that it has entered into. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) For the purposes of this Code, a }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 year is divided into the following four calendar quarters}{ \fs24\lang2057\langfe1033\langnp2057\insrsid16202758 }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid460876 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) }{\fs24\lang2057\langfe1033\langnp2057\insrsid4741647\charrsid1998291 1}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 January to 31 March; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) }{\fs24\lang2057\langfe1033\langnp2057\insrsid4741647\charrsid1998291 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 April to 30 June; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 July to 30 September; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (d) }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 October to 31 December. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) Except as provided in subparagraph (1), any word or term that is }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 defined in the Act or the Regu}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 lations has the same meaning in this Code. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 4}{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Meanin}{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 g of "subsidiary", "holding company" and "group"}{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid16202758 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 - (1) A }{\fs24\lang2057\langfe1033\langnp2057\insrsid16202758 company (the {\*\bkmkstart OLE_LINK1}{\*\bkmkstart OLE_LINK2}"{\*\bkmkend OLE_LINK1}{\*\bkmkend OLE_LINK2}first company"}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 ) is }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 a subsidiary of another }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 company}{ \fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid16202758 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 the second company"), if - \par \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid460876 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a)}{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 the second company is }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \endash }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid460876 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (i) a member of the first company and whether alone, or pursuant to an agreement with other members, controls a majority of the voting rights in the first company}{\fs24\lang2057\langfe1033\langnp2057\insrsid16202758 ;}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (ii) a member of the first company and has the right to appoint or remove a majority of the board of the first company; or \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid16202758 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (iii) the holding company of another company which is a holding company of the first company; or \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid460876 {\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) the first company is a subsidiary of a company which is itself a subsidiary of the second company. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) A company is the holding company of another company if that othe}{\fs24\lang2057\langfe1033\langnp2057\insrsid16202758 r }{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 company is its subsidiary. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) "Group" in relation to }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 a company (}{\fs24\lang2057\langfe1033\langnp2057\insrsid16202758 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 the first company") means that }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 company and any other company that is }{ \fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid460876 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) a holding company of the first company; \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid460876 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) a subsidiary of the first company; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) a subsidiary of a holding company of the first company; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (d) a holding company of a subsidiary of the first company; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (e) a company in which the first company, or a company specified in subparagraph (a), (b), (c) or (d) has a significant interest. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 5}{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 .}{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Meanin}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 g}{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 of "connected }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 p}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 erson"}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) A person}{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 (the "first person") is }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 connected with another person (the "second person") if the first person }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid460876 {\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) being an individual, is a relative of the second person; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) is a partner of a partnership of which the second person is a partner; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) is a company of which the second person is a director or employee; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (d) is a company that is the holding company or a subsidiary of the second person; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (e) is a director or employee of the holding company, or a subsidiary, of the second person;}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid16202758 \par (f) has a significant interest in the second person;}{\fs24\lang2057\langfe1033\langnp2057\insrsid16202758\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) For the purposes of subparagraph (1), an individual's relatives are his spouse, parents, siblings, children (including stepchildren) and their descendants. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 6}{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Meanin}{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 g}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 of "key functionary}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 " - For the purposes of the Act and this Code, the following are key functionaries of a licensee }{\fs24\lang2057\langfe1033\langnp2057\insrsid6387684 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid460876 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) a senior manager of the licensee; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) an insurance manager, in the case of a licensed insurer required to appoint an insurance manager; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) an auditor, in the case of a licensee required to appoint a}{\fs24\lang2057\langfe1033\langnp2057\insrsid16202758 n}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 auditor; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (d) an actuary, in the case of a licensed insurer required to appoint an actuary. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 7}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Persons }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 qualified}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 to act as auditor}{\fs24\lang2057\langfe1033\langnp2057\insrsid16202758 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) An individual is qualified to act as the auditor of a licensee if the individual }{\fs24\lang2057\langfe1033\langnp2057\insrsid6387684 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid460876 {\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) is a member of a professional body specified in subparagraph (2); \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) is qualified or entitled by the professional body of which he is a member to undertake audits; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) in the case of a licensed insurer, is not its actuary. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid460876\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) The following professional bodies are specified for the purposes of this paragraph }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13968294 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) New Zealand Institute of Chartered Accountants; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) Institute of Chartered Accountants in Australia; }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) CPA Australia; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (d) Institute of Chartered Accountants in England and Wales; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (d) Institute of Chartered Accountants of Scotland; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (e) American Institute of Certified Public Accountants; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (h) such other professional body as may be recognised by the Commission for the purposes of this paragraph on a case by case basis}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 . \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) A partnership is qualified to act as the auditor of a licensee if a majority of the partners are individuals qualified to act as the auditor of }{ \fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 a licensee under subparagraph (1}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 ). \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 4) A body corporate is qualified to act as the auditor of a licensee if the body corporate is controlled by individuals qualified to act as the auditor of a licensee }{\fs24\lang2057\langfe1033\langnp2057\insrsid16202758 or partnerships qualified to act as an auditor}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 of a licensee under}{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 or subparagraph (3). \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 8}{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Persons }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 qualified}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 to act as }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 actuary}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) A person is }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 qualified}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 to act as the}{\fs24\lang2057\langfe1033\langnp2057\insrsid16202758 actuary of a licensed }{\fs24\lang2057\langfe1033\langnp2057\insrsid4614097 insurer}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 if he is a member of a professional body specified in paragraph (2). \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) The following professional bodies are specified for the purposes of paragraph (l) }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13968294 {\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) New Zealand Society of Actuaries; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) Institute of Actuaries of Australia; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) Institute of Actuaries in England and Wales; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (d) Faculty of Actuaries in Scotland; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (e) Society of Actuaries (United States); \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (f) Casualty Actuarial Society (United States); \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (g) such other professional body as may be recognised by the Commission for the purposes of this paragraph on a case by case basis. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13968294 {\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 PART 2 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 PRINCIPLES FOR BUSINESS \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 9}{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 Principl}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 es for business}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - A licensee shall conduct its business in accordance with the following seven principles for business }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \endash }{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13968294 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) A licensee shall conduct its business with integrity. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) A licensee shall hav e due regard for the interests of its customers and shall protect its customers assets when it has custody of them and shall manage conflicts of interest fairly. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) A licensee shall take reasonable care to organise and control its business and affairs effectively and have adequate risk management systems in place. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid4614097 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (d) A licensee shall maintain adequate financial resources, including capital and capital resources as appropriate, taking into account the nature, size, complexity and diversity of its business and the risks that it faces. \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13968294 {\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (e) A licensee shall be transparent in its business arrangements. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (f) A licensee shall deal with t}{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 he Commission in an open and co-}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 operative manner. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (g) A licensee shall not make statements that are misleading, false or deceptive. \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13968294 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 PART 3 }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 PROVISIONS A}{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid4614097 PPLICABLE TO LICENS}{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 ED INSURERS \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13968294 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Financial Resource Requirements \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 10}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 Appl}{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 i}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 cation of financial resource req}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 uirements}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - Paragraphs 11 to 19 apply to a licensed insurer that holds a category A or a category C licence and a reference in those paragraphs to a "licensed insurer" is a reference to a licensed insurer that holds a category A or a category C licence. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 11}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 L}{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 icensed insurer to maintain adeq}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 uate ca ital resources}{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 - (1) A licensed insurer shall -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13968294 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) ensure that, at all times, it maintains its capital resources at a level that is adequate to support its insurance business, taking into account the nature, size, complexity and diversity of its business and its risk profile; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) maintain adequate systems and controls to monitor and assess the adequacy of its capital resources on an ongoing basis. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) The board and senior management of a licensed insurer shall make their own determination of the capital resources that are reasonably required to support the insurer's business, taking into account the matters specified in}{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 subparagraph (1)(a), and shall ensure that the insurer's capital resources are increased where appropriate. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) On at least an annual basis}{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13968294 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) the senior management of a licensed insurer shall report to the board on the scope and pe rformance of the systems and controls established to monitor and assess the insurer's solvency margin and its capital resource requirements; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) the board shall review those systems and controls taking into consideration the report by senior management. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 12.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 Minimum ca}{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid4614097 p}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 ital req}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 uirement and minimum shareholders' funds}{ \fs24\lang2057\langfe1033\langnp2057\insrsid6387684 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par \par (1)}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 The prescribed minimum capital requirement for a licensed insurer is - \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13968294 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) in the case of an insurer holding a category A licence, $200,000; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) in the case of an insurer holding a category C licence, $100,000; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4614097 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid4614097 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 or an equivalent sum in any currency that is acceptable to the Commission. