Insurance Act 2018

Third Session Eleventh Parliament Republic of
Trinidad and Tobago
REPUBLIC OF TRINIDAD AND TOBAGO
Act No. 4 of 2018
[L.S.]
BILL
AN ACT to repeal and replace the Insurance Act,
Chap. 84:01; to reform the law relating to
insurance companies; to regulate insurance
businesses and privately administered pension
fund plans and for other related purposes
[Assented to 4th June, 2018]

WHEREAS it is enacted by section 13(1) of the Preamble
Constitution that an Act of Parliament to which that
section applies may expressly declare that it shall have
effect even though inconsistent with sections 4 and 5 of
the Constitution and, if any Act does so declare, it shall
have effect accordingly:
2 No. 4 Insurance 2018
And whereas it is provided in section 13(2) of the

Constitution that an Act of Parliament to which that
section applies is one the Bill for which has been passed
by both Houses of Parliament and at the final vote
thereon in each House has been supported by votes of
not less than three-fifths of all the members of that
House:
And whereas it is necessary and expedient that the
provisions of this Act shall have effect even though
inconsistent with sections 4 and 5 of the Constitution:
Enactment ENACTED by the Parliament of Trinidad and Tobago as
follows:
PART I
PRELIMINARY
Short title 1. This Act may be cited as the Insurance Act, 2018
and shall come into operation on such day as is fixed by
the President by Proclamation.
Application 2. This Act applies to—

(a) all persons, whether or not established or
resident in Trinidad and Tobago, that carry
on insurance business in Trinidad and
Tobago;
(b) all persons that carry on business in,
or from Trinidad and Tobago as an
intermediary or insurance consultant; and
(c) privately administered pension fund plans
registered under Part IX, whether
administered by individual trustees or by
trust corporations.
Act inconsistent with 3. This Act shall have effect even though inconsistent
with sections 4 and 5 of the Constitution.
sections 4 and 5 of
the Constitution
No. 4 Insurance 2018 3
4. (1) In this Act, unless the context otherwise Interpretation

requires—
“abridged financial statements” means a
summary of financial statements, the
format and contents of which are agreed to
in writing between the Central Bank and
the Institute of Chartered Accountants of
Trinidad and Tobago;
“acquirer” means a financial entity or a
significant or controlling shareholder of a
financial entity that either alone or with an
affiliate, relative or connected party, is
entitled to exercise ten per cent or more of
the voting power at any general meeting of
an insurer;
“actuary” means a person who is a Fellow of an
actuarial accreditation body that is a full
member of the International Actuarial
Association and who possesses such other
qualifications as may from time to time be
specified by the Inspector;
“adjuster” means any person registered under
Part IV and who for compensation, a fee or
a commission investigates and negotiates
settlement of claims arising under
contracts of insurance, on behalf of the
insurer, the insured or any other third
party affected under the policy, but does
not include—
(a) a salaried employee of an insurer
while acting on behalf of such
insurer in the adjustment of
losses; or
(b) an agent of an insurer;

“advertisement” includes every form of
advertising whether in a publication, or by
display or notices, or by means of circulars
or other documents, or by an exhibition of
photographs or cinematographic films, or
by way of sound broadcasting, television,
or telephonic, digital or electronic
communication, but does not include a
prospectus issued by a company;
“affiliate”, in relation to a given company (“C”),
means—
(a) a company which is or has at any
relevant time been—
(i) a holding company of C;
(ii) a holding company of a
holding company referred
to in subparagraph (i);
(iii) a subsidiary of a holding
company referred to in
subparagraph (i) or (ii);
(iv) a subsidiary of C;
(v) a subsidiary of a
subsidiary referred to in
subparagraph (iv); and
(b) where C is an insurer, any
entity over which the insurer and
any connected party or connected
party group of the insurer has
control,
and the word “affiliation” shall be con-
strued accordingly;
“agency” means any company appointed by an

insurer and registered under Part IV to
carry on the business of an insurance
agency;
“agent” means an individual employed by an
agency to solicit applications for
insurance or negotiate insurance on behalf
of the agency;
“amalgamation” means the amalgamation of
two or more companies pursuant to the
provisions of the Companies Act;
“annuity contract” means a contract whereby
one party undertakes in return for a
consideration from another party to
provide an annuity, or what would be an
annuity except that the periodic payments
may be unequal in amount, for a term
dependent solely or partly on the life of a
person;
“appointed actuary” means an actuary
appointed by an insurer pursuant to
section 78;
“approved educational institution” means a
statutory body or company incorporated
under the Companies Act and appointed by
the Minister under section 119;
“approved financial institution” means a
financial institution licensed under the
Financial Institutions Act or other
financial institution subject to supervision
acceptable to the Central Bank;
“approved securities” means such securities as
may be prescribed in Regulations made
under this Act;
“assignment”, in relation to a policy, does not

include a surrender of the policy to the
company liable under the policy;
“associate” has the meaning assigned to it in
the Companies Act;
“association of underwriters” means—
(a) the association of underwriters
known as “Lloyd’s”; or
(b) an association of individual or
corporate underwriters, in which
every underwriting member of a
syndicate becomes liable for a
separate part of the sum insured
by each policy subscribed to
by that syndicate, limited or
proportionate to the whole sum so
insured;
“beneficiary” means a person, other than the
insured person or his legal personal
representative, except where the legal
personal representative is also a
beneficiary, to whom or for whose benefit
insurance money is made payable in a
contract or by a declaration;
“Board” means the Board of Directors of the
Central Bank as defined in the Central
Bank Act;
“Board of Inland Revenue” means the Board of
Inland Revenue established by section 3 of
Chap. 75:01 the Income Tax Act;
“borrower group” includes—
(a) a family group comprising an
individual and his spouse,
a cohabitant, parents, children,
brothers or sisters where

each member of the group is
substantially dependent upon the
same income sources;
(b) a company in which the
family group indicated in
paragraph (a) has a controlling
interest;
(c) a company in which the family
group indicated in paragraph (a)
has a significant interest;
(d) a group of companies which has a
common significant shareholder;
(e) a group of companies which has a
common controlling interest;
(f) a group of persons in which the
credit worthiness, ability to
generate funds or the future
viability of each, depends on one or
other members of the group;
(g) a group of persons in which one
member has power directly or
indirectly to control other
members;
(h) two or more borrowers, whether
individuals, companies or
unincorporated bodies, in which an
insurer and any of its subsidiaries
hold credit exposures, whether on
a joint or separate basis, who
are inter-related through common
ownership, control or
management; and
(i) any other group of persons whose
relationship with each other is
such that it may, in the opinion of
the Inspector, lead to a conflict of
interest or other regulatory risk;
“broker” means an individual employed by a

brokerage to solicit, negotiate or procure in
any manner insurance or the renewal or
continuance thereof or the settlement of
any claims on behalf of existing or
prospective policyholders, or reinsurance
on behalf of insurers;
“brokerage” means any company registered
under Part IV to carry on the business of
an insurance brokerage;
“business day” means any day on which
institutions licensed under the Financial
Institutions Act are open for the conduct of
business in Trinidad and Tobago;
“business of an insurance agency” means the
solicitation of applications for insurance or
negotiation of insurance business on behalf
of an insurer and, where authorized to do
so by the insurer, the effectuation and
countersigning of contracts of insurance;
“business of an insurance brokerage” means
the business as an independent contractor
of soliciting, negotiating or procuring in
any manner insurance or the renewal or
continuance thereof or the settlement of
any claims on behalf of existing or
prospective policyholders, or reinsurance
on behalf of insurers;
“capital base” means regulatory capital
available as calculated in accordance with
the Regulations;
“carrying on insurance business” has the
meaning assigned to it in section 20;
“Central Bank” means the Central Bank of
Trinidad and Tobago established under the
Central Bank Act;
“chief executive officer” means a person who,

either alone or jointly with one or more
other persons is responsible under the
immediate authority of the board of
directors of a company for the conduct of
the business of that company, whether or
not the individual is formally designated as
the chief executive officer;
“class of insurance business” or “class” means
any class of insurance business specified
in Schedule 1 and “subclass” shall be
construed accordingly;
“cohabitant” has the meaning assigned to it
under the Cohabitational Relationships
Act;
“collective investment scheme” means any
arrangement with respect to property of
any description including money—
(a) the purpose or effect of which is to
enable persons taking part in
the arrangement, whether by
becoming owners of the property or
any part of it, or otherwise to
participate in or receive profits
or income arising from the
acquisition, holding, management
or disposal of the property or sums
paid out of such profits or income;
and
(b) that does not invest—
(i) for the purpose of
exercising or seeking to
exercise control of an
issuer, other than an
issuer that is itself a
collective investment
scheme; or
(ii) for the purpose of being

actively involved in the
management of any
issuer in which it invests,
other than an issuer that
is itself a collective
investment scheme;
“commission” includes sales remuneration
whether first year or deferred including
volume-based payments, financing costs,
overrides, bonuses and indirect incentives
such as conference attendance;
“company” means an incorporated body
wherever or however incorporated;
“connected party” or “connected party group”,
as the case may be, means a person or
group of persons referred to in section 5;
“continuing professional development” or
“CPD” means further education or training
intended for the systematic maintenance,
continuous improvement and updating of
professional knowledge, expertise,
competence and attitude necessary for the
proper carrying out of the business of an
agent, broker, sales representative and
adjuster;
“continuing professional development
requirements” means the requirements in
relation to CPD referred to in section 119
and the Regulations;
“consumer” means a person who—
(a) uses or has used any of the
services provided by a registrant
carrying on activities regulated
under this Act;
(b) has rights that are derived from, or

are otherwise attributable to, the
use of any such services by other
persons; or
(c) has rights that may be adversely
affected by the use of any such
services by persons acting on their
behalf or in a fiduciary capacity in
relation to them;
“contract of insurance” means a contract
including a reinsurance agreement or an
annuity contract, whereby one party agrees
in return for a consideration from another
party to undertake liabilities to—
(a) make good or indemnify the
insured against any loss or
damage including liability to pay
damages or compensation
contingent upon the happening of
a specified event; or
(b) pay moneys on death or survival of
an insured or annuitant, including
extensions of cover for personal
accident, injury, disease, sickness
or disability;
“control” means the power of a person, either
alone or with an affiliate or relative or
connected party or other person, or by an
agreement or otherwise, to—
(a) exercise more than fifty per cent of
the voting rights at any meeting of
shareholders of an entity;
(b) elect a majority of the directors of

an entity;
(c) secure that the business and
affairs of an entity are conducted
in accordance with his wishes; or
(d) directly or indirectly exercise
dominant influence over the
conduct of the business and affairs
of an entity;
“counterparty”, for the purpose of measuring a
credit exposure, means the borrower, the
person guaranteed, the issuer of a security
in the case of an investment in a security,
or the party with whom the contract is
made in the case of a derivative contract;
“CPD activities” means the activities in
relation to CPD as defined in the
Regulations;
“CPD Return” means a declaration of an
intermediary that he has met continuing
professional development requirements
required to be filed with the Central Bank
in accordance with the Regulations;
“credit exposure” means the exposure to risk to
a counterparty arising through the making
of investments, giving of guarantees,
making of commitments, securitization or
the extension of credit or funds and
includes, without limitation—
(a) investments including equity,
bonds and other debt instruments,
participations, guarantees,
acceptances including bankers
acceptances and credit facilities
excluding policy loans;
(b) other claims on a counterparty

including actual and potential
claims excluding reinsurance;
(c) contingent liabilities arising in the
normal course of business; and
(d) deposits,
and the provisions of Schedule 10 shall
apply;
“credit facilities” includes loans, advances,
lines of credit, commitment letters,
standby facilities, letters of credit and any
other facilities or arrangements whereby a
party agrees to provide funds, financial
guarantees or commitments to a
counterparty or the party undertakes on
behalf of a counterparty, a financial
liability to another person;
“declared agreement” has the meaning
assigned in section 4 of the Tax
Information Exchange Agreements (United
States of America) Act, 2017; Act No. 4 of 2017
“entity” means a company, or any trust,

partnership, fund or other unincorporated
enterprise or organization, but does not
include an individual;
“exempted incidental insurance” means
insurance business provided for under a
contract satisfying all of the following
conditions:
(a) the insurance provided is not the
primary purpose of the contract
but is—
(i) complementary to the
supply of goods and
covers the risk of
breakdown, theft, loss

of, or damage to, those
goods; or
(ii) in relation to the
provision of travel and
covers damage to, or loss
of baggage and other
risks linked to such
travel, even if the
insurance also covers life
assurance or liability
insurance, so long as the
last-mentioned cover is
ancillary to the main
cover for the risks linked
to the travel;
(b) none of the annual premiums
payable in respect of an insured
party exceeds one thousand
dollars;
(c) the policy period is no longer than
one year plus odd days; and
(d) there is no provision for
guaranteed renewability or
guaranteed extension of cover;
“financial entity” means an insurer, a person
licensed under the Financial Institutions
Act, and any other entity that carries on a
business that includes the provision of any
financial service and includes the holding
company of any such financial entity;
“financial group” means a related group whose
activities are limited to any one or more of
the following:
(a) the business of banking;
(b) business of a financial nature;
(c) insurance business;

(d) the business of brokering and
dealing in securities;
(e) the business of establishment,
distribution or sale of collective
investment schemes;
(f) the business of holding, managing
or otherwise dealing in real estate;
(g) business of an insurance agency;
and
(h) subject to the approval of the
Central Bank, the provision of
necessary services in support of
the activities of the group,
and includes a financial holding
company and a holding company of any
of the businesses as set out in
subparagraphs (a) to (g);
“financial holding company” means a
company required to obtain a permit in
accordance with section 51;
“financial reporting standards” mean the
International Financial Reporting
Standards (IFRS) or such other accounting
standards as may be prescribed in this Act
and Regulations thereto or specified by the
Central Bank;
“financial services” includes without limitation,
the business of banking, any business of a
financial nature, the business of a credit
union, insurance business, the business of
securities and the management and
administration of pension fund plans;
“financial statements” means—

(a) a statement of financial position at
the end of the period;
(b) a statement of comprehensive
income for the period;
(c) a statement of changes in equity
for the period;
(d) a statement of cash flows for the
period;
(e) notes comprising a summary of
significant accounting policies and
other explanatory information;
and
(f) a statement of financial position as
at the beginning of the earliest
comparative period when an entity
applies an accounting policy
retrospectively or makes a
retrospective restatement of items
in its financial statements, or
when it reclassifies items in its
financial statements;
“foreign company” means a company which is
incorporated outside of Trinidad and
Tobago;
“foreign insurance company” means a foreign
company carrying on insurance business
outside of Trinidad and Tobago;
“foreign policy” means a policy that is not a
Trinidad and Tobago policy and includes—
(a) any policy issued or effected or
ordinarily situated outside of
Trinidad and Tobago at the time
the policy is issued; and
(b) any policy issued and effected by

overseas branches of insurers, for
life of an individual ordinarily
resident in Trinidad and Tobago or
property situated in Trinidad and
Tobago or risks ordinarily situated
in Trinidad and Tobago, at the
time the policy was issued, and the
term “foreign policyholder” shall
be construed accordingly;
“former Act” means the Insurance Act, repealed
by this Act; Chap. 84:01
“general insurance business” means insurance

business of the classes as prescribed in
Schedule 1;
“Governor” means the Governor of the Central
Bank of Trinidad and Tobago;
“holding company” means a company that owns
more than fifty per cent of the voting
shares in another company;
“ICATT” means the Institute of Chartered
Accountants of Trinidad and Tobago;
“IFRS” means International Financial
Reporting Standards issued by the
International Accounting Standards Board
and as adopted by ICATT;
“industrial policy” means a policy in respect of
which the premiums are contracted to be
paid at intervals of less than forty business
days and are contracted to be received by
means of collectors and includes—
(a) a policy which at any time was an
industrial policy; and
(b) a paid-up policy, not being a policy

expressed to be an ordinary policy
granted in lieu of an industrial
policy or of a policy referred to in
paragraph (a);
“Inspector” means the Inspector of Financial
Institutions appointed pursuant to
section 7 of the Financial Institutions Act
and includes any person appointed to act
temporarily for him;
“insurance business” means the business in
relation to the—
(a) issue of a contract of insurance; or
(b) undertaking of liability under a
contract of insurance,
but does not include self-insurance or
exempted incidental insurance;
“insurance consultant” means an independent
person who provides advice on some aspect
of insurance for a fee, but does not include
advice given by an Attorney-at-law,
accountant or other registered professional
in his professional capacity;
“insurer” means a local insurer, and includes
an association of underwriters;
“intermediary” means an agent, agency,
broker, brokerage, sales representative and
adjuster;
“large exposure” means the aggregate of all
credit exposures to a person or a borrower
group, the total of which amounts to
twenty-five per cent or more of the capital
base of an insurer;
“life insured” means an individual on whose life

the insurer issues a contract of insurance;
“liquidator” has the meaning assigned to it in
the Companies Act; Chap. 81:01
“local company” means a company incorporated

under the Companies Act or any other
written laws of Trinidad and Tobago;
“local insurer” means a local company
registered to carry on insurance business
in Trinidad and Tobago;
“long-term insurance business” means
insurance business of the classes as
prescribed in Schedule 1;
“look through method” means a method of
determining credit exposure in respect of
asset backed securities or other
investments where underlying securities or
guarantees are treated as directly held or
given;
“market share” means the proportion of the
financial services market which is serviced
or controlled by a financial entity or
combination of financial entities and based
on indicators such as balance sheet, total
premiums, loan portfolio or subset of the
loans portfolio such as credit card loans;
“Minister” means the Minister to whom
responsibility for finance is assigned;
“officer” means—
(a) in relation to a company or
unincorporated body—
(i) a chief executive officer,
chief operating officer,
president, vice-president,
corporate secretary,
treasurer, chief financial
officer, chief accountant,
chief actuary, appointed
actuary, chief auditor,
chief claims officer, chief
compliance officer, chief
underwriting officer,
chief investment officer
or chief risk officer and
principal representative;
or
(ii) any other individual
designated as an officer
by its articles of
incorporation or
continuance, by-laws or
other constituent
document or resolution of
the directors or members
and also perform
functions similar to those
referred to in subpara-
graph (i);
(b) any other individual who performs
functions for a company or
unincorporated body similar to
those performed by a person
referred to in paragraph (a),
whether or not the individual is
formally designated as an officer,
and includes a principal
representative;
(c) in the case of an agency, any
person referred to in paragraphs (a)
and (b) where applicable and an
agent; and
(d) in the case of a brokerage,

any person referred to in
paragraph (a)(i) where applicable
and a broker;
“paid-up policy” means a policy under which no
future premiums are required;
“participating account” means an account
maintained under section 43(1)(a);
“participating policy” means a policy that is
issued by an insurer that entitles its
holder to participate in the profits derived
from participating policies of the insurer;
“participating policyholder” means the holder
of a participating policy;
“participating surplus account” means the
undistributed accumulated profits derived
from participating policies and maintained
in accordance with section 43(2);
“permissible real estate entity” means a real
estate entity that is a subsidiary or other
entity controlled by an insurer or a real
estate joint venture approved by the
Central Bank;
“policy” means any written contract of
insurance;
“policy benefit liabilities” means all liabilities
related to policy payments after the
valuation date including those in respect of
events which occurred before the valuation
date, but excluding any appropriations of
surplus;
“policyholder” means the person who, for the
time being, has the legal title to the policy
issued by an insurer including any person
to whom a policy is assigned and may
include, in the case of long-term insurance
business, a life insured;
“principal representative” means a person

appointed by a foreign insurance company
pursuant to sections 26 and 230(5);
“privately administered pension fund plan”
means a plan referred to in section 217;
“qualified valuer” means a person who—
(a) is a Fellow or Professional
Associate of the Royal Institution
of Chartered Surveyors or a Fellow
or Associate of the Incorporated
Society of Valuers and Auctioneers
or the Rating and Valuation
Association and has knowledge
and experience in the valuation of
land; or
(b) is approved by the Central Bank;
“real estate entity” means an entity that is
solely engaged in the business of holding,
managing or otherwise dealing with real
estate;
“real estate joint venture” means a real estate
entity—
(a) that was formed by an insurer and
one or more other persons for the
purpose of holding, managing or
otherwise dealing in real estate;
(b) in which the insurer is permitted
to invest by virtue of the exception
created by section 87(4)(c); and
(c) in respect of which the persons
who formed it have agreed on
joint control, regardless of the
distribution of their equity;
“receiver” has the meaning assigned to it under
the Companies Act;
“receiver-manager” has the meaning assigned

to it under the Companies Act;
“registrant” means any person who is
registered as an insurer or intermediary
under this Act;
“Regulations” means regulations made under
this Act;
“reinsurance” means an arrangement under
which one or more assuming insurance
companies, for a consideration, agrees to
indemnify the ceding insurer against all or
a part of the loss that the ceding company
may sustain under the policy or policies
that it has issued;
“reinsurer” means an insurer which
underwrites reinsurance business;
“related group” means—
(a) companies, entities or a
combination thereof, with the
same controlling shareholder or
holding company;
(b) a company or entity in which any
of the companies or entities
referred to in paragraph (a) has a
significant shareholding or
ownership interest;
(c) the direct and indirect subsidiaries
of the companies referred to in
paragraph (a);
(d) a company in which any of the
companies or entities referred to in
paragraph (c) has a significant
shareholding; and
(e) the controlling shareholder or
holding company referred to
paragraph (a);
“relative” includes—
(a) a spouse or cohabitant;
(b) a parent;
(c) a brother or sister, whether or not
connected by—
(i) consanguinity;
(ii) affinity;
(iii) reason of a cohabitational
relationship;
(iv) adoption; or
(v) reason of being declared
a child of the family
under the Matrimonial
Proceedings and Property
Act; or
(d) a son or daughter, whether or not
connected by—
(i) consanguinity;
(ii) affinity;
(iii) reason of a cohabitational
relationship;
(iv) adoption; or
(v) reason of being declared
a child of the family
under the Matrimonial
Proceedings and Property
Act;
“representative office” means—
(a) an office established in Trinidad
and Tobago by a foreign company
through which no insurance
business or other business activity

is carried on other than—
(i) promoting the insurance
services of the foreign
company or an affiliate of
the foreign company that
carries on activities
permitted to a member
of a financial group,
other than an affiliate
incorporated in Trinidad
and Tobago; or
(ii) acting as a liaison
between consumers of the
foreign company and
other offices of the
foreign company or its
affiliates that carry on
activities permitted to a
member of a financial
group, other than
affiliates incorporated, or
an office located in
Trinidad and Tobago; or
(b) an office established outside
Trinidad and Tobago by a local
insurer through which no
insurance business or other
business activity is carried on
other than—
(i) promoting the services
of the insurer or an
affiliate of the insurer
that carries on activities
permitted to a member of
a financial group; or
(ii) acting as a liaison

between consumers of the
insurer and other offices
of the insurer or its
affiliates that carry on
activities permitted to a
member of a financial
group;
“sales representative” means an individual who
is contracted by an insurer, an agency or a
brokerage to solicit applications for
insurance or to negotiate insurance on
behalf of that insurer, agency or brokerage;
“security interest” means an interest in, or
charge on property by way of mortgage,
lien, pledge or otherwise taken by a
creditor or taken by a guarantor;
“self-insurance” means the practice of––
(a) a company to provide benefits,
other than for profit, for its
employees or their dependants; or
(b) a society registered under the
Chap. 32:50 Friendly Societies Act or a trade
union registered under the Trade
Chap. 88:02 Unions Act to provide benefits to
its members or their dependants,
other than for profit,
and to assume responsibility for certain of
its own losses including losses arising from
the provision of such benefits;
“separate account” means an account
maintained under section 42;
“significant shareholder” means a person who

either alone or with one or more affiliates
or relatives or connected parties is entitled,
whether by agreement or otherwise, to
exercise twenty per cent or more of the
voting power at any general meeting of an
entity and the term “significant interest”
shall be construed accordingly;
“solicitation” means an act of issuing any
advertisement or making any offer or
invitation to the public with regard to
entering into a contract of insurance
excluding a referral;
“stated capital” means the aggregate of all
stated capital accounts as defined in the
Companies Act;
“standards of accepted actuarial practice”
means the actuarial standards as may be
specified by the Inspector in respect of
actuarial work required under this Act;
“subsidiary” means a company of which more
than fifty per cent of the shares are held,
directly or indirectly, by another company;
“superannuation allowances” includes payment
of a lump sum on retirement;
“supervisory information” means a record
created or obtained by the Central Bank in
connection with the performance of its
responsibilities under this Act, such as a
record concerning supervision, registration
or examination of a registrant or
enforcement actions with respect to
a registrant, and includes any
communication or correspondence between
the registrant and the Central Bank
arising from its performance of such
responsibilities;
“Trinidad and Tobago policy” means any policy

issued or effected in Trinidad and Tobago,
and the term “Trinidad and Tobago
policyholder” shall be construed
accordingly;
“Trinidad and Tobago policy account” means
the separate account maintained pursuant
to section 42(1)(a)(i) in respect of Trinidad
and Tobago policies;
“type of insurance business” means long-term
insurance business or general insurance
business;
“underwriter” includes any person named in a
policy as liable to pay or contribute towards
the payment of the sum secured by the
policy.
(2) For the purposes of this Act, an entity is
insolvent where it resides, carries on business or has
property in Trinidad and Tobago, and its liabilities to
creditors provable as claims under the Bankruptcy and
Insolvency Act amount to not less than four thousand
dollars or such other amount as may be prescribed
pursuant to section 279(4) and—
(a) it is for any reason unable to meet its
obligations as they generally become due;
(b) it has ceased paying its current obligations
in the ordinary course of business as they
generally become due; or
(c) the aggregate of its property is not, at a fair
valuation, sufficient or if disposed of at a
fairly conducted sale under legal process,
would not be sufficient to enable payment of
all its obligations, due and accruing,
whether or not the entity has been adjudged bankrupt,
and “insolvency” shall be construed accordingly.
5. (1) For the purposes of this Act, a person or entity Meaning of

(“A”) is a connected party of another person or entity and “connected party
“connected party”
(“B”) where A is— group”
(a) a financial holding company, holding

company, controlling shareholder or
significant shareholder of B;
(b) a person or entity who holds ten per cent
or more of any class of shares of B or
of a person or entity referred to in para-
graph (a);
(c) an affiliate of B;
(d) an affiliate of a person or entity referred to
in paragraph (a);
(e) a director or officer of B or of a person or
entity referred to in paragraph (a);
(f) a relative of a director or officer of—
(i) B;
(ii) a financial holding company of B;
(iii) a holding company of B;
(iv) a controlling shareholder of B; or
(v) a significant shareholder of B;
(g) a relative of a controlling shareholder or
significant shareholder of B where such
controlling shareholder or significant
shareholder is an individual; or
(h) an entity that is controlled by a person
referred to in paragraphs (e), (f) and (g).
(2) For the purposes of this Act, “connected party
group” of a person or entity (“B”) means—
(a) in the case where B is connected to a person
referred to in subsection (1)(a), a group
consisting of any combination of—
(i) B;
(ii) the persons referred to in sub-
section (1)(a), (f) and (g);
(iii) an affiliate of B; or
(iv) an entity controlled by any person
referred to subparagraphs (i)
and (ii); and
(b) in the case where the connected party is a
director or officer referred to in sub-
section (1)(e), a group consisting of any
combination of—
(i) B;
(ii) the director or officer;
(iii) a relative of the director or officer;
or
(iv) an entity controlled by any person
referred to in subparagraphs (i)
and (ii).
(3) For the purposes of this Act, in addition to the
connected parties referred to in subsection (1) and the
connected party groups referred to in subsection (2), the
Inspector may determine that any other person is a
connected party of an insurer or that any other group of
persons is a connected party group of an insurer, where
in the opinion of the Inspector their relationship may
create a conflict of interest or may pose regulatory risk.
(4) Where the Inspector has determined that a
person is a connected party in accordance with
subsection (3), the Inspector shall notify the insurer of
such determination and shall require the insurer to take
such measures as the Inspector determines necessary to
ensure that the insurer is in compliance with the
provisions of this Act.
Meaning of 6. For the purposes of this Act, “control” means the
“control”
power of a person, either alone or with an affiliate or
relative or connected party or other person, or by an
agreement or otherwise, to—
(a) exercise more than fifty per cent of the
voting rights at any meeting of share-
holders of an entity;
(b) elect a majority of the directors of an entity;

(c) secure that the business and affairs of an
entity are conducted in accordance with his
wishes; or
(d) directly or indirectly exercise dominant
influence over the conduct of the business
and affairs of an entity.
PART II
ADMINISTRATION
7. (1) The Central Bank shall be responsible for the Central Bank to
general administration of this Act and the supervision
administer Act
of registrants, and shall have the powers and duties

conferred on it by this Act, and the Central Bank Act.
(2) The primary objective of the Central Bank, in
respect of registrants, is to maintain confidence in, and
promote the soundness and stability of, the financial
system in Trinidad and Tobago.
(3) The other objectives of the Central Bank, in
respect of registrants are to—
(a) promote the existence of efficient and fair
insurance markets;
(b) maintain an appropriate level of protection
for policyholders and beneficiaries under
policies; and
(c) ensure compliance of insurers and
intermediaries with legislation to combat
money laundering and terrorist financing.
(4) The Governor shall keep the Minister
informed, at least once in every six months or more
frequently if the need arises, of all developments and
activities which affect the insurance industry in
Trinidad and Tobago.
32 No. 4 Insurance
32 2018
Annual reports and 8. The Central Bank shall provide a written report
returns to be
annually to the Minister with respect to the
performance of the Central Bank in meeting its
furnished
objectives under this Act.