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) A licensed insurer shall maintain minimum shareholders' funds of at least 75% of the minimum capital requirement applicable to the insurer as specified in subparagraph (1). \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 13}{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Solvenc}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 y}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 marg}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 in}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) For the purposes of section 18 of the Act and this Code, the solvency margin of a licensed insurer is the amount by which the value of the assets of the insurer exceeds the value of its liabilities. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) In calculating the solvency margin of a licensed insurer }{\fs24\lang2057\langfe1033\langnp2057\insrsid6387684 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13968294 {\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) only those assets specified in Schedule l as "admissible assets" may be taken into account in determining the value of its assets to the extent specified in the Schedule; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) the insurer's liabilities must be valued in accordance with paragraph 15; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) the insurer's assets must be valued in accordance with paragraph 14. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) Unless, in accordance with the Act, the Commission otherwise directs, the solvency margin to be maintained by a licensed insurer is }{ \fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \endash }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid14180695 {\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) in the case of a general insurer holding a category A licence, the higher of}{\fs24\lang2057\langfe1033\langnp2057\insrsid14180695\charrsid1998291 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid14180695 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (i) its capital requirement; or \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par (}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 ii) an amount equal to the sum of 5% of its unearned premium reserve and 10% of its outstanding claims reserve; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13968294\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid4614097 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) in the case of a long-term insurer holding a category A license,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid4614097 }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 the higher of }{\fs24\lang2057\langfe1033\langnp2057\insrsid14180695\charrsid1998291 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid14180695 {\fs24\lang2057\langfe1033\langnp2057\insrsid14180695\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid14180695 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (i) its capital requirement; or \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14180695\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (ii) an amount equal to 5% of its net liabilities under its long-term policies; and \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid14180695 {\fs24\lang2057\langfe1033\langnp2057\insrsid14180695\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) in the case of an insurer holding a category C licence, its capital requirement. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid14180695\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (4) A licensed insurer shall maintain adequate systems and controls to monitor, assess and document its compliance with this paragraph on an ongoing basis. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14180695\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (5) For the purposes of this paragraph, the capital requirement of a licensed insurer is the capital that it is required to maintain under paragraph 12 (1). \par \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 14.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Valuation of assets }{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - Subject to subparagraph (2}{\fs24\lang2057\langfe1033\langnp2057\insrsid16720893 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 , a licensed insurer s hall ensure that the value of its assets is determined on the basis required by the accounting standards in accord}{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 ance with which the insurer's financial}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 statements are prepared. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14180695\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) Under no circumstances shall any asset of a licensed insurer be valued in an amount higher than the market value of that asset. \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 15.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 Liabilities and technical pr}{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 ovisions}{\fs24\lang2057\langfe1033\langnp2057\insrsid16720893 \endash (}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 l) A licensed insurer shall ensure that its liabilities are }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \endash }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid3555751 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) calculated and valued on the basis required by the accounting standards in accordance with which the insurer's financial statements are prepared and include all contingent and prospective liabilities; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) are monitored and calculated on a continuous basis. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid12209250 (3) A licensed insurer shall establish technical provisions for each class of insurance business that }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid12209250 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid12209250 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid3555751 {\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid12209250 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid12209250 (a) in the case of a general insurer include }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid12209250 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid12209250 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid3555751 {\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid12209250 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid12209250 (i}{\fs24\lang2057\langfe1033\langnp2057\insrsid16720893\charrsid12209250 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid12209250 provision for unearned premiums; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid12209250 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid16720893 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid12209250 (ii}{\fs24\lang2057\langfe1033\langnp2057\insrsid16720893\charrsid12209250 )}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid12209250 provision for outstanding claims, including reported claims and claims that are incurred but not reported; and}{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid16720893 \par (iii) provision for unexpired risks; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid16720893\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid3555751 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) in the case of a long term insurer make full provision for policyholder benefits. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (4) For the purposes of subparagraph (3}{\fs24\lang2057\langfe1033\langnp2057\insrsid12209250 )}{ \fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 a) }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid3555751 {\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) an insurer's unearned premiums shall be estimated using }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 - \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid3555751 {\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (i) the 24ths method; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (ii) the 365ths method; or \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (iii) such other method as may be approved by the commission; and \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid3555751 {\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) the provision for outstanding claims must be estimated not less than once every three months as at the last day of the third month. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (5) For the purposes of subparagraph (3) (b), the provision for policyholder benefits must be estimated not less than once each financial year as at the end of the financial year and, where an insurer is required to appoint an actuary, the provision for policyholder benefits shall be approved by that actuary \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (6) The technical provisions established by a licensed insurer shall be monitored on a continuous basis. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 16}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Investment strategy, }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid12209250 policies, sy}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 stems and controls }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) A licensed insurer shall establish and maintain }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \endash }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid3555751 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) an investment strat egy and such investment policies as the board considers appropriate for the nature, size, complexity and diversity of the insurer's business; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) systems and controls that are sufficient to ensure that the investment strategy and policies are effectively implemented. }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid3555751 {\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) Without limiting subparagraph (1), the investment strategy and policies of a licensed insurer shall address }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 -} {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid3555751 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) the risk profile of the insurer; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) the mixture and diversification of investment by type, including the long-term asset mix over the main investment categories; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) the establishment of limits for the allocation of assets by geographical area, markets, sectors, counterparties and currency; }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (d) the extent to which the holding of some types of assets is restricted or disallowed, for example illiquid or volatile assets; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (e) the conditions under which the insu}{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 rer can pledge or lend assets; \par \par (f)}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 the safekeeping of assets;}{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (g) the appropriate matching of assets and liabilities; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (h) clear accountability for all asset transactions and associated risks. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\ul\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 17}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 .}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Responsibilities of board for investment strate}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 gy }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 and }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 p}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 olicies}{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 The board of a licensed insurer shall }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid3555751 {\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 (a) }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 approve the investment strateg}{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 y and the significant investme}{\fs24\lang2057\langfe1033\langnp2057\insrsid12209250 nt}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 , and any subsequent changes to the strategy}{\fs24\lang2057\langfe1033\langnp2057\insrsid12209250 or}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 significant policies, and review them on at least an annual basis; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) ensure that a management structure, including appropriate systems and controls, is put in place to effectively execute and monitor the investment strategy and policies. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 18}{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 Investment risk management}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) The risk management strategy, policies, systems and controls established and maintained by a licensed insurer in accordance with paragraph 27 shall cover the risks associated with investment activities that may affect the insurer's liabilities or s olvency margin. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) The internal controls established and maintained by a licensed insurer shall cover the insurer's investment strategy and policies and shall ensure that the investment strategy, policies, systems and controls are properly documented and subject to adequate oversight. \par \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 (3) }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 The board of a licen}{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 sed insurer shall ensure that -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid3555751 {\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) effective policies, systems and controls are established and maintained to enable the monitoring and managing of the insurer's asset/liability position to ensure that the insurer's }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 investment activities and assets positions are appropriate for its risk profile; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) contingency plans are put in place to mitigate the effect of a deterioration in investments. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 19}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Reinsurance }{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) A licensed insurer shall have a written reinsurance strategy, approved by its directors, that is appropriate to the insurer's overall risk profile and its capital resources. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) The directors of a licensed insurer shall review the reinsurance strategy at least annually and at any time w hen there have been material changes in the insurer's circumstances or in other matters relevant to the reinsurance strategy. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) A licensed insurer holding a category A licence shall submit to the Commission a summary of its intended reinsurance program for each year on or before }{ \fs24\lang2057\langfe1033\langnp2057\insrsid12209250 1}{\fs24\lang2057\langfe1033\super\langnp2057\insrsid12209250\charrsid12209250 st}{\fs24\lang2057\langfe1033\langnp2057\insrsid12209250 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 November of the previous year. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid3555751 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Corporate Governance \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 20.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Corporate governance framework}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) A licensed insurer shall - \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid3555751 {\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) take reasonable care to maintain a clear and appropriate apportionment o f significant responsibilities among its directors and its senior managers and other key functionaries so that }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \endash }{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid3555751 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (i) it is clear who has which of those responsibilities; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (ii) the business and affairs of the insurer can be adequately monitored and controlled by the directors and its senior management; \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid3555751 {\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) establish and maintain such systems and controls as are appropriate for the nature, size, complexity and diversity of the insurer's business and the risks to which it is exposed; } {\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) ensure that its systems and controls are regularly reviewed and updated as required; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (d) ensure that it has a span of control that is adequate for the nature, size, complexity and diversity of its business.}{\fs24\lang2057\langfe1033\langnp2057\insrsid12090785 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) Where a licensed insurer carries on business through one or more branches or subsidiaries incorporated outside the Cook Islands, an appropriate and effective corporate governance framework must be established, maintained and implemented in each branch and subsidiary. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\tx5130\faauto\adjustright\rin0\lin0\itap0\pararsid3555751 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 21}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Directors and board of a licensed insurer}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) A licensed insurer shall have an adequate number of directors who }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid3555751 {\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) are capable of exercising independent judgment; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) have sufficient knowledge, skills, experience and understanding of the business of the insurer, and the risks to which the insurer is exposed, to ensure that the board is able to fulfil its responsibilities; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) have sufficient time and commitment to undertake their duties diligently. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) Without limiting subparagraph (1), a licensed insurer shall, at all times, have }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid3555751 {\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) in the case of an insurer holding a category A licence, at least three directors; or \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) in the case of an insurer holding a category C licence, at least two directors. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) The board of a licensed insurer has ultimate responsibility for the business and affairs of the insurer and for ensuring its effective organizatio}{ \fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 n, including responsibility for-}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid3555751 {\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) ensuring that a corporate governance framework complying with this Code is established and maintained by the insurer; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) ensuring that it is has effective oversight of the management of the insurer, including approving, periodically reviewing and overseeing }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid7293473 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (i) the insurer's overall business strategy; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (ii) the insurer's risk management strategy required by this Code; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (iii) such other strategies as are required by the Code or that the board considers to be necessary or appropriate; \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid3555751\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7293473 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) approving and periodically reviewing the significant policies of, the insurer; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (d) ensuring that }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid7293473 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (i) the insurer has adequate, and sufficiently qualified and experienced, senior managers and other employees; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (ii) appropriate and effective systems and controls are established, maintained and implemented for giving effect to the strategies and policies of the insurer, which shall include internal controls an d systems and controls with respect to risk management; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (iii) the insurer complies with its obligations under the Act, this Code, the Financial Supervisory Commission Act 2003 and the Financial Transactions Reporting Act, 2004; \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7293473 {\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (e) establishing such standards of conduct for business conduct as are appropriate; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (f) monitoring and ensuring the financial soundness of the insurer; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (g) such other matters as may be specified in this Code. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (4) Subject to the strategy and policies established by the board, the senior management of a licensed insurer is responsible for }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7293473 {\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) overseeing the operations of the licensed insurer and providing direction to it on a day-to-day basis; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) providing the board with recommendations for its review and approval on the licensed insurer's strategy, business plans and significant policies; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) providing the board with timely and accurate information, including financial information, that is adequate to enabl e the board fulfil its responsibilities, including holding senior management to account. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 22.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Internal controls}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) A licensed insurer shall establish and maintain an adequate and effective system of internal controls appropriate for the nature, size, co mplexity and diversity of its business and the risks to which the insurer is exposed. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) The internal controls established under subparagraph (1) shall, as appropriate, operate at all levels of the insurer and shall ensure that - \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7293473 {\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) the business of the insurer is planned and conducted properly, adequately and in an orderly manner and in accordance with the strategies and policies established by the board and the policies established by senior management; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) transactions and commitments are entered int o in accordance with documented general or specific authorities and limits and that compliance with such authorities and limits is reviewed; }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) the assets of the insurer are appropriately safeguarded and the liabilities controlled through measures desig ned to minimise the risk of loss from irregularities, error, fraud and physical damage, and to identify such occurrences promptly should they occur; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (d) there are appropriate arrangements in place for the delegation of authority and responsibility and for the segregation of duties; \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7293473 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (e) the accounting and other reco rds of the insurer are complete, accurate and timely and can be used to compile financial statements as required by the Act and this Code, management information, returns to the Commission and any reporting requirements under the Financial Supervisory Com mission Act 2003 or the Financial Transactions Reporting Act 2004; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (f) the board and senior management is able to assess and monitor the adequacy of the insurer's capital, capital resources and solvency margin, in relation to its business, including risk profiles and the quality of its assets; \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7293473 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (g) the board and senior management is able to identify and regularly assess all relevant risks in the conduct of the insurer's business, so that}{\fs24\lang2057\langfe1033\langnp2057\insrsid4526369 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid7293473 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (i) identified risks can be measured, monitored and controlled appropriately; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (ii) any losses can be monitored and controlled on a regular and timely basis; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (iii) appropriate provisions can be made for bad and doubtful debts and for any ot}{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 her exposures, both on- and off- }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 balance sheet; \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7293473 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par (h) the board and senior manag ement is able to properly guard against involvement in financial crime and ensure that the licensed insurer is complying with all its obligations under the Act, this Code, the Financial Supervisory Commission Act 2003 and the Financial Transactions Report ing Act 2004 and any Prudential Statements issued under the Act; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (i) relevant staff of the licensed insurer are able to perform sufficient due diligence on the insurer's customers and prospective customers to adequately assess all relevant risks, including the risks of money laundering and terrorist financing; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (j) adequate business resumption, disaster recovery and other contingency arrangements are in place and tested at appropriate intervals; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (k) adequate c}{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 ontrols are in place, including-}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid7293473 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (i) to co ntrol changes to systems and records to ensure that only valid changes are made to them; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (ii) to control access to protect the confidentiality and integrity of electronic assets; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (iii) to ensure that appropriate checks and balances, such as cross checking, reconciliations, dual control of assets, is undertaken. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) A licensed insurer shall ensure that its internal controls extend to any outsourced functions. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (4) Where a licensed insurer also operates through subsidiaries and branches, its internal c ontrol systems must extend to those operations and enable effective oversight by the insurer. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 23}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Information systems}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) A licensed insurer shall have appropriate information systems in place that cover all the significant activities carried on by the insurer and, where appropriate, that enable the insurer to measure, assess and report on the size, composition and quality of its risks. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) The information systems of a licensed insurer shall be reliable and}{\fs24\lang2057\langfe1033\langnp2057\insrsid4526369 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 secure. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) A licensed insurer's information systems shall be monitored independently and supported by adequate contingency arrangements. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 24}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Monitoring of internal controls}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) A licensed insurer shall ensure that }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 - \par \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7293473 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) the effectiveness of the internal control system is monitored on an on-going basis; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) regular reports on the effectiveness of the internal control system are made to the board; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) any deficiencies identified in the internal control system are corrected as soon as reasonably practicable. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 ( 2) A licensed insurer's internal control policies shall require any deficiencies identified in the internal control system to be reported in a timely manner to senior management and for material internal control deficiencies identified to be reported to t he board, notwithstanding that they may have been corrected. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 25}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Responsibili}{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 ties of board and senior management}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) The board of a licensed insurer has ultimate responsibility for ensuring that an adequate and effective system of internal controls is established and maintained by the licensed insurer. }{ \fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) Without limiting subparagraph (1), the board of a licensed insurer \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 s}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 hall}{\fs24\lang2057\langfe1033\langnp2057\insrsid12090785 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7293473 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) approve and periodically review the overall business strategies and significant policies of the licensed insurer; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) where appropriate, set acceptable levels for the licensed insurer's significant risks; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) ensure that senior management implements the internal controls strategy and policies established by the board; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (d) approve an appropriate organisational structure for the licensed insurer; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (e) approve new products and major risk management initiatives; }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (f) ensure that senior management is monitoring the effectiveness of the licensed insurer's internal control system; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (g) oversee the licensed insurer's market conduct activities. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par (3) }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 The senior management of a licensed insurer has responsibility for }{\fs24\lang2057\langfe1033\langnp2057\insrsid12090785 \endash \par \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12090785 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) implementing the strategy and policies of the board with respect to internal controls; \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7293473 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) ensuring that - \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid7293473 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (i) the internal controls required by this Code are established and maintained; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (ii) the information systems required under paragraph 23 are put in place; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (iii) the internal controls are monitored and deficiencies corrected as required by paragraph 24; and \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7293473 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) reviewing the licensed insurer's inter nal controls, at least annually, and reporting on the results of their review to the board. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 26}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Internal audit function}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) A licensed insurer shall consider whether, given the nature, size, complexity and diversity of its business and the risks to which it is exposed, it is appropriate for an internal audit function to be established and, if so it shall establish one a nd subparagraphs (2), (3) and (4) shall apply to the insurer. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) The internal audit function of a licensed insurer shall }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7293473 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) possess sufficient independence to carry out the insurer's internal audit obligations objectively; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) report directly to the board or, if the insurer has one, to the audit committee and be given sufficient status within the insurer to ensure that senior management and the board react to, and act on, its recommendations; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 have unrestricted access to -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid7293473 {\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (i) the staff of the insurer, in order to carry out the licensed insurer's internal audit obligations; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (ii) documents and information relating to the business of the insurer and its customers; \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7293473 {\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (d) have sufficient human resources with adequate professional qualifications, relevant auditing experience and training to understand and evaluate the business being audited; \par \par (e) employ a methodology that identifies all significant risks run by the insurer and allocate resources accordingly. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid13336334 (3) The internal audit function shall }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid13336334 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid13336334 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid13336334 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7293473 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid13336334 (a) extend to all the activities of the insurer, including outsourced activities, and where the insurer has established branches or subsidiaries, to those branches and subsidiaries; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid13336334 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid13336334 (b) be subject to independent review by the audit committee or the licensed insurer's external auditor.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (4) A licensed insurer that establishes an internal audit function shall submit to the Commission any report prepared by the internal audit function }{ \fs24\lang2057\langfe1033\langnp2057\insrsid11088130 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7293473 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) where the internal audit function is outsourced, within seven days of the receipt of the report by the licensed insurer; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) in any other case, within seven days of its preparation. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 27.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Risk management}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) A licensed insurer shall establish and maint}{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 ain}{\fs24\lang2057\langfe1033\langnp2057\insrsid13336334 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 - \par \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7293473 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) a clearly defined strategy, and if the board considers it appropriate, policies, for the effective management of all significant risks that the insurer is or may be exposed to; and }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) systems and controls that are sufficient to ensure that the risk management strategy and policies are effectively implemented. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) The risk management strategy and policies shall }{\fs24\lang2057\langfe1033\langnp2057\insrsid11088130 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7293473 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) be appropriate for the nature, size, complexity and diversity of the insurer's business; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) specify how risks are to be identified, measured, assessed, monitored, controlled and reported; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) where appropriate, set the level of risk that the licensed insurer is prepared to accept and authority levels for members of staff; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (d) be approved, and reviewed on at least an annual basis, by the board. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid7293473\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) The risk management strategy, policies, systems and controls shall be fully and clearly documented and effectively communicated and readily available to the directors and senior management and to those staff and other funct ionaries of the licensed insurer who have responsibility for implementing them. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (4) The}{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 board and senior management of a licensed insurer has }{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 responsibility for }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12794873 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13336334 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) ensuring that they understand all the risks to which the insurer is exposed in its business; \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12794873 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par (b) }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 assessing the resourc es required for an appropriate risk management system, including accurate and reliable management information and reporting systems, and for ensuring that the required resources are available; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par (c) }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 overseeing the implementation of the insurer's risk management strategy, policies, systems and controls, \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid2516533 (5) Without limiting this paragraph, the risk management systems and controls of a licensed insurer shall }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid2516533 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid2516533 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12794873 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid2516533 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid2516533 (a) enable the insurer to monitor the adequacy and effectiveness o}{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid2516533 f}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13336334\charrsid2516533 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid2516533 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid2516533 \par \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid12794873 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid2516533 (i) its risk management strategy and policies and their implementation; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid2516533 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid2516533 (ii) measures taken to address any deficiencies identified in the risk management strategy, policies, systems and controls; and}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12794873 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) ensure that any exceptions to the insurer's risk management strategy and policies are reviewed and authorised by senior management and, where appropriate, the board. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 28.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Business }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 continuity }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 plans}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) A licensed insurer shall establish a business continuity policy, and put business continuity arrangements in place, aimed at en suring that, in the event of an unforeseen interruption or disruption }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12794873 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) the insurer is able to continue to carry on its regulated business and to meet its obligations under the Act, the Code, the Fi}{ \fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 nancial }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Supervisory Commission Act 2003 and the Financial Transactions Reporting Authority Act 2004; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) losses to its functions, systems and data are limited and any losses may be recovered in a timely manner; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) where the severity of the interruption or disruption results in the insurer ceasing its business, or any part of it, it is able to resume its business in a timely manner. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) The business continuity policy and arrangements shall be }{\fs24\lang2057\langfe1033\langnp2057\insrsid13336334 \endash }{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{\fs24\lang2057\langfe1033\langnp2057\insrsid13336334 \par \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid13336334 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) appropriate for the nature, size, complexity and diversity of the insurer's business and the types and degree of risk to which it is exposed; and \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12794873 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) regularly reviewed and tested, and updated as required. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) Without limiting subparagraph (1) or (2), the interruptions and disruptions covered by the business continuity plan and arrangements shall include }{ \fs24\lang2057\langfe1033\langnp2057\insrsid15630259 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12794873 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) the loss or failure of internal and external resources, including human resources, systems and other assets; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) the loss or corruption of data and other information; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) external events, such as cyclones and criminal acts. \par }\pard \ql \li0\ri0\nowidctlpar\tx3960\faauto\adjustright\rin0\lin0\itap0\pararsid12794873 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 29}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Underwriting policies, systems and controls}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) A licensed insurer shall establish and maintain }{\fs24\lang2057\langfe1033\langnp2057\insrsid15630259 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12794873 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) an underwriting and pricing strategy and policies; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) systems and controls that are sufficient to ensure that the underwriting and pricing strategy and policies are effectively implemented. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) Without limiting subparagraph (1}{\fs24\lang2057\langfe1033\langnp2057\insrsid15630259\charrsid1998291 ) (}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 a), the underwriting and pricing policies shall provide for }{\fs24\lang2057\langfe1033\langnp2057\insrsid15630259 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12794873 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) the evaluation of risks underwritten or to be underwritten; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) the establishment of adequate premium levels; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) the mitigation and diversification of risks by }{\fs24\lang2057\langfe1033\langnp2057\insrsid619795 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid12794873 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (i) defining limits on the amount of risk retained; and }{ \fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid13336334 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (ii) providing for the transfer of appropriate levels of risk away from the insurer through adequate and appropriate reinsurance or other risk transfer arrangements. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) Without limiting subparagraph (1)(b), the systems and controls shall include controls of expenses related to premiums and claims. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (4) The underwriting and pricing strategy and the significant underwriting and pricing policies established under subparagraph (1), shall be approved, and reviewed on at least an annual basis, by the board. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (5) Senior management shall monitor the systems and controls established in accordance with subparagraph (1)(b) on an ongoing basis. \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12794873 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Obligations of Long-Term insurers \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 30}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Appointment of actuary}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) A long-term insurer shall appoint and at all times have an actuary, unless the Commission, on the application of the insurer, otherwise directs. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) For the purposes of this paragraph, paragraph 31 and paragraph 32, a long-term insurer that is required to appoint an actuary by virtue of subparagraph (1) is ref erred to as a "relevant long-term insurer". \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) A relevant long-term insurer shall not appoint a person as its actuary unless the person has consented in writing to act as its actuary. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (4) A relevant long-term i}{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 nsurer shall, within 14 days of}{\fs24\lang2057\langfe1033\langnp2057\insrsid13336334 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12794873 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) the appointment of its actuary; or \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) a pe}{\fs24\lang2057\langfe1033\langnp2057\insrsid13336334 rson ceasing to be its actuary; \par \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13336334 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 submit a notice in the approved form to the Commission. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\ul\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid4215851 31}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid4215851 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid4215851 Actuarial investigations}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid4215851 - (1) A relevant long-term insurer shall cause an actuarial investigation to be made into its financial c}{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid4215851 ondition in respect of its long-}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid4215851 term insurance business by its actuary }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid4215851 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid4215851 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid4215851 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12794873 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid4215851 (a) at least once each financial year; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid4215851 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid4215851 (b) if its actuary considers it necessary in order properly to monitor the insurer's margin of solvency, as often as required by the actuary. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid4215851 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid4215851 (2) The actuarial investigation must include a valuation of the liabilities relating to the insurer's long-term business.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) A relevant long-te rm insurer shall make such arrangements as are necessary to enable its actuary to undertake an actuarial investigation under subparagraph (1), including by giving the actuary a right of access at all reasonable times to such records and documents as the a ctuary reasonably requires for the purposes of enabling him to properly perform his functions and duties. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (4) The actuary of a relevant long-term insurer shall produce a report of each investigation that he undertakes and the insurer shall, within fourteen days of receiving the report, submit a copy to the Commission. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (5) The report of the annual actuarial investigation of a long-term insurer must be submitted to the Commission together with the financial statements required to be submitted to the Commission under paragraph 49. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (6) The actuary shall undertake his investigation and produce his report in accordance with the professional standards applicable to him. \par \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 32}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Powers and rights of actuaries}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) The actuary of a relevant long-term insurer may requ ire any director, employee or key functionary of the insurer to answer questions or produce documents for the purpose of enabling him to properly perform his functions and duties and a director, employee or key functionary of a relevant long-term insurer shall not refuse or fail, without reasonable excuse, to comply with a requirement of the actuary under this paragraph. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) The actuary of a relevant long-term insurer is entitled to attend meetings of the directors of the insurer and to speak on any matter being considered at the meeting }{ \fs24\lang2057\langfe1033\langnp2057\insrsid619795 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12794873 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) that relates to, or may affect, the adequacy of the capital of the insurer, shareholders' funds, its solvency, its reserves or its financial condition; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) that relates to advice given by the actuary to the directors; or }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) that concerns a matter in relation to which the actuary is or will be required to investigate, report on or give advice. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) The actuary of a relevant long-term insurer is entitled to attend any meeting of the members of the company at which }{ \fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12794873 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) the company's accounts or financial statements are to be considered; or \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) any matter in connection with the actuary's functions or duties is to be considered; \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 and to speak on the matter being considered at the meeting. }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (4) }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 If, without reasonable excuse -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12794873 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) a director, employee or key functionary of the insurer contravenes subparagraph (1); or \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) subsection (2) or (3) is contravened, }{\fs24\lang2057\langfe1033\langnp2057\insrsid4215851 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid4215851 {\fs24\lang2057\langfe1033\langnp2057\insrsid4215851 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 the actuary may report the matter to the Commission. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 33.