Act to prevail 9. In the case of any inconsistency or conflict with
this Act and any other written law, with the exception of
the Central Bank Act, the provisions of this Act shall
prevail and take precedence over such written law,
unless expressly provided to the contrary in this Act or
such written law.
Duties and powers of 10. (1) The Inspector shall have the powers and
the Inspector
duties conferred on him by this Act.
(2) The Inspector shall examine all applications
for approvals, registration and permits to be granted or
issued under this Act and make recommendations
thereon to the Central Bank.
(3) The Inspector shall make or cause to be made
such examination and inquiry into the affairs or
business of each—
(a) registrant;
(b) financial holding company;
(c) subsidiary of a local insurer in Trinidad and
Tobago; and
(d) subsidiary or branch of an insurer located
outside Trinidad and Tobago,
as he considers necessary or expedient, for the purpose
of satisfying himself that the provisions of this Act are
being observed and that the registrant or financial
holding company or subsidiary is in a sound financial
condition.
such examination and inquiry into the affairs or
business of a member of a financial group if, in the
opinion of the Inspector, such examination and inquiry
are necessary to assess any risk that such member may
pose to the registrant.

such examination and inquiry into the affairs of any
representative office of a foreign company, if in the
opinion of the Inspector, such examination and inquiry
are necessary to verify that no business activity is being
carried on, other than applicable to a representative
office under this Act.
(6) The Inspector shall report to the Governor at
the conclusion of each examination and inquiry referred
to in subsections (2), (3), (4) and (5).
(7) If an examination of the affairs of a registrant,
financial holding company or other member of a
financial group reveals that the registrant, financial
holding company, or other member of a financial group
is conducting its business in an unlawful or unsound
manner or is otherwise in an unsound condition, the
Inspector may require that the registrant or financial
holding company or other member of a financial group
forthwith or within such time as may be specified, take
all such measures as he may consider necessary to
rectify the situation.
(8) A registrant or financial holding company that
fails to take measures required by the Inspector
pursuant to subsection (7), commits an offence and is
liable—
(a) on conviction on indictment to a fine of six
hundred thousand dollars and in the case of
a continuing offence to a fine of sixty
thousand dollars for each day that the
offence continues; or
(b) on summary conviction to a fine of three
a continuing offence to a fine of thirty
offence continues.
(9) The Inspector shall take and maintain such

steps and proceedings as may be necessary for the
winding up of an insurer on behalf of the Central Bank
and subject to the provisions of this Act.
(10) Where the provisions of this Act require
anything to be done within a specified period of time and
the person who is required to comply with the time limit
prescribed is unable to do so because of circumstances
beyond his control, including but not limited to the
occurrence of any hurricane, storm, fire, flood or any
similar natural disaster or events such as industrial
unrest, riot, public disorder or the like, the Inspector
shall grant such extension of time as may be reasonably
sufficient for the doing of the act or thing.
(11) The Inspector or any person authorized in
writing by the Central Bank or any designated member
of staff of the Central Bank may enter the place of
business of any registrant or financial holding company
during normal business hours—
(a) to examine and make copies of, or remove
from the premises, all books, records,
accounts, vouchers, minutes of meetings,
securities and any other documents,
including documents stored in electronic
form, of the registrant or financial holding
company; and
(b) to inquire, to determine whether the
registrant or financial holding company is
complying with this Act or any Regulations
made thereunder.
(12) The Inspector or any other person authorized
in writing by the Central Bank or any designated
member of staff of the Central Bank shall have access to
all books, records, accounts, vouchers, minutes of
meetings, securities and any other documents, including
documents stored in electronic form, of the registrant or
financial holding company, even where in the possession

of another person, save that where the person who is in
possession claims a lien on the books or papers the
production thereof shall be without prejudice to the lien.
(13) Notwithstanding subsection (11), the Inspector
may apply to a Judge of the High Court for an ex parte
order authorizing him, any person authorized in writing
by the Central Bank or any designated member of staff
of the Central Bank, to enter into the premises of the
registrant or financial holding company or to conduct an
examination under subsection (11), where the Inspector,
any person authorized by the Central Bank or any
designated member of staff of the Central Bank is—
(a) prevented from exercising;
(b) required to exercise outside normal working
hours; or
(c) required to exercise urgently,
powers given to him under subsection (11).
(14) The Inspector may audit or cause to be
audited the records of approved educational institutions
and intermediaries in order to verify that the
information contained in CPD Returns is valid and that
there has been compliance with the Act and
Regulations.
(15) Where an intermediary is the subject of an
audit referred to in subsection (1), he shall produce
supporting documentation confirming attendance or
completion for each CPD activity referred to in the CPD
Return filed pursuant to the Regulations.
(16) The audit referred to under subsection (1) may
be conducted during the processing of applications for
renewal of a certificate of registration in accordance
with the Regulations or at any other time as the
Inspector sees fit.
Power of Inspector to 11. (1) The Inspector may require a—

(a) financial holding company, insurer, agency
request information
or brokerage, or employee or any person

acting on its behalf;
(b) controlling shareholder, or significant
shareholder of an insurer or financial
holding company;
(c) subsidiary of the insurer or financial
holding company;
(d) company or unincorporated body that is an
affiliate or associate of the insurer or
financial holding company;
(e) company that is a member of a related
group or financial group of which an
insurer is a member; or
(f) present or former director, officer, actuary,
auditor or controlling shareholder or
significant shareholder of any person
referred to in paragraphs (a) to (e),
to furnish such information in such form and within
such period of time as the Inspector may require.
(2) The Inspector may from time to time require—
(a) verification from the auditor or appointed
actuary of an insurer, financial holding
company or any other entity referred to in
subsection (1) with respect to the accuracy
of information submitted pursuant to that
subsection and may himself verify the
accuracy of such information by inspecting
such insurer, financial holding company or
other entity; or
(b) an officer or any other person in charge of
an insurer, a financial holding company,
agency or brokerage to supply, within such
time as may be specified, any information
relating to the insurer, financial holding

company, agency or brokerage, or any
connected party or connected party group,
or any person over which the insurer,
financial holding company, agency,
brokerage, or the directors or officers of the
insurer, financial holding company, agency
or brokerage have control.
(3) A request for information under subsection (1)
or (2), shall be in writing.
(4) The Inspector may exercise the powers under
subsection (1) in relation to any person who is or is
about to be elected or appointed as a director or officer
of an insurer, financial holding company, agency or
brokerage to determine whether the person is a fit and
proper person in accordance with the criteria of
Schedule 5 to hold the particular position which he Schedule 5
holds or to which he is about to be elected or appointed.
(5) A person whom the insurer, financial holding
company, agency or brokerage proposes to elect as a
director or appoint as an officer shall be entitled to
refuse to supply the documents requested by the
Inspector pursuant to subsection (4) if he no longer
intends to stand for election or take up the appointment
and has so advised the Inspector.
(6) Subject to subsection (5), a person who fails to
supply information or produce the documents required
under this section within the time specified commits an
offence.
(7) Where a person fails to comply with a request
under subsection (1), the Inspector may restrict any
further transactions among the registrant, the financial
holding company, controlling shareholder, significant
shareholder or affiliate and take such other measures as
he thinks fit against the registrant, financial holding
company, controlling shareholder, significant
shareholder or affiliate, if he considers that the

transactions or relationship among the registrant,
financial holding company, controlling shareholder,
significant shareholder or affiliate may expose the
registrant to undue risk or could prejudice the interests
of policyholders or potential policyholders of the
registrant.
Power of Central 12. (1) The Central Bank shall collect statistics in
relation to insurance business.
Bank to collect
statistics
(2) Every registrant shall, for the purpose of

enabling the Central Bank to collect statistics under
this section, furnish the Central Bank with information
in the form and at such times as specified by the Central
Bank.
Appointment and 13. (1) The Governor or the Inspector may delegate in
writing any of his functions, powers or duties to any
delegation
qualified officer, employee or agent of the Central Bank.

(2) The Central Bank shall appoint, upon such
terms and conditions as it may think fit, such persons as
may be considered necessary to assist the Inspector in
the performance of his duties.
(3) The Central Bank shall exercise any of its
functions, powers and duties under this Act, through
any qualified officer, employee or agent.
(4) The Central Bank shall, whenever it considers
necessary, cause arrangements for the services of an
actuary, auditor or any other competent person to be
made available for the purpose of advising the Inspector
on matters arising under this Act.
(5) The Board may delegate in writing any of its
functions, powers or duties to a committee appointed by
the Board comprising a minimum of three members of
the Board.
14. (1) The Central Bank shall maintain such Central Bank to
registers as may be required or authorized to be
maintain registers
maintained under this Act or the Regulations and in

particular shall maintain separate registers of—
(a) companies which are registered to carry on
the various classes of insurance business in
(b) associations of underwriters;
(c) agents, agencies, brokers, brokerages, sales
representatives, adjusters; and
(d) insurance consultants.
(2) The Central Bank may establish and maintain
an online registry of intermediaries and insurance
consultants registered under this Act and the online
registry shall be updated quarterly.
15. (1) No later than the thirty-first day of March in Information to be
each year, the Central Bank shall publish in the Gazette Bank
published by Central
and in at least two daily newspapers circulated in

Trinidad and Tobago a list of the insurers, agents,
agencies, brokers and brokerages, sales representatives
and adjusters registered to carry on insurance business
in Trinidad and Tobago.
(2) The Central Bank shall make available to any
person on request and on payment of such fee, if any, as
it may reasonably require, a list of the insurers, agents,
agencies, brokers, brokerages, sales representatives and
adjusters registered either at the date of the request or
at such earlier date, being not more than twenty
business days earlier, as may be specified in the request.
(3) The Central Bank shall publish a notice in the
Gazette and in at least two daily newspapers circulated
in Trinidad and Tobago, of all insurers, agencies and
brokerages ceasing to hold a registration certificate, for
each quarter.
Prohibition against 16. (1) No director, officer or employee of the Central

disclosure
Bank or person acting under the direction of the Central
Bank shall disclose any information regarding the
business or affairs of a registrant or any of its affiliates
or information regarding a policyholder, consumer or
other person dealing with a registrant that is obtained
in the course of official duties.
(2) Notwithstanding subsection (1) or any other
written law, the Central Bank, or a person authorized in
writing by the Central Bank, may disclose the
information referred to in subsection (1) to—
(a) any local or foreign regulatory agency or
body that regulates financial entities, for
regulatory purposes;
(b) any entity providing compensation or
insurance for policyholders and consumers
of financial services in Trinidad and Tobago
for purposes related to its operations;
(c) the Financial Intelligence Unit established
under the Financial Intelligence Unit of
Trinidad and Tobago Act;
(d) any person designated under any other
written law authorizing the disclosure of
such information; or
(e) ICATT, the Caribbean Actuarial
Association or other professional
association pursuant to sections 81 and
139(2),
if the Central Bank is satisfied that the information will
be treated as confidential by the agency or body to whom
it is disclosed and used strictly for the purpose for which
it is disclosed and not otherwise.
(2A) The Central Bank may disclose information

referred in subsection (1) to the Board of Inland
Revenue in order to give effect to the Tax Information
Exchange Agreements (United States of America)
Act, 2017. Act No. 4 of 2017
(2B) The information referred to in sub-

section (1) may be utilized by the Central Bank as
required to give effect to its powers under the Tax
Information Exchange Agreements (United States of
America) Act, 2017.
(3) Notwithstanding subsection (1) or any other
written law, the Central Bank, or a person authorized in
writing by the Central Bank, shall disclose the
information referred to in subsection (1) to any person in
accordance with an order of the court.
(4) The Central Bank may enter into a
Memorandum of Understanding with any person
mentioned in subsections (2) and (2A) with respect to
sharing information, but the absence of such
Memorandum of Understanding shall not prevent the
disclosure of information by the Central Bank to such
person.
(5) A director, officer or employee of the Central
Bank or any person acting under the direction of the
Central Bank may disclose, at such times and in such
manner as it deems appropriate, such information
obtained by the Central Bank under this Act as the
Central Bank considers ought to be disclosed for the
purposes of the analysis of the financial condition of an
entity registered pursuant to this Act and that—
(a) is contained in any return, statement or
other document required to be filed with the
Central Bank pursuant to this Act and the
Regulations and Guidelines made under
this Act; or
(b) has been obtained as a result of any
industry-wide or sectoral survey conducted
by the Central Bank in relation to an issue
or circumstance that could have an impact

on the financial condition of financial
institutions generally or the financial
system of Trinidad and Tobago.
(6) Where the Central Bank determines that the
disclosure of information concerning a registrant or
non-registrant in addition to that referred to in
subsection (5) would be in the best interests of—
(a) the financial system of Trinidad and
Tobago; or
(b) the policyholders, consumers, other
customers, creditors or shareholders of such
registrant or non-registrant as the case may
be,
the Central Bank or any person acting under the

direction of the Central Bank may disclose such
information by publication in the Gazette and in at least
two daily newspapers circulated in Trinidad and Tobago
and by any other means that the Central Bank
considers appropriate.
(7) This section does not apply to information

which, at the time of the disclosure is, or has already
been made available to the public from other sources or
to information in the form of a summary or collection of
information so framed as not to enable information
relating to any particular individual to be ascertained
from it.
(8) Notwithstanding any provision in this section,

the Central Bank may publish information relating to
the insurance industry including statistics collected
under section 12, so long as the publication does not
disclose details regarding any particular registrant or
policyholder.
(9) Notwithstanding any provision in this section,

the Central Bank shall publish or make available to any
person on request and on payment of such fee as
specified by the Central Bank, documents submitted
pursuant to section 145(1)(a) and (b).
(10) Notwithstanding any provision in this
section, the Central Bank shall notify the public where
action has been taken by the Inspector pursuant to
section 101(4).
17. Supervisory information is the property of the Supervisory
Central Bank and may not be disclosed by a registrant information
or any other person to whom the information is made
available without the prior written consent of the
Central Bank.
18. (1) Each applicant, registrant or representative Application and
office situated in Trinidad and Tobago shall pay the Schedule 2
annual fees
relevant fees set out in Schedule 2 to the Central Bank.

(2) Annual fees referred to in Schedule 2 shall be
payable no later than the 31st day of January in each
year or such later date as may be specified by the
Central Bank, except that where a registration or
permit is granted or a branch, subsidiary or
representative office is opened for the first time after
the first quarter in any year, the fee payable shall be
calculated on a pro rata basis.
PART III
INSURERS
A. Registration of Insurers
19. (1) This Part does not apply to a privately Non-application of
administered pension fund plan.
this Part
(2) Except for sections 20, 21 and 52 to 54, this

Part does not apply to an intermediary or an insurance
consultant.
(3) Except for section 20, this Part does not apply
to an association of underwriters.
Carrying on 20. (1) Subject to subsection (2), for the purposes of

insurance business
this Act, “carrying on insurance business in, or from
Trinidad and Tobago” includes but is not limited to any
or all of the following:
(a) making of, or proposing to make, a contract
of insurance;
(b) making of, or proposing to make, as
guarantor or surety, any contract of
guarantee or suretyship as a business and
not merely incidental to any other of the
guarantor’s or surety’s legitimate business
or activity;
(c) taking or receiving an application for
insurance;
(d) the collection or receipt of any premium or
other consideration for insurance or any
part thereof;
(e) issue of contracts of insurance to persons
resident in Trinidad and Tobago or
authorized to do business in Trinidad and
Tobago; and
(f) the solicitation, negotiation, procurement or
effecting of insurance or renewals thereof,
whether carried on directly by a person or through
another person acting with the actual or apparent
authority or on behalf of the first person.
(2) A person shall not be treated as carrying on
insurance business in Trinidad and Tobago if the only
reason for so treating the person is either of the
following:
(a) the risk covered by a policy of insurance
issued by that person is situated in Trinidad
and Tobago; or
(b) the person makes, collects or receives in
Trinidad and Tobago renewal premiums
under a policy issued outside of Trinidad
and Tobago.
21. (1) Except as otherwise expressly provided in this Restrictions on

Act, no person may carry on any type of insurance business
carrying on insurance
business or reinsurance business in, or from Trinidad

and Tobago unless that person is a company that is
registered under the Companies Act and this Part, as an
insurer.
(2) An insurer shall only carry on the classes and
types of insurance business for which it is registered
under this Part.
(3) A person other than an insurer shall not—
(a) describe himself as an insurer; or
(b) so hold himself out as to indicate or be
reasonably understood to indicate that he is
an insurer.
(4) No person other than an insurer, agency or
brokerage shall trade or carry on any business or
undertaking under any name or title, in any language,
which includes the words “insurance”, “assurance”,
“indemnity”, “guarantee”, “underwriting”,
“reinsurance”, “surety”, “casualty”, or any of their
derivatives, or any other expression which connotes, or
is intended to connote, insurance business.
(5) Notwithstanding subsection (1), a foreign
company which does not have an established place of
business in Trinidad and Tobago may, without being
registered under this Part, carry on insurance business
in Trinidad and Tobago if its activities in Trinidad and
Tobago relate only to the acceptance of reinsurance
ceded by an insurer.
(6) Where the Central Bank has reasonable
grounds to believe that a person is carrying on any
aspect of insurance business without being registered
under this Act, it may—
(a) require information from, inquire into, and
examine the affairs of that person, and it
may take any action that the Central Bank

sees fit to ensure that the person
discontinue the activity; and
(b) apply for an ex parte order of a Judge of the
High Court, authorizing the Inspector or
any person authorized in writing by the
Central Bank or any designated member of
staff of the Central Bank to enter into the
premises where it is suspected that such
insurance business is being carried on, to
determine whether there is compliance
with this Act.
(7) Where the Central Bank obtains an ex parte
order under subsection (6)(b), the Inspector, or any
person authorized in writing by the Central Bank or any
designated member of staff of the Central Bank shall
enter the premises and examine any books, records,
accounts, vouchers, minutes of meetings and other
documents, including documents stored in electronic
form and take any copies of such documents.
(8) Where an examination has been conducted
under subsection (7) and the Central Bank is satisfied
that the provisions of this Act are being contravened,
the Central Bank may seek injunctive relief under
section 156.
(9) A person who contravenes subsection (1), (2) or
(3) commits an offence and is liable on conviction on
indictment to a fine of ten million dollars and to
imprisonment for ten years.
Stated capital 22. (1) Subject to subsections (2) and (3), no company
shall be registered as an insurer to carry on long-term
necessary for
registration
insurance business or general insurance business
unless it has a minimum stated capital of fifteen million
dollars.
(2) An insurer which immediately before the

commencement of this Act was registered to carry on
only long-term or only general insurance business and is
not in compliance with subsection (1), shall within five
years of the commencement of this Act, increase its
stated capital, to not less than the amount specified in
subsection (1), in the following manner:
(a) an insurer registered to carry on only
long-term insurance business shall have a
minimum stated capital of—
(i) five million dollars at the end of
the first year;
(ii) eight million dollars at the end of
the second year;
(iii) eleven million dollars at the end of
the third year;
(iv) thirteen million dollars at the end
of the fourth year; and
(v) fifteen million dollars at all times
at the end of the fifth year,
following commencement of this Act;
(b) an insurer registered to carry on only
general insurance business shall have a
minimum stated capital of—
(i) three million dollars at the end of
the first year;
(ii) six million dollars at the end of
the second year;
(iii) nine million dollars at the end of
the third year;
(iv) twelve million dollars at the end of
the fourth year; and
(v) fifteen million dollars at all times
at the end of the fifth year,
following commencement of this Act.
(3) An insurer which immediately before the

commencement of this Act was registered to carry on
both long-term and general insurance business shall be
required to maintain at all times stated capital of at
least twenty-two million, five hundred thousand dollars.
(4) On the commencement of this Act, an insurer
which is not in compliance with subsection (3) shall,
within five years of the commencement of this Act,
increase its stated capital to not less than the amounts
as follows:
(a) six million dollars by the end of the first
year;
(b) ten million, five hundred thousand dollars
by the end of the second year;
(c) fifteen million dollars by the end of the
third year;
(d) nineteen million dollars by the end of the
fourth year; and
(e) twenty-two million, five hundred thousand
dollars at all times at the end of the fifth
year,
following commencement of this Act.
(5) Within six months following the
commencement of this Act, an insurer that is subject to
subsection (2), (3) or (4) shall submit a plan acceptable
to the Central Bank for increasing its stated capital, as
the case may be, to the amounts required pursuant to
subsection (2), (3) or (4).
(6) If an insurer fails to submit a plan when
required to do so or fails to implement an accepted plan,
the Central Bank may impose any conditions on the
registration of the insurer that it considers to be
necessary.
(7) A company which has applied to be registered

as an insurer under this Act may be required, based on
the particular circumstances of the company, to provide
capital in excess of the minimum stated capital under
subsection (1), in cash or approved securities and in
accordance with Regulations made under this Act.
(8) An insurer shall physically hold in Trinidad
and Tobago all capital required under this section.
(9) An insurer shall at all times maintain the
minimum stated capital required under this section.
23. (1) An insurer which at the commencement of this Companies
Act is registered as an insurer under the former Act former Act
registered under
shall be deemed to have been registered under

section 25 and the Central Bank shall, upon receipt of
the insurer’s certificate of registration issued under the
former Act, issue a new certificate of registration duly
signed by the Governor, which shall specify the classes
and types of insurance business in respect of which the
insurer is registered and shall be prima facie evidence
that the insurer named in the certificate has been
registered under this Act.
(2) A company which immediately before the
commencement of this Act is registered to carry on both
long-term insurance business and general insurance
business may continue to carry on both types of
insurance business, subject to the requirements of this
Act for each type of insurance business.
(3) In reissuing a certificate of registration under
subsection (1), the Central Bank shall consider whether
the insurer has carried on a class and type of insurance
business in Trinidad and Tobago within the period of
twelve months prior to the commencement of this Act
and the insurer shall only be registered in respect of the
classes of insurance business that it was carrying on at
such time.
(4) A company which is registered to carry on

general insurance business and accident and sickness
class of insurance business shall not be considered to be
carrying on long-term insurance business.
(5) The accident and sickness class of insurance
business of a company described in subsection (4) shall
be subject to the same requirements under this Act as
those applicable to long-term insurance business.
Application for 24. (1) A company may apply to the Central Bank for
registration under this Act to carry on insurance
registration
business in respect of any of the types and classes

Schedule 1 prescribed in Schedule 1.
(2) Except as provided in subsection (3), every
application for registration shall be made to the Central
Bank in writing and shall be accompanied by—
(a) a statement of the applicant’s name and the
address of its registered office and head
office in Trinidad and Tobago;
(b) the name, address, nationality, experience,
and other relevant information, including
the information prescribed in Schedule 5
pertaining to—
(i) each director and officer or
proposed director and officer and
all existing and proposed
shareholders holding five per cent
or more of any class of shares; or
(ii) the principal representative or
proposed principal representative
of a foreign insurance company
under section 26 and any other
officers who will be resident in
Trinidad and Tobago in the case of
an application by a foreign
company;
(c) the name, address, nationality, experience,

and other relevant information, including
the information prescribed in Schedule 5
pertaining to the appointed actuary and
auditor or proposed appointed actuary and
auditor;
(d) a certified statement or where this cannot
be produced, such proof as the Central
Bank may require of the applicant’s ability
to meet the requirement of a minimum
stated capital of not less than such amounts
as may be required pursuant to section 22;
(e) a certified copy of the articles of
incorporation or continuance, by-laws or
other constituent document and the
certificate of incorporation or certificate of
continuance under which the applicant is
incorporated, continued or constituted;
(f) in the case of an application by, or on behalf
of a company that has been carrying on
business other than that of insurance
business prior to the application, a copy of
its audited financial statements for the
three consecutive years immediately
preceding the application, except that
where the local company has been
functioning for less than three years, a copy
of audited financial statements for each
year it has been in operation shall be
sufficient;
(g) in the case of an application by, or on behalf
of a foreign company that has been carrying
on long-term insurance business prior to
the application, a copy of the actuarial
reports for the three consecutive years
immediately preceding the application,
except that where the foreign company has
been functioning for less than three years,

actuarial reports for each year it has been
in operation shall be sufficient;
(h) a business plan for the three consecutive
years immediately following the approved
commencement date of carrying on
insurance business, details of which are
prescribed by Regulations made under this
Act;
(i) statement showing its stated capital;
(j) evidence of payment of the prescribed
application fee in Schedule 2;
(k) details of any refusal from a regulatory
authority to carry on any class of insurance
business in any other jurisdiction;
(l) approval, if applicable, from any relevant
foreign regulatory authority in respect of
the controller of the company; and
(m) such further information as the Central
Bank may require.
(3) If an insurer is applying to amend its
registration to carry on additional classes of business,
the Central Bank may waive such items of information
otherwise required under subsection (2) as it believes
are unnecessary or inapplicable.
(4) Every application submitted under this section
shall be signed by—
(a) two directors; and
(b) the chief executive officer or the secretary,
who shall certify that the information given in the
application is true and correct.
(5) A person who certifies the information on an
application under subsection (4) which contains any
false particulars commits an offence and is liable on
conviction on indictment to a fine of five million dollars
and to imprisonment for five years.
25. (1) The Central Bank may, on an application duly Registration of

made in accordance with section 24, and after being company
provided with all such information and documents as it
may require under that section, after being satisfied
that this Act and any Regulations have been complied
with, and after consultation with the Minister, approve
or refuse the application.
(2) Where the decision is made to refuse an
application, the Central Bank shall notify the applicant
in writing of its rejection and shall give reasons to the
applicant.
(3) The Central Bank shall, upon approval of an
application issue a certificate of registration to the
applicant duly signed by the Governor, which shall
specify the classes and types of insurance business in
respect of which the insurer is registered and shall be
prima facie evidence that the insurer named in the
certificate has been registered under this Act.
(4) Registration to carry on insurance business
may contain such terms and conditions as the Central
Bank considers necessary or appropriate taking into
account the particular circumstances of the proposed
insurer.
(5) Where the Central Bank imposes terms and
conditions on registration under subsection (4), it shall
inform the applicant in writing of the reasons for doing
so.
(6) Notice of registration by the Central Bank
shall be published in the Gazette and in at least two
daily newspapers circulated in Trinidad and Tobago and
notwithstanding the date of publication, the
registration shall take effect on the date specified in the
certificate of registration.
(7) Registration issued under this Act shall be
valid until it is revoked.
(8) An insurer that wishes to vary the classes of

business for which it is registered, shall first obtain the
approval of the Central Bank and the Central Bank—
(a) may require the insurer to increase its
stated capital and to satisfy such additional
prudential criteria and any other
requirements as the Central Bank
considers necessary; and
(b) shall amend the certificate of registration
issued under subsection (3) or section 23.
(9) It shall be a condition of every registration
that the insurer shall –
(a) comply with such terms and conditions as
may be specified; and
(b) within five business days of any change in
its officers, notify the Central Bank in
writing of such change.
(10) Where the Central Bank has registered a
company to carry on any or all of the classes of general
insurance business, it may also register such company
to carry on accident and sickness class of insurance
business.
(11) The accident and sickness class of insurance
business of a company described in subsection (10) shall
be subject to the same requirements under the Act as
those applicable to long-term insurance business.
(12) Where the Central Bank has registered a
company to carry on insurance business, the insurer
may underwrite or accept reinsurance in respect of the
specific classes of insurance business for which it is
registered.
Representative offices 26. (1) A foreign insurance company shall not—
(a) without the prior approval in writing of the
of foreign insurance
company
Central Bank, establish, acquire or open

any representative office in Trinidad and
Tobago; or
(b) without at least five business days’ prior

notice in writing to the Central Bank, close
or relocate a representative office in
(2) A foreign insurance company applying for
approval to establish, acquire or open a representative
office pursuant to subsection (1) shall—
(a) appoint a person who is ordinarily resident
in Trinidad and Tobago to be its principal
representative for the purposes of this Act
and who shall be responsible for the day to
day management of the representative
office;
(b) give the principal representative a
registered power of attorney expressly
authorizing the principal representative to
receive all notices from the Central Bank
and shall submit that registered power of
attorney to the Central Bank; and
(c) where a vacancy occurs in the position of
the principal representative, fill the
vacancy and submit the new registered
power of attorney to the Central Bank.
(3) In determining whether to grant approval
under subsection (2), the Central Bank shall take into
account whether—
(a) the principal representative is a fit and
proper person in accordance with
Schedule 5; and
(b) the foreign insurance company has paid the
application fee set out in Schedule 2.
27. (1) An insurer shall not— Branches and
(a) establish a branch or agency outside

representative offices
Trinidad and Tobago unless it has—

(i) made an application in writing to
the Central Bank;
(ii) paid the fee prescribed in

Schedule 2; and
(iii) received the prior written
approval from the Central Bank;
or
(b) close or relocate a branch or agency
outside Trinidad and Tobago unless it has—
(i) given the Central Bank at least
five business days’ written notice;
(ii) paid the fee prescribed in
Schedule 2; and
(iii) received the prior written
approval from the Central Bank.
(2) In determining whether to grant approval
under subsection (1), the Central Bank shall take into
account the financial condition of the insurer and such
other criteria as may be specified by the Central Bank.
(3) An insurer shall not, without at least five
business days prior notice in writing to the Central
Bank establish, acquire, open, close or relocate a
representative office outside Trinidad and Tobago.
(4) The Central Bank shall respond to a request
or decide whether to grant approval under this section
within a reasonable time.
(5) Where in relation to an application under sub-
section (1), the Inspector does not raise an objection or
requests further information within a reasonable time
from the submission of all required documents, the
insurer may proceed as if the request has been
approved.
Refusal to register 28. (1) A company shall not be registered in respect of
company
any class and type of insurance business unless the
Central Bank is satisfied that—
(a) the company has made arrangements for
the management of risks, including internal
control systems and information technology
systems, policies and procedures that will

be adequate for the nature and scale of that
class or type of insurance business;
(b) the company has reinsurance arrangements
that are adequate for the nature and scale
of the insurance risks that it undertakes or
plans to undertake;
(c) the acquirers, controlling shareholders,
significant shareholders, directors, officers
and appointed actuary, where the company
is required to appoint an actuary under this
Act, the company, and those who occupy
such other positions as may be designated
by the Central Bank, are fit and proper
persons in accordance with Schedule 5 to
perform their respective roles;
(d) the acquirers, controlling shareholders and
significant shareholders of the company
have complied with sections 52 to 54;
(e) subject to section 30(7), in the case of a
company which is carrying on or proposes to
carry on some other form of business in
addition to insurance business, the carrying
on of such other form of business is not or
would not be contrary to the interest of
policyholders;
(f) having regard to the knowledge and
competence of its officers, the company is, in
relation to that class of insurance business,
capable of carrying on such business
efficiently;
(g) that the policy and practice of the company
in dealing with claims are conducive to the
fair, efficient and speedy settlement
thereof;
(h) the business plan for the future conduct and
development of the business is sound and
feasible; and
(i) the company is not part of a larger

organizational or group structure that
would hinder its effective supervision.
(2) A company shall not be registered to carry on
insurance business unless, in addition to complying
with the requirements of subsection (1), it satisfies the
Central Bank that it meets the capital adequacy and
liquidity requirements established in accordance with
section 82.
(3) The Central Bank shall not register a
company to carry on both long-term and general
insurance business except as provided in section 23.
Continuous 29. (1) Where the Central Bank is satisfied that a
company meets the requirements under sections 22, 24,
registration
requirement
25 and 28 and has approved an application and issued a
certificate of registration under this Part, the insurer
shall continuously meet all registration requirements
under this Part and comply with all terms and
conditions of its registration and the requirements of
Schedule 5.
(2) An insurer that contravenes subsection (1)
commits an offence.
Restrictions on 30. (1) An insurer shall not transact insurance
business in Trinidad and Tobago with an unregistered—
activities of insurer
(a) company which carries on, purports to carry

on, or represents itself as carrying on
insurance business; or
(b) person who carries on, purports to carry on,
or represents itself as carrying on insurance
business as an intermediary.
(2) An insurer shall not carry on insurance
business outside of Trinidad and Tobago unless the
Central Bank has given written prior approval pursuant
to section 27.
(3) For the purposes of subsection (2), the

transaction of insurance business does not include the
ceding of insurance business to reinsurers outside of
grounds to believe that a reinsurer poses an undue risk
to policyholders, the Central Bank may by written
direction prohibit the insurer from further ceding
insurance business to such reinsurer.
(5) Subject to subsection (6), an insurer shall not
carry on any business other than insurance business.
(6) Notwithstanding subsection (5), an insurance
company may carry on—
(a) the establishment, distribution and sale of
collective investment schemes;
(b) the business of a Mortgage Institution or
Trust company set out in the First Schedule
of the Financial Institutions Act;
(c) the business of holding, managing or
otherwise dealing in real estate; or
(d) such other form of business associated with
the insurance business for which it is
registered.
(7) Where an insurer proposes to carry on any
activity under subsection (6)(c), it shall seek the prior
approval of the Central Bank.
(8) Where the Central Bank is of the opinion that
an insurer registered under the former Act is carrying
on a form of business which is not listed in
subsection (6) or is contrary to the interest of policy-
holders, the Central Bank shall direct the insurer to
discontinue such form of business or take such other
action as it deems fit, within such period as the Central
Bank may determine.
(9) A company shall not be registered as both an

insurer and an intermediary.
(10) Notwithstanding subsection (9), an insurer
which immediately before the commencement of this
Act was also registered as an agent, shall be allowed to
carry on both its insurance business and its business as
an insurance agency for a period of five years after the
commencement of this Act.
(11) An insurer which is allowed to carry on both
insurance business and business of an insurance agency
pursuant to subsection (10), shall within five years of
the commencement of this Act, separate its insurance
business from its business of an insurance agency by
incorporating a separate entity to carry on its business
of an insurance agency and the provisions of section 87
shall apply.
(12) An insurer which carries on both insurance
business and business of an insurance agency shall
maintain separate records and accounts in respect of
each business and shall in addition to its obligations
under this Act, submit financial statements and returns
to the Inspector, submit audited or unaudited financial
statements or returns in respect of its insurance
business or its business as an insurance agency in the
format and time as may be required by the Inspector.
Company to notify the 31. Where, subsequent to the registration of a
company under this Act there is any change—
Central Bank of
change in particulars
(a) in the particulars specified in the

specified in the
company’s application
application of the company; or

(b) in any information and in the particulars in
any documents which the company is
required to furnish under section 24,
the company shall, within five business days of such
change, notify the Central Bank in writing of the change
except as provided in section 32.
32. (1) An insurer shall not make any alteration to its Amendment of
articles of incorporation or continuance, by-laws or articles of
any other constituent document under which it is other constituent

incorporation and
incorporated, continued or constituted, unless it has

documents
notified the Inspector, in writing, that it proposes to

make the alteration and the Inspector either—
(a) has, in writing, approved the proposed
alteration; or
(b) has not within twenty business days of
receipt of the notification, indicated in
writing to the insurer any disapproval of
the proposed alteration.
(2) The Inspector shall not disapprove a
proposed alteration unless such proposed alteration is,
or is likely to result in, a breach of—
(a) the terms and conditions of the insurer’s
registration; or
(b) the provisions of this Act or any
Regulations.
(3) Notwithstanding any written law to the
contrary an alteration made to the articles of
incorporation or continuance, by-laws or any other
constituent document of an insurer in contravention of
subsection (1) shall be void.
(4) Every insurer shall, within ten business days
of the date on which any alteration is made to its
articles of incorporation or continuance, by-laws or
other constituent document, submit to the Inspector a
copy of the altered articles of incorporation or
continuance, by-laws and other constituent documents.
33. (1) Every insurer registered to carry on general Duty of company to
insurance business shall, at least twenty business days copy
furnish Inspector with
prior to the date of the issue of a new or amended endorsement or

of form of policy,
standard form of proposal, policy, endorsement or

application
application, furnish the Inspector with the following,

where applicable:
(a) the standard form of proposal;
(b) the standard form of policy;

(c) the standard form of endorsement;
(d) the standard form of application; and
(e) such other information as the Inspector
may specify.
(2) The Inspector may, within twenty business
days of receiving a standard form and any other
information pursuant to subsection (1), prohibit an
insurer from issuing a new or amended standard form
under this section if—
(a) the Inspector requests further information;
or
(b) such issue, in the opinion of the Inspector, is
fraudulent, unjust, imprudent, or not in the
public interest,
and the Inspector shall give written reasons for the
prohibition.
(3) Where the Inspector receives further
information requested under subsection (2)(a), he may
continue to prohibit the issue of a new or amended
standard form within twenty business days of receiving
such information.
(4) If the Inspector does not prohibit an insurer
from issuing a new or amended standard form, in
accordance with subsection (2) or (3), the insurer may
proceed to issue the new or amended standard form.
(5) Notwithstanding that an insurer has issued a
new or amended standard form in accordance with
subsection (4), the Inspector may subsequently prohibit
the insurer from continuing to issue the new or
amended standard form, if in the opinion of the
Inspector, the continued use will be fraudulent, unjust,
imprudent, or not in the public interest and the
Inspector shall give written reasons for the prohibition.
(6) An insurer which issues a standard form

prohibited by the Inspector under subsection (2), (3) or
(5) commits an offence.
34. (1) The Board may revoke the registration of an Revocation of
insurer in respect of any or all classes and types of
registration
insurance business for which it is registered where—

(a) any of the criteria specified in Schedule 5, is
not or has not been fulfilled or is unlikely to
be, or may not have been fulfilled in respect
of the insurer;
(b) the insurer has failed to comply with any
obligation imposed on it under this Act or
its Regulations, or any other written law;
(c) it has failed to comply with any obligation
imposed on it by any written law for the
prevention of money laundering or terrorist
financing including the Proceeds of Crime
Act, the Anti-Terrorism Act, the Financial
Intelligence Unit of Trinidad and Tobago
Act and any Regulations made thereunder;
(d) the insurer has provided the Central Bank
with false, misleading or inaccurate
information;
(e) the Central Bank has subsequently
discovered that any information provided
under section 24 which led to the
registration of the insurer is false,
misleading or inaccurate;
(f) the interests of policyholders or potential
policyholders of the insurer are in any way
threatened, whether by the manner in
which the insurer is conducting or proposes
to conduct its affairs;
(g) the insurer has not carried on insurance
business in Trinidad and Tobago within the
period of twelve months from the day on
which the certificate of registration was

issued or having carried on insurance
business in Trinidad and Tobago, has
subsequently not done so for any period of
more than six months;
(h) a receiver or manager of the insurer has
been appointed;
(i) the insurer fails to comply with any
requirement, prohibition, compliance
direction, or any other direction issued by
the Central Bank, the Inspector or the
Board under this Act;
(j) the insurer becomes illiquid and is unable
to meet its obligations;
(k) the holder of any debenture secured by a
charge has taken possession of any
property of the insurer comprised in, or
subject to, the charge;
(l) the insurer has merged or has been
amalgamated with another company;
(m) the business of the insurer is no longer the
business for which it was registered;
(n) the Board is satisfied that the policy and
practice of the insurer in dealing with
claims are unfair or that there is
unreasonable delay in the settlement of
claims payable under policies issued by it;
(o) the insurer is in breach of section 82;
(p) the reinsurance arrangements of the
insurer are not adequate;
(q) a final judgment obtained against the
insurer in any court and in relation to
which there is no stay of execution and the
judgment remains unsatisfied for at least
forty business days;
(r) an insurer has an affiliate located outside

Trinidad and Tobago and the relevant
supervisory authority in that country has
withdrawn from the affiliate an
authorization or registration corresponding
to any which may be conferred by this Act;
or
(s) in the case of an affiliate, wherever
incorporated, of an insurer—
(i) a winding up order has been
made;
(ii) a resolution for its voluntary
winding up has been passed; or
(iii) an order for the appointment of a
receiver has been made.
(2) Subject to section 40, before the registration is
revoked, the Board shall give the insurer written notice
of its intention, specifying—
(a) the grounds upon which the Board intends
to revoke the registration;
(b) the date on which such proposed revocation
is to take effect; and
(c) the place and period of time during which
the insurer may make written
representations to the Board.
(3) After serving a notice of intention to revoke
the registration, and after taking into account any
representations under subsection (2), the Board shall
decide whether to—
(a) revoke the registration; or
(b) restrict the registration pursuant to
section 35.
(4) The Board shall inform the insurer, by notice
in writing, of its decision.
(5) Where the Board decides to revoke the

registration, the notice of revocation shall include the
date on which the revocation takes effect, a statement of
the grounds for the decision and the right of appeal of
the insurer under subsection (9) and section 253.
(6) When the Board serves a notice of intention to
revoke a registration under this section, it may direct
the Inspector to take charge of all books, records and
assets of the insurer or any portion thereof or direct the
Inspector to apply to the High Court to appoint a
judicial manager, and to do all such things as may be
necessary to safeguard the interests of policyholders,
creditors and shareholders of the insurer until any
appeal filed pursuant to subsection (9) has been
determined.
(7) The Inspector may incur expenses to carry out
the provision of subsection (6), including, without
limitation, costs in connection with—
(a) utilities;
(b) rent; and
(c) administrative expenses of maintaining the
business of the insurer but not including
policyholder liabilities,
and any such costs shall be paid by the insurer.
(8) Where the insurer does not have adequate
funds or the ability to meet the costs referred to in
subsection (7), the Central Bank may provide funding to
cover such costs which funding shall be recoverable as a
civil debt payable to the Central Bank by the insurer.
(9) Where an insurer is aggrieved by a decision of
the Board to revoke its registration pursuant to
subsection (5), that insurer may appeal that decision in
accordance with section 253.
(10) Where a decision is made to revoke a
registration under subsection (5), the insurer shall cease
carrying on insurance business from the date on which
the revocation shall take effect.
(11) When a decision is made to revoke a

registration of all classes of insurance business for
which an insurer is registered, the Central Bank shall
apply to the High Court for an order for the winding up
of the insurer if the local insurer is under liability to its
policyholders.
35. (1) Subject to section 101, where it appears to the Restriction of
Board that there are grounds on which its power to
registration
revoke the registration of an insurer under section 34 is

exercisable, the Board may consider the circumstances
and restrict the registration of the insurer instead of
revoking it.
(2) The registration may be restricted by issuing
such directions as the Board thinks necessary to protect
the interests of the policyholders or potential
policyholders.
(3) Directions issued under this section may—
(a) require the insurer to take certain steps or
to refrain from adopting or pursuing a
particular course of action or to restrict the
scope of its business in a particular way;
(b) stipulate limitations on the issuance of
policies, the incurring of credit exposures or
the distribution of profit;
(c) prohibit the insurer from soliciting
insurance business, either generally or from
persons who are not already policyholders;
(d) require the removal of any director or
officer; or
(e) impose any other relevant restrictions.
(4) A direction imposed under this section may be
varied or withdrawn by the Board.
(5) An insurer or any director or officer thereof
who fails to comply with any requirement or
contravenes any prohibition imposed on it by a direction

under this section, commits an offence and is liable—
(a) on conviction on indictment––
(i) in the case of an insurer, to a fine
of six hundred thousand dollars;
or
(ii) in the case of a director or officer,
to a fine of six hundred thousand
dollars and to imprisonment for
two years; or
(b) on summary conviction––
(i) in the case of an insurer, to a fine
of three hundred thousand
dollars; or
(ii) in the case of a director or
officer, to a fine of three
hundred thousand dollars and to
imprisonment for one year.
Notice of restriction 36. (1) Where the Board proposes to—
(a) restrict the registration; or
or variation of
restriction
(b) vary any restrictions imposed on the

registration of an insurer,
it shall serve written notice of intention to do so on the
insurer.
(2) A notice of intention to restrict or to vary a
restriction shall specify the proposed restriction or the
proposed variation, as the case may be, and shall state
the grounds on which the Board proposes to act and
particulars of the insurer’s representations under
subsection (4).
(3) Where—
(a) the ground for a proposed restriction or
variation of a restriction is that it appears
to the Board that any of the criteria
specified in Schedule 5 is not or has not

been fulfilled, or is unlikely to be or may not
have been fulfilled in the case of any person;
or
(b) a proposed restriction consists of, or
includes a condition requiring the removal
of any person as director or officer,
the Board shall serve on that person a copy of the notice
of intention to restrict or vary a restriction together with
a statement of his right to make representations under
subsection (4).
(4) An insurer which is served with a notice of
intention to restrict or vary a restriction, and a person
who is served with a copy of it under subsection (3) may,
within the period of ten business days commencing from
the day after which the notice was served, make written
representation to the Board.
(5) After serving a notice of intention to restrict or
vary a restriction, and after taking into account any
representations made under subsection (4), the Board
shall decide whether to—
(a) proceed with the action proposed in the
notice;
(b) restrict or vary the restriction in a different
manner; or
(c) take no further action.
(6) The Board shall serve on the insurer and on
any such person served with notice in subsection (3),
written notice of its decision and, except where the
decision is to take no further action, the notice shall
state the reasons for the decision and shall give
particulars of the appeal process under section 253.
37. Where the Board withdraws a restriction or a Withdrawal of a
condition of a restriction, the withdrawal shall be restriction
effected by written notice to the insurer.
Directions to insurers 38. (1) The Board may give an insurer directions—
(a) when giving a notice of intention to revoke
the registration of an insurer under
section 34;
(b) at any time after such notice of intention to
revoke its registration has been given to the
insurer; or
(c) when giving a notice of revocation of its
registration under section 40 and in the
case of the voluntary winding up of the
insurer as referred to in section 108.
(2) Directions under this section shall be such as
to appear to the Board to be desirable in the interests of
the policyholders or potential policyholders of the
insurer, whether for the purpose of safeguarding its
assets or otherwise, and may, in particular—
(a) require the insurer to take certain steps or
to refrain from adopting or pursuing a
particular course of action or to restrict the
scope of its business in a particular way;
(b) impose limitations on the issuance of
policies and the incurring of credit
exposures;
(c) prohibit the insurer from soliciting business
either generally or from persons who are
not already policyholders;
(d) prohibit the insurer from entering into any
other transaction or class of transactions;
(e) require the removal of any director or
officer; or
(f) contain such other requirements as may be
considered necessary in any particular case.
(3) An insurer who fails to comply with any
requirement or contravenes any prohibition imposed by
direction under this section commits an offence and is
liable on conviction on indictment to a fine of five million
dollars.
39. (1) Directions under sections 35 and 38 shall be Notification and

given by notice in writing, and shall state the reasons confirmation of
for which the directions are given, and may be varied by

directions
a further notice containing directions, or cancelled by

the Board by notice in writing to the insurer.
(2) Where a direction requires the removal of a
person as director or officer of the insurer, the Board
shall serve on that person a copy of the direction
together with a statement of his right to make
representations under subsection (3).
(3) An insurer to which a direction is given and a
person who is served a copy of it under subsection (2)
may, within the period of ten business days commencing
from the day after which the direction is given, make
verbal or written representations to the Board and the
Board shall take any such representations into account
in deciding whether to confirm, vary or cancel the
direction.
(4) Where the Board decides to confirm, vary or
cancel a direction it shall serve written notice of its
decision on the insurer and such notice shall state
particulars of the appeal process under section 253.
40. (1) The Board shall revoke the registration of an Mandatory revocation
insurer if— and restriction in
cases of emergency
(a) a winding up order has been made against

it;
(b) all its assets have passed into the
ownership of another person; or
(c) a resolution for its voluntary winding up
has been passed in accordance with
section 108.
(2) No notice of intention is required to be given—
(a) under section 34 in respect of the revocation
of a registration in any case in which
revocation is mandatory under sub-
section (1); or
(b) under section 36 in respect of the imposition

or variation of a restriction on the
registration in any case in which the Board
considers that the restriction should be
imposed or varied as a matter of urgency.
(3) In any such case as mentioned in
subsection (2), the Board may by written notice to the
insurer revoke the registration or impose or vary the
restriction.
(4) A notice under subsection (3) shall state the
reasons for which the Board has acted and, in the case
of a notice imposing or varying a restriction, give
particulars of the insurer’s right to appeal under
section 253.
(5) Where—
(a) the grounds for a proposed restriction or
variation of a restriction are that it appears
to the Board that the criteria specified in
Schedule 5 are not or have not been
fulfilled, or are unlikely to be, or may not
have been fulfilled in the case of any person;
or
(b) a proposed restriction consists of, or
includes a condition requiring the removal
of any person as director or officer,
the Board shall serve on that person a copy of the notice
to restrict or vary a restriction together with a
statement of his right to make representations under
subsection (6).
(6) An insurer which is served with a notice to
restrict or vary a restriction, or a person who is served
with a copy of it under subsection (3) or (5) respectively,
may, within the period of ten business days commencing
from the day after which the notice was served, make
written representation to the Board.
(7) After serving a notice under subsection (3) or

(5) imposing or varying a restriction and taking into
account any representations made in accordance with
subsection (6), the Board shall decide whether to—
(a) confirm or rescind its original decision; or
(b) impose a different restriction or to vary the
restriction.
(8) The Board shall, within the period of fifteen
business days commencing from the day after which the
representations have been made, give the insurer
written notice of its decision under subsection (7) and
any notice giving a decision under subsection (7)(b) shall
state the reasons for the decision.
(9) Where the notice under subsection (8)
contains a decision to take the action specified in
subsection (7)(b), the notice under subsection (8) shall
have the effect of imposing the restriction or making the
variation specified in the notice with effect from the date
on which the notice is served.
41. (1) An insurer may make an application to the Voluntary revocation
Central Bank to have its registration voluntarily
and restriction
revoked at any time after it has been issued a certificate

of registration under section 23 or 25.
(2) Every application for voluntary revocation
shall be made to the Central Bank in writing and shall
be accompanied by such information as the Central
Bank may require.
(3) Where the Central Bank receives an
application for voluntary revocation, it shall place
restrictions on the registration of the insurer in
accordance with the provisions of section 35 to cease
writing new business and any other restrictions and
directions as the Central Bank deems necessary and no
notice of intention under sections 34 and 36 is required
to be given.
(4) The Central Bank shall direct the insurer to

publish in the Gazette and in at least two daily
newspapers circulated in Trinidad and Tobago a notice
approved by the Central Bank—
(a) informing the public of its application to
have its registration voluntarily revoked
and the reasons thereof;
(b) requiring persons or their legal personal
representative to submit a claim to the
insurer within sixty business days from the
date of publication in the Gazette or daily
newspapers, whichever is published later;
and
(c) containing any other information required
by the Central Bank.
(5) The insurer shall comply with all directions of
the Central Bank with respect to the format of the
notice and periods of publishing required under
subsection (4).
(6) The insurer shall be required to provide
evidence satisfactory to the Central Bank that it is not
under liability to any policyholder and shall comply with
the directions of the Central Bank with respect to
ascertaining whether the insurer is under liability to
any policyholder.
(7) Where the Central Bank is satisfied that the
insurer has made all reasonable efforts to discharge its
liabilities to policyholders and no sufficient discharge
can otherwise be obtained, the Central Bank shall apply
to the High Court for an order—
(a) to revoke the registration of the insurer;
(b) to apply the assets to any outstanding
policyholders’ liabilities;
(c) to receive payment of any money from the
insurer in respect of outstanding
policyholder liabilities of the insurer; and
(d) for directions on any other matter.
(8) Where the High Court grants an order for

revocation under subsection (7), the registration of the
insurer shall be deemed to be revoked as at the date of
the order.
(9) Where the Central Bank receives any money
pursuant to an order under subsection (7), it shall be a
good and valid discharge to the insurer for the money so
paid in respect of its liabilities to policyholders, and the
money shall be dealt with according to the order.
(10) The Central Bank shall pay into the
Consolidated Fund any monies received under this
section and there shall be paid from the Consolidated
Fund such sums as are necessary to give effect to this
section and the order granted under subsection (7).
(11) Nothing in this section shall be construed so
as to prevent the Central Bank from revoking or
restricting the insurer’s registration under other
provisions in this Act, from making an application for
the winding up of the insurer or taking any other action
under this Act.
B. Separate Accounts
42. (1) Subject to section 43 and the Regulations, Separate accounts
every insurer shall establish and maintain—
(a) separate accounts for—
(i) its Trinidad and Tobago policies;
and
(ii) its foreign policies,
for each type of insurance business; and
(b) a separate shareholder account,
in such form and subject to such conditions or
restrictions as may be specified by the Inspector in
writing.
(2) Subject to subsection (1), the Inspector may
require an insurer to maintain subaccounts for a class
or subclass of its insurance business.
(3) An insurer shall maintain adequate assets in

its Trinidad and Tobago policy account to support its
liabilities to its Trinidad and Tobago policyholders.
(4) Notwithstanding subsection (3), the Inspector
may direct the insurer to maintain and hold such
additional assets in its Trinidad and Tobago policy
account as may be specified for the purpose of
safeguarding the interests of Trinidad and Tobago
policyholders.
(5) Without prejudice to the generality of
subsection (3), an insurer shall comply with the
requirements of Schedule 9.
Participating account 43. (1) An insurer shall maintain accounts in respect
of participating policies, which shall be maintained
separately from accounts in respect of other policies.
(2) A participating account shall include a
participating surplus account, in such form and subject
to such conditions or restrictions as may be specified by
the Inspector in writing.
C. Catastrophe Reserve Fund Requirements
Catastrophe Reserve 44. (1) Every insurer carrying on property insurance
Fund
business shall establish and maintain at all times in
respect of catastrophe risks a Catastrophe Reserve
Fund, in such form and subject to such conditions or
restrictions specified by the Inspector in writing.
(2) Every insurer under subsection (1) shall, at
the end of each financial year, make an appropriation
from its retained earnings to the Catastrophe Reserve
Fund in an amount not less than twenty per cent of its
net written premium income on its property insurance
business for that year.
(3) Subsection (2) shall not apply where the
Catastrophe Reserve Fund is equal to, or exceeds the
net written premium income on the insurer’s property
insurance business for that year.
(4) For the purposes of this Part—

(a) “recoveries” includes reinsurance
recoveries; and
(b) “ultimate net loss” means the liability of an
insurer arising out of a catastrophe loss
after deducting an amount for salvages and
recoveries, but before the deduction of any
catastrophe excess of loss reinsurance
cover.
(5) An insurer shall not reduce the value of the
Catastrophe Reserve Fund, unless—
(a) catastrophe losses in excess of two million
dollars have occurred and the ultimate net
loss of the insurer is estimated to exceed
seven point five per cent of its capital;
(b) the insurer ceases to write property
insurance business and either a winding up
order has been made against the insurer or
the insurer is no longer under liability for
policies relating to property insurance
business relating to catastrophe risks; or
(c) the value of the Catastrophe Reserve Fund
at the end of a financial year, after any
reduction pursuant to paragraph (a) or (b),
is more than one hundred and twenty
per cent of the net written premium income
on property insurance business for that
year, in which case the maximum reduction
by the insurer shall be twenty per cent of
the net written premium income on the
insurer’s property insurance business at the
end of that financial year.
(6) An insurer who contravenes this section
commits an offence and is liable on conviction on
indictment to a fine of five million dollars.
Insurer to submit 45. (1) The insurer shall submit to the Inspector
statements relating to its Catastrophe Reserve Fund, in
statements relating
such form as specified by the Inspector in writing,

to Catastrophe
Reserve Fund
showing details of appropriations pursuant to

section 44(2) and reductions pursuant to section 44(5)
within thirty business days after the end of each
financial year and at any other time as required by the
Inspector.
(2) An insurer who contravenes the provisions of
subsection (1) commits an offence and is liable on
summary conviction to a fine of six hundred thousand
dollars.
Inspector may 46. Where it appears to the Inspector that a

statement furnished to the Central Bank under
request further
section 45(1) is in any respect unsatisfactory,

information
incomplete, inaccurate, misleading or otherwise fails to

comply with the requirement of that section, the
Inspector may require information from the insurer
within a period as specified by the Inspector.
D. Ownership of Insurers
Restructuring of 47. (1) Where an insurer is a member of a related
ownership may be
group in which there are two or more financial entities,
the Central Bank may, in writing, direct the controlling
required
shareholder to engage in a restructuring to form a

financial holding company, such that the local insurer is
directly controlled by the financial holding company and
the resulting structure allows for consolidated
supervision.
(2) In lieu of, or in addition to, a restructuring
under subsection (1), the Central Bank may direct the
controlling shareholder of the insurer to undertake any
other measures that are necessary or appropriate to
identify, assess and manage—
(a) the relationship among the insurer and
other members of the related group; and
(b) the risks resulting from such relationship.
(3) In directing a restructuring under

subsection (1), the Central Bank may require that the
financial holding company be the direct subsidiary of
the ultimate parent company of the related group.
(4) A restructuring directed under subsection (1)
shall be carried out within twelve months of the date of
the direction, however, the Central Bank may, in its
discretion, extend this period by notice in writing to the
local insurer to a maximum of two years from the date
of such direction.
(5) Where a restructuring is completed under this
section and the Central Bank is satisfied that the
requirements for a permit under section 51 have been
met, the Central Bank shall grant a permit and the
provisions of section 51 shall apply mutatis mutandis to
the grant of a permit under this section.
48. (1) Where a related group comprises entities that Restructuring of

engage in both non-financial activities and financial group where entities
activities and such group contains at least two financial financial and non-
are engaged in both
entities, one of which is an insurer, the Central Bank

financial activities
shall require a restructuring in accordance with

section 47, to separate the financial activities from the
non-financial activities.
(2) Where a financial holding company is formed
under subsection (1), the other financial entities in the
related group shall be either directly or indirectly
controlled by the financial holding company, an insurer
registered under this Act or a licensee under the
Financial Institutions Act.
49. The Central Bank shall not require a Restructuring not

restructuring under section 47— required in certain
cases
(a) where an insurer is directly controlled by a

foreign company that provides financial
services and—
(i) is subject to regulation by a
foreign regulatory authority
acceptable to the Central Bank

and there are no obstacles to
obtaining information from that
regulatory authority; or
(ii) does not directly or indirectly
control an entity that engages in
non-financial activities; or
(b) where the insurer is a member of a related
group which comprises only financial
entities and all the insurers in the related
group—
(i) are controlled by a holding
company that only performs the
activities stated in section 51(1);
or
(ii) are controlled by a licensee under
the Financial Institutions Act or
an insurer registered under this
Act.
Restrictions on 50. (1) A financial holding company shall not engage

in, or carry on any business other than––
activities of financial
holding company
(a) establishing or acquiring of financial

entities and administering the holdings of
the financial group; or
(b) providing management, advisory,
financing, accounting, or information
processing services to entities in the
financial group as well as such other
services approved by the Central Bank.
(2) A financial holding company shall not
guarantee on behalf of any person the payment or
repayment of any sum of money, except where the
person is a member of the financial group.
(3) Subject to and in accordance with the limits

permitted under sections 87, 89 and 90 on a
consolidated basis, a financial holding company may
invest its funds in the shares of, or ownership interests
in any entity or make any other investment that its
directors consider necessary or advisable to manage the
financial holding company’s liquidity.
(4) A financial holding company which
contravenes this section commits an offence and is liable
on conviction on indictment—
(a) to a fine of five million dollars; and
(b) in the case of a continuing offence, to a fine
of fifty thousand dollars for each day that
there is non-compliance.
51. (1) A financial holding company required under Requirement for a

section 47 or a holding company that only controls, permit
whether directly or indirectly financial entities and is
not itself an insurer shall apply for a permit under this
section.
(2) Where a holding company is a foreign
company but is excluded from a restructuring under
section 49(a), the foreign company shall not be required
to apply for a permit under this section.
(3) Notwithstanding section 49(b)(i), a holding
company in a related group of financial entities that
only performs the activities stated in subsection (1)
shall apply for a permit under this section.
(4) An application for a permit to carry on the
business of a financial holding company shall be
accompanied by the following information:
(a) capital resources and capital structure,
including the identity of its controlling
shareholder and significant shareholders;
(b) organizational, managerial and legal
structures;
(c) composition of the board of directors;
(d) fitness and propriety of directors, officers,

controlling shareholder and significant
shareholders in accordance with the criteria
in Schedule 5;
(e) audited financial statements for the past
three years, if applicable;
(f) strategic and operational business plans;
(g) financial plans, including projections for the
next three years;
(h) sources of funds for initial and ongoing
costs;
(i) evidence of payment of fees under
Schedule 2; and
(j) any other information that the Central
Bank may require.
(5) In determining whether to grant a permit, the
Central Bank shall—
(a) take into account the information referred
to in subsection (4), and in particular,
whether the applicant has satisfied the
criteria in Schedule 5, or may be as such to
prejudice the interests of the policyholders
of the insurer; and
(b) determine whether ownership of shares by
the applicant, given the corporate
affiliations or structure of the applicant,
will hinder effective supervision under this
Act or would be likely to prejudice the
interests of policyholders of the insurer.
(6) The Central Bank may attach conditions to a
permit under this section, including, without limitation,
conditions to ensure that—
(a) the capital available to the financial group
is adequate or will not jeopardize the
financial position of the insurer or insurers,
and any licensee under the Financial
Institutions Act within the financial group;
(b) no double or multiple gearing or excessive

leveraging of capital exists or will take
place;
(c) the financial group is structured and
managed in such a manner that it may be
supervised by the Central Bank;
(d) each member of the financial group
maintains adequate internal control
mechanisms enabling it to provide any data
or information relevant to its supervision;
and
(e) activities or operations of subsidiaries or
affiliates that may be injurious to the
insurer or insurers and any licensee under
the Financial Institutions Act that are
members of the financial group are
prevented,
and may, at any time, vary or remove such conditions,
or add further conditions to such permit.
(7) Where a financial holding company fails to
comply with any condition of its permit, the Central
Bank shall issue directions to the financial holding
company and section 155 shall apply mutatis mutandis
to this section.
(8) A financial holding company that fails to
comply with any condition of its permit commits an
offence and is liable––
a continuing offence, to a fine of sixty
offence continues; or
a continuing offence, to a fine of thirty
offence continues.
(9) When a financial holding company is required