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Segregation of assets and liabilities attributable to long-term business}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (l) A long-term insurer shall keep separate accounts for each class of long-term business that it undertakes , sufficient to ensure that the assets and liabilities attributable to each class of long term business can be readily identified at any time. }{\fs24\lang2057\langfe1033\langnp2057\insrsid4215851 \par \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) All receipts from a long-term insurer's long-term business }{\fs24\lang2057\langfe1033\langnp2057\insrsid619795 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid4396699 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) must be kept separately from all other assets in the insurer's possession or control; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) must be lodged in a special fund (the "long-term fund"); and }{\fs24\lang2057\langfe1033\langnp2057\insrsid4215851 \par \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) subject to subparagraph (3), must not be applied to any purpose other than the purposes of the insurer's long-term business. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) Paragraph (2}{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 ) (}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 c) does not apply to any portion of the assets which is for the time being certified by the insurer's actuary as exceeding the liabilities of the insurer's long-term business, provided that the application of the funds in question does n ot have the effect of causing the solvency margin of the insurer to be reduced below the margin it is required to maintain under the Act. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (4) No transfer of assets in a long-term insurer's long-term fund, other than assets to which subparagraph (3) applie s, shall take place without the authority of a resolution of the insurer's directors and the written consent of its actuary. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (5) If any part of the long-term business of a long-term insurer consists of contracts under which the benefits payable to policyh olders are determined directly by reference to the value of, or the income from, assets of any description, the receipts}{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 of that part of that business shall be carried to, and shall form, a separate part of the long-term fund. \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid12794873 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 PART 4}{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par PROVISIONS}{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 APPLICABLE TO LICENSE}{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid4215851 D }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid11016231 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 INSURANCE MANAGERS AND INTERMEDIARIES \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid9058707 34}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid9058707 . }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid4215851\charrsid9058707 Restrictions on persons who }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid9058707 ma}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid4215851\charrsid9058707 y}{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid9058707 be licensed and on directors and others}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid9058707 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid9058707 - \par \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4215851\charrsid9058707 (1) An insurance manager\rquote }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid9058707 s licence will be granted only to a Cook Islands company. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid9058707 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid9058707 (2) An insurance broker's licence will be granted only to }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid9058707 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid9058707 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid9058707 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12794873 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid9058707 (a) a Cook Islands company; or \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid9058707 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid9058707 (b) a company that is incorporated, constituted or formed outside the Cook Islands.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) A director, officer or employee of a company holding a licence as an insurance broker or an insurance ma nager and a person holding a significant interest in an insurance broker or an insurance manager will not be granted a licence as an insurance agent. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (4) A company holding a licence as an insurance agent will not be granted a licence as an insurance broke r and a person holding a licence as an insurance broker will not be granted a licence as an insurance agent. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (5) A director, officer or employee of a licensed insurer and a person holding a significant interest in a licensed insurer shall not be a director, officer or employee of, or hold a significant interest in, a person holding a licence as an insurance brok er. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 35}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Professional indemnity insurance} {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) Professional indemnity insurance shall at all times be maintained in accordance with this paragraph by }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \endash }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12794873 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) an insurance manager; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) an insurance broker; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) an insurance agent that handles customer monies. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) Subject to subparagraph (3), professional indemnity insurance maintained under subparagraph (1) shall provide a minimum level of indemnity equal to the greater of $1,000,000 or three times the annual management or brokerage fees of the licensed insurance manager or insurance intermediary. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) If having regard to the nature and extent of the business carried on by a person to whom this paragraph applies, the Commission considers it appropriate to do so, it may direct that person to maintain a hi gher level of indemnity than that provided for in subparagraph (2). \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (4) The professional indemnity insurance maintained under subparagraph (1) must include cover for the following risks }{\fs24\lang2057\langfe1033\langnp2057\insrsid11016231 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12794873 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) any error or omission or negligence on the part of the manager or intermediary or on the part of his employees and directors; }{ \fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) any loss of money or other property for which the manager or intermediary is legally liable in consequence of any financial or fraudulent act or omission; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) any loss of documents and costs and expenses incurred in replacing or restoring such documents; \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12794873 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (d) dishonest or fraudulent acts or omissions by the employees or former employees of the manager or intermediary. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 36}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Minimum capital requirement}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) A licensed insurance manager and a licensed insurance broker shall ensure that }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid12794873 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) its fully paid up share capital is no less than $30,000; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) at all times, it maintains minimum shareholders' funds of at least $25,000. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid12794873\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) The above requirements are in addition to any requirements imposed on the licensed insurance manager or broker under any other enactment. \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 37}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Corporate governance}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 - }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (1) A licensed insurance manager, a licensed insurance broker and a licensed insurance ag ent shall ensure that it establishes and maintains a corporate governance framework appropriate to the nature, size, complexity and diversity of its business and the risks to which it is exposed. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid3818767 (2) The corporate governance framework established and maintained under subparagraph (1) shall include }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid3818767 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid3818767 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15688283 {\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid3818767 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid3818767 (a) the clear and appropriate apportionment of significant responsibilities among its directors (where, in the case of an insurance agent, it is a company), senior managers and key functionaries; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid3818767 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid3818767 (b) appropriate systems and controls, including internal controls; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid3818767 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid3818767 (c) the regular review and updating of its systems and controls;}{\fs24\lang2057\langfe1033\langnp2057\insrsid3818767 a}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid3818767 nd \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid3818767 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid3818767 (d) an adequate span of control.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) Paragraph 21 of the Code applies to a licensed insurance manager, a licensed insurance broker and a licensed insurance agent that is a company with the modification that }{ \fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15688283 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) the words "insurance manager" "insurance broker" or "insurance agent" are substituted for "insure}{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 r" throughout the subparagraph(1}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 ); and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) a licensed insurance manager, a licensed insurance broker and a licensed insurance agent that is a company shall have at least two directors. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 38}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Other strategies, policies, systems and controls}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - A licensed insurance manager, a licensed insurance broker and a licensed insurance agent shall have \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15688283 {\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) an appropriate strategy and policies for the effective management of the significant risks to which it is exposed and systems and controls to ensure that the risk management strategy and policies are implemented; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) an appropriate business continuity policy and business continuity arrangements. \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15688283 {\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 PART 5}{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 PROVISIONS APPLICABLE TO ALL LICENSEES \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Licence \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par 39}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Application for licence}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - An application for a licence shall }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 - \par \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15688283 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) be in the form, \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) contain the information, \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) be accompanied by the documents, and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (d) be made in accordance with the instructions, \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13849150 {\fs24\lang2057\langfe1033\langnp2057\insrsid13849150 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 specified in the relevant Prudential Guideline on Licensing issued under section 98 of the Act. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 40}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Display of licence}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) A person holding a licence specified in subparagraph (2) shall prominently display a copy of the licence at each place in the Cook Islands where it carries on its licensed business. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) Subparagraph (1) applies to }{\fs24\lang2057\langfe1033\langnp2057\insrsid15749732 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15688283 {\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) an insurer holding a category A licence; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) a licensed insurance manager; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) a }{\fs24\lang2057\langfe1033\langnp2057\insrsid13849150 licensed insurance intermediary.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 41.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Deliver of licence to Commission}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - A person holding a licence granted under the Act, or where the licence is revoked the person who held it immediately prior to the revocation, shall deliver the licence, and any copies of the licence that}{ \fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 it holds, to the Commission if}{\fs24\lang2057\langfe1033\langnp2057\insrsid13849150 }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15688283 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) the licence is revoked; or \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) it is required by the Commission, for any reason, to do so. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15688283 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Fit and proper criteria \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 42}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Key functionaries}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - The key functionaries of a licensee are required to satisfy the Commission's fit and proper criteria. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 43}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Responsibility of licensee with respect to fit and proper assessment}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \endash }{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (1) A licensee shall satisfy itself, prior to appointment and on an ongoing basis, that }{\fs24\lang2057\langfe1033\langnp2057\insrsid15749732 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15688283 {\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) its directors and senior managers are f}{\fs24\lang2057\langfe1033\langnp2057\insrsid13849150 i}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 t and proper for the role to which they are appointed; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) where the licensee is required to appoint an insurance manager, auditor or actuary, the insurance manager, auditor or actuary appointed is fit and proper. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) If, whether before or after the Commission has approved the appointment of key functionary, or has approved a significant owner, the licensee becomes aware of any information that is reasonably material to the Commission's fit and proper ass essment of the person, it shall notify the Commission of the information as soon as reasonably practicable \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15688283 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Accounting Records, Financial Statements and Audit \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 44.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13849150 Application of paragraphs }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid12219065 45}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 45 to 51}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) Paragraphs 45 to 51 apply, to the extent specified, to }{\fs24\lang2057\langfe1033\langnp2057\insrsid15749732 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15688283 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) a licensed insurer; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) a licensed insurance manager; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) a licensed insurance broker. \par \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) A licensee specified in subparagraph (1) is referred to in paragraphs 45 to 51 as a "relevant licensee". \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15688283 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 45.