to restructure under section 47 or 48, the Central Bank
will take into consideration the members of the related
group in determining whether this Act or the Financial
Institutions Act shall take precedence for purposes of
requiring a restructuring based on the relative size of
activities of the group in the banking sector and in the
insurance sector.
Requirements for 52. (1) Notwithstanding any other law, a person or a

controlling
person on whose behalf shares are held either in trust or
by a nominee, shall not become a controlling share-
shareholder
holder of an insurer without first obtaining a written

permit from the Central Bank.
(2) In the circumstances where a proposed
controlling shareholder is an acquirer, the
provisions of section 74 shall prevail over this
section.
(2A) Where a person becomes beneficially entitled
after probate of a will or a grant of letters of adminis-
tration to shares such as to make him a controlling
shareholder, he shall apply for a permit within one
month of this fact coming to his knowledge.
(3) The Central Bank may, by notice in writing,
require any shareholder of an insurer to transmit to it
written information—
(a) as to whether that shareholder holds any
voting shares in the insurer as beneficial
owner or as trustee; and
(b) if he holds them as trustee, the person for
whom he holds them either by name or by
such other particulars sufficient to enable
those persons to be identified, and the
nature of their interest, and the
shareholder shall comply with the
requirement within such time as may be
specified in the notice.
(4) A person who contravenes subsection (3)

commits an offence.
(5) A person who holds shares that entitle him to
exercise or control more than fifty per cent of the voting
power at any general meeting of an insurer prior to the
commencement of this Act, is deemed to hold a permit
under this section.
(6) In determining whether a permit should be
granted, the Central Bank shall take into account,
without limitation the criteria in Schedule 5 as to
whether the proposed shareholder is a fit and proper
person or may be such as to prejudice the interests of
the policyholders of the insurer and whether ownership
by a controlling shareholder who is—
(a) part of a group of relatives each of whom is
substantially dependent upon the same
source of income; or
(b) in the case of a company, an affiliate of
another company,
would be likely to prejudice the interests of
policyholders of the insurer.
(7) Where a permit is granted or deemed to be
granted under this section, the controlling shareholder
shall—
(a) provide the Central Bank with such
relevant information as the Central Bank
may require from time to time; and
(b) comply with such terms and conditions as
may be specified in the permit.
(8) Where—
(a) a controlling shareholder is no longer a fit
and proper person;
(b) a person under subsection (2A) is not
granted a permit; or
(c) after commencement of this Act, a person

who, without being granted a permit under
this section, obtains shares such as to make
him a controlling shareholder,
that person shall be notified in writing by the Central
Bank of this fact and he shall be required to take such
steps to reduce his shareholding in such manner and in
such time as may be specified by the Central Bank.
(9) Where the Central Bank gives a notice—
(a) under subsection (8)(a) and (b), the person
is entitled to receive dividends and to
exercise voting rights until such time as the
shares are disposed of in accordance with
subsection (8) or an order of the High Court
is made under this section; and
(b) under subsection (8)(c), a person shall not
be entitled to receive any dividends or to
exercise any voting rights.
(10) Where a controlling shareholder is notified
that he is no longer fit and proper he may, within the
period of ten business days commencing the day after
which the notice is received, make written
representations to the Central Bank which shall take
such representations into account in determining
whether to withdraw or vary the notice.
(11) Where a person fails to comply with the
Central Bank’s requirements under subsection (8), his
shares shall be subject to disposal in accordance with
subsections (12) and (13), without prejudice to any other
penalty which may be incurred by any party pursuant to
this Act.
(12) Where the circumstances so warrant, the
Central Bank may apply to the High Court for an order
for the disposal of shares on such terms and conditions
as the High Court deems appropriate.
(13) Where shares referred to in subsection (10)

are sold in pursuance of an order of the High Court the
proceeds of sale, less the costs of the sale, shall be paid
into the High Court or into such fund as the High Court
may specify for the benefit of the persons beneficially
interested in the disposed shares, or to such person as
the High Court may direct.
(14) Where a controlling shareholder fails to
Bank shall issue directions to the controlling
shareholder and section 155 shall apply mutatis
mutandis to this section.
(15) A person who—
(a) knowingly or wilfully supplies false
information to the Central Bank under this
section commits an offence and is liable on
summary conviction to a fine of six hundred
thousand dollars and to imprisonment for
two years; or
(b) contravenes any other provision of this
section commits an offence and is liable––
(i) on conviction on indictment to a
fine of six hundred thousand
dollars and to imprisonment for
two years and in the case of a
continuing offence, to a fine of
sixty thousand dollars for each
day that the offence continues; or
(ii) on summary conviction to a fine of
three hundred thousand dollars
and to imprisonment for one year
and in the case of a continuing
offence, to a fine of thirty
thousand dollars for each day that
the offence continues.
Requirements of 53. (1) Notwithstanding any other law but subject to

section 54, a person or a person on whose behalf shares
significant share-
holder
are held either in trust or by a nominee, shall not

become a significant shareholder of an insurer without
first obtaining a written permit from the Central Bank.
(2) In the circumstances where a proposed
significant shareholder is an acquirer, the provisions of
section 74 shall prevail over this section.
(2A) Where a person becomes beneficially entitled
to shares, after probate of a will or a grant of letters of
administration, such as to make him a significant
shareholder, he shall apply for a permit within one
month of this fact coming to his knowledge.
(3) A person who, on the coming into force of this
Act, holds shares that entitle him to exercise twenty per
cent or more of the voting power at any general meeting
of an insurer is deemed to hold a permit under this
section for such shares.
(4) In determining whether a permit should be
granted, the Central Bank shall take into account,
without limitation the criteria contained in Schedule 5
as to whether the proposed shareholder is a fit and
proper person or may be such as to prejudice the
interests of the policyholders of the insurer and whether
ownership by a significant shareholder who is—
(a) part of a group of relatives each of whom is
substantially dependent upon the same
source of income; or
(b) in the case of a company, an affiliate of
another company,
would be likely to prejudice the interests of
policyholders of the insurer.
(5) Where a permit is granted or deemed to be

granted under this section the significant shareholder
shall—
(a) provide the Central Bank with such
relevant information as the Central Bank
may require from time to time; and
(b) comply with such terms and conditions as
may be specified in the permit.
(6) Where—
(a) a significant shareholder is no longer a fit
and proper person;
(b) a person under subsection (2A) is not
granted a permit; or
(c) after the commencement of this Act,
a person who, without being granted a
permit under this section, obtains shares
such as to make him a significant
shareholder,
that person shall be notified in writing by the Central
Bank of this fact and he shall be required to take such
steps to reduce his shareholding in such manner and in
such time as may be specified by the Central Bank.
(7) Where the Central Bank gives a notice—
(a) under subsection (6)(a) and (b), the person
shall be entitled to receive dividends and to
exercise his voting rights until such time as
the shares are disposed of in accordance
with subsection (6) or an order of the High
Court is made under this section; and
(b) under subsection (6)(c), a person shall not
be entitled to receive any dividends or to
exercise any voting rights.
(8) Where a significant shareholder is notified
that he is no longer fit and proper he may, within the
period of ten business days commencing the day after
which the notice is given, make written representations

to the Central Bank which shall take such
representations into account in determining whether to
withdraw or vary the notice.
(9) Where a person fails to comply with the
Central Bank requirements under subsection (6), his
shares shall be subject to disposal in accordance with
subsections (10) and (11), without prejudice to any other
penalty which may be incurred by any party pursuant to
this Act.
(10) Where the circumstances so warrant, the
Central Bank may apply to the High Court for the
disposal of shares on such terms and conditions as the
High Court deems appropriate.
(11) Where shares referred to in subsection (10)
are sold in accordance with an order of the High Court,
the proceeds of sale, less the costs of the sale, shall be
paid into the High Court or into such fund as the High
Court may specify for the benefit of the persons
beneficially interested in the disposed shares or to such
person as the High Court may direct.
(12) Where a significant shareholder fails to
Bank shall issue directions to the significant
shareholder and section 155 shall apply mutatis
mutandis to this section.
(13) A person who—
(a) knowingly or wilfully supplies false
information to the Central Bank under this
section; or
(b) contravenes any other provision of this
section,
commits an offence.
54. (1) A financial entity or a significant or controlling Requirements of

shareholder of a financial entity shall not become an acquirer
acquirer of an insurer or of the financial holding
company of an insurer without obtaining a permit
issued by the Central Bank under this section.
(2) In considering an application for an acquirer
to become a significant or controlling shareholder the
Central Bank shall take into account the matters listed
in subsection (4) and the provisions of this section shall
apply mutatis mutandis to section 52 or 53.
(3) An application for a permit under
subsection (1), shall be made in writing by the proposed
acquirer and submitted to the Central Bank together
with such information as the Central Bank may require.
(4) In determining whether to issue a permit to
the proposed acquirer, the Central Bank shall take into
account such relevant matters including, without
limitation—
(a) the criteria set out in Schedule 5;
(b) the size and concentration of economic
power in the combination of the proposed
acquirer and the insurer, holding company
or the financial holding company of the
insurer; and
(c) whether the business or a part of the
business of the proposed acquirer, insurer,
holding company or financial holding
company of the insurer has failed or is being
conducted in an unlawful or unsound
manner or is otherwise in an unsound
condition.
(5) In considering the criteria referred to in
subsection (4)(b), the Central Bank shall take into
account, without limitation—
(a) the combined market share in Trinidad and
Tobago of the insurer and any financial
entity affiliated with the insurer, the
proposed acquirer and any financial entity

that is affiliated with the proposed
acquirer; and
(b) whether the size of, and concentration of
economic power in, the combination of the
proposed acquirer and the insurer will
prevent or lessen substantially, or is likely
to prevent or lessen substantially,
competition in the financial services
industry in Trinidad and Tobago.
(6) Subject to subsection (7), after due
consideration of the matters referred to in
subsection (5), the Central Bank may—
(a) issue a permit to the proposed acquirer;
(b) refuse to issue a permit to the proposed
acquirer; or
(c) issue a permit to the proposed acquirer
subject to such conditions, requirements or
restrictions as the Central Bank deems
appropriate.
(7) Where the combined market share in Trinidad
and Tobago of the insurer and any financial entity
affiliated with the insurer, the proposed acquirer and
any financial entity that is affiliated with the proposed
acquirer would exceed forty per cent, the Central Bank
shall forward to the Minister for his approval, the
application referred to in subsection (3), together with
its recommendation and any other relevant information.
(8) In determining whether or not to approve the
issue of a permit to the proposed acquirer, the Minister
shall consult with the Central Bank and shall take into
account the public interest, which shall include, without
limitation—
(a) the interests of the financial services
industry in Trinidad and Tobago; and
(b) the interests of consumers of financial
services in Trinidad and Tobago.
(9) After due consideration of the matters

referred to in subsection (8), the Minister may—
(a) approve the issuance of a permit to the
proposed acquirer;
(b) refuse approval of the issuance of a permit
to the proposed acquirer; or
(c) approve the issuance of a permit to the
proposed acquirer subject to such
conditions, requirements or restrictions as
the Minister thinks appropriate,
and the Central Bank shall act accordingly.
(10) Where the issuance of a permit is refused,
pursuant to subsection (6)(b) or (9)(b), the reasons for
the refusal shall be sent to the applicant.
(11) The provisions of section 52(2) and (4) to (13)
shall apply mutatis mutandis to this section.
(12) Where an acquirer fails to comply with any
condition of its permit, the Central Bank shall issue
directions to the acquirer and section 155 shall apply
mutatis mutandis to this section.
(13) A person who contravenes any provisions of
this section commits an offence.
55. (1) Where a permit has been granted to a person Revocation of

who is a significant shareholder to become a controlling
permits
shareholder under this Part, the Central Bank shall

revoke the significant shareholder permit prior to
issuing the controlling shareholder permit.
(2) Where a permit has been granted to a person
who is a controlling shareholder to become a financial
holding company under this Part, the Central Bank
shall revoke the controlling shareholder permit prior to
issuing the financial holding company permit.
(3) Where the Central Bank is satisfied that a

permit which has been granted under this Part is no
longer required as a result of a decrease in a person’s
shareholding, the Central Bank shall revoke the permit.
(4) The Central Bank may revoke the permit of
a financial holding company in accordance with
section 34, 40 or 41 and the provisions of such sections
shall apply mutatis mutandis to this section.
Information required 56. The Central Bank may, by notice in writing,

from shareholders
require any shareholder of an insurer to submit written
information—
(a) as to whether that shareholder holds any
voting shares in the insurer as beneficial
owner or as trustee or nominee; and
(b) if he holds those voting shares as trustee or
nominee, the person for whom he holds
them either by name or by such other
particulars sufficient to enable those
persons to be identified, and the nature of
their interest,
and the shareholder shall comply with the requirement
within such time as may be specified in the notice.
E. Transfer and Amalgamation

Application for 57. (1) Notwithstanding any other law, a transfer or
transfer or
an amalgamation shall not take place where one of the
transferring or amalgamating companies is an insurer
amalgamation
or the financial holding company of an insurer, without

the prior approval in writing of—
(a) the Central Bank pursuant to section 61(2);
or
(b) the Minister pursuant to section 62(3).
(2) An application for approval under
subsection (1) shall be made in writing, jointly, by all
the companies proposing to transfer or amalgamate,
and the following documents shall be submitted to the

Central Bank along with the application:
(a) in the case of an amalgamation, the
proposed amalgamation agreement referred
to in section 221 of the Companies Act, the
scheme of amalgamation and the resolution
of the board of directors approving the
amalgamation; and
(b) in the case of a transfer, the proposed
transfer agreement, the scheme of transfer
and the resolution of the board of directors
approving the transfer,
and such further information as the Central Bank may
require.
58. (1) A scheme shall set out the terms of the Submission of
agreement or deed under which it is proposed to effect scheme of transfer
the transfer or amalgamation and shall contain such

or amalgamation
further provisions as are necessary to give effect

thereto.
(2) The following documents shall be submitted to
the Central Bank together with the scheme of transfer
or amalgamation:
(a) audited financial statements as at a date to
be specified by the Central Bank, of the
companies engaged in the transfer or
amalgamation;
(b) audited returns as at a date to be specified
by the Central Bank, of the companies
engaged in the transfer or amalgamation;
(c) projected financial statements showing the
financial position after amalgamation or
transfer;
(d) a detailed list of outstanding claims as at a
date to be specified by the Central Bank, of
the companies engaged in the transfer or
amalgamation;
(e) a copy of the actuarial and other reports, if

any, upon which the scheme was founded;
(f) a copy of the proposed notice to be published
in the Gazette and draft letter to
policyholders;
(g) a draft copy of the statutory declarations as
required under the Companies Act;
(h) reinsurance arrangements for policies to be
transferred; and
(i) any other documents as may be required by
the Central Bank.
(3) The Central Bank may cause a report on the
scheme to be made by an independent actuary and shall
cause a copy of the report to be sent to each of the
companies engaged in the transfer or amalgamation.
(4) All expenses incurred by the Central Bank in
obtaining the report of any actuary on the scheme shall
be defrayed by the companies engaged in the transfer or
amalgamation, and any sum due in respect of those
expenses may be recovered summarily as a civil debt by
the Central Bank from the companies either jointly or
severally.
Procedure prior to 59. (1) Where the percentage of any market share in
Trinidad and Tobago of the transferee or amalgamated
confirmation of
company and any financial entity which will be

scheme
affiliated with it would not exceed forty per cent, the

Central Bank shall give directions concerning—
(a) the publication of advertisements of the
scheme;
(b) the giving of notices to shareholders,
policyholders or creditors of the companies;
and
(c) the holding of meetings of any insurer or
financial holding company affected,
and such directions shall be complied with by the person
to whom they are given.
(2) Where the Central Bank is satisfied that the

scheme of transfer or amalgamation is ready for
inspection, the Central Bank shall direct the companies
to publish in the Gazette and in at least two daily
newspapers circulated in Trinidad and Tobago as may
be approved by the Central Bank, a notice of intention
to transfer or amalgamate within twenty business days
of the date of such direction.
(3) The scheme shall be open for inspection by
any policyholder or shareholder affected by it, for a
period of fifteen business days after the publication of
the notice referred to in subsection (2), at the office of
each company engaged in the transfer or amalgamation.
(4) Any person who objects or is aggrieved by the
proposed transfer or amalgamation shall inform the
Central Bank and the companies of his objection either
during the period of inspection or within twenty
business days after the expiration of such period of
inspection.
(5) After the period of objection under
subsection (4), the Central Bank shall notify the
companies and any person who objects to, or is
aggrieved by the transfer or amalgamation of the date
for the hearing of the confirmation of the scheme.
(6) At the hearing, the companies are entitled to
appear and to be heard either through one of its officers
or through an Attorney-at-law.
(7) The Central Bank may hear such other
evidence as the Central Bank considers necessary and
any person who, in the opinion of the Central Bank, is
likely to be affected by the scheme is entitled to be
heard.
60. (1) The Central Bank shall inform the companies Confirmation of
of its decision at the hearing and shall give notification scheme of transfer or
in writing of such decision within five business days of

amalgamation
the date of the hearing.

(2) Where the Central Bank confirms the scheme,

it shall be binding on all persons and shall have effect
notwithstanding anything in the articles of
incorporation or continuance, by-laws or other
constituent document of the companies.
(3) Where the Central Bank refuses to confirm a
scheme, it shall include reasons for its refusal in the
notification under subsection (1).
Approval of transfer 61. (1) In determining whether to approve a proposed
or amalgamation by
transfer or amalgamation, the Central Bank shall
consider the following:
Central Bank
(a) the terms of the proposed transfer or

amalgamation agreement and any
amendments thereto;
(b) the proposed changes to the articles of
incorporation or continuance of the
companies;
(c) the criteria set out in Schedule 5 as it
applies to all companies proposing to
transfer or amalgamate;
(d) the size and concentration of economic
power in the companies engaged in the
transfer or amalgamation including—
(i) the size of the proposed transferee
or amalgamated company in
terms of any combined market
share that will be serviced or
controlled by the proposed
transferee or amalgamated
company in Trinidad and Tobago;
(ii) the size of any of the affiliates
of the proposed transferee or
amalgamated company; and
(iii) whether such size and
concentration will prevent or
lessen substantially, or is likely to
prevent or lessen substantially,

competition in the financial
services industry in Trinidad and
Tobago;
(e) whether the business or a part of the
business of the—
(i) companies engaged in the transfer
or amalgamation; or
(ii) holding companies of the
transferee or any of the
amalgamating companies,
has failed or is being conducted in an
unlawful or unsound manner or is
otherwise in an unsound condition; and
(f) any other relevant matters as determined
(2) After due consideration of the matters
referred to in subsection (1) and after the scheme of
transfer or amalgamation has been confirmed pursuant
to section 60(2), the Central Bank may—
(a) approve the proposed transfer or
amalgamation and may impose conditions,
restrictions or requirements including
publishing requirements; or
(b) refuse the proposed transfer or
amalgamation.
62. (1) Where the Central Bank has received an Approval of transfer
application for a transfer or amalgamation under Minister
or amalgamation by
section 57(2) and all the documents required under

section 58, if the Central Bank determines that the
percentage of any combined market share in Trinidad
and Tobago of the proposed transferee or amalgamated
company and any financial entity that will be affiliated
with it would exceed forty per cent, the Central Bank

shall forward to the Minister the application for his
approval, the proposed transfer or amalgamation
agreement and any other relevant information together
with its recommendation.
(2) In determining whether to approve the
proposed transfer or amalgamation, the Minister shall
consult with the Central Bank and shall take into
account the public interest and the matters prescribed
in sections 54(9) and 61(1).
(3) After due consideration, the Minister may—
(a) approve the proposed transfer or
amalgamation subject to the confirmation
of the scheme of transfer or amalgamation
and on such conditions, requirements or
restrictions as he deems appropriate; or
(b) refuse the proposed transfer or
amalgamation.
(4) Where the Minister has given approval
subject to the confirmation of the scheme of transfer,
sections 59 and 60 shall then apply mutatis mutandis to
this section.
Miscellaneous 63. (1) Where the Central Bank or the Minister

refuses the proposed transfer or amalgamation, the
transfer or
amalgamation
Central Bank or the Minister shall give notice in
writing of its decision and reasons for so doing.
(2) The companies shall submit copies of any
approval of the proposed amalgamation by the Central
Bank or the Minister and the confirmation of the
scheme of amalgamation by the Central Bank to the
Registrar of Companies and the Registrar of Companies
shall not issue a certificate of amalgamation under the
Companies Act unless the Registrar of Companies
receives these documents.
(3) A person who contravenes section 57(1) or who

breaches any condition, requirement or restriction
attached to an approval commits an offence.
(4) A purported transfer or amalgamation done in
contravention of sections 57 to 63 shall be null and void,
but shall be without prejudice to the accrued rights of
any bona fide party without notice.
(5) The Minister may by Order exempt transfers
below a specified threshold from the requirements of
sections 57 to 63.
(6) Where the Central Bank or the Minister has
approved a transfer or amalgamation, the transfer or
amalgamation agreement shall not be amended without
prior written approval of the Central Bank or the
Minister.
64. Where any class of insurance business carried on Return to be made in

by an insurer is transferred to, or amalgamated with the amalgamation
case of transfer or
insurance business of another insurer, the insurer to

which the insurance business is transferred or the
insurer carrying on the amalgamated insurance
business shall, within twenty business days after the
transfer or the amalgamation, submit to the Central
Bank—
(a) a certified copy of the agreement or deed
under which the transfer or the
amalgamation was effected;
(b) a statutory declaration made by the
Chairman of the board of directors of the
insurer—
(i) specifying every payment made or
to be made to any person in
respect of the transfer or
amalgamation; and
(ii) stating that to the best of his

knowledge and belief no other
payment, other than those
specified has been or is to be made
in monies, policies, bonds,
valuable securities, property of
any description or any other
valuable consideration, by or with
the knowledge of any parties to
the transfer or amalgamation;
(c) a copy of the registered scheme of transfer;
and
(d) a copy of a notarized declaration form.
F. Corporate Governance
Persons debarred 65. (1) A person who has been—
(a) adjudged bankrupt;
from management
(b) a director or officer of a company in the ten

years immediately preceding—
(i) a winding up order made by a
court; or
(ii) the date that the company had
been placed in receivership;
(c) a director or officer during the ten years
prior to the revocation of the registration
or licence of a former insurer or former
licensee under the Financial Institutions
Act, unless such revocation was due to—
(i) its amalgamation with another
company;
(ii) the voluntary winding up of the
former insurer, pursuant to
section 40(1)(c) of this Act or the
former licensee pursuant to
section 66 of the Financial
Institutions Act; or
(iii) the former insurer not carrying

on business, pursuant to
section 34(1)(g) of this Act or the
former licensee not accepting a
deposit in Trinidad and Tobago
pursuant to section 23(1)(e) of the
Financial Institutions Act; or
(d) a director or officer during the ten years
prior to the revocation of the registration or
licence of a foreign company carrying on
insurance business, business of a financial
nature or business of banking, by a foreign
regulatory agency or body that regulates
financial entities, unless such revocation
was due to—
(i) its amalgamation with another
company;
(ii) its voluntary winding up; or
(iii) for any other reasons under the
applicable laws,
shall not, without the express approval of the Central
Bank, act or continue to act as a director or officer or, be
concerned in any way in the management of an insurer
or financial holding company.
(2) A person who—
(a) has been convicted by a court for an offence
involving fraud, a contravention of the
Proceeds of Crime Act and the
Anti-Terrorism Act or any Regulations
made thereunder or such other written law
in relation to the prevention of money
laundering and the combating of terrorist
financing as may be in force from time to
time;
(b) is or was convicted of an offence under this
Act; or
(c) is not a fit and proper person in accordance

with the criteria prescribed in Part A of
Schedule 5,
shall not act or continue to act as a director or officer of,
or be concerned in any way in the management of an
insurer or financial holding company.
(3) A local insurer shall seek a permit from the
Central Bank where a director or officer of the local
insurer proposes to be appointed as a director or officer
of another financial entity outside the financial group.
(4) Where for the purpose of subsection (2)(c) a
person is not regarded or is no longer regarded, as fit
and proper by the Central Bank, the Central Bank shall
serve a notice on the insurer or financial holding
company and on the person concerned informing them
that the Central Bank proposes to disqualify the person
from being a director or officer, stating the reasons for
its intention to disqualify and giving particulars of the
appeal process under section 253.
(5) Within the period of ten business days,
commencing from the day after which the notice under
subsection (4) is served—
(a) the insurer or financial holding company; or
(b) the person concerned,
may make written representations to the Central Bank
which shall take such representations into account in
deciding whether or not to disqualify the person from
acting as a director or officer.
(6) The Central Bank shall inform—
(a) the insurer or financial holding company;
and
(b) the person concerned,
in writing of its decision and shall give reasons for its
decision.
(7) Where the decision of the Central Bank

referred to in subsection (6) is to disqualify the person,
that person shall forthwith cease to be a director or
officer of the insurer or financial holding company.
(8) Where—
(a) the Central Bank places a restriction on the
registration of an insurer;
(b) it appears to the Central Bank that an
insurer’s capital or liquidity is inadequate
and the Central Bank has so notified the
insurer; or
(c) the Central Bank has exercised any of its
powers in relation to the insurer under the
special emergency powers under the
Central Bank Act,
the insurer or any financial holding company shall
notify the Central Bank of the nomination of a person
for election or appointment as a director or as an officer
at least twenty business days before the effective date of
election or appointment as the case may be.
(9) An insurer referred to in subsection (8), shall
not elect a person as a director or appoint a person as an
officer if within twenty business days of the election or
appointment the Central Bank disapproves of the
election or appointment as the case may be.
(10) A person who has been a director or officer of
an insurer in the ten years immediately preceding the
Central Bank’s exercise of its special emergency powers
under the Central Bank Act shall not, without the
express approval of the Central Bank act as director or
officer or, be concerned in any way in the management
of an insurer, financial holding company or a licensee
under the Financial Institutions Act.
(11) Notwithstanding the liability of a person
under subsection (13), it shall be the duty of every
insurer and financial holding company to ensure that its
directors and officers do not act or continue to act in

contravention of this section.
(12) Any—
(a) person who contravenes subsection (1),
(2)(a) or (b) or (3); or
(b) financial holding company or insurer upon
which notice has been served under
subsection (5) and which permits a person
who contravenes subsection (1) or (2) to act
or continue to act as a director of, or be
concerned in any way in the management of
the insurer or financial holding company,
indictment in the case of an individual, to a fine of five
million dollars and to imprisonment for five years and to
a fine of five hundred thousand dollars for each day that
the offence continues, and in the case of an insurer or a
financial holding company, to a fine of five million
dollars and to a fine of five hundred thousand dollars for
each day that the offence continues.
(13) A person referred to in subsection (2)(c) who
contravenes subsection (8) commits an offence and is
dollars and imprisonment for five years and to a fine of
five hundred thousand dollars for each day that the
offence continues.
Restriction on voting 66. A director of an insurer or of a financial holding

power of director
company shall not be present, or vote at a meeting of the
board of directors or a committee of the board of
directors when a contract which would result in a direct
or indirect financial benefit, other than a benefit under
the director’s contracts of employment, accruing to—
(a) the director or a relative of the director;
(b) a company of which the director or a
relative of the director is an officer; or
(c) a company in which the director or a

relative of the director holds a beneficial
interest,
is being considered.
67. (1) For the purpose of discharging his duty to act Duties of directors
honestly and in good faith with a view to the best
interests of an insurer or a financial holding company, a
director or officer thereof shall take into account the
interests of the insurer’s policyholders.
(2) A director or officer of an insurer or financial
holding company commits an offence if, in exercising his
powers and discharging his duties under subsection (1)
he knew or reasonably ought to have known that his
conduct was not in the best interests of the
policyholders, and is liable on summary conviction to a
fine not exceeding six hundred thousand dollars and to
imprisonment for two years.
(3) The directors of an insurer or of a financial
holding company shall notify the Inspector of any
developments that they had knowledge of, that in the
opinion of the directors have material adverse effects on
the financial condition of the insurer or financial
holding company and require prompt rectification.
(4) A director of an insurer or of a financial
holding company who—
(a) resigns;
(b) receives a notice, or otherwise learns, of a
meeting of shareholders called for the
purpose of removing him from office; or
(c) receives a notice, or otherwise learns, of a
meeting of directors or shareholders at
which another person is to be appointed or
elected to fill the office upon his resignation
or removal from office or because his term
of office has expired or is about to expire,
shall submit within five business days to the Inspector

a written statement giving the reasons for his
resignation, removal or departure from office, or, where
applicable, the reasons that he opposes his removal or
departure from office or any proposed action or
resolution and he may submit a copy of such statement
to the insurer or financial holding company.
(5) The directors of an insurer or of a financial
holding company shall establish and maintain
procedures for the determination of remuneration for
themselves and officers of the insurer or financial
holding company.
(6) An insurer or a financial holding company
shall submit to its audit committee an annual report
containing complete and accurate information
regarding the total remuneration paid to directors and
officers, within twenty business days after the end of its
financial year and such report shall be made available
for review by the Central Bank.
(7) An insurer shall not award or pay any bonus
to its directors and officers where—
(a) the assets of the insurer are insufficient to
meet the requirements under this Act and
Regulations; or
(b) the bonus would reduce the assets of the
insurer below the amount referred to in
paragraph (a).
(8) For the purposes of this section—
(a) “remuneration” means all cash and
non-cash pay elements and includes base
salary, allowances and bonuses, whether
fixed or variable, and any other benefit that
would accrue to a director or officer which
may be quantifiable; and
(b) “bonus” means any special payment made

in accordance with some formula dependent
on profits of the insurer or volume of
business written by the insurer or some
combination of both.
68. (1) The board of directors of an insurer shall Audit committee

appoint from among their number an audit committee,
which shall consist of at least three directors—
(a) a majority of whom shall be independent
directors;
(b) at least one of whom shall be a financial
expert; and
(c) at least one of the independent directors
shall not be a director of a connected party
of the insurer.
(2) The chair of the audit committee shall be an
independent director and a financial expert.
(3) Subsection (1)(a) shall not apply in respect of
an insurer to which section 23 applies until six months
after the commencement of this Act.
(4) The duties of the audit committee shall
include, without limitation—
(a) the review of, and report to the board of
directors on, the annual financial state-
ments and other returns prior to approval
by the board;
(b) the review of such returns of the insurer as
the Inspector may specify; and
(c) ensuring that an appropriate framework for
internal control procedures is in place.
(5) For the purposes of this section—
(a) a “financial expert” means a person who has
the necessary financial education from an
accredited educational institute, a sound

understanding of generally accepted
accounting principles, financial statements
and the way in which financial statements
are prepared and audited and substantive
experience as—
(i) a qualified accountant;
(ii) an auditor;
(iii) a chief financial officer;
(iv) a comptroller; or
(v) an actuary;
(b) a “qualified accountant” means a person
who is a member of the ICATT or such other
professional association as may be approved
by the Central Bank; and
(c) an “independent director” means a director
who—
(i) is not the holder of five per cent or
more of the shares of the insurer
or of a connected party of the
insurer;
(ii) is not a current officer of the
insurer or of a connected party of
the insurer;
(iii) is not a relative of a current officer
or director, or of a person who
was, within two years prior to his
appointment, an officer or director
of the insurer or a connected party
of the insurer;
(iv) is not the auditor, nor has been
employed by the auditor of an
insurer nor the auditor of any of
the connected parties of the
insurer within three years prior to
his appointment;
(v) has not been employed by the

insurer or any of its connected
parties within three years prior to
his appointment;
(vi) is not an incorporator of the
the insurer;
(vii) is not a professional adviser of the
the insurer;
(viii) is not a significant supplier to the
the insurer; and
(ix) is not indebted to the insurer or
any of its affiliates, other than by
virtue of a fully collateralized
loan.
69. Each insurer and each financial holding company Reports on
shall submit to the Inspector, within sixty business days responsibilities
after the end of its financial year and at such other
times as may be required by the Inspector, a report
which contains—
(a) a statement signed by its chief executive
officer and chief financial officer which
acknowledges the board of directors’ and
management’s responsibility for—
(i) preparing financial statements;
(ii) establishing and maintaining an
adequate internal control
structure and procedures for
financial reporting and
maintenance of separate accounts;
(iii) establishing and maintaining
adequate procedures for the
settlement of claims; and
(iv) complying with this Act and any
Regulations made hereunder and
Guidelines issued by the Central
Bank;
(b) a statement signed on behalf of its board of

directors that it has received the financial
condition report of the appointed actuary
or chief financial officer pursuant to
section 159 or 214;
(c) a statement signed on behalf of its board of
directors that it is satisfied that the risk
management systems and internal controls
are adequate for managing its risks and are
being properly applied;
(d) a statement signed on behalf of its board of
directors certifying that claims are settled
in accordance with the established
procedures; and
(e) a statement signed on behalf of its board
of directors certifying compliance with
section 56 of the Companies Act.
Policies and 70. The board of directors of an insurer shall—

(a) establish and maintain written policies for
procedures for
transactions with
all transactions between the insurer and—

connected parties and
employees
(i) connected parties;

(ii) connected party groups; and
(iii) employees; and
(b) review annually transactions referred to in
paragraph (a) to ensure compliance with its
policies.
Information systems 71. The board of directors of an insurer shall establish

or credit exposures
and maintain document information systems that
identify and monitor the credit exposures referred to in
sections 89 and 90.
Internal controls and 72. The board of directors of an insurer shall—

(a) establish, document and maintain adequate
risk management
systems
risk management systems and internal

controls; and
(b) appoint an internal auditor, who shall

report to its audit committee.
73. (1) The board of directors of an insurer shall Maintenance of

review annually the policies and documentation procedures
policies and
required under sections 70, 71 and 72(a).

(2) The board of directors shall provide to the
Inspector—
(a) upon request, the policies and
documentation required under sections 70,
71 and 72; and
(b) within sixty business days after the end
of its financial year, the results of
the compliance reviews referred to in
subsection (1).
(3) Where the polices and documentation referred
to are inadequate, the Inspector may require the board
of directors to change the polices and documentation,
within sixty business days.
(4) Where the board of directors of an insurer fails
to comply with subsection (2) and sections 70, 71 and 72,
the Inspector may direct the board of directors to take
within a specified period as he thinks fit, such action to
effect compliance.
74. (1) Where the Central Bank is of the opinion Central Bank may
that an insurer or financial holding company has shareholders meeting
require directors or
contravened this Act or any provision made by, or under

an enactment appearing to the Central Bank to be
designed for protecting members of the public against
financial loss due to dishonesty, incompetence or
malpractice by persons concerned in the provision of
banking, insurance, investment or other financial
services or the management of companies or against
financial loss due to the conduct of discharged or

undischarged bankrupts, the Central Bank shall by
notice in writing—
(a) require the board of directors of an insurer
or financial holding company to convene a
special meeting of the board of directors; or
(b) require the board of directors of the insurer
or financial holding company to convene a
special meeting of the shareholders to
report on the failure of the insurer or
financial holding company to implement
measures required to be taken by the
Central Bank,
and the Central Bank shall be invited to attend and be
heard at such meetings.
(2) Where an insurer or financial holding
company is in contravention of the minimum number of
directors required under the Companies Act, the
Central Bank shall have the power to convene a special
meeting of shareholders to fill the vacancies and the
Central Bank shall be heard at such meeting.
Appointment of 75. (1) An insurer and a financial holding company

auditor
shall appoint annually an audit entity satisfactory to
the Central Bank to be its auditor.
(2) An audit entity is qualified to be the auditor of
an insurer or financial holding company if—
(a) each member is independent of the insurer
or the financial holding company, within
the meaning of subsection (3);
(b) at least one member—
(i) is a practising member in good
standing with ICATT or is the
holder of a valid practising
certificate from such other
professional association of
accountants or auditors as the
Central Bank may approve; and
(ii) has knowledge and experience

satisfactory to the Central Bank,
in the audits of insurers and other
financial institutions; and
(c) it has adequate resources to perform its
functions in accordance with this Act.
(3) For the purposes of this section, a member of
an audit entity is not independent of an insurer or a
financial holding company if he—
(a) is a connected party of the insurer or the
(b) has any business relationship with the
insurer or the financial holding company or
with any of their respective connected
parties, other than in his capacity as the
auditor thereof or as a policyholder;
(c) beneficially owns or controls, directly or
indirectly, five per cent or more of the
shares or other securities of the insurer or
the financial holding company or of any of
their respective affiliates;
(d) is indebted to the insurer or any of its
affiliates other than by virtue of a fully
collateralized loan; and
(e) has within two years immediately
preceding the appointment of the audit
entity, been a receiver, receiver-manager,
liquidator or trustee in bankruptcy of any
affiliate of the insurer or the financial
holding company, other than a subsidiary or
affiliate acquired through a realization of
security.
(4) An insurer or financial holding company shall
not appoint an audit entity to be the auditor of the
insurer or financial holding company pursuant to

subsection (1) unless—
(a) the insurer or financial holding company
has served written notice on the Central
Bank of its intention to make such
appointment; and
(b) the Central Bank has failed to serve on the
insurer or financial holding company a
written notice of objection to the
appointment within twenty business days
either of—
(i) the date on which the insurer or
financial holding company served
notice of its intention to make the
appointment pursuant to
paragraph (a); or
(ii) the date of receipt of all
information requested by the
Central Bank in respect of the
notice,
whichever is the later.
(5) A member of an audit entity shall not be the
audit partner, having primary responsibility for the
audit of an insurer or a financial holding company for a
period of more than five consecutive years.
(6) The auditor of an insurer or financial holding
company shall not provide to that insurer or financial
holding company—
(a) book-keeping or other services related to its
accounting records or financial statements;
(b) financial information systems design and
implementation services;
(c) actuarial services;
(d) internal audit outsourcing services; or
(e) such other non-audit-related services as the
Central Bank may specify.
(7) If an insurer or financial holding company

fails to appoint an auditor satisfactory to the Central
Bank, the Central Bank shall appoint such auditor at
the expense of the insurer or the financial holding
company, as the case may be.
76. (1) An insurer or a financial holding company Notification in respect

shall forthwith give written notice, together with of auditors
reasons, to the Inspector if—
(a) it proposes to give notice to its shareholders
of a resolution to remove an auditor before
the expiration of his term of office;
(b) it gives notice to its shareholders of a
resolution to replace an auditor at the
expiration of his term of office with a
different auditor; or
(c) a person ceases to be an auditor of the
insurer or financial holding company
otherwise than in consequence of a
resolution referred to in paragraphs (a)
and (b).
(2) The auditor of an insurer or a financial
holding company shall forthwith give written notice to
the Inspector and to the insurer or financial holding
company if he—
(a) resigns before the expiration of his term of
office; or
(b) does not seek to be reappointed,
together with the reasons for such resignation or
decision not to seek reappointment.
(3) The auditor of an insurer or of a financial
holding company who receives a notice, or otherwise
learns of a meeting of directors or shareholders called
for the purpose of—
(a) removing the auditor from office; or
(b) appointing another person as auditor
because the term of office of the auditor has
expired or is about to expire,
shall submit to the insurer or financial holding

company a written statement giving the reasons why he
opposes or accepts his proposed removal or the
appointment of another person as auditor, and if he
submits such a statement he shall submit a copy of the
statement to the Inspector.
(4) Where the auditor of an insurer or of a
financial holding company receives notice under
subsection (3) as a result of a disagreement with the
board of directors or the officers of an insurer or of a
financial holding company, the auditor shall submit to
the insurer or the financial holding company, and to the
Inspector, a written statement setting out the nature of
the disagreement.
(5) Where the auditor of an insurer or financial
holding company has resigned or the appointment of the
auditor has been revoked, no person shall accept an
appointment as auditor of that insurer or financial
holding company until the person has requested and
received from the auditor who has resigned or whose
appointment as auditor has been revoked, a written
statement of the circumstances and reasons for such
resignation or why, in the opinion of the former auditor,
his appointment was revoked.
(6) Notwithstanding subsection (5), a person may
accept an appointment as auditor of an insurer or
financial holding company if, within fifteen business
days after a request under that subsection is made, no
reply from the former auditor is received.
Duties of auditor to 77. (1) Where the auditor of an insurer or of a

report to board of
financial holding company discovers, in the ordinary
course of an audit, any irregular transactions or
directors and
Inspector
conditions which, in the opinion of the auditor meets one

or more of the following criteria:
(a) any change in accounting policy or any
presentation of, or any failure to present
facts or figures which, in the opinion of the
auditor, has the effect of materially

misrepresenting the financial position of
the insurer or financial holding company;
(b) transactions that have a significant or
material impact on the financial position of
the insurer or financial holding company;
(c) transactions or conditions giving rise to
significant risks or large exposures that
have the potential to jeopardize the
financial viability of the insurer or
(d) transactions or conditions indicating that
the insurer or financial holding company
has significant weaknesses in internal
controls which render it vulnerable to
significant risks or exposures that have the
potential to jeopardize its financial
viability; and
(e) any other transactions or conditions which,
in the opinion of the auditor, should be
included in a report under this section,
the auditor shall report such findings in writing to the
chief executive officer and the board of directors of the
insurer or financial holding company.
(2) Where the auditor of an insurer or a financial
holding company discovers, in the ordinary course of an
audit, that the insurer or financial holding company has
contravened, is contravening or is likely to contravene
this Act, the Regulations or any applicable financial
reporting standards, the auditor shall report in writing
such findings to the Inspector.
(3) Where the auditor of an insurer or of a
financial holding company discovers, after receiving a
request in writing from the Inspector for an
investigation, any such transactions or conditions as set
out in subsection (1), the auditor shall report such
findings to the Inspector, and the Inspector shall share

those findings with the insurer or financial holding
company at such time as he deems necessary.
(4) The auditor of an insurer shall meet with the
Inspector in camera at least once annually to discuss
any matter relating to this Act and its Regulations.
(5) An auditor of an insurer who—
(a) knowing that a financial statement does not
fairly present the financial position of an
insurer; or
(b) being reckless as to whether a financial
statement fairly presents the financial
position of an insurer,
and renders an unqualified opinion on the financial
statement, commits an offence.
(6) Any person who contravenes this section
indictment—
(a) in the case of the audit entity, to a fine of
ten million dollars; and
(b) in the case of an individual auditor who
signs a report on behalf of the audit entity,
to a fine of five million dollars and to
imprisonment for five years.
Appointment of 78. (1) An insurer carrying on long-term insurance

actuary
business or a general insurer carrying on the accident
and sickness class of insurance business, and every
other insurer that is required by the Inspector to
provide actuarial reports, shall appoint an actuary
pursuant to subsection (3).
(2) Within three years of the commencement of
this Act, a general insurer carrying on insurance
business shall appoint an actuary pursuant to
subsection (3).
(3) An insurer shall not appoint a person to be its

appointed actuary required to submit a report or
certificate to the Inspector under this Act unless—
(a) the insurer has served written notice on the
Inspector of its intention to make such
appointment;
(b) the insurer has submitted the information
on the criteria specified in Schedule 5 to the
Inspector;
(c) the Inspector has failed to serve on the
insurer a written notice of objection to the
appointment within twenty business days
of the date on which the insurer served
notice of its intention to make the
appointment pursuant to paragraph (a) or
the date on which all information required
under paragraph (b) was submitted to the
Inspector, whichever is later; and
(d) there is no situation in which an actuary’s
duty to the insurer or statutory duties
comes into conflict with the actuary’s
personal interests or with the duties of the
actuary to another party.
(4) The chief executive officer and the chief
financial officer or a person performing like functions
may not be appointed as, or hold the position of
appointed actuary of an insurer.
79. (1) An insurer, shall forthwith give written notice Notification in respect
together with reasons to the Inspector if its appointed of actuary
actuary—
(a) is removed before the expiration of his
engagement;
(b) is replaced at the expiration of his
engagement with a different actuary; or
(c) ceases to be its actuary in circumstances
otherwise than those set out in
paragraphs (a) and (b).
(2) The appointed actuary of an insurer shall

forthwith give written notice to the Inspector and to the
insurer if he—
(a) resigns before the expiration of his
engagement; or
(b) does not seek to be reappointed, together
with the reasons for such resignation or
decision not to seek reappointment.
(3) An appointed actuary who receives a notice, or
otherwise learns that—
(a) his engagement is going to be discontinued;
or
(b) another person is to be appointed as
actuary of the insurer because the
engagement of the appointed actuary has
expired or is about to expire,
shall submit to the insurer a written statement giving
the reasons why he opposes or accepts his proposed
removal or the appointment of another person as
appointed actuary, and shall submit a copy of any such
statement to the Inspector.
(4) Where the appointed actuary of an insurer
receives a notice under subsection (3) as a result of a
disagreement with the board of directors or the officers
of an insurer, the appointed actuary shall forthwith
submit to the insurer, and to the Inspector, a written
statement setting out the nature of the disagreement.
(5) Where the appointed actuary of an
insurer has resigned or the appointment of the actuary
has been revoked, no person shall accept an
appointment as an appointed actuary of that insurer
until the person has requested and received from the
appointed actuary who has resigned or whose
appointment as the appointed actuary has been
revoked, a written statement of the circumstances and
reasons for such resignation or why, in the opinion of
the former appointed actuary, his appointment was
revoked.
(6) Notwithstanding subsection (5), a person may

accept an appointment as the appointed actuary of an
insurer if, within fifteen business days after a request
under that subsection is made, no reply from the
former appointed actuary is received.
80. (1) Where an auditor or former auditor of an Protection for whistle-

insurer, or financial holding company or an actuary or blowers
former actuary of an insurer communicates information
or gives an opinion to the Central Bank or the Inspector
in good faith and—
(a) he is required to give such information or
opinion to the Central Bank or the
Inspector under this Act or the Central
Bank Act; or
(b) where he reasonably believes that the
insurer or financial holding company is in
contravention of any written law,
such auditor, former auditor, actuary or former actuary
shall not be liable in any civil action seeking
indemnification for damages attributable to the auditor,
actuary, former auditor or former actuary having
communicated the information or given the opinion.
(2) This section applies to any matter of which an
auditor, former auditor, actuary, or former actuary
becomes aware in his capacity as auditor, former
auditor, actuary or former actuary and which relates to
the business or affairs of the insurer or any of its
affiliates or any director or officer or relative of such
persons in relation to which the information is given.
(3) Subsection (1) shall apply mutatis mutandis
to—
(a) any other person who is required to give
information to the Central Bank or the
Inspector under this Act; or
(b) any employee or external service provider of
the insurer or financial holding company
who provides information to the Central
Bank or the Inspector regarding the

conduct of an insurer, its affiliate or any
director, officer or relative of such
persons, which the employee or external
service provider reasonably believes
constitutes a violation of any written law.
(4) This section applies to the former auditor and
former actuary of a former insurer or former financial
holding company.
Referring matters to 81. (1) Where the Inspector has reasonable grounds to
believe that the auditor or actuary of an insurer or
the professional
association for
financial holding company—

auditors and
actuaries
(a) has failed to perform his duties or to comply

with the provisions of this Act;
(b) has been a party to the preparation of, or
has rendered an unqualified opinion on a
financial statement that does not fairly
present the financial position of the insurer
or financial holding company; or
(c) is incompetent or is accused of professional
misconduct,
the Inspector or Central Bank shall deliver a written
report to the insurer, financial holding company and
as appropriate ICATT, the Caribbean Actuarial
Association or such other professional association that
may, in the opinion of the Inspector be relevant.
(2) Where the Inspector has made a report under
subsection (1) in good faith, the Inspector shall not be
subject to any action, claim or demand by, or any
liability to, any person in respect of which the report
was made.
G. Prudential Requirements, Restrictions

and Prohibitions
82. (1) An insurer or financial holding company shall, Capital adequacy
in relation to its operations on an individual and liquidity
consolidated basis maintain—
(a) adequate capital; and
(b) adequate and appropriate forms of
liquidity,
and shall comply with Schedule 8 and the Regulations
in relation to adequate capital and adequate and
appropriate forms of liquidity.
(2) An insurer which has been reissued a
certificate of registration under section 23 shall within
five years of the commencement of this Act increase its
regulatory capital ratio in accordance with the
Regulations and Schedule 8.
(3) Notwithstanding subsections (1) and (2), the
Inspector may direct the insurer or financial holding
company to—
(a) increase its capital; or
(b) provide additional liquidity,
in such forms and amounts, based on the particular
circumstances of the insurer or financial holding
company.
comply with a direction under subsection (3) within
such time as the Inspector may specify.
(5) Where an insurer does not comply with its
requirements under this section, the insurer commits
an offence and is liable on conviction on indictment to a
fine of five million dollars.
83. (1) An insurer which carries on insurance Adequate assets

business through overseas branches shall maintain and
hold adequate assets to support its liabilities to its
foreign policyholders.
(2) An insurer shall maintain and hold adequate

assets to support its liabilities to its Trinidad and
Tobago policyholders.
Restriction on 84. (1) An insurer or financial holding company shall

payment of dividend
not declare or pay a dividend or transfer an amount
from which a dividend can be paid or make any payment
to purchase or redeem any shares issued by it or reduce
its stated capital—
(a) where the assets of the insurer are
insufficient to meet the requirements under
this Act and the Regulations;
(b) where the dividend would reduce the assets
of an insurer below the amount referred to
in paragraph (a);
(c) where the Catastrophe Reserve Fund
referred to in Part III or capital is less than
the amount required under this Act and the
Regulations;
(d) until all the capitalized expenditure,
including preliminary expenses,
organizational expenses, share-selling
commission and brokerage of the insurer
not represented by tangible assets has been
completely written off;
(e) in the event of the Central Bank’s exercise
of its special emergency powers under the
Central Bank Act without first obtaining
the Central Bank’s approval; or
(f) where in the case of a financial holding
company, any of the conditions referred to
in paragraphs (a) to (e) apply to any of its
insurer subsidiaries.
(2) Where an insurer or holding company declares
a dividend but the Catastrophe Reserve Fund or
capital is less than the amount required under this Act,
it shall not apply, allocate or transfer any part of its
assets to pay dividends.
(3) An insurer, holding company or financial

holding company which contravenes this section
85. (1) An insurer shall invest in assets in Trinidad Assets

and Tobago an amount equal to at least seventy per cent
of its policy benefit liabilities, other insurance and
contract liabilities and the surplus which is derived
from participating policies denominated in Trinidad and
Tobago dollars.
(2) For the purposes of subsection (1), assets not
exceeding ten per cent of policy benefit liabilities, other
insurance and contract liabilities and the surplus which
is derived from participating policies denominated in
Trinidad and Tobago dollars shall be deemed to be
assets in Trinidad and Tobago where such assets
originate in any of the member States of the Caribbean
Community.
(a) “assets in Trinidad and Tobago” means
assets which—
(i) originate in Trinidad and Tobago,
and are denominated in Trinidad
and Tobago currency;
(ii) where denominated in a foreign
currency, are issued or fully
guaranteed by the Government of
Trinidad and Tobago; or
(iii) fixed income securities issued by
companies domiciled in Trinidad
and Tobago whether or not
denominated in Trinidad and
Tobago currency; and
(b) “Caribbean Community” means the
Caribbean Community established by the
Treaty of Chaguaramas.
(4) Where any liability in respect of policies is

payable in a foreign currency, the insurer shall invest in
foreign assets in that currency an amount not less than
seventy per cent of such foreign currency liability.
(5) The assets of an insurer shall be invested in
accordance with this Act and the Regulations.
(6) The board of directors of an insurer shall
establish and maintain written policies and procedures
relating to the investment of the assets of the
insurer.
(7) Where the board of directors of an insurer fails
to comply with subsection (6), the Inspector may require
the board of directors to take such action, within a
specified period to effect compliance.
Investments to be 86. (1) All investments and deposits of an insurer
shall be made in its corporate name and no director or
made in corporate
name
officer of the insurer and no member of a committee
which can exercise any authority over the investments
and deposits of the insurer shall—
(a) either directly or indirectly be a beneficiary
or accept any fee, brokerage, commission,
gift or other consideration for, or on account
of any loan, deposit, purchase, sale,
payment or exchange made by, or on behalf
of, the insurer; or
(b) be pecuniarily interested in any purchase,
sale or loan made by, or on behalf of the
insurer, whether as principal or agent and
whether solely or jointly, save that where
the director, officer or member of the
committee is a policyholder, he is entitled to
all the benefits accruing to him under the
terms of his contract.
(2) In respect of each credit exposure of an
insurer, a written record showing the authorization
thereof shall be made and signed by an officer of the

insurer or by the chairman of the committee authorizing
the credit exposure.
(3) Investment records are to be maintained at
the insurer’s principal office in Trinidad and Tobago.
(4) The insurer shall keep a separate record of all
investments.
(5) Investments may be maintained in book-entry
form if properly recorded with the Central Securities
Depository of Trinidad and Tobago or such other
recognized depository as the Central Bank may
determine.
commits an offence and in the case of an insurer is liable
on conviction on indictment to a fine of five million
dollars.
87. (1) An insurer shall not, directly or indirectly hold Limits on acquisition
shares or ownership interests in any entity, not interests by an
of shares or ownership
including a financial entity, if such holding would result insurer

in—
(a) the insurer having the power to—
(i) exercise twenty per cent or more
of the voting rights at any general
meeting of the entity;
(ii) elect twenty per cent or more of
the directors or officers of the
entity; or
(iii) exercise significant influence over
the conduct of the business and
affairs of the entity;
(b) the insurer holding shares in a company or
ownership interests in an unincorporated
entity of a value equal to twenty-five per
cent or more of the capital base of the
insurer; or
(c) the aggregate value of all such

shareholdings and ownership interests
referred to in paragraph (b) exceeding one
hundred per cent of the capital base of the
insurer.
(2) The restrictions imposed under subsection (1)
shall not apply where such shareholding or ownership
interest is acquired—
(a) in the administration of the estate of a
deceased person; or
(b) in the course of the satisfaction of debts due
to the local insurer,
but such shareholding or ownership interest shall be
disposed of at the earliest possible time but in any
event, not later than five years from the date of
acquisition or such further period as the Central Bank
may permit.
(3) Notwithstanding subsection (1) and subject to
subsections (6) and (8), an insurer shall not, without
first obtaining the approval in writing of the Central
Bank, acquire shares in such number that would equal
ten per cent or more in any class of shares in a financial
entity.
(4) The restrictions imposed under sub-
sections (1) and (3) shall not apply to shares or owner-
ship interests in entities which—
(a) provide necessary services in support of the
activities of an insurer, in the case where
the insurer obtains the prior written
approval of the Central Bank;
(b) are engaged solely in the business of the
establishment, distribution or sale of
collective investment schemes;
(c) are permissible real estate entities; or
(d) are agencies established in accordance with
section 30(11).
(5) An insurer shall not directly or indirectly hold

any shares or ownership interest in a brokerage.
(6) Within sixty business days of the coming into
force of this Act, an insurer shall notify the Central
Bank of any shares or ownership interests held by it in
any entity referred to in subsection (4).
(7) The Central Bank may—
(a) approve the holding of the shares or
ownership interests in an entity referred to
in subsection (4)(a); or
(b) require the insurer to dispose of any of the
shares or ownership interests in an entity
referred to in subsection (4)(a), in
accordance with subsection (8),
if the Central Bank is of the opinion that the entity does
not provide necessary services in support of the
activities of the insurer.
(8) Within sixty business days of the coming into
force of this Act, an insurer shall notify the Central
Bank of any shares and ownership interests held by it in
excess of any limit imposed by this section and the
Central Bank shall require the insurer to dispose of any
excess shares or ownership interest within such time as
the Central Bank shall specify.
88. (1) An insurer shall not without the prior approval Approval for certain
of the Central Bank— transactions
(a) directly or indirectly establish or acquire a

subsidiary in, or outside of Trinidad and
Tobago; or
(b) enter into an agreement for sale or other
transfer of—
(i) any of its subsidiaries of the
insurer; or
(ii) its controlling or significant
interest in a financial entity.
(2) An insurer shall not without prior approval of

the Inspector—
(a) enter into an agreement for sale or other
transfer of ten per cent or more of—
(i) its assets;
(ii) the assets of any of its
subsidiaries; or
(iii) the assets of any entity in which it
has a controlling or significant
interest; or
(b) undertake any other restructuring that
would result in a reduction in its capital.
Limits on credit 89. (1) An insurer shall not, directly or indirectly,

incur a credit exposure to a person including a borrower
exposures
group or related group in an aggregate amount that

exceeds twenty-five per cent of its capital base, other
than a credit exposure that is—
(a) fully guaranteed by the Government of
(b) extended directly to, or fully guaranteed by
a sovereign state, other than the
Government of Trinidad and Tobago, with
an investment grade rating from a credit
rating agency approved by the Central
Bank and said guarantee is explicit,
unconditional, legally enforceable and
irrevocable over the life of the credit
exposure in question;
(c) extended directly to the Government of
(d) fully secured at all times by cash in
Trinidad and Tobago dollars or other
currencies readily convertible to Trinidad
and Tobago dollars, delivered to the insurer
and placed with it in a special account, in an

approved financial institution, secured by a
charge in favour of the insurer; or
(e) for a period of less than twenty business
days and fully secured by investments that
are investment grade, as rated by a credit
rating agency approved by the Central
Bank, provided that the insurer shall give
the Central Bank prior notice of such
exposure being incurred.
(2) An insurer shall not, directly or indirectly,
incur any large exposure to a person including a
borrower group or related group if by so doing the
aggregate principal amount of all such large exposures
would exceed eight hundred per cent of the capital base
of the insurer.
(3) The aggregate principal amount referred to in
subsection (2) shall include the aggregate principal
amount for connected parties referred to in
section 90(1)(b).
(4) Where, in any particular case—
(a) an insurer is in contravention of the limits
referred to in subsections (1) and (2); or
(b) a credit exposure of an insurer is not
prudent,
the Inspector may require an insurer to reduce its
credit exposure, increase its capital pursuant to
section 82(3), or, where applicable, make adequate
provisions for potential losses.
(5) Within sixty days of the commencement of
this Act, an insurer shall notify the Inspector of—
(a) all credit exposures to persons including
borrower groups or related groups which
are in excess of the limits under this
section; and
(b) the measures that the insurer shall take in

order to—
(i) reduce within a period of three
years the excess credit exposures
granted so that they are within
the limits in subsections (1) and
(2); or
(ii) provide within a period of two
years, additional capital.
(6) Any modification of, addition to, or renewal or
extension of a credit exposure referred to in
subsection (5) shall be subject to the limits imposed by
this section.
(7) Notwithstanding subsection (6), the limits
imposed by this section shall not apply to modifications
which seek to reduce the insurer’s credit exposure to
any person, related group or borrower group.
(8) Where a sovereign state loses its investment
grade rating from a credit rating agency approved by
the Central Bank—
(a) any credit exposure incurred by the insurer
shall be subject to the limit in
subsection (1); and
(b) the provisions of section 91 shall apply.
(9) The Central Bank may, from time to time,
establish criteria to be taken into account in
determining credit exposure and other exposures to
risk, by publication of a notice in the Gazette or through
directions to a particular insurer.
(10) The requirements of this section shall apply—
(a) to an insurer on an individual basis and on
a consolidated basis to include where
applicable, all the domestic and foreign—
(i) subsidiaries of the insurer; or
(ii) companies in which the insurer is

a significant shareholder; and
(b) on a consolidated basis, to a financial
holding company and all of the domestic
and foreign members of the financial group
that the financial holding company controls.
90. (1) An insurer shall not, directly or indirectly, Limits on credit

incur credit exposures—
exposures to
connected parties
(a) to any connected party or connected party

group in a principal amount exceeding ten
per cent of its capital base; or
(b) to all connected parties and connected party
groups in an aggregate principal amount
exceeding twenty-five per cent of its capital
base, other than a credit exposure listed in
section 89(1).
(2) Subject to section 89(1) and (2), subsection (1)
shall not apply to—
(a) a subsidiary of an insurer where no other
connected party holds any share in such
subsidiary; or
(b) a holding company or financial holding
company of an insurer that is itself an
insurer or permit holder under this Act,
respectively.
(3) For the purposes of subsections (1) and (2),
equity investments in wholly owned subsidiaries that
are insurers, shall not be taken into account in the
determination of credit exposure.
(4) Notwithstanding subsection (1), an insurer
shall not incur credit exposures to—
(a) a director of the insurer;
(b) an officer of the insurer; or
(c) a relative of a person referred to in

paragraphs (a) and (b), in an amount
exceeding—
(i) in the case of a non-executive
director or relative of a
non-executive director, two per
cent of the capital base of the
insurer; or
(ii) in the case of an executive
director, officer, or relative of an
executive director or officer, two
per cent of the capital base of the
insurer or two years’ emoluments
of the director or officer,
whichever is the lesser.
(5) The limit referred to in subsection (4) shall not
apply to a loan made on the security of a mortgage on
the principal residence in Trinidad and Tobago of a
director or officer of the insurer where the amount of the
loan does not exceed eighty per cent of the value of the
property at the time the loan is made.
(6) Any credit exposure incurred by an insurer to
a connected party or to a connected party group under
this section shall be—
(a) on similar terms and conditions on which
such credit exposure is offered to the public;
and
(b) subject to the approval of the board of
directors.
(7) Within sixty business days of the
commencement of this Act, an insurer shall notify the
Inspector of all credit exposures to connected parties
and connected party groups which are in excess of the
limits fixed under this section or not in accordance with
subsection (6).
(8) With the exception of subsections (7) and (10),

this section does not apply in respect of any credit
exposure incurred by an insurer to a connected party or
a connected party group prior to the commencement of
this Act.
(9) Any modification of, addition to, renewal or
extension of a credit exposure referred to in
subsection (7) shall be subject to the limits imposed by
this section.
(10) Where, in the opinion of the Inspector, a
credit exposure incurred by an insurer to a connected
party or to a connected party group exposes the insurer
to excessive risk, or does not accord with the terms and
conditions referred to in subsection (6)(a), the Inspector
may require the insurer to set aside or direct that
changes be made to the credit exposure, or require the
insurer to limit or reduce the credit exposure.
(11) This section shall apply—
(a) to an insurer on an individual basis, and on
a consolidated basis to include where
applicable, all the domestic and foreign—
(i) subsidiaries of the insurer; and
(ii) companies in which the insurer is
a significant shareholder; and
(b) on a consolidated basis, to a financial
holding company and all of the domestic
and foreign members of the financial group
that the financial holding company controls.
(12) For the purposes of sections 89 and 90, where
the credit exposures of two (or more) statutory
companies or state owned enterprises do not meet the
criteria set out under section 89(1)(a), and are not
otherwise connected to each other, those entities will
not be deemed to be part of a borrower group.
Reporting 91. (1) Where an insurer has contravened the

limitations on credit exposures referred to in sections 89
contravention of
and 90, the insurer shall inform the Inspector within

credit exposure
limits
two business days of becoming aware of such

contravention.
(2) Where an insurer informs the Inspector that it
has contravened a credit exposure limit, the Inspector
shall require the insurer to reduce its credit exposure or
take such other steps within a specified period as he
determines appropriate.
Prohibitions with 92. (1) An insurer shall not directly or indirectly—