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Meaning of "financial ear"}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) Subject to subparagraph (3), for the purposes of the Act and this Code, the financial y}{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 ear of a relevant licensee is - \par \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15688283 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) in the case of its first financial year, the period from the date of its incorporation to the last day of the calendar quarter in which the anniversary of its incorporation falls; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) in the case of subsequent financial years, the period of one year commencing on the day immediately after the end of its previous financial year. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) Paragraph (1) applies whether or not financial statements have actually been prepared for the financial year in question. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) The Commission, whether on the application of a relevant licensee or of its own volition, may direct that the financial year of a licensee shall be }{ \fs24\lang2057\langfe1033\langnp2057\insrsid15749732 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15688283 {\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) where a relevant licensee is part of a group of companies, the financial year or period used for the group financial statements; or \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) in any other case, such other period, ending on the last day of a calendar quarter, that the Commission considers appropriate. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 46}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Pr eparation of financial statements}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) In the Act and this Code, "financial statements" in relation to a relevant licensee and to a financial year, means}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13849150 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15688283 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) a statement o f the financial position of the licensee as at the last date of the financial year; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) a statement of the financial performance of the licensee in relation to the financial year; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) a statement of cash flows for the licensee in relation to the financial year; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (d) in the case of a relevant licensee that is an insurer, a statement of solvency showing the solvency margin of the insurer as at the last date of the financial year; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (e) such statement relating to the prospects for the licensee's business as may be required or specified by the accounting standards in accordance with which the licensee's financial statements are prepared; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (f) such other statements as may be required or specified by the accounting standards in accordance with which the licensee's financial statements are prepared; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 together with any notes or other documents giving information relating to the matters specified in paragraphs (a) to (f). \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) Where a relev ant licensee is a long-term insurer that is required to appoint an actuary, the statement of solvency must be endorsed by the insurer's actuary following the completion of his actuarial investigation. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid10185185 (3) A relevant licensee shall prepare financial statem ents for each financial year that give a true and fair view of the matters to which they relate and that comply with any of the following internationally recognised accounting standards }{\fs24\lang2057\langfe1033\langnp2057\insrsid8407923 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid10185185 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15688283 {\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid10185185 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid10185185 (a) the International Financial Reporting Standards [IFRS}{\fs24\lang2057\langfe1033\langnp2057\insrsid10185185 ]}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid10185185 currently in force; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid10185185 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid10185185 (b) New Zealand Generally Accepted Accounting Practice (NZ GAAP); \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid10185185 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15688283 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid10185185 (c) such other international accounting standards as may be approved by the Commission.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (4) If, in complying with the accounting standards in accordance with which they are pr epared, the financial statements do not give a true and fair view of the matters to which they relate, the notes to the financial statements must contain such information and explanations as will give a true and fair view of those matters. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (5) The notes to the financial statements must state the accounting standards in accordance with which they have been prepared. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (6) The financial statements prepared under subparagraph (2) must be}{\fs24\lang2057\langfe1033\langnp2057\insrsid10185185 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15688283 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) approved by the directors of the licensee; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) following approval under paragraph (a), signed by at least one director on behalf of all the directors who shall state the date when the financial statements were approved by the directors and the date when he signs the financial statements. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 47}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Appointment of auditor}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) A person shall not be appointed, or accept appointment, as auditor of a relevant licensee unless he is independent of the licensee and has no conflicts of interest with respect to the licensee. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) Where a relevant licensee or its auditor is of the opinion that the auditor is not independent of the licensee, the relevant licensee or auditor shall provide written notification of this opinion to the Commission. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) A relevant licensee shall not appoint a person as its auditor unless the person has consented in writing to acting as auditor of the licensee. \par }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 48}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Audit and auditor's report}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) The auditor of a relevant licensee shall }{\fs24\lang2057\langfe1033\langnp2057\insrsid8407923 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid10185185 \par \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid10185185 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) audit the licensee's financial statements and report to the licensee in accordance with }{ \fs24\lang2057\langfe1033\langnp2057\insrsid8407923 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15688283 {\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid10185185 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (i) the auditing s tandards specified by the recognised professional body of which he is a member; or \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (ii) such other recognised international auditing standards as may be approved by the Commission; and \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15688283 {\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) certify the licensee's compliance with such obligations and matters as may be specified in the Act or this Code; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) provide such certifications or confirmations as may be specified by the Commission in a written notice sent to the licensee and the auditor; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (d) carry out such other duties as may be required of the auditor by the Act or this Code. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) Without limiting subparagraph (1), an auditor's report - \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15688283 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) shall state whether, in the auditor's opinion, the financial statements - \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid15688283 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (i) have been properly prepared in accordance with the recognised accounting standards stated in the notes to the accounts; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (ii) give a true and fair view of the matters specified in}{\fs24\lang2057\langfe1033\langnp2057\insrsid10185185 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 paragraph 46}{\fs24\lang2057\langfe1033\langnp2057\insrsid2363835 }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 46(1); and \par \par (iii) are in accordance with the provisions of the Act and this Code; and \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15688283 {\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) must make specific reference to any transaction, other than a transaction in the normal course of the licensee's business, which, in the auditor's opinion, results in the statement of the financial position of the licensee s howing a situation materially different from that which would otherwise have been the case and which is not adequately disclosed in the financial statements. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) If the auditor is of the opinion that }{ \fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15688283 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) the relevant licensee has not complied with its obligations under the Act with respect to the keeping of accounting records; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) the financial statements are not in agreement with the licensee's accounting records; or \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) he has not received all the information and explanations which he considers necessary for him to carry out his audit;}{ \fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 he shall include a statement to that effect in the audit report. \par }\pard \ql \li0\ri0\nowidctlpar\tx4050\faauto\adjustright\rin0\lin0\itap0\pararsid15688283 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 49}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Submission of financial statements to Commission }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) The financial statements signed by a director in accordance with paragraph 46 must be submitted to the Commission within five months of the end of the financial year to which they relate, or such extended time as the Commission may allow, accompanie d by }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \endash }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\tx4050\faauto\adjustright\rin0\lin720\itap0\pararsid8407605 {\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8407605 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) a directors' certificate in the approved form; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) the auditor's report; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) any report on the affairs of the relevant licensee made to the members or policyholders of the licensee in respect of the relevant financial year. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid15688283\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) Unless the financial statements are accompanied by the documents specified in subparagraph (1), the Commission will consider that they have not been submitted to it. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8407605\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 50}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Submission of unaudited financial statements and reports}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) A relevant license e shall submit to the Commission financial statements and a report in the approved form, accompanied by a directors' certificate in the approved form, with respect to - \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8407605\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8407605 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) each calendar quarter; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8407605\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) such other periods as the Commission may, by written notice, require on a case-by-case basis. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid8407605\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) The financial statements and report specified in subparagraph (1) must b}{\fs24\lang2057\langfe1033\langnp2057\insrsid2363835 e submitted to the Commission -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8407605\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid8407605 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) in the case of the financial statements and report for a calendar quarter, within three weeks of the end of the quarter, or such extended time as the Commission may allow; or \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8407605\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) in the case of other financial statements and reports required to be submitted by the Commission, within such time as may be specified by the Commission in its written notice to the relevant licensee. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8407605\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) Unless the financial statements and report required to be submitted by paragraph (1) are accompanied by a directors, certificate in the approved form, the Commission will consider that they have not been properly submitted to it. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8407605\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (4) In this paragraph, "financial statements" has the meaning specified}{\fs24\lang2057\langfe1033\langnp2057\insrsid10185185 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 in paragraph 46}{\fs24\lang2057\langfe1033\langnp2057\insrsid8407605\charrsid1998291 }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 46(1) with the substitution for "financial year" of "calendar quarter" or the period specified by the Commission, as the case may be. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8407605\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 51.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Amendment of financial statements }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) If the Commission considers that any document submitted by a relevant licensee under paragraph 46 or 49 is inaccurate or incomplete or is not prepared in accordance with the Act or this Code, it may by}{ \fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 written notice require the licensee to amend the document or to submit a replacement document. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) If a relevant licensee fails to comply with a notice under subparagraph (1), the Commission may reject the document. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) A document amended by a relevant licensee is treated as having been submitted in its amended form. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 52}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Provision of financial statements to policyholders}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) An insurer that holds a category A or a category B licence shall, at the request of a polic yholder, provide him with a copy of its audited financial statements. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) An insurer that holds a category B licence shall, at the request of a policyholder, provide him with a copy of the audited financial st}{ \fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 atements of its holding company.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) A licensed insurer is entitled to charge a reasonable fee for providing its, or its holding company's, audited financial statements to a policyholder. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid5113138 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid10185185 Record Keeping}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid13775564 \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid10185185\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 53.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Maintenance of records}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) A licensee shall keep adequate and orderly records which shall include records of its business, including all services provided to, and transactions undertaken for, customers, and of its internal organization. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) The records kept by a licensee shall be sufficient to enable the Commission to monitor the compliance of the licensee with its obligations under the Act, this Code, the Financial Services Supervisory Commission Act 2003 and the Financial Transactions Reporting Authority Act 2004. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) A licensee shall }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5113138 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) maintain its records so that they can be readily r etrieved in the Cook Islands and, if kept otherwise than in legible form, so that they can be accessed and read at a computer terminal in the Cook Islands and produced in the Cook Islands in legible form and in the English language without delay; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) ensure that its records are kept up to date and that a full audit trail is maintained of all changes to its records. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 54.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Records retention }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 p}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 olic}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 y}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) A licensee shall establish a record retention policy which shall include }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5113138 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) the period of time for which various types of record will be retained, which shall be no less than the minimum period specified in subparagraph (2); \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) how records are to be securely and safely stored; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) the process by which stored records can be readily accessed when required by the licensee, the Commission, law enforcement agencies or other persons entitled to access them. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) Subject to any enactment requiring a licensee to retain records for a lon ger period, a licensee shall retain all records that it is required to maintain under this Code for a period of at least six years. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) In the case of records relating to transactions with a customer, the six-year period shall commence on the termination of the licensee's relationship with the customer. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid5113138 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Outsourcing \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 55}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Restrictions on outsourcing}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) A licensee shall not - \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5113138 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) outsource the compliance function or a core management function; or \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) outsource an activity if the outsourcing of that activity would}{\fs24\lang2057\langfe1033\langnp2057\insrsid12219065 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 - \par \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid5113138 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (i) impair the Commission's ability to supervise the licensee; or \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid12219065 (ii) affect the rights of a customer against the licensee, including the right to obtain legal redress.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) Without limiting subparagraph (1), the following are "core management functions" }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5113138 {\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) the setting and approval of the licensee's risk management and other strategies; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) the oversight of the licensee's policies, systems and controls; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) the responsibility for the delivery of services to the licensee's customers. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 56}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Outsourcin}{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 g}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 policy}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) A licensee shall not outsource activities to a service provider unless it has established a comprehensive outsourcing policy with respect to the activities to be outsour}{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 ced [the "relevant activities"].}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) The outsourcing policy - \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5113138 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) shall - \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid5113138 {\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (i) consider the potential effects of outsourcing on the compliance function; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (ii) include an evaluation of whether, and the extent to which, the relevant activities are appropriate for outsourcing; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (iii) specify criteria for making outsourcing decisions, including how, and to whom, particular types of relevant activities should be resourced; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (iv) provide for outsourcing only as permitted by, and in accordance with, this Code. \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5113138 {\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) may, on a risk-based basis, take into account the extent to which the activity to be outsourced is material to its regulated business. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 (3) }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 The board of a licensee - \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid5113138 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) shall approve the licensee's outsourcing policy and keep it under review; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) is responsible for ensuring that - \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid5113138 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (i) outsourcing decisions are taken; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (ii) outsourced activities are undertaken; \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid12219065 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 in accordance with the licensee's outsourcing policy. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid5113138\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 57}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Outsourcing systems and controls} {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) A licensee that outsources any activities shall establish and maintain appropriate and adequate systems and controls to manage its outsourcing risk. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) Without limiting subparagraph (1), the outsourcing management risk systems and controls shall provide for the monitoring and controlling of the licensee's outsourcing arrangements. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 58}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Outsourcing arrangements}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) A licensee shall, before entering into any arrangement for the outsourcing of activities to a service provider, undertake appropriate due diligence with respect to the service provider to enable it to assess }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid14710003 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) the service provider's capacity and ability to undertake the outsourced activities; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) the risks associated with outsourcing the proposed activities to the service provider. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) The outsourcing of an activity shall be governed by a written contract with the service provider that }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid14710003 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) clearly specifies all material aspects of the outsourcing arrangement, including }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9311138 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid14710003 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (i) the activities to be outsourced; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (ii) the rights and responsibilities of the parties; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (iii) the protection by the service provider of confidential information relating to the licensee or its customers; }{ \fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid14710003 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) gives the licensee and, if relevant, its auditor and actuary, access to all documents and information relevant to the outsourced activity, at all times; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) provides for the orderly termination of the outsourcing arrangement. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) A licensee shall establish and maintain a contingency plan for each outsourcing agreement that it enters into. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid14710003 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Returns and Notices}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid13775564 \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid12219065\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 59}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Annual return}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) Every licensee shall submit to the Commission an annual return in the approved form }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9311138 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid14710003 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) where he is required to submit financial statements to the Commission in accordance with paragraph 49}{\fs24\lang2057\langfe1033\langnp2057\insrsid9311138 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid8336730 }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 49, together with those financial statements; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) in any other case, on or before 31 December each year. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) A licensed insurer shall, together with the annual return, submit an up to date business plan to the Commission in the form that would be required if it was applying for a licence. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (3) An insurance manager shall, together with the annual r}{\fs24\lang2057\langfe1033\langnp2057\insrsid14114872 eturn, submit to the Commission }{ \fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \endash }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid14710003 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) a list of licensed insurers for which it has acted during the year covered by the return; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) evidence of current professional indemnity co}{\fs24\lang2057\langfe1033\langnp2057\insrsid14114872 ver complying with paragraph 35 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9311138 }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 35; \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (4) An insurance intermediary shall, together with the annual return, submit to the Commission }{\fs24\lang2057\langfe1033\langnp2057\insrsid9311138 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid14710003 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) a list of insurers, whether licensed under this Act or not, with which it has placed business in the year covered by the return; and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) where applicable, evidence of current professional indemnity cover complying with paragraph 35; \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid14114872 60}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid14114872 Judgments}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - A licensee shall notify the Commission of any judgment obtained against it and shall provide the Commission with evidence as to whether or not the judgment has been satisfied. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid14710003 {\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 PART 6}{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 MISCELLANEOUS PROVISIONS \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid14114872 61}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid14114872 Service of notices}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 - (1) Where a notice is required by this Act, the regulations or this Code to be sent by a licensee to a policyholder, it may be sent to the last address of the policyholder notified by the policyholder to the licensee. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) Where a person claiming to be interested in a policy has given notice of his interest to a licensee, any notice required to be sent by the licensee to a policyholder shall also be sent to the person claiming an interest at the address specified by him in his notice to the licensee. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }\pard \qr \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid14710003 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Grover L, Harmon }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Clerk of the Executive Council \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid14710003 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par __________________ \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid14114872 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 This Code is administered by the Office of the Financial Supervisory Commission \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid14710003 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 ____________________ \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 SCHEDULE 1 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 ADMISSIBLE AND INADMISSIBLE ASSETS \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 INADMISSIBLE ASSETS \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 l. The following assets are inadmissible assets }{\fs24\lang2057\langfe1033\langnp2057\insrsid3043640 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid14710003 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) Intangible assets \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) Loans, or any amounts due from related companies or related parties \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (c) Loans to insurance intermediaries \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (d) Loans, and any other amounts due, that are overdue more than 180 days, including - \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid14710003 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (i) insurance premiums, \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (ii) inwards reinsurance, and \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (iii) reinsurance recoveries \par }\pard \ql \li2160\ri0\nowidctlpar\faauto\adjustright\rin0\lin2160\itap0\pararsid14710003 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid14710003 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (e) Amounts secured or pledged on any asset or assets \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par (f)}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 Merchandise inventory \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (g) Prepaid expenses \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (h) Furniture and fixtures \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid14710003 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 ADMISSIBLE ASSETS \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \par }\trowd \irow0\irowband0\ts24\trgaph108\trleft-108\trbrdrt\brdrs\brdrw10 \trbrdrl\brdrs\brdrw10 \trbrdrb\brdrs\brdrw10 \trbrdrr\brdrs\brdrw10 \trbrdrh\brdrs\brdrw10 \trbrdrv\brdrs\brdrw10 \trftsWidth2\trwWidth3887\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid3043640\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth3786\clshdrawnil \cellx5198\clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth1214\clshdrawnil \cellx6899\pard\plain \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid12738232\yts24 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 Asset\cell }\pard \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid14710003\yts24 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 Discount}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid14710003 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid3043640\charrsid1998291 \cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \b\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \trowd \irow0\irowband0\ts24\trgaph108\trleft-108\trbrdrt\brdrs\brdrw10 \trbrdrl\brdrs\brdrw10 \trbrdrb\brdrs\brdrw10 \trbrdrr\brdrs\brdrw10 \trbrdrh\brdrs\brdrw10 \trbrdrv \brdrs\brdrw10 \trftsWidth2\trwWidth3887\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid3043640\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl \brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth3786\clshdrawnil \cellx5198\clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth1214\clshdrawnil \cellx6899\row }\pard\plain \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid12738232\yts24 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 Cash and Government bonds\cell }\pard \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid14710003\yts24 { \fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 0%\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \b\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \trowd \irow1\irowband1\ts24\trgaph108\trleft-108\trbrdrt\brdrs\brdrw10 \trbrdrl\brdrs\brdrw10 \trbrdrb\brdrs\brdrw10 \trbrdrr\brdrs\brdrw10 \trbrdrh\brdrs\brdrw10 \trbrdrv \brdrs\brdrw10 \trftsWidth2\trwWidth3887\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid3043640\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl \brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth3786\clshdrawnil \cellx5198\clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth1214\clshdrawnil \cellx6899\row }\pard\plain \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid12738232\yts24 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 Term deposits and bonds\cell }\pard \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid14710003\yts24 { \fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 2%\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \b\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \trowd \irow2\irowband2\ts24\trgaph108\trleft-108\trbrdrt\brdrs\brdrw10 \trbrdrl\brdrs\brdrw10 \trbrdrb\brdrs\brdrw10 \trbrdrr\brdrs\brdrw10 \trbrdrh\brdrs\brdrw10 \trbrdrv \brdrs\brdrw10 \trftsWidth2\trwWidth3887\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid3043640\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl \brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth3786\clshdrawnil \cellx5198\clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth1214\clshdrawnil \cellx6899\row }\pard\plain \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid12738232\yts24 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 Deposits in other financial institutions\cell }\pard \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid14710003\yts24 { \fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 3%\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \b\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \trowd \irow3\irowband3\ts24\trgaph108\trleft-108\trbrdrt\brdrs\brdrw10 \trbrdrl\brdrs\brdrw10 \trbrdrb\brdrs\brdrw10 \trbrdrr\brdrs\brdrw10 \trbrdrh\brdrs\brdrw10 \trbrdrv \brdrs\brdrw10 \trftsWidth2\trwWidth3887\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid3043640\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl \brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth3786\clshdrawnil \cellx5198\clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth1214\clshdrawnil \cellx6899\row }\pard\plain \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid12738232\yts24 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 Corporate bonds\cell }\pard \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid14710003\yts24 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 5% \cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \trowd \irow4\irowband4 \ts24\trgaph108\trleft-108\trbrdrt\brdrs\brdrw10 \trbrdrl\brdrs\brdrw10 \trbrdrb\brdrs\brdrw10 \trbrdrr\brdrs\brdrw10 \trbrdrh\brdrs\brdrw10 \trbrdrv\brdrs\brdrw10 \trftsWidth2\trwWidth3887\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid3043640\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth3786\clshdrawnil \cellx5198\clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth1214\clshdrawnil \cellx6899\row }\pard\plain \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid12738232\yts24 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 Real estate mortgages\cell }\pard \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid14710003\yts24 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 5%\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \trowd \irow5\irowband5\ts24\trgaph108\trleft-108 \trbrdrt\brdrs\brdrw10 \trbrdrl\brdrs\brdrw10 \trbrdrb\brdrs\brdrw10 \trbrdrr\brdrs\brdrw10 \trbrdrh\brdrs\brdrw10 \trbrdrv\brdrs\brdrw10 \trftsWidth2\trwWidth3887\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid3043640\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth3786\clshdrawnil \cellx5198\clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth1214\clshdrawnil \cellx6899\row }\pard\plain \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid12738232\yts24 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 Direct real estate investments, owner occupied\cell }\pard \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid14710003\yts24 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 8%\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \trowd \irow6\irowband6\ts24\trgaph108\trleft-108 \trbrdrt\brdrs\brdrw10 \trbrdrl\brdrs\brdrw10 \trbrdrb\brdrs\brdrw10 \trbrdrr\brdrs\brdrw10 \trbrdrh\brdrs\brdrw10 \trbrdrv\brdrs\brdrw10 \trftsWidth2\trwWidth3887\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid3043640\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth3786\clshdrawnil \cellx5198\clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth1214\clshdrawnil \cellx6899\row }\pard\plain \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid12738232\yts24 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 Corporate shares \cell }\pard \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid14710003\yts24 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 10%\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \trowd \irow7\irowband7\ts24\trgaph108\trleft-108 \trbrdrt\brdrs\brdrw10 \trbrdrl\brdrs\brdrw10 \trbrdrb\brdrs\brdrw10 \trbrdrr\brdrs\brdrw10 \trbrdrh\brdrs\brdrw10 \trbrdrv\brdrs\brdrw10 \trftsWidth2\trwWidth3887\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid3043640\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth3786\clshdrawnil \cellx5198\clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth1214\clshdrawnil \cellx6899\row }\pard\plain \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid12738232\yts24 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 Direc t real estate investments rented to third parties\cell }\pard \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid14710003\yts24 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 10%\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \trowd \irow8\irowband8\ts24\trgaph108\trleft-108 \trbrdrt\brdrs\brdrw10 \trbrdrl\brdrs\brdrw10 \trbrdrb\brdrs\brdrw10 \trbrdrr\brdrs\brdrw10 \trbrdrh\brdrs\brdrw10 \trbrdrv\brdrs\brdrw10 \trftsWidth2\trwWidth3887\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid3043640\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth3786\clshdrawnil \cellx5198\clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth1214\clshdrawnil \cellx6899\row }\pard\plain \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid12738232\yts24 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 Commercial Loans \cell }\pard \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid14710003\yts24 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 10%\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \trowd \irow9\irowband9\ts24\trgaph108\trleft-108 \trbrdrt\brdrs\brdrw10 \trbrdrl\brdrs\brdrw10 \trbrdrb\brdrs\brdrw10 \trbrdrr\brdrs\brdrw10 \trbrdrh\brdrs\brdrw10 \trbrdrv\brdrs\brdrw10 \trftsWidth2\trwWidth3887\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid3043640\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth3786\clshdrawnil \cellx5198\clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth1214\clshdrawnil \cellx6899\row }\pard\plain \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid12738232\yts24 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 Shares in private companies\cell }\pard \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid14710003\yts24 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 10%\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \trowd \irow10\irowband10\ts24\trgaph108\trleft-108 \trbrdrt\brdrs\brdrw10 \trbrdrl\brdrs\brdrw10 \trbrdrb\brdrs\brdrw10 \trbrdrr\brdrs\brdrw10 \trbrdrh\brdrs\brdrw10 \trbrdrv\brdrs\brdrw10 \trftsWidth2\trwWidth3887\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid3043640\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth3786\clshdrawnil \cellx5198\clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth1214\clshdrawnil \cellx6899\row }\pard\plain \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid12738232\yts24 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 Receivables outstanding more than 90 days but less}{\fs24\lang2057\langfe1033\langnp2057\insrsid14114872 }{\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 than 180 days\cell }\pard \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid14710003\yts24 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 10%\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \trowd \irow11\irowband11\ts24\trgaph108\trleft-108\trbrdrt\brdrs\brdrw10 \trbrdrl\brdrs\brdrw10 \trbrdrb\brdrs\brdrw10 \trbrdrr\brdrs\brdrw10 \trbrdrh\brdrs\brdrw10 \trbrdrv\brdrs\brdrw10 \trftsWidth2\trwWidth3887\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid3043640\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth3786\clshdrawnil \cellx5198\clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth1214\clshdrawnil \cellx6899\row }\pard\plain \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid12738232\yts24 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 Other Loans to third parties\cell }\pard \ql \li0\ri0\nowidctlpar\intbl\faauto\adjustright\rin0\lin0\pararsid14710003\yts24 {\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 10%\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid14710003\charrsid1998291 \trowd \irow12\irowband12\lastrow \ts24\trgaph108\trleft-108\trbrdrt\brdrs\brdrw10 \trbrdrl\brdrs\brdrw10 \trbrdrb\brdrs\brdrw10 \trbrdrr\brdrs\brdrw10 \trbrdrh\brdrs\brdrw10 \trbrdrv\brdrs\brdrw10 \trftsWidth2\trwWidth3887\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid3043640\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth3786\clshdrawnil \cellx5198\clvertalc\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth2\clwWidth1214\clshdrawnil \cellx6899\row }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6379689\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 l. In determining the value of its assets for the purposes of calculating its margin of solvency, a licensed insurer shall include only those assets that are specified in the first column in the table above as admissible assets, but}{ \fs24\lang2057\langfe1033\langnp2057\insrsid14114872 }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 shall discount the value of the admissible assets by the percentage shown against the asset in the s}{ \fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 econd column in the table above.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 2. The value of an asset }{\fs24\lang2057\langfe1033\langnp2057\insrsid10385699 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid4396699 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) is the market value of the asset determined using a reputable source, where such a source is available; or \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) where it is not possible to determine the market price of an asset, its value is a price which, in the opinion of the insurer, represents its fair value determined in accordance with generally accepted accounting standards. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid4396699 {\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 SCHEDULE 2}{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 LICENSED AND APPROVED EXTERNAL INSURERS \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid14114872 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (1) For the purposes of this Schedule, "specified external i}{\fs24\lang2057\langfe1033\langnp2057\insrsid10385699 nsurer" means -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid4396699 {\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 (a}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 ) an insurer holding a category B licence; or \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (b) an approved external insurer. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) This Code is disapplied or modified, to the extent specified, with respect}{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 to a specified external insurer. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 2. Paragraphs 21 21, 25, 26, 27, 30, 31, 32, 45, 46, 47, 48, 50, 51 and 55, 56, 57, and 58 are disapplied with respect to a specified external insurer. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 3. Paragraphs 20, 22, 23, 24, 28, 29, 33, 54 (1), 56, 57, and 58 apply to a specified external insurer with respect to its }{ \fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 Cook Islands insurance business.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 4. Paragraph 40 applies to a specified external insurer holding a category B licence with respect to every premises in the Cook Islands where its licensed business is carried on. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 5. Paragraphs 42 and 43 apply with respect to any key functionary of a specified external insurer in the Cook Islands. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 6. A specified external insurer shall submit to the Commission a copy of such annual financial s tatements as it is required to prepare in its home jurisdiction together with the auditor's report on the financial statements, within three months of its financial year end or such longer period as may be authorised by the Commission and paragraph 49 is otherwise disapplied. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 7. Paragraph 53 is modified with respect to a specified external insurer as follows: \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid4396699 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) Subparagraph (1) applies to the insurer insurer with respect to its Cook Islands business. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) Subparagraph (3) is disapplied and the following subparagraph substituted: \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid4396699 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 "(3) A licensed external insurer and an approved external insurer shall ensure that the records that it is required to maintain under subparagraphs (1) and (2) }{\fs24\lang2057\langfe1033\langnp2057\insrsid10190211 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid4396699 {\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 (i) }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 can be ma de available to the Commission on its request, in the English language, within a reasonable period of time; \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid4396699 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (ii) are kept up to date and that a full audit trail is maintained of all changes to the records. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 8. An external insurer that holds a category B l icence shall appoint a person approved by the Commission as its representative in the Cook Islands. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 9. An approved external insurer shall appoint one or more licensed insurance agents. \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid4396699 {\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 SCHEDULE 3 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 LICENSED EXTERNAL INSURANCE }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 INTERMEDIARIES}{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 1. This Code is disapplied or modified, to the extent specified, with respect to a licensed external insurance intermediary. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 2. Paragraphs 36, 37(3), 45, 46, 47, 48, 51, 54(1), 55, 56, 57, and 58 are disapplied to a licensed external insurance intermediary. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 3. Paragraphs 37(2) and 38(1) apply to a licensed external insurance intermediary with respect to its Cook Islands business. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 4. Paragraphs 42 and 43 apply with respect to any key functionary of a licensed external insurance intermediary in the Cook Islands. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 5. A licensed external insurance intermediary shall submit to the Commission a copy of such annual financial statements as it is required to prepare in its home jurisdiction together with the auditor's report on the financial statements, if}{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 required in its home jurisdiction, within three months of its financial year end or such longer period as may be authorised by the Commission and paragraph 49 is otherwise disapplied. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 6. Paragraph 50(l), (2) and (3) are modified with respect to a licensed external insurance intermediary by deleting, in each subparagraph, the words "financial statements and" and paragraph 50(4) does not apply in the case of a licensed external insurance in termediary. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 7. Paragraph 53 is modified with respect to a licensed external insurance intermediary as follows}{\fs24\lang2057\langfe1033\langnp2057\insrsid14114872 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid4396699 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (a) Subparagraph (1) applies to a licensed external insurance intermediary with respect to its Cook Islands business. \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid14114872 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (2) Subparagraph (3) is disapplied and the following subparagraph substituted: \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid13775564 {\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid14114872 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 "(3) A licensed external insurance intermediary shall ensure that the records that it is required to maintain under subparagraphs (1) and (2)}{\fs24\lang2057\langfe1033\langnp2057\insrsid14114872 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }\pard \ql \li2880\ri0\nowidctlpar\faauto\adjustright\rin0\lin2880\itap0\pararsid14114872 {\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }\pard \ql \li2160\ri0\nowidctlpar\faauto\adjustright\rin0\lin2160\itap0\pararsid14114872 {\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 (i) }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 can be made available to the Commission on its request, in the English language, within a reasonable period of time; \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 (ii) are kept up to date and that a full audit trail is maintained of all changes to the records. \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid4396699 {\fs24\lang2057\langfe1033\langnp2057\insrsid13775564\charrsid1998291 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4396699\charrsid1998291 _________________ \par }}