(a) acquire its own shares or the shares of its
respect to acquiring
shares, borrowing or
lending funds
holding company or financial holding
company, except that an insurer shall be
allowed to acquire and cancel shares issued
by it pursuant to the Companies Act;
(b) deal in, underwrite or incur credit
exposures on the security of its own shares
or the shares of a holding company,
financial holding company or subsidiary of
the insurer;
(c) grant unsecured credit except—
(i) to any person for temporary cover
for general insurance, which shall
not exceed twenty business days;
or
(ii) for advances to agents, sales
representatives or to employees
against commissions or salaries to
be earned; or
(d) guarantee on behalf of any person, other
than a subsidiary or entity controlled by the
insurer, the payment or repayment of any
sum of money unless—
(i) the sum of money is a fixed sum of
money with or without interest
thereon; and
(ii) the person on whose behalf the

insurer has undertaken to
guarantee the payment or
repayment has an unqualified
obligation to reimburse the
insurer for the full amount of the
payment or repayment to be
guaranteed;
(e) issue bonds or other evidence of
indebtedness unless they are fully paid for
in money or with the approval of the
Inspector in property; and
(f) grant to a person the right to appoint a
receiver or a receiver-manager of the
property or business of the insurer.
(2) The restriction imposed under sub-
section (1)(a) shall not prevent an insurer from acting as
trustee of a pension fund plan, or from investing the
assets of the plan in shares of the insurer or in a
financial holding company, holding company or
subsidiary of the insurer up to a limit of ten per cent of
the assets of the pension fund plan, inclusive of
revaluation gains and losses on the shares.
(3) The board of directors of an insurer shall—
(a) establish and maintain written policies in
relation to the—
(i) creation of a security interest of
the insurer to secure obligations of
the insurer; or
(ii) acquisition by the insurer of a
beneficial interest in property
that is subject to a security
interest; and
(b) review annually the policies referred to in
paragraph (a) to ensure compliance with its
policies.
(4) An insurer may only grant a security

interest—
(a) on immovable property; or
(b) on assets other than immovable property,
as collateral for an asset-backed security or
such other securities as the Inspector may
approve.
(5) If an insurer has committed a breach of sub-
section (1), the insurer shall, on becoming aware of that
fact, notify the Inspector without delay.
H. Judicial Management, Suspension and Winding up

Application for 93. (1) Where the Inspector is satisfied that—
(a) a ground for revocation under section 34(1)
judicial management
exists;
(b) the insurer or financial holding company
has failed to submit financial statements
and returns in accordance with
sections 144, 145 and 146 and that the true
financial position of an insurer or financial
holding company is uncertain; or
(c) a financial holding company is no longer
considered to be fit and proper in
accordance with Schedule 5,
he shall advise the Board accordingly.
(2) The Board may, after receiving the advice of
the Inspector and where it is of the opinion that it is
necessary or proper for the insurer or financial holding
company or any part of its business be placed under
judicial management, direct the Central Bank to apply
to the High Court for an order of judicial management.
(3) An insurer or financial holding company may,
after giving the Central Bank one month’s notice in
writing of its intention to do so apply to the High Court
for an order that it or any part of its business be placed
under judicial management.
(4) Where an application is made to the High

Court under this section—
(a) the insurer or the financial holding
company, as the case may be; and
(b) the Central Bank,
shall be entitled to be heard on the application.
(5) Where an application is made under this
section for an order in respect of any insurer or financial
holding company, all actions and the execution of all
writs, summonses and other processes against the
insurer or financial holding company shall, by virtue of
this section, be stayed and shall not be proceeded with,
without the prior leave of the High Court or unless the
High Court directs otherwise.
94. (1) An order for the judicial management of an Judicial management

insurer or financial holding company or of any part of its
business shall be subject to the provisions of this section
and of sections 93 and 95 to 100.
(2) The High Court shall appoint a judicial
manager who shall receive such remuneration from the
insurer or financial holding company and may at any
time cancel the appointment and appoint some other
person as the judicial manager.
(3) The High Court may, if it thinks fit, charge
the remuneration charges and expenses of the judicial
manager on the property of the insurer or financial
holding company in such order of priority, in relation to
any existing charges on that property, as it thinks fit.
(4) Where an order for judicial management is
made under this section, the management of the
insurer or financial holding company or of that part of
its business to which the order relates shall, on and
after the date specified in the order, vest exclusively in
the judicial manager.
(5) A person who is appointed judicial manager,

shall not, except with the leave of the High Court, issue
any new policies other than paid-up policies.
(6) The High Court may from time to time issue to
the judicial manager such directions regarding his
powers and duties as it considers necessary.
(7) The judicial manager shall act under the
control of the High Court and may at any time apply to
the High Court for instructions as to the manner in
which he shall conduct the judicial management or in
relation to any matter arising in the course of the
judicial management.
(8) The judicial manager shall give a report on
the status of the judicial management to the Central
Bank on a monthly basis and shall provide the Central
Bank with such information as it may from time to time
require and shall report to the Central Bank whenever
he intends to apply to the High Court for instructions
and shall at the same time furnish the Central Bank
with particulars of the application.
(9) The Central Bank is entitled to be heard on
any application made pursuant to subsection (7) and
may make an application to the High Court to be heard
on any matter relating to the conduct of the judicial
management.
Report by judicial 95. (1) The judicial manager shall conduct the
management with due diligence, and shall as soon as
manager
possible after his appointment, file with the High Court

a report stating which of the following courses is in the
circumstances, in his opinion most advantageous to the
general interests of the policyholders of the insurer:
(a) the transfer of the business of the insurer to
some other company in pursuance of a
scheme to be prepared in accordance with
sections 57 to 64 (whether the policies of the
business continue for the original sums

insured, with the addition of bonuses that
are attached to the policies, or varied for
reduced amounts or otherwise varied in the
case of annuities);
(b) the carrying on of its business by the
insurer (whether the policies of the business
continue for the original sums insured, with
the addition of bonuses that are attached to
the policies, or varied for reduced amounts
or otherwise varied in the case of annuities)
or financial holding company;
(c) the winding up of the insurer or financial
holding company or of any part of its
business; or
(d) the dealing with part of the business of the
insurer or financial holding company in one
manner, and with another part in another
manner.
(2) The judicial manager shall, as soon as he has
filed the report, furnish a copy thereof to the Central
Bank and make a written application to the High Court
for an order to give effect to the course stated in the
report.
(3) The report or a copy thereof shall be open for
inspection by any person during official hours at the
registry of the High Court in which the report is filed or
at such other place as the Central Bank determines.
(4) Where the judicial manager recommends the
transfer of the business of the insurer or financial
holding company in accordance with subsection (1)(a),
the Central Bank shall assess whether the proposed
transfer meets the criteria of sections 61 and 62 and
advise the High Court of its assessment during the
hearing under section 96(1).
Decision of High 96. (1) The High Court shall on the hearing of an
Court on judicial
manager application made under section 95(2)—
(a) after hearing the Central Bank, the judicial
manager and any other person who in the
opinion of the High Court ought properly to
be heard; and
(b) after considering the report of the judicial
manager,
make an order giving effect to the course which it
considers in the circumstances to be most advantageous
to the general interest of the policyholders of the
insurer.
(2) An order of the High Court under sub-
section (1) shall be binding on all persons, and shall
have effect notwithstanding anything contained in the
articles of incorporation or continuance, by-laws or
other constituent documents of the insurer or financial
holding company.
Transfer of business 97. (1) Where an order is made by the High Court for
to another company
the transfer of the business of an insurer or financial
holding company to some other company, the judicial
manager shall prepare a scheme of transfer in
(2) The judicial manager shall submit a copy of
the scheme of the transfer to the Central Bank at least
ten business days before making an application to the
High Court for a confirmation of the scheme in
accordance with subsection (3).
(3) The judicial manager shall apply to the High
Court for a confirmation of a scheme of transfer and the
Central Bank shall be entitled to be heard by the High
Court on its confirmation.
(4) Until a scheme of transfer is confirmed by the
High Court, the management of the insurer or financial
holding company shall continue to be vested in the
judicial manager.
(5) Where the High Court confirms a scheme of

transfer, the High Court shall order the Registrar of
Companies to issue a certificate of amalgamation under
the Companies Act.
98. The High Court may, either of its own motion or Cancellation of
on the application of the judicial manager, at any time contracts or
while an order made under section 94 is in force with

agreements
respect to an insurer or financial holding company, after

hearing all persons who, in the opinion of the High
Court are entitled to be heard, cancel or vary, either
unconditionally or subject to such conditions as the
High Court thinks just, any contract or agreement,
other than a policy between the insurer or financial
holding company and any other person, which the High
Court is satisfied is detrimental to the interests of the
policyholders.
99. The judicial manager shall not be subject to any Indemnity

action, claim or demand by, or liability to, any person in
respect of anything done or omitted to be done in good
faith in the exercise of, or in connection with the
exercise of, the powers conferred on him under this Part.
100. (1) The judicial manager, the Central Bank or Cancellation of

any interested person may at any time apply to the High judicial management
Court for the cancellation of an order made by the High
Court under section 94.
(2) Where an application is made under sub-
section (1) and the High Court has heard the Central
Bank on such application, the High Court may cancel
the order if it appears to it that—
(a) the purpose of the order has been fulfilled;
or
(b) it is undesirable for the order to remain in
force.
(3) Upon the cancellation of an order, the judi-
cial manager shall be divested of the management
which shall thereupon vest in the board of directors,
other governing body of the company, the liquidator or
receiver, appointed by the High Court.
Suspension of 101. (1) Subject to subsections (11) and (12), where

the Inspector is satisfied that an insurer has a
operations
regulatory capital ratio as defined in the Regulations of

seventy per cent or less, he shall direct the insurer in
writing to comply with section 82 within a period of
sixty business days.
(2) Where the insurer fails to comply with
section 82 in accordance with subsection (1), the
Inspector shall advise the Board accordingly.
(3) The Board shall, after receiving the advice of

the Inspector under subsection (2), order the insurer to
suspend business forthwith and—
(a) where there are reasonable grounds to
believe that the circumstances leading to
the order of suspension may be rectified,
direct the Inspector to make an application
for an order of judicial management in
accordance with section 93; or
(b) where there are no reasonable grounds to
believe that the circumstances leading to
the order of suspension may be rectified,
direct the Inspector to make an application
to wind up such insurer in accordance with
section 103.
(4) Where the Board orders that an insurer’s
business be suspended under subsection (3), it may also
direct the Inspector to take charge of all the books,
records, other documents, including electronically
stored information, and assets of the insurer and to take
all such measures as may be necessary to—
(a) prevent the continuation in business by
that insurer during the period of
suspension; and
(b) preserve the assets of the insurer.
(5) Notwithstanding subsections (3) and (4), the

Board may also direct the Inspector to take all such
measures as may be necessary to collect—
(a) premiums due in respect of long-term
insurance business of an insurer; and
(b) all receivables due and owing to the insurer
during the period of suspension,
and any monies so collected shall be held in escrow
during the period of suspension.
(6) All costs incurred by the Inspector under
subsections (4) and (5) shall be treated as a loan by the
Central Bank to the insurer and shall be repaid out of
the funds of the insurer in the event that the insurer is
liquidated.
(7) An order made under subsection (3) shall
cease to have effect on the appointment of a judicial
manager or liquidator, as the case may be, or where the
petition is presented and dismissed.
(8) Notwithstanding section 10(13), any person
who directly or indirectly prevents the Inspector, any
person authorized in writing by the Central Bank or a
designated member of staff of the Central Bank from—
(a) entering the premises of an insurer;
(b) having access to its books, records or other
documents, including electronically stored
information; or
(c) having the items in paragraph (b) made
readily available,
during a period of suspension, commits an offence and is
dollars and to imprisonment for five years.
(9) Where the Board suspends the business of an
insurer under this section, all claims, actions and the
execution of all writs, summonses and other processes
against the insurer shall, by virtue of this section, be

stayed and shall not be proceeded with, without the
prior leave of the High Court or unless the High Court
directs otherwise.
(10) No time shall run in relation to any period of
limitation prescribed by the Limitation of Certain
Actions Act or any other written law relating to the
limitation of actions, proceedings or the enforcement of
any judgment or order in respect of any claim of a
person pursuant to a policy against an insurer, from the
date of the order under subsection (3) and until the
termination of the suspension of the insurer’s business
in accordance with this section.
(11) Subsection (1) shall not apply to an insurer
registered under the former Act and which at the
commencement of this Act is subject to the powers of the
Central Bank under section 44D of the Central Bank
Act.
(12) Subsection (1) shall not apply to an insurer
registered under the former Act, other than an insurer
referred to in subsection (11), for a period of twenty-four
months from the commencement of this Act.
Other grounds for 102. (1) Notwithstanding the provision of
section 101(11) and (12) where it appears to the Board
suspension
that there are grounds on which its power to revoke the

registration of an insurer under section 34 is
exercisable, the Board may, after considering the
circumstances, suspend the operations of the insurer
and the provisions of section 101(3) to (10) shall apply
mutatis mutandis.
(2) Where a financial holding company fails to
submit financial statements and returns in accordance
with sections 144, 145 and 146 and the Board is
satisfied that the true financial position of the financial
holding company is uncertain, is insolvent or its
continuation in business is likely to involve a loss to the
policyholders, the Board may after considering the

circumstances, suspend the operations of the financial
holding company and the provisions of section 101(3)
to (10) shall apply mutatis mutandis.
103. (1) The High Court may order the winding up of High Court may order
an insurer or financial holding company and appoint a winding up
liquidator in accordance with the Companies Act subject
to the modification that the insurer or financial holding
company may also be ordered to be wound up on the
petition of—
(a) the Central Bank; or
(b) ten or more policyholders owning policies of
an aggregate of not less than twenty per
cent of the aggregate sum assured of the
insurer.
(2) A petition shall not be presented except by
leave of the High Court, and such leave shall not be
granted unless—
(a) a prima facie case has been established to
the satisfaction of the High Court; and
(b) security for costs for such amounts as the
High Court may think reasonable has been
given.
(3) The Central Bank shall be a party to any
proceedings under the Companies Act relating to the
winding up of an insurer or financial holding company.
(4) A reference in this section to an “insurer”
shall include an “insurance company” which has ceased
to be registered under this Act but remains under any
liability in respect of its policyholders.
(5) The appointment of a liquidator, receiver,
receiver-manager or special manager does not in any
way absolve any director or officer of the insurer or
financial holding company from liability arising from
wilful neglect, fraudulent transactions, abuse of policy-
holders funds, or from any breach of the provisions of
this Act.
Procedure on 104. (1) An order of the High Court for the winding up
of an insurer or financial holding company shall be
winding up
subject to the provisions of this section and sections 105

and 106.
(2) Subject to subsections (4) and (6), a liquidator
appointed under section 103 shall act under the control
of the High Court and may apply to the High Court at
any time for instructions as to the manner in which he
shall conduct the winding up or in relation to any
matter arising in the course thereof.
(3) The liquidator shall furnish the Central Bank
with—
(a) such information as the Central Bank may
from time to time require within the period
specified by the Central Bank;
(b) all documents submitted to the Registrar of
Companies as required under the
Companies Act within five business days of
such submission; or
(c) particulars of any application that the
liquidator intends to make under
subsection (2) at least ten business days
prior to the making of such application.
(4) The Central Bank is entitled to be heard on
an application under subsection (2) and may make an
application to the High Court to be heard on any matter
relating to the conduct of the winding up.
(5) The liquidator may, in the case of an insurer
which was carrying on long-term insurance business,
continue to carry on the business with a view to its
being transferred as a going concern to another insurer,
whether in existence or being formed for that purpose.
(6) For the purposes of exercising his functions

under subsection (5), the liquidator may agree to the
variation of any contracts of insurance in existence at
the date of the order but he shall not effect any new
contracts of insurance.
(7) Where the liquidator is satisfied that the
interests of the creditors in respect of liabilities of the
insurer or financial holding company require the
appointment of a special manager, he may apply to the
High Court for such an appointment.
(8) The High Court may on an application under
subsection (7), appoint a special manager to act during
such time and with such powers as the High Court may
direct.
(9) A liquidator or a special manager, or both,
shall receive such remuneration as the High Court
directs.
(10) In addition to any other action that the
Central Bank may take, it is entitled to make
complaints to the Registrar of Companies who shall
enquire into the matter and take such appropriate
action.
105. (1) The liquidator shall ascertain, in such Ascertainment of
manner and on such basis as the High Court may value of liability
approve, the value of the liability of the insurer to every

under policies
person who, according to the books of the insurer, is

entitled to, or is interested in a policy issued by the
insurer and shall in such manner as he thinks proper
give notice to every such person of the value so
ascertained.
(2) A person to whom notice is given under sub-
section (1) shall be bound by the value ascertained by
the liquidator unless he disputes the valuation in such
manner and within such time as is prescribed by Rules
of Court or as the High Court, in any particular case, by
order directs.
Winding up of 106. (1) Where the High Court makes an order for the
part of business
winding up of part of the business of an insurer, a
scheme for the purpose of the winding up shall be
of insurer
prepared and submitted for the confirmation of the High

Court by the liquidator, receiver or receiver-manager
appointed in respect of the insurer or financial holding
company where the order is made pursuant to
section 103.
(2) Any scheme prepared under this section shall
provide—
(a) for the allocation and distribution of the
assets and liabilities of the insurer between
any classes of business affected by the
winding up, including the allocation of any
surplus assets which may arise on the
proposed winding up;
(b) for any future rights of every class of
policyholders in respect of their policies; and
(c) for the manner in which any part of the
business of the insurer may be wound-up
and may contain such provisions as are
expedient for giving effect to the scheme.
(3) The provisions of sections 105 and 107 shall
apply, with such adaptations as are necessary, on a
winding up in accordance with a scheme under this
section.
Application of 107. (1) On the winding up of an insurer in the event
that the assets are insufficient to meet—
assets of an
insurer and
(a) policy liabilities;

priority of
policyholders
(b) unexpired risks and outstanding claims; or

(c) the aggregate of (a) and (b),
the claims on Trinidad and Tobago and foreign policies
shall have priority over the claims of other unsecured
creditors.
(2) Where–
(a) the insurer enters into—
(i) a scheme of transfer or amalgama-
tion under sections 57 to 64 of this
Act; or
(ii) an arrangement under
section 237(1)(b), (c) or (d) of the
Companies Act; or
(b) the business of the insurer or any part
thereof is being restructured pursuant to
section 44D of the Central Bank Act,
the assets of the insurer shall, subject to the rights of
secured creditors and the payment of expenses directly
related to the arrangement including the costs of
valuations of assets, the fees of experts retained by
the insurer and the costs of voluntary separation
agreements, be applied first to securing policyholders
and thereafter to other unsecured creditors, whether or
not the assets are insufficient to meet policy liabilities.
(3) Notwithstanding the provisions of this
section, the expenses of the liquidator shall be a first
charge on the assets of the insurer.
108. (1) An insurer or financial holding company shall Voluntary winding up
not pass a resolution for a voluntary winding up or
commence a voluntary winding up without first
obtaining written approval of the Central Bank.
(2) An insurer or financial holding company that
makes an application for approval of the voluntary
winding up under subsection (1) shall submit to the
Central Bank—
(a) the draft resolution to voluntarily wind up;
(b) the draft of the advertisement that the
insurer or financial holding company
intends to publish as required under the
Companies Act and subsection (6)(a);
(c) any draft statutory declaration that the

directors intend to make pursuant to
section 410 of the Companies Act;
(d) audited financial statements of the insurer
or financial holding company;
(e) the name and other particulars of the
proposed liquidator in the case of a
members’ voluntary winding up; and
(f) such other information as the Central Bank
may require.
(3) The Central Bank shall not provide the
approval referred to in subsection (1) unless it is
satisfied that the voluntary winding up will be effected
in a manner that would not pose undue risks to
policyholders and consumers of the insurer or adversely
affect public confidence in the financial system of
(4) The Central Bank shall, within forty
business days of receipt of the documents referred to in
subsection (2), communicate to the insurer or financial
holding company, its approval or non-approval of the
voluntary winding up of the insurer or financial holding
company.
(5) Where the Central Bank has given the
insurer or financial holding company approval to
voluntarily wind-up, the insurer or financial holding
company shall hold a meeting to pass the resolution to
voluntarily wind-up within two months of the date of
approval.
within ten business days after it has passed the
resolution to voluntarily wind-up, give notice of the
resolution—
(a) by publication in the Gazette and in two
daily newspapers circulated in Trinidad
and Tobago;
(b) to the Registrar of Companies; and

(c) to its policyholders and other consumers, in
such form and containing such information
as the Central Bank may require.
(7) Section 104(3) shall apply mutatis mutandis
to this section.
(8) An insurer or financial holding company that
liable, on summary conviction, to a fine of six hundred
thousand dollars and every director who votes for, or
consents to a resolution authorizing a voluntary
wind-up in contravention of this section also commits an
offence and is liable on summary conviction, to a fine of
six hundred thousand dollars and to imprisonment for
two years.
(9) The provisions of this section shall apply, with
such modifications as are necessary on a voluntary
winding up in accordance with the provisions of the
Companies Act.
109. (1) The liquidator shall conduct the liquidation Protection of receiver,
and management of an insurer or financial holding receiver-manager and
company with due diligence including the greatest

liquidator
economy compatible with efficiency.

(2) Where the Court, on application of the
Central Bank, a contributory, a creditor or policyholder,
is satisfied that the liquidator is acting with
unreasonable delay or is failing or has failed to carry out
any duty imposed in this Part or under any other
written law, the Court may make an order, on such
terms as it considers proper—
(a) directing the liquidator to carry out that
duty;
(b) restraining the liquidator from dealing with
the property of the insurer or financial
holding company until that duty has been
carried out; or
(c) removing the liquidator and appointing

another liquidator.
(3) Where the Central Bank, a contributory,
creditor or policyholder claims unreasonable delay or
failure to act pursuant to subsection (1), the Court shall
consider all relevant factors in deciding whether the
delay was unreasonable including—
(a) the length of the delay;
(b) the complexity of the liquidation;
(c) the reasons for the delay; and
(d) the conduct of the liquidator, the insurer or
financial holding company, the Central
Bank and the applicant.
(4) The liquidator shall not be subject to any
action, claim or demand by, or liability to, any person in
respect of anything done or omitted to be done in good
faith in the exercise of, or in connection with, the
exercise of the powers conferred on him under this Part.
PART IV
INTERMEDIARIES
Registration of 110. (1) No person shall, in respect of any class and
type of insurance business, carry on business as an
intermediaries
agency or brokerage unless that person is registered

under this Part and no person other than a company
may be registered as an agency or brokerage.
(2) No individual shall, in respect of any class and
type of insurance business, carry on business as a
broker, agent, sales representative, or adjuster unless
he is registered under this Part.
(3) No person shall, in respect of any class and
type of insurance business, carry on business as an
insurance consultant unless he is registered under this
Part.
(4) A company which at the commencement of

this Act is registered as an agent or broker under the
former Act, shall be deemed to have been registered as
an agency or brokerage, as applicable, under this Part
and such registration shall be valid up to the end of the
period stated in the certificate of registration issued
under the former Act.
(5) An individual that is registered as an agent or
broker under this Part shall be incorporated within one
year of the commencement of this Act.
(6) An individual who, at the commencement of
this Act is registered as a salesman, agent, broker or
adjuster under the former Act, shall be deemed to have
been registered as a sales representative, agent, broker
or adjuster under this Part.
grounds to believe that a person is carrying on business
in contravention of subsection (1), (2) or (3), the
provisions of section 21(6) shall apply with the
necessary modifications.
indictment to a fine of three million dollars.
(9) An individual who contravenes subsection (2)
or (3) commits an offence and is liable on conviction on
indictment to a fine of one million, five hundred
thousand dollars and to imprisonment for two years.
111. (1) An application for registration under this Part Application for
shall be made to the Central Bank, in accordance with
registration
the form specified by the Central Bank and shall be

accompanied by evidence of payment of the application
fee prescribed in Schedule 2.
(2) On receipt of an application, the Central Bank
may request the applicant to furnish such additional
information as the Central Bank may consider
necessary.
(3) Where a company wishes to be registered as

an agency of more than one insurer in accordance with
section 129(3), a separate application shall be made in
respect of each insurer.
Restriction on 112. (1) An individual shall not be registered as a
sales representative in respect of any particular class
registration
and type of insurance business where the insurer,

agency or brokerage by which he is employed or
contracted at the time of his application for registration
as a sales representative—
(a) is not registered under this Act; or
(b) is carrying on the particular class and type
of insurance business in contravention of
this Act.
(2) An individual shall not be registered as a
sales representative with more than one agency or
insurer under the same class of insurance business at
any particular time.
(3) An individual shall not be registered as a
sales representative with more than one brokerage at
any particular time.
(4) No person carrying on business as an
insurance consultant shall—
(a) carry on business as a broker, sales
representative, agent or adjuster; or
(b) carry on the business of an insurance
agency or the business of an insurance
brokerage.
(5) Where an individual wishes to be registered
as a sales representative of more than one insurer or
agency, the provisions of section 129(3) shall apply
mutatis mutandis and the individual shall make a
separate application in respect of each insurer or
agency.
(6) A significant or controlling shareholder,

director, officer or other employee of a brokerage shall
not be registered as a sales representative of an insurer
or agency, or as an agency or an agent of an insurer.
director, officer or other employee of an insurer shall not
be registered as a broker or brokerage or as a sales
representative of a brokerage.
director, officer or other employee of an insurer or
agency shall not be registered as an adjuster.
(9) An individual shall not be registered as an
agent or broker with more than one agency or brokerage
as applicable.
(10) A company shall not be registered to carry on
the business of an insurance brokerage or the business
of an insurance agency under this Part unless it has in
its employ at least one broker or agent, as applicable,
and such broker or agent shall be an officer of the
brokerage or agency, as the case may be.
(11) An agency shall not carry on any business
other than the business of an insurance agency except
for the distribution and sale of collective investment
schemes.
(12) A brokerage shall not carry on any business
other than the business of insurance brokerage except
for the distribution and sale of collective investment
schemes and the administration of self-insurance on
behalf of an entity.
(13) An agency or brokerage who contravenes
subsection (11) or (12) commits an offence and is liable
on summary conviction to a fine of three hundred and
fifty thousand dollars.
Central Bank to 113. (1) Subject to this Part, the Central Bank may
register person
either unconditionally or subject to such conditions as
the Central Bank considers necessary, register an
under this Part
applicant as an intermediary in respect of such class

and type of insurance business as may be specified in its
certificate of registration.
(2) The Central Bank may, subject to sections 110
and 111, register an applicant as an intermediary where
the Central Bank is satisfied—
(a) that the applicant is a fit and proper person
in accordance with the criteria set out in
Schedule 5;
(b) that the applicant has complied with all
obligations imposed on him by, or under
this Act and Regulations made thereunder;
(c) that the applicant is competent to carry
on business as an intermediary in the
particular class and type of insurance
business in which the person applied to be
registered;
(d) in the case of a company applying to carry
on business as a brokerage, that it has such
stated capital and professional indemnity
cover as required pursuant to section 116;
(e) in the case of a company applying to carry
on business as a brokerage, that no
agreement relating to the preferential offer
of insurance business and which is likely to
impair the applicant’s impartiality in
placing insurance business, such as an
agreement for preferential terms of
commission or other compensation, has
been made between the applicant and any
other person carrying on insurance
business, except that a brokerage may enter
into an agreement as provided for under
section 130; and
(f) in the case of an application to be an agent,

broker, sales representative or adjuster,
that the applicant has complied with any
requirement imposed by the Regulations
relating to the passing of any examination
and has the relevant experience prescribed
by the Regulations.
(3) The Central Bank shall, where it refuses an
application for registration under this Part, notify the
applicant in writing of its refusal either generally or in
respect of a particular class of insurance business, give
reasons for its refusal and inform the applicant of his
right to appeal under section 124.
114. (1) Where a person does not have the educational Provisional
qualification necessary to be considered fit and proper sales representatives
certificates for
for registration as a sales representative of an insurer or

brokerage, but an insurer or brokerage has endorsed his
application to be a sales representative and he
otherwise meets the fit and proper requirements, the
Central Bank may issue a provisional certificate
permitting the person to perform the functions of a sales
representative of an insurer or brokerage for a period of
not more than three years.
(2) The provisional certificate issued to a sales
representative of an insurer under subsection (1) shall
be subject to the following conditions:
(a) the person holding a provisional certificate
shall be supervised by a registered sales
representative;
(b) all documents, including an application
form, which are usually signed by a sales
representative in relation to the sale of a
policy shall be signed by both the person
holding a provisional certificate and
the supervisor of the registered sales
representative; and
(c) any other condition which in the opinion of

the Central Bank is necessary for the
protection of policyholders.
(3) The provisional certificate issued to a sales
representative of a brokerage under subsection (1) shall
be subject to the following conditions:
(a) the person holding a provisional certificate
shall be supervised by a registered broker;
and
(b) any other condition which in the opinion of
the Central Bank is necessary for the
protection of policyholders.
(4) Where a provisional certificate is issued to a
person under this section for a period of less than three
years and such person does not achieve the educational
qualification necessary to be registered as a sales
representative by the expiry date of the provisional
certificate—
(a) the Central Bank may subject to
paragraph (b), renew the provisional
certificate or at any subsequent time grant
a new provisional certificate to that person;
(b) the person shall not be allowed to perform
the functions of a sales representative
pursuant to a provisional certificate issued
under subsection (1) and this subsection in
excess of an aggregate period of three years;
and
(c) the person shall immediately stop
performing the functions of a sales
representative where the provisional
certificate has expired and the person has
not been issued a certificate of registration
as a sales representative pursuant to
section 113.
(5) Where a person holding a provisional

certificate under this section achieves the necessary
educational qualification to be registered as a sales
representative, he may apply for such registration
under the provisions of this Part no later than twenty
business days before the expiry of the provisional
certificate or at any time thereafter.
(6) No person shall perform the functions of a
sales representative during any period in which he is
not registered.
115. (1) An intermediary is personally liable to a Personal liability
policyholder on all contracts of insurance—
(a) made by, or through him directly or
indirectly with any company which is not
registered in Trinidad and Tobago or
elsewhere to carry on insurance business; or
(b) unlawfully made by, or through him
directly or indirectly with an insurer or
foreign insurance company,
in the same manner as if the intermediary had been an
insurance company.
(2) Where an intermediary proposes to place
insurance business with a foreign insurance company
he shall disclose this information to the consumer and
receive the signed authorization of the consumer in a
form approved by the Central Bank.
(3) An intermediary which places business with a
foreign insurance company shall comply with such
reporting requirements as may be specified by the
Central Bank.
(4) An intermediary who contravenes sub-
section (2) or (3) commits an offence and is liable on
summary conviction to a fine of one hundred and fifty
thousand dollars.
Capital and 116. (1) Each brokerage shall maintain professional

professional
indemnity insurance of at least five million dollars, with
a maximum deductible of fifty thousand dollars or ten
indemnity cover
per cent of stated capital, whichever is greater.

(2) Each brokerage shall maintain at all times
minimum stated capital of at least five hundred
thousand dollars, which shall be in the form of cash and
approved securities.
(3) A brokerage which immediately before the
commencement of this Act is registered as a broker but
is not in compliance with subsection (2), shall within
three years of the commencement of this Act increase its
stated capital to not less than the amount prescribed in
subsection (2) as follows:
(a) two hundred thousand dollars by the end of
the first year;
(b) three hundred and fifty thousand dollars at
the end of the second year; and
(c) five hundred thousand dollars at the end of
the third year,
following commencement.
(4) Within six months following commencement
of this Act, a brokerage that is subject to subsections (2)
and (3) shall submit a plan acceptable to the Central
Bank for increasing its minimum stated capital to the
amounts required under subsections (2) and (3).
(5) If a brokerage fails to submit a plan when
required to do so or fails to implement an accepted plan,
the Central Bank may impose any conditions on the
registration of the brokerage that it considers to be
necessary.
(6) A brokerage that contravenes subsection (1)
or (2) commits an offence and is liable on summary
conviction to a fine of one hundred and fifty thousand
dollars and in the case of a continuing offence, to a fine
of fifteen thousand dollars per day for each day the
offence continues.
117. (1) The Central Bank shall issue a certificate of Certificate of

registration to every person registered under this Part.
registration
(2) A certificate of registration shall—

(a) be valid for such period as is stated in the
certificate, not to exceed three years from
the date of issue for a certificate issued to a
sales representative, an agency, agent,
broker, brokerage or adjuster;
(b) be renewable for the periods stated in
paragraph (a);
(c) state the types of insurance business and
each class in respect of which the person is
registered;
(d) where a company is registered as an
agency, specify the insurer in respect of
which the company is so registered;
(e) where an individual is registered as a sales
representative, specify the insurer, agency
or brokerage, as applicable, in respect of
which the person is so registered; and
(f) where an individual is registered as an
agent or broker, specify the agency or
brokerage as applicable, in respect of which
the individual is registered.
(3) The Central Bank shall issue a schedule
to every certificate of registration of an agency or
brokerage, which shall list the names of the agents or
brokers registered to such agency or brokerage, as
applicable.
(4) The certificate of registration shall be
prominently displayed at the principal place of business
of the agency or brokerage and a copy thereof shall be
similarly displayed at each of its offices in Trinidad and
Tobago.
(5) A certificate of registration shall be prima

facie evidence that the person named therein has been
registered in the capacity stated therein.
(6) A company which without reasonable excuse
fails to comply with the provisions of subsection (4)
commits an offence and is liable on summary conviction
to a fine of one hundred and fifty thousand dollars.
Continuous 118. Where the Central Bank has issued a
certificate of registration pursuant to section 117, the
registration
intermediary shall continuously meet all registration

requirement
requirements and comply with all terms and conditions

of its registration.
Continuous 119. (1) A certificate of registration shall not be
renewed if the sales representative, agent, broker or
professional
requirement
adjuster to whom it is issued has not complied with
continuing professional development requirements.
(2) The Minister may after consultation with the
Central Bank appoint a statutory body or company
incorporated under the Companies Act as an approved
educational institution for all or any combination of the
following purposes:
(a) to supervise and administer the
examinations referred to in Part IV of this
Act and the Regulations;
(b) to supervise and administer CPD activities;
(c) to provide written verification that the
activities listed in a CPD Return constitute
CPD activities; and
(d) such other purposes as the Central Bank
may require.
(3) An approved educational institution shall be
appointed for a period of three years in the first instance
and shall be eligible for reappointment for further
periods of not less than twelve months but no more than
three years.
120. Every person registered under this Part shall Certificate to be

produce his certificate of registration or a copy thereof request
produced on
when requested to do so by—

(a) any person authorized in writing by the
Central Bank;
(b) the insurer or a person in respect of whom
he is registered to carry on business as a
sales representative; and
(c) an actual or a prospective consumer.
121. (1) The Central Bank may revoke the registration Revocation of
of a person registered under this Part in respect of all or
registration
any of the classes and types of insurance business the

person is registered to carry on where—
(a) any of the criteria prescribed in Schedule 5
is not or has not been fulfilled or is unlikely
to be, or may not have been fulfilled in
respect of the person;
(b) the person has failed to comply with any
obligation imposed on it by, or under this
Act and the Regulations;
(c) the Central Bank has been provided with
false, misleading or inaccurate information
by, or on behalf of the person or, in
connection with an application for
registration, by, or on behalf of a person
who is or is to be, a director or officer of the
person;
(d) in the opinion of the Inspector, the interests
of policyholders or potential policyholders of
the insurer were in any way threatened,
whether by the manner in which the person
is conducting or proposes to conduct its
affairs;
(e) the person has not carried on business as
an intermediary in Trinidad and Tobago
within one year of being registered to carry
on such business or has not carried on such

business in Trinidad and Tobago for a
period of more than six months;
(f) in the case of a person registered
as an agency or a brokerage, a receiver,
receiver-manager or liquidator has been
appointed;
(g) the person fails to comply with any
requirement, prohibition, compliance
direction or any other direction issued by
the Central Bank;
(h) in the case of a person registered as a
brokerage, the stated capital or professional
indemnity insurance of the broker is less
than the amount prescribed in section 116;
(i) in the case of a person registered as an
agency or a brokerage, the company has
merged or has been amalgamated with
another company and the registration is no
longer required;
(j) the business of the person is no longer the
business for which it was registered;
(k) a final judgment obtained against the
person in any court and from which no
appeal is pending remains unsatisfied for at
least forty business days;
(l) the person has committed, is committing, is
about to commit, or is pursuing or is about
to pursue a course of conduct that is an
unsafe or unsound practice;
(m) the person has been convicted of fraud;
(n) the person requests that registration be
revoked; or
(o) the person has failed to comply with any
obligation imposed on him by any written
law for the prevention of money laundering
or terrorist financing including the

Proceeds of Crime Act, the Anti-Terrorism
Act, the Financial Intelligence Unit of
Trinidad and Tobago Act and any
Regulations made thereunder.
(2) Before registration is revoked by the Central
Bank under subsection (1), the Central Bank shall give
to the person written notice of its intention to do so,
specifying the grounds upon which the Central Bank
proposes to revoke the registration and the date on
which such proposed revocation is to take effect, and
shall require the person to submit to the Central Bank
within a specified period a written statement of any
objections to the revocation of the registration.
(3) After serving a notice of intention under
subsection (2), to revoke the registration, and after
taking into account any objection under subsection (2),
the Central Bank shall decide whether to revoke the
registration and shall inform the person by notice in
writing, of its final decision.
(4) Where the Central Bank decides to revoke the
registration under this section, the notice of revocation
shall include the date on which the revocation takes
effect, a statement of the grounds for the decision and
the appeal process under section 124.
122. (1) The Central Bank shall immediately revoke Mandatory
the registration of an agent, broker, brokerage, agency
revocation
or sales representative where the Central Bank has—

(a) received notice under section 123(1) that
the contract of an agent, broker, agency or
sales representative has been terminated;
or
(b) revoked the registration of an insurer,
agency or brokerage in respect of which
an agent, agency, broker, or sales
representative has been registered.
(2) Where the Central Bank has revoked the

registration of an agent, agency, broker or sales
representative under subsection (1), the Central Bank
shall give written notice of the revocation to the agent,
agency, broker or sales representative.
Notice of termination 123. (1) Where a contract of—
(a) a sales representative has been terminated
of intermediary
to be given
by the insurer, agency or brokerage in

respect of which he was registered to carry
on such business;
(b) an agency has been terminated by the
insurer; or
(c) an agent or broker has been terminated by
the agency or brokerage in respect of which
he has been registered,
the insurer, agency or brokerage which terminates the
contract shall give written notice to the Central Bank in
the form approved by the Central Bank, within five
business days of such termination.
(2) Where an agent, agency, broker or a sales
representative enters into any new contract with a
relevant registrant, the agent, broker, agency or sales
representative shall reapply for registration under
section 111.
(3) An agent, broker or sales representative that
enters into a new contract with an agency, a brokerage
or an insurer, shall not conduct any insurance business
unless he has received a certificate of registration in
respect of such agency, brokerage or insurer, as the case
may be.
(4) An agency, brokerage or insurer shall not
conduct any insurance business with an agent, broker or
sales representative unless such agent, broker or sales
representative has received a certificate of registration
in respect of such agency, brokerage or insurer, as the
case may be.
(5) An agent, broker or sales representative that

liable on conviction on indictment to a fine of one
million, five hundred thousand dollars and to
(6) An agency, brokerage or insurer that
liable on conviction on indictment to a fine of three
million dollars.
124. A person who is aggrieved by the decision of the Right of appeal
Central Bank to refuse to register him or to revoke his
registration as an intermediary under this Part may
invoke the appeal process under section 253.
125. Where, at the date of placing or negotiating Restriction on
insurance a person is not registered as an agency, a compensation for
payment of
brokerage or a sales representative, no insurer and no placing or
officer, employee or agent of the insurer shall pay, agree insurance

negotiating
to pay, or allow to be paid to that person compensation

or anything of value for placing, negotiating or
attempting to place or negotiate insurance or for
negotiating the continuance or renewal of insurance
other than reinsurance.
126. No insurer and no officer, employee or agent of Rebating
an insurer and no broker or sales representative shall
directly or indirectly—
(a) make or attempt to make an agreement as
to the premium to be paid for a policy other
than as specified in the policy; or
(b) pay, allow, give, offer or agree to pay, allow
or give a rebate of the whole, or part of
the premiums stipulated by the policy or
any other consideration or thing of value
intended to be in the nature of a rebate of
premium,
to any person who is insured or is applying for insurance
in respect of life, person or property in Trinidad and
Tobago.
Exemption of 127. (1) Nothing in sections 125 and 126 shall affect
any payment by way of dividend, bonus, profit or
payment of
dividend to
salaried employee
savings, which is provided for by the policy.
(2) Nothing shall be construed so as to prevent a
registrant from offering a policy at special rates to a
bona fide salaried employee or the spouse or a child of
such employee, in respect of insurance issued for any
class of business or so as to require such employee to be
registered under this Part.
Company to make 128. (1) Every insurer shall make a return to the
Central Bank within sixty business days after the end of
return to Central
Bank
the financial year in such form and at such other times
as the Central Bank requires, showing all persons—
(a) registered as its agencies and sales
representatives in Trinidad and Tobago;
and
(b) to whom it has, within such period as may
be specified in the form, paid or agreed
to pay or allowed to be paid directly or
indirectly, compensation for placing or
negotiating any class of insurance business
or negotiating the continuance or renewal of
such insurance or for attempting to do so.
(2) Every agency or brokerage shall make a
return to the Central Bank within sixty business days
after the end of the financial year in such form and at
such other times as the Central Bank requires, showing
all persons—
(a) registered as its agents, brokers or sales
representatives in Trinidad and Tobago, as
the case may be; and
(b) to whom it has, within such period as may
be specified in the form, paid or agreed to
pay or allowed to be paid directly or
indirectly, compensation for placing or
negotiating any class of insurance business

or negotiating the continuance or renewal of
such insurance or for attempting to do so.
129. (1) Subject to subsection (3), no agency shall— Authority of
(a) be an agency providing the same class of

agency
insurance business for two or more

insurers;
(b) act or purport to act on behalf of more than
one insurer; or
(c) represent himself to the public by
advertisement or otherwise as the agency of
more than one insurer.
(2) Notwithstanding subsection (1), where an
agency is unable to negotiate insurance on behalf of an
applicant for insurance with the insurer in respect of
which he is registered to carry on business, the agency
may procure the insurance from another insurer if that
insurer obtains in each case the consent in writing of the
insurer in respect of which the agency is registered and
files a copy of such consent with the Central Bank
within seven business days of its receipt.
(3) Where the Central Bank has received an
application from an agency to act on behalf of more
than one insurer, the Central Bank may approve the
application––
(a) in respect of a different class, within any
one type of insurance business; or
(b) in respect of a different type of insurance
business.
(4) The Central Bank may refuse to grant or may
revoke an approval granted under subsection (3) where
it is satisfied that the granting or continuance of such
approval is not in the public interest.
(5) An agency that contravenes subsection (1)
to a fine of three hundred thousand dollars.
Disclosure of 130. (1) In the case of a brokerage that has entered

into an agreement under which the brokerage can
preferential
arrangements
by brokerage
commit an insurer to provide coverage to a consumer in
accordance with such criteria as may be established by
the insurer, or an agreement that is unique, the
brokerage shall disclose such arrangement to the
consumer in writing in such manner as may be specified
(2) A brokerage that contravenes subsection (1)
to a fine of one hundred and fifty thousand dollars.
Offence to procure 131. (1) An agent, agency, broker, brokerage or a sales
representative shall not—
payment of premium
by fraudulent
(a) knowingly procure by fraudulent

misrepresentation
representations payment or the obligation

for payment of any premium on an
insurance policy;
(b) cause a policyholder to discontinue an
insurance policy without first discussing
the advantages and disadvantages of the
discontinuance of the policy; or
(c) cause a policyholder to replace a long-term
insurance policy without first discussing
the advantages and disadvantages of the
discontinuance of the policy and shall
comply with the standards on post sale
communication as prescribed in
Schedule 11 and the form of disclosure set
out in Guidelines.
(2) An agent, broker, or sales representative who
contravenes subsection (1) commits an offence and
is liable on conviction on indictment to a fine of
one million, five hundred thousand dollars and to
(3) An agency or brokerage that contravenes

subsection (1) commits an offence and is liable on
conviction on indictment to a fine of three million
dollars.
132. (1) Premiums or other payments due that Receipt of premiums
are received by an agency, brokerage or a sales
representative on behalf of an insurer shall be deemed
to be received by the insurer notwithstanding any
conditions or stipulations to the contrary.
(2) Upon receipt of any premium or other
payment due from a consumer, the agency, brokerage or
sales representative shall issue to the consumer a
receipt, which shall be considered to be a receipt of the
insurer.
(3) If a premium is paid to an agency, brokerage,
or sales representative, then the insurer shall not
avoid liability under the contract of insurance for
non-payment of premiums.
133. (1) An agency registered to carry on general Consumer trust
insurance business, shall establish and maintain a account
consumer trust account for the receipt and payment of
consumer funds.
(2) A brokerage shall establish and maintain a
consumer trust account for the receipt and payment of
consumer funds in respect of each type of insurance for
which it is registered.
(3) An agency registered to carry on general
insurance business or a brokerage shall deposit monies
received from a consumer for the account of an insurer
or from an insurer for the account of a consumer in each
consumer trust account.
(4) An agency or a brokerage transacting general
insurance business shall be permitted to deduct from
the consumer trust account any commission and other
deduction to which it may by agreement be entitled.
(5) A brokerage transacting long-term insurance

business shall not be permitted to deduct from a
consumer trust account any commission and other
deductions.
(6) Subject to subsection (4), an agency registered
to carry on general insurance business or a brokerage
shall not commingle the monies to be deposited in a
consumer trust account with any other monies of the
agency or the brokerage.
(7) Each agency registered to carry on general
insurance business and brokerage shall report to the
Central Bank on each consumer trust account in
accordance with the timing, form and content of such
reports as the Central Bank may specify.
(8) An agency or brokerage that contravenes
subsection (1), (2), (3), (5) or (6) commits an offence and
is liable on summary conviction to a fine of three
hundred thousand dollars.
Payment of 134. (1) An agency, brokerage or sales representative
premium to
that receives monies from a consumer for the account of
an insurer registered to carry on general insurance
insurer
business or the accident and sickness class of business

shall pay over such monies to the insurer within ten
business days from the date on which it received such
monies.
(2) An agency, brokerage or sales representative
of an insurer that receives monies from a consumer for
the account of an insurer registered to carry on
long-term insurance business shall pay over such
monies to the insurer within ten business days from the
date on which it received such monies.
(3) Where an insurer at the request of a
brokerage provides temporary cover in respect of
general insurance on credit in accordance with
section 92(1)(c)(i), the brokerage is liable to the insurer
for the premium due in respect of such cover and such
premium may be sued for and recovered from the
brokerage as a civil debt.
(4) An agency, brokerage or sales representative

that contravenes subsection (1) or (2) commits an
offence and is liable on summary conviction to a fine of
three hundred thousand dollars.
135. (1) An agency, brokerage or sales representative Payment to
that receives a cheque in the name of a consumer from consumer
an insurer shall deliver or make reasonable efforts to
deliver the cheque to the consumer within five business
days from the date on which the cheque was received.
(2) Notwithstanding subsection (1), where an
agency or brokerage receives a cheque in the name of a
consumer from an insurer in respect of an accident and
sickness claim, the agency or brokerage shall deliver or
make reasonable efforts to deliver the cheque to the
consumer within ten business days from the date on
which the cheque was received.
(3) An agency or brokerage that receives a cheque
in its name from an insurer for the account of a
consumer shall deposit such cheque in its consumer
trust account within five business days on which it was
received.
(4) An agency or brokerage that makes a deposit
in accordance with subsection (3) shall pay over or make
reasonable efforts to pay over the same to the consumer
within seven business days from the date on which such
deposit was made.
136. (1) Every agency and brokerage shall submit to Financial statement
the Inspector within sixty business days after the end of
of intermediary
its financial year, and at such other times as may be

required by the Inspector, financial statements
prepared in accordance with financial reporting
standards and duly audited in accordance with
International Standards on Auditing.
(2) Every financial statement submitted by an
agency or brokerage shall be signed by a director and an
agent or broker, as the case may be.
(3) The auditor of every agency and brokerage

shall monitor and evaluate compliance with the
Proceeds of Crime Act and the Anti-Terrorism Act and
any regulations made thereunder, any guideline on
anti-money laundering and combating terrorist
financing issued by the Central Bank and submit an
annual report including recommendations to the
Central Bank within four months of the end of its
financial year.
(4) The provisions of section 146 in relation to the
submission of financial statements shall apply mutatis
mutandis to the submission of financial statements
pursuant to subsection (1).
Monthly accounts 137. Every brokerage shall keep, in relation to
insurance placed with it relating to each class or
classes of insurance business for which it is registered,
monthly accounts showing all receipts and expenses
relating to such insurance business and such accounts
shall be completed not later than fifteen business days
after the end of the month in respect of which they are
prepared.
Monthly records of 138. Every agency shall keep, with respect to policies
agencies
issued or renewed by them, such monthly records as will
enable the amounts due to them by the insurer or due
from them to the insurer to be determined, and such
records shall be completed not later than fifteen
business days after the end of the month in respect of
which they are prepared.
Audits of accounts 139. (1) The auditor of an agency or brokerage shall
of agencies and
include in its opinion to the financial statements
whether or not the agency or brokerage has satisfied the
brokerages
requirements of sections 133, 134 and 135.

(2) Where the Inspector has reasonable grounds
to believe that the auditor of an agency or brokerage—
(a) has failed to perform his duties or to comply
with the provisions of this Act;
(b) has been a party to the preparation of, or

has rendered an unqualified opinion on a
financial statement that does not fairly
present the financial position of the agency
or brokerage; or
(c) is incompetent or is accused of professional
misconduct,
the Inspector or Central Bank shall deliver a written
report to the agency or brokerage and as appropriate,
ICATT or such other professional association that may,
in the opinion of the Inspector be relevant.
(3) Where the Inspector has made a report under
subsection (2) in good faith, the Inspector shall not be
subject to any action, claim or demand by, or any
liability to, any person in respect of which the report
was made.
140. (1) For the purposes of this section, “foreign Persons may act
adjuster” means a person who is registered in another a catastrophe
as adjusters during
jurisdiction to carry on the business of an adjuster and

is permitted under this section to act as an adjuster
during periods of catastrophe or where there is a
complex claim or major loss.
(2) In the event of a catastrophe or where there is
a complex claim or major loss an insurer, brokerage or
adjuster may retain the services of a foreign adjuster
and notwithstanding section 110(2), such person may
carry on the business of an adjuster in accordance with
this Part.
(3) The Inspector may notify insurers, brokerages
or adjusters of the date on which the catastrophe shall
be deemed to be terminated for purposes of this section
and any person who continues to act as an adjuster after
such date commits an offence and is liable on
conviction on indictment to a fine of one million, five
hundred thousand dollars and to imprisonment for two
years.
(4) For the purposes of this section––

(a) a “complex claim” means a claim that
satisfies the criteria set out in Guidelines
issued by the Central Bank; and
(b) “major loss” means any loss that satisfies
the criteria set out in Guidelines issued by
the Central Bank.
Offences for 141. (1) A person who contravenes any provision of
intermediaries
this Part commits an offence and the offence shall be
deemed to be continued so long as the default continues.
(2) All offences against this Part for which no
other penalty is expressly provided are punishable—
(a) in the case of an agency or brokerage, by a
fine not exceeding twenty thousand dollars
and to an additional fine of two thousand
dollars for each day the offence continues;
and
(b) in the case of agent, broker, sales
representative, adjuster or insurance
consultant, by a fine not exceeding ten
thousand dollars and to an additional fine
of one thousand dollars for each day the
offence continues.
PART V
FINANCIAL STATEMENTS AND RETURNS
Non-application 142. This Part does not apply to a privately
administered pension fund plan, an association of
of Part
underwriters, an intermediary or an insurance

consultant.
Duty of company to 143. (1) Every insurer and financial holding company
shall keep at its head office, such books, vouchers,
keep books, vouchers,
and valuation of
assets
records, receipts, schedules and other documents as
may be necessary to enable it to prepare the financial
statements and returns required under this Act.
(2) Every insurer and financial holding company

shall cause its books, vouchers, records, receipts,
schedules and other documents to be readily available
for examination and shall assist as far as possible in
facilitating the examination.
(3) The assets of each insurer and financial
holding company shall be valued in accordance with
financial reporting standards and such values shall be
used for the financial statements, reports, and returns
required under this Act or the Regulations.
(4) Where the financial reporting standards do
not provide a method for valuing certain assets, the
board of directors of an insurer or financial holding
company shall approve a methodology to value such
assets.
(5) The fair value of real estate shall be
determined by the appraisal of a qualified valuer at the
time of acquisition and thereafter on a triennial basis.
(6) Notwithstanding subsection (5), an insurer or
financial holding company shall cause annual
appraisals of its real estate to be conducted where there
are significant and volatile market fluctuations in
value.
(7) The Inspector may require new appraisals to
be conducted by a qualified valuer from a list of
qualified valuers provided by the Inspector, at the
insurer’s or financial holding company’s expense,
whenever he considers it advisable.
144. (1) Every insurer and financial holding Financial statements
company shall submit to the Inspector within sixty
business days after the end of its financial year and at
such other times as may be required by the Inspector,
financial statements of all its operations both domestic
and foreign, prepared in accordance with financial
reporting standards and duly audited in accordance
with International Standards on Auditing, on an
individual basis and on a consolidated basis.
(2) The Inspector may require for regulatory

purposes that an insurer or financial holding company
exclude a subsidiary or other company in which it has a
significant shareholding from the consolidated financial
statements required under subsection (1).
(3) An insurer and financial holding company
shall submit audited financial statements on the
request of the Inspector in respect of any—
(a) subsidiary of the insurer;
(b) financial holding company or company in
which the insurer or financial holding
company is a significant shareholder; or
(c) member of the financial group which the
financial holding company controls.
(4) Every financial statement submitted by an
insurer and financial holding company shall be signed
by two directors of the relevant company.
(5) If, in the opinion of the Inspector, the
information contained in the financial statements
required under this section, indicates the likelihood of
insolvency of any company under subsection (3), the
Inspector may, after consultation with the insurer or the
financial holding company require the insurer or
financial holding company to take such measures as the
Inspector may consider necessary to prevent the
financial condition of the company under subsection (3)
from affecting the insurer or financial holding company
and, in particular, may require that the—
(a) company referred to in subsection (3)—
(i) increase its stated capital; or
(ii) transfer or otherwise dispose of its
business or part of its business; or
(b) insurer or financial holding company where

such company has credit exposures with the
insurer or financial holding company—
(i) cease to make any advances or
incur any credit exposures to the
company; or
(ii) make special provision for any
potential losses which, in the
opinion of the Inspector, the
company is likely to incur where
such company has credit exposures
with the insurer.
(6) A person who fails to comply with the
requirements of the Inspector pursuant to subsection (5)
indictment to a fine of five million dollars and, in the
case of a continuing offence, to a fine of five thousand
dollars per day for each day that the offence continues.
145. (1) Every insurer and financial holding company Returns
shall submit to the Inspector within sixty business days
after the end of its financial year and at such other
times as may be required by the Inspector, and in such
form as the Inspector may from time to time specify,
audited returns prepared in accordance with the Act
and financial reporting standards on an individual and
a consolidated basis, signed by the chief financial officer
and one director of the company containing—
(a) statements of its assets and liabilities;
(b) statements of its earnings and expenses;
(c) the reports of the auditor as required by
section 147(1)(a); and
(d) any other information that the Inspector
may require.
(2) Where an insurer is carrying on long-term
insurance business, every balance sheet which it is
required to prepare under subsection (1) shall bear a

certificate signed by its appointed actuary in accordance
with the Regulations.
shall submit to the Inspector quarterly returns in a form
as specified by the Inspector within twenty business
days after the end of each quarter.
shall submit to the Inspector a quarterly return showing
all credit exposures amounting to ten per cent or more
of the capital base of the insurer or financial holding
company within twenty business days after the end of
each quarter.
(5) The Inspector may apply additional reporting
requirements under this section to an insurer or a
financial holding company, including—
(a) subsidiaries of the insurer or financial
holding company and companies in which
the insurer or financial holding company is
a significant shareholder;
(b) members of a financial group which the
insurer controls; and
(c) minority holdings of the insurer or financial
holding company.
(6) No statement or return shall in any case be
required in respect of the affairs of any particular
policyholder of an insurer.
shall submit to the Inspector within twenty business
days at the end of every quarter a list of its
shareholders including beneficial and nominee
shareholders—
(a) who hold five per cent or more if its issued
share capital; or
(b) are parties to any agreement with respect to

the voting of five per cent or more of the
issued shares of the insurer or financial
holding company.
(8) Whenever a person becomes the holder of five
per cent or more of the issued share capital of an
insurer or financial holding company, the insurer or
financial holding company shall, within twenty business
days of the person becoming such a holder, notify the
Inspector.
146. Notwithstanding sections 144(1), 145(1) and 152 Transition period
an insurer and financial holding company shall be financial
for submitting
permitted to submit its audited financial statements returns

statements and
and returns and to publish its audited financial

statements within four months after the end of its
financial year, for the first year following the
147. (1) The auditor of an insurer or financial holding Audits of returns
company shall—
(a) audit the returns of the insurer or financial
holding company filed annually pursuant to
section 145(1); and
(b) report annually in writing to the Inspector
on the adequacy of the accounting
procedures, records and such internal
control systems of the insurer or financial
holding company as may be relevant to its
financial reporting function.
(2) The auditor of an insurer shall report
annually in writing to the Inspector on whether the—
(a) insurance liabilities relating to unexpired
general insurance policies have been
calculated in accordance with the provisions
of section 212;
(b) provisions regarding the settlement of

outstanding claims are adequate, having
regard to the latest estimated cost of
settlement of such claims; and
(c) separate accounts established pursuant to
section 42 have been maintained in
accordance with the Act and Regulations.
(3) The provisions of subsection (2)(a) and (b)
shall apply only to an insurer carrying on general
insurance business.
(4) The Inspector may, by notice in writing to an
insurer or financial holding company require its auditor
to comply with such other reporting requirements as the
Inspector may stipulate in addition to International
Standards on Auditing with respect to the report and
annual returns referred to in subsection (1).
(5) The Inspector—
(a) shall, in relation to the audit of an insurer
or financial holding company have access to
the working papers of the auditor for a
period not exceeding four years preceding
the date of submission of the audit report;
and
(b) may require the auditor of an insurer or
financial holding company to provide him
with any further information that he
considers relevant.
shall pay the expenses incurred by its auditor in the
performance of the duties and obligations set out in this
Part.
(7) Where the auditors, for the purpose of
meeting their responsibilities under subsections (1), (2)
and (8)—
(a) are unable to obtain all the information
they require; or
(b) are not completely satisfied with the

information contained in the returns on
which they are reporting,
they shall, in their report specify the matters in respect
of which they were unable to obtain information or were
not completely satisfied with such information.
(8) The auditor of an insurer or financial holding
company shall monitor and evaluate compliance with
the Proceeds of Crime Act and the Anti-Terrorism Act
and any regulations made thereunder, any guideline on
anti-money laundering and combating terrorist
financing issued by the Central Bank and submit an
annual report including recommendations to the
Central Bank within four months of the end of its
financial year.
148. (1) Where it appears to the Inspector that any Unsatisfactory
financial statement or return submitted to the Central financial statements
Bank by an insurer or financial holding company in

and returns
accordance with sections 144 and 145—

(a) is in any particular unsatisfactory,
incomplete, incorrect or misleading; or
(b) does not comply with the requirements of
this Act,
he may, by notice in writing, require such explanations
as he considers necessary to be made by, or on behalf of,
the insurer or financial holding company within such
time as is specified in the notice.
(2) After considering any explanations made by,
or on behalf of, the insurer or financial holding
company or where no explanations were made within
the time specified in the notice or where the Inspector
does not serve a notice under subsection (1), the
Inspector may reject the financial statement or return.
(3) Where the Inspector rejects any financial
statement or return under subsection (2), he may give
directions as he thinks necessary for varying the
financial statements or returns within such time as he

may specify or he may proceed to issue compliance
directions in accordance with section 155.
Offence 149. An insurer or financial holding company which
re: submission
fails to submit any financial statement or return to the
Inspector in accordance with section 144 or 145 or which
of documents
submits such a document that is in any particular

unsatisfactory, incomplete, incorrect or misleading or
that does not comply with the requirements of this Act
commits an offence.
No commingling 150. An insurer shall not commingle the funds of its
insurance business with the funds of any other
of funds
business.
Apportionment 151. (1) Where an insurer is carrying on more than
one class of insurance business and an amount received
of receipts and
or paid by the insurer is not received or paid wholly in

payments
between various
respect of any one class of insurance business the

classes of
insurance
insurer shall apportion the amount in an equitable

business
manner between the several classes of insurance

business to which the receipt or payment may be
applicable.
(2) Whenever the Inspector requires the
reporting of financial results by classes within a type of
insurance business and an amount received or paid by
the insurer is not received or paid wholly in respect of
any one class or type of insurance business, an insurer
shall, for the purposes of that report, apportion the
amount received, paid, or apportioned with respect to
the relevant class or type of insurance business in an
equitable manner between the several classes within
that type of insurance business.
Publication of 152. (1) Every insurer and financial holding company
financial statements
shall within sixty business days after the end of its
financial year publish in at least two daily newspapers
circulated in Trinidad and Tobago and exhibit in a
conspicuous place in each of its offices, the audited
financial statements referred to in section 144(1).
(2) An insurer shall—

(a) in addition to the audited financial
statements referred to in subsection (1),
keep at each of its offices, such other
information for the protection of
policyholders and other consumers as the
Central Bank may specify from time to
time; and
(b) during normal business hours make copies
of the information referred to in para-
graph (a) available for inspection by its
policyholders and other consumers upon
request.
(3) The Central Bank may consult with insurers
to create abridged financial statements for the purpose
of publication.
(4) Where the Central Bank and ICATT have
agreed to abridged financial statements under
subsection (3), the Central Bank shall publish a notice
in the Gazette and in at least two daily newspapers
circulated in Trinidad and Tobago.
(5) Following a publication under subsection (4),
every insurer and financial holding company may
publish abridged financial statements instead of
its financial statements in accordance with the
requirement under subsection (1).
153. (1) The Inspector may appoint an independent Power to appoint
actuary to review actuarial work required under this independent
Act or to make an independent investigation into the
actuaries
insurer’s financial condition, if the Inspector is of the

opinion that the appointment is necessary.
(2) The independent actuary shall submit a
report to the Inspector and the insurer on the results of
such review or investigation.
(3) The costs incurred in carrying out the review
or investigation under subsection (1) are payable by the
insurer.
Power to prohibit 154. (1) The Inspector may prohibit an insurer from
recognising in its financial statements or returns any
recognition of
insurance
asset or any reduction of liabilities, or require that the
amounts thereof be varied, in respect of reinsurance,
any arrangement having the effect of reinsurance, or
any other arrangement with another insurance
company if, in the opinion of the Inspector—
(a) there is a significant possibility that the
insurer’s counterparty or counterparties
under such reinsurance or other
arrangement may default on their
obligations thereunder;
(b) the reinsurance or other arrangement does
not result in a reduction of risk for the
insurer commensurate with the amount of
the asset or reduction in liability that would
result from its recognition;
(c) the reinsurance or other arrangement is not
adequate in terms of criteria set out in
Guidelines; or
(d) the reinsurance or their arrangement
would significantly increase the risk that
the insurer is, or is likely to be unable to
meet its liabilities.
(2) An insurer shall not allow its reinsurance
arrangements to lapse.
(3) An insurer shall, within twenty business days
of the expiry of prior reinsurance arrangements or any
other change to its reinsurance arrangements—
(a) notify the Central Bank in writing of the
particulars of such changes; and
(b) provide the relevant information regarding
its reinsurer or reinsurance arrangements
to the Central Bank upon request.
PART VI
COMPLIANCE DIRECTIONS AND INJUNCTIVE RELIEF
155. (1) Notwithstanding any other action or remedy Compliance
available under this Act, if the Inspector reasonably
directions
believes that any person including the principal

representative of a foreign insurance company—
(a) has committed, is committing or is about to
commit an act, or is pursuing or is about to
pursue any course of conduct, that is an
unsafe or unsound practice;
(b) has committed, is committing or is about to
commit an act, or is pursuing or is about
to pursue a course of conduct, that may
directly or indirectly be prejudicial to the
interest of policyholders or a person
beneficially interested in a privately
administered pension fund plan;
(c) has violated, is violating or is about to
violate any of the provisions of any law;
(d) has breached any requirement or failed to
comply with any measure imposed by
the Central Bank or Inspector in
accordance with this Act or the Regulations;
(e) is unlikely to meet the liabilities due to
policyholders of the insurer; or
(f) is likely to continue in business that would
result in a loss to the policyholders of the
insurer,
the Inspector may direct the person to—
(i) cease or refrain from committing
the act, pursuing the course of
conduct, or committing a violation;
or
(ii) perform such acts which, in

the opinion of the Inspector, after
consultation with the Governor,
are reasonably necessary to
remedy the situation or minimize
the prejudice.
(1A) Notwithstanding any other action or remedy
available under this Act, if the Board of Inland Revenue
indicates to the Inspector, that a registrant or an officer,
other employee or agent of the registrant has breached
any requirement or failed to comply with Guidelines
related to a declared agreement, the Inspector may
direct a registrant or an officer, other employee or agent
of the registrant to give effect, comply with or perform
such acts as may be necessary for compliance with a
declared agreement.
(2) For the purposes of this section, the term
“unsafe or unsound practice” shall include, without
limitation, any action or omission that is contrary to
generally accepted standards of prudent operation and
conduct, the possible consequences of which, if
continued, would be a risk of loss or damage to the
registrant, policyholders or consumers.
(3) Subject to subsection (6), before a direction is
issued under subsection (1), the person to whom the
direction is to be issued shall be served with a notice
specifying—
(a) the facts of the matter;
(b) the directions that are intended to be
issued; and
(c) the time and place at which the person
served with the notice may make
representations to the Inspector.
(4) If the person served with the notice referred to
in subsection (3) fails to make representation at the
time and place stipulated by the said notice, the
Inspector may proceed to issue directions.
(5) Where, after considering the representations

made in response to the notice referred to in sub-
section (3), the Inspector determines that the matters
specified in the notice are established, the Inspector
may proceed to issue directions to the person served
with the notice.
(6) Notwithstanding subsection (3), if after
consultation with the Governor the Inspector is of
the opinion that the length of time required for
representations to be made might be prejudicial to the
interests of policyholders or to the stability of the
financial system, the Inspector may issue an emergency
direction with respect to the matters referred to in
subsection (1), not exceeding twenty business days.
(7) A person shall be entitled to make
representations within twenty business days after the
issuance of the directions by the Inspector under
subsection (6).
(8) A direction made under subsection (6) shall be
complied with during the period specified and shall
continue to have effect after the expiration of such
period if no representations are made to the Inspector
within that period or, if representations have been
made, the Inspector notifies the person to whom the
direction was issued that he is not satisfied that there
are sufficient grounds for revoking the direction.
(9) If a person fails to comply with a direction
issued or made under subsection (4), (5) or (6)
respectively, the Inspector may, in addition to any other
action that may be taken under this Act, apply to the
High Court for an order requiring that person to comply
with the direction and any other order the High Court
deems fit.
(10) A person who fails to comply with directions

under this section commits an offence and is liable, in
the case of—
(a) an insurer or financial holding company,
holding company, controlling shareholder,
or significant shareholder, on conviction on
indictment to a fine of five million
dollars and, in the case of a continuing
offence, to a fine of five hundred thousand
dollars for each day that the offence
continues;
(b) a director or officer, other employee or
agent, or principal representative of a
foreign insurance company, holding
company or financial holding company, on
conviction on indictment to a fine of five
million dollars and to imprisonment for five
years and, in the case of a continuing
offence, to a fine of five hundred thousand
dollars for each day that the offence
continues;
(c) an agency or brokerage, on summary
conviction to a fine of one hundred and fifty
thousand dollars and in the case of a
continuing offence, to a fine of fifteen
thousand dollars for each day the offence
continues;
(d) a director, officer or other employee of
an agency or brokerage, on summary
conviction to a fine of eighty thousand
dollars and in the case of a continuing
offence, to a fine of fifteen thousand dollars
for each day the offence continues; and
(e) an agent, broker, sales representative,
adjuster or any other person, on summary
conviction to a fine of eighty thousand
dollars and in the case of a continuing
offence, to a fine of eight thousand dollars
for each day the offence continues.
156. Where the Central Bank reasonably believes that Injunctive relief
a person is in violation of this Act, or is engaged in
any activity or course of conduct described under
section 155(1), the Central Bank may in addition to, or
in lieu of other actions authorized under this Act—
(a) seek a restraining order or other injunctive
or equitable relief, to prohibit the continued
violation or prevent the activity or course of
conduct in question or any other action; or
(b) pursue any other remedy which may be
provided by law.
PART VII
LONG-TERM INSURANCE BUSINESS
A. Actuarial Investigations
157. (1) This Part shall apply to all insurers carrying Application of
on long-term insurance business.
this Part
(2) Sections 163 and 165 to 210 shall apply to

insurers only in respect of their Trinidad and Tobago
business, in any class of long-term insurance.
(3) Sections 196 and 197 shall also apply to
insurers which carry on general insurance business.
158. (1) Every insurer carrying on long-term Actuarial reports
insurance business shall—
(a) as at the end of each financial year cause its
appointed actuary to—
(i) make a valuation of its policy
liabilities and other actuarial
liabilities; and
(ii) prepare an actuarial report,
in accordance with the Regulations; and
(b) submit the actuarial report referred to in
paragraph (a) to the Inspector within sixty
business days after the end of each financial
year.
(2) The actuarial report required under sub-

section (1) shall include a description of any matters for
which the appointed actuary was unable to obtain
information or for which he was not satisfied with the
information provided.
(3) Where an insurer causes its appointed
actuary to make an investigation and the results of the
investigation are made public, the insurer shall cause a
copy of the actuarial report to be submitted to the
Inspector within five business days of making the
results of such report public.
(4) For the purposes of this section, “policy
liabilities and other actuarial liabilities” includes—
(a) policy benefit liabilities;
(b) premium liabilities;
(c) claims liabilities; and
(d) liabilities in respect of guarantees or other
commitments—
(i) to policyholders and other
consumers under contracts of
insurance;
(ii) to persons to whom the insurer
owes benefits; and
(iii) associated with the business
carried on by an insurer pursuant
to section 30(6).
Financial condition 159. (1) For the purpose of this section, “financial
report
condition report” means a report on the prospective
ability of an insurer as at a particular date to meet its
future obligations to policyholders and to those to whom
it owes benefits.
(2) The appointed actuary shall carry out an
annual investigation of the insurer regarding its current
and expected future financial condition so as to identify
plausible threats and actions which will mitigate those
threats.
(3) With effect from the end of its first financial

year that ends after the expiration of twelve months
from the commencement of this Act, an insurer shall—
(a) each financial year, cause its appointed
actuary to prepare a written financial
condition report in accordance with the
Regulations;
(b) submit a copy of the report referred to in
paragraph (a) to the Inspector, within sixty
business days after the end of each financial
year; and
(c) submit a copy of the report referred to in
paragraph (a) to the board of directors.
(4) In addition to the annual requirement in
subsection (3), where the appointed actuary of an
insurer discovers any matters or conditions that, in the
opinion of the appointed actuary, could have material
adverse effects on the financial condition of the insurer
and may require urgent corrective action, the appointed
actuary shall immediately report such findings in
writing to—
(a) the Inspector; and
(b) the chief executive officer and the board of
directors of the insurer.
160. (1) An insurer may, from a participating account, Distribution of
in a financial year or at any time within six months
surplus
after the end of that financial year, make a payment to

its shareholders, or transfer an amount to an account
from which a payment may be made to its shareholders
if—
(a) the aggregate of the amount so paid or
transferred in respect of that financial year
does not exceed twenty-five per cent of
the portion of the profits paid or distributed
in respect of that financial year to
participating policyholders;
(b) in respect of that financial year, the insurer

paid or distributed dividends or bonuses to
its participating policyholders out of the
profits of the participating account in
accordance with its dividend or bonus
policy;
(c) in the opinion of the appointed actuary, due
regard has been given to the interest
and fair treatment of the policyholders,
including their reasonable expectations;
and
(d) in the opinion of the appointed actuary, the
payment to the shareholders, or the
transfer to the account from which a
payment can be made to the shareholders—
(i) would not affect the insurer’s
ability to meet its obligations
under its participating policies,
including its ability to continue to
comply with its dividend or bonus
policy or to maintain the levels or
rates of dividends or bonuses paid
or distributed to the insurer’s
participating policyholders; and
(ii) would not lead to a breach of this
section or section 82 or 84.
(2) Where the amount paid or transferred under
subsection (1) is less than the maximum amount
allowed under the dividend and bonus policy, the
insurer shall not pay or transfer the difference between
the amount actually paid or transferred and the
maximum amount allowed under dividend and bonus
policy, to the shareholders at any time after the
expiration of the six-month period referred to in
subsection (1).
(3) The only transfers that may be made from a

participating account maintained pursuant to section 42
are—
(a) transfers made pursuant to subsection (1);
(b) transfers made in respect of transfers or
reinsurance of all or any portion of the
participating policies in respect of which the
participating account is maintained;
(c) transfers, with the approval of the
Inspector, of amounts that can be
reasonably attributed to sources not related
to the participating policies in respect
of which the account is, or has been
maintained, if the transfer would not, in
the opinion of the appointed actuary,
materially affect the company’s ability to
continue to comply with its dividend or
bonus policy, maintain the levels or rates of
dividends or bonuses paid to the company’s
participating policyholders or meet
the company’s obligations under its
participating policies; and
(d) transfers with the approval of the Inspector
and the High Court made pursuant to a
reattribution plan.
(4) Subject to this section, the directors of an
insurer that issues participating policies may declare,
and the company may pay or otherwise satisfy, a
dividend, bonus or other benefit on those policies and
such payment or satisfaction shall be in accordance with
its dividend or bonus policy established pursuant to the
Regulations.
(5) The appointed actuary shall, annually in
writing, report to the directors on the fairness to
participating policyholders of a proposed dividend,
bonus or other benefit and whether it is in
accordance with the policy. The directors shall consider
the appointed actuary’s report before declaring the
dividend, bonus or other benefit.
(6) The report of the appointed actuary referred

to in subsection (5) shall be prepared in accordance with
generally accepted actuarial practice with such changes
as may be determined by the Inspector and any
additional directions that may be made by the
Inspector.
(7) The directors of an insurer shall not declare a
dividend, bonus or other benefit to participating policy-
holders or authorize transfers from the participating
account if there are reasonable grounds for believing
that—
(a) the company is, or the payment or other
satisfaction would cause the company to be,
in contravention of section 82 or the
Regulations; or
(b) the declaration or transfer is not fair and
equitable to participating policyholders or
that their reasonable expectations have not
been given due regard.
(8) An insurer who contravenes subsection (3)
B. Issue of Policies
Pricing of policies 161. (1) An insurer shall not issue any policy unless
the pricing of the policy has been approved by an
actuary as being suitable for the class of policy to which
the policy belongs.
(2) The Inspector may at any time require the
insurer to obtain and to furnish the Inspector with
a report by the appointed actuary as to the appropriate-
ness of the pricing of any class of policy.
(3) Where a report is required under sub-
section (2), the insurer shall not issue any policy of that
class unless it has obtained from the appointed actuary
approval as to the pricing of policy.
(4) When approving the pricing under sub-

section (1) in respect of any class of policy, an actuary
shall have regard to—
(a) the maximum rate of commission proposed
to be paid to any person; and
(b) the maximum rate of reduction of premium
to be allowed to any person,
in respect of that class of policy.
162. Where the pricing of a policy is approved by an Restriction on
actuary in respect of any class of policy, the insurer be commission to
shall not, except with the approval of an actuary, pay or reduction of

paid or
allow in respect of any policy of that class a commission allowed

premium to be
or a reduction of premium at a rate greater than—

(a) the maximum rate of commission or
reduction of premium to which the actuary
had regard to when approving the rate of
premium; or
(b) the maximum rate of commission or
reduction of premium payable by the
insurer, immediately prior to the
commencement of this Act, in respect of
policies of that class, if any, issued using the
approved pricing,
whichever is the greater.
163. An employer shall not enter into, and an insurer Annuity
shall not issue, an annuity contract for the benefit of an contract for
employee unless the employer has first obtained the an employee

the benefit of
written consent of the employee.

164. (1) Every insurer registered to carry on long-term Form of proposal
insurance business shall not issue, accept or amend any to be approved by
form of proposal, policy, endorsement or application

the Inspector
unless the standard form has been approved by the

Inspector.
(2) Where an insurer has submitted a request for
approval under this section, the insurer shall also
submit—
(a) details of the pricing under section 161(1);
and
(b) copies of the following forms where

applicable:
(i) the standard form of proposal;
(ii) the standard form of policy;
(iii) the standard form of endorsement;
and
(iv) the form of application.
(3) The Inspector may specify such other
information as he thinks necessary for the review of a
standard form under this section.
(4) A form of proposal shall be framed so as to
require a person making a proposal for a life policy to
specify the date of birth of the person whose life is
proposed to be insured and the person making the
proposal shall supply those particulars to the best of his
knowledge and belief.
(5) Where an insurer has submitted a request for
approval with all of the required information, a
standard form under this section will be deemed to be
approved sixty business days after the request and all of
the required information is received by the Inspector,
unless he informs the insurer otherwise.
Insurer may 165. Where an insurer issues a life policy which
give notice
provides that proof of age of the life of the insured is a
condition precedent to the payment of the sum insured,
requiring
proof of age
the insurer shall, unless the age of the life insured has
already been admitted by it, issue on, or with the policy
a printed notice stating that proof of age of the life
insured may be required prior to the payment of the
sum insured.
Procedure where 166. Where an insurer declines to accept the proof of
insurer declines to
age tendered in respect of a policy, whether issued
before or after the commencement of this Act, the
accept proof of age
tendered
policyholder or his legal personal representative may

apply to the High Court for an order directing the
insurer to accept the proof tendered.
167. (1) A policy is not void by reason only of a Policy not to be void
misstatement of the age of the life insured.
by reason only of
misstatement of age
(2) Where there is proof of the true age of the life or

of the life insured
other incorrect
insured and such age is greater than the age on which

statement
the policy is based, the insurer may vary the sum

insured by, and the bonuses, if any, allotted to the
policy so that, as varied, they bear the same proportion
to the sum insured by, and the bonuses, if any, allotted
to the policy before variation as the amount of the
premiums which have become payable under the policy
as issued bears to the amount of the premiums which
would have become payable if the policy had been based
on the true age.
(3) Where there is proof of the true age of the life
insured and such age is less than the age on which the
policy is based, the insurer shall either—
(a) vary the sum insured by, and the bonuses,
if any, allotted to the policy so that, as
varied, they bear the same proportion to the
sum insured by, and the bonuses, if any,
allotted to the policy before variation as the
amount of the premiums which have
become payable under the policy as issued
bears to the amount of the premiums which
would have become payable if the policy had
been based on the true age; or
(b) reduce, as from the date of issue of the
policy, the premium payable to the amount
which would have been payable if the
policy had been based on the true age and
repay the policyholder the amount of
over-payments of premium less any amount
paid as the cash value of bonuses in excess
of the cash value which would have become
payable if the policy had been based on the
true age.
(4) A policy issued after the 10th day of

December, 1966, shall not be void by reason only of any
incorrect statement, other than a statement as to the
age of the life insured, made in any proposal or other
document on the faith of which the policy was issued or
reinstated by the insurer unless the statement—
(a) was fraudulently untrue; or
(b) is material in relation to the risk of
the insurer under the policy and was
made within the period of three years
immediately preceding the date on which
the policy is sought to be voided or the date
of the death of the life insured, whichever is
the earlier.
Minors may 168. (1) A minor who has attained the age of sixteen
effect policies
or take years—
(a) may effect a policy upon his own life or upon
assignments
another life in which he has an insurable

of policies
interest; or
(b) may take an assignment of a policy,
and subject to subsection (3), is as competent in all
respects to have and exercise the powers and privileges
of a policyholder as he would had he been of full age.
(2) A minor who has attained the age of sixteen
years may assign or mortgage a policy with the prior
consent in writing of his parent or a person standing in
loco parentis to the minor.
(3) This section does not—
(a) impose on a minor any liability to which,
but for this section, he would not be subject;
(b) confer on a minor any power or capacity
which, but for this section, he would not
have;
(c) validate a receipt, a discharge or a
surrender of, or security over a policy given
by a minor which, but for this section would
not be valid; or
(d) validate any assignment of a policy which,

but for this section, would not be valid.
169. (1) An insurer shall only enter into a contract of Persons who are
insurance with the insured person or a person who has insurable interest
deemed to have an
an insurable interest in the insured person.

(2) An insurable interest shall be deemed to be
had by—
(a) a parent, or a legal guardian of a child
under eighteen years of age or a person in
loco parentis to such child, in the life of the
child;
(b) a husband, in the life of his wife;
(c) a wife, in the life of her husband;
(d) any person, in the life of another upon
whom he is wholly or in part dependent for
support or education;
(e) a company or other legal person in the life
of a director, officer or employee thereof;
(f) a person who has a pecuniary interest in
the duration of the life of another person, in
the life of that person; and
(g) a person, in the life of his or her cohabitant
as defined in the Cohabitational
Relationships Act.
(3) No insurer shall issue a policy on the life of a
person unless that person signs the insurance
application form, except for minors.
(4) Nothing in this section shall be construed as
limiting or restricting the meaning of “insurable
interest” as understood immediately before the
C. Assignments and Mortgages of Policies

Assignment of 170. (1) Subject to section 173, every assignment of a
policy shall be by deed or by other instrument, and if
policies
by other instrument, such instrument shall be

substantially in accordance with the forms set out in
Schedule 3 Schedule 3.
(2) An assignment is not binding on the insurer
liable under the policy until written notice of the date
and purport of the assignment is received by the
insurer at its principal office in Trinidad and Tobago.
(3) Every insurer shall register in the register of
policies required to be kept by section 270, the date and
purport of every assignment of which it receives notice
and the date on which the notice is received.
(4) A copy of an entry made in accordance with
subsection (3), and certified by the secretary or any
director or authorized person or by the Attorney-at-law
for the insurer shall –
(a) as regards the registration and the date
of registration of the assignment, be
conclusive evidence thereof; and
(b) as regards the date on which the notice was
received, be prima facie evidence thereof.
(5) Priority of claims under any assignment shall
be determined according to the order in which notice is
received by the insurer, except that a subsequent
assignee does not, by giving notice first, obtain priority
over a previous assignment of which he had notice when
taking the assignment.
(6) An assignee under a duly registered
assignment shall have all the powers and be subject to
all the liabilities of the assignor under the policy, and
may sue in his name on the policy, but nothing in this
section shall be construed so as to admit the assignee to
membership of an insurer or to deprive the assignor of
his membership in respect of a policy, except as

provided in the instruments constituting the insurer or
in its articles of incorporation, by-laws or other
constituent document.
(7) The receipt of the assignee shall be a
discharge to the insurer for all monies paid by the
insurer under the policy.
(8) The insurer shall be notified in writing of
every trust, right, equity or interest created in respect of
a policy.
171. (1) Notwithstanding anything contained in Effects of notice
section 170, an insurer shall not be entitled to any
protection under that section or rely upon any of the
provisions of that section where the insurer—
(a) has not acted in good faith; or
(b) has received notice in writing of any trust,
right, equity or interest of any person.
(2) Where an insurer receives notice in writing of
any trust, right, equity or interest of any person, the
insurer may, if it thinks fit, pay to the Central Bank any
money payable under the policy, and the receipt of the
Central Bank for the money shall be a valid discharge to
the insurer for the money so paid.
(3) Money paid to the Central Bank pursuant to
subsection (2), shall be paid by the Central Bank to such
person or persons as the High Court orders.
172. (1) The rights and liabilities arising under a Assignment of
policy shall not be deemed, either at law or in equity, to policy to insurer
be merged or extinguished by reason only of an rights

not to extinguish
and
assignment of the policy, whether at law or in equity, to

liabilities
the insurer which issued the policy.

(2) Notwithstanding anything to the contrary in
section 170, 171 or 173, but subject to subsection (3), no
assignment of an industrial policy shall be valid without
the consent of the insurer liable under such policy.
(3) Where the insurer refuses its consent to the

assignment of an industrial policy, the policyholder may
appeal to the Central Bank.
Policies held by 173. Where an insurer is satisfied that a policy has
been issued or transferred to, or the ownership of a
trustees
policy is otherwise vested in persons as trustees and

those persons are no longer the trustees for the
purposes of the, trust the insurer may, if it sees fit, at
the request in writing of the persons claiming to be
trustees for the time being for the purposes of the trust
and on the evidence of a statutory declaration by one of
those persons verifying the claim, record the names
of those persons as the holders of the policy, and
thereupon those persons shall become the holders of the
policy.
Memorandum of 174. (1) Upon the payment or discharge of any money
or other obligation secured by an assignment of a policy,
discharge and deed
of release
the assignee shall give to the assignor a memorandum

Schedule 3 of discharge in the form as prescribed in Schedule 3 and
shall, where the assignment was by deed, also execute a
deed of release in favour of the assignor.
(2) Upon the presentation of the memorandum of
discharge to the insurer, the insurer shall register the
discharge in its register of policies.
Existing assign- 175. (1) Every assignment of a policy made under the
former Act and every notice of an assignment or of a
ments and notices
to continue to have
effect
trust, right, equity or interest of any person, if valid,
when made or given shall, without prejudice to anything
contained therein, have effect for all purposes, as if
made or given under this Act.
(2) Every assignment registered in a register of
policies under the former Act shall be deemed to have
been registered under this Act.
D. Paid-up Policies, Surrender Values and

Non-Forfeiture
176. (1) Sections 177 to 181 shall not apply to— Application to class
(a) an instrument securing the grant of an

of policy
annuity for a term dependent upon human

life, not being a deferred annuity during the
period of deferment; or
(b) a policy which provides insurance against
contingencies none of which may happen,
not being a policy which provides for the
payment of a sum of money if the life
insured by the policy survives a specified
period.
(2) The Minister may after consultation with the
Central Bank declare by Order, subject to negative
resolution of Parliament, that the provisions of this
section and of sections 177 to 181 shall apply in respect
of any policy or class of policies with such modifications
as may be prescribed by the Order and where such a
declaration is made, the provisions of this section and of
sections 177 to 181 shall apply in respect of that policy
or class of policies accordingly.
177. (1) A policyholder who desires to discontinue Paid-up policies
further premium payments on a policy on which not less
than three years’ premiums have been paid in cash
shall, where the policy has a cash surrender value, be
entitled on application to the insurer to receive in lieu of
the cash surrender value a paid-up policy.
(2) Where a paid-up policy is issued pursuant to
subsection (1) and the contingency occurs which would
have rendered the insurer liable under the original
policy, the insurer shall thereupon be liable under the
paid-up policy.
Surrender of policies 178. (1) The owner of a policy, other than an annuity
contract—
(a) in respect of which there is no contractual
obligation on the owner to make any
payments of premiums after the first year
for which the policy is in force; or
(b) which is not a policy under subpara-
graph (a) that has been in force for at least
three years,
shall, on application to the insurer, be entitled to
surrender the policy and to receive not less than the
cash surrender value of the policy less the amount of
any debt owing to the insurer under or secured by the
policy and less any applicable surrender penalties.
(2) Subject to subsection (3), the owner of an
annuity contract that is in the accumulation stage shall,
on application to the insurer, be entitled to surrender
the policy and to receive not less than the cash
surrender value of the policy less the amount of any
debt owing to the insurer under or secured by the policy
and less any applicable surrender penalties.
(3) The owner of an annuity contract that is in
the accumulation stage and has been in force for less
than five years may only surrender the policy where he
requires immediate cash in circumstances of financial
hardship.
Central Bank may 179. The Central Bank may, on an application by an
insurer, suspend or vary for such period and subject to
suspend or vary
obligation of insurer
such conditions as the Central Bank thinks fit, the

to pay surrender
value
obligation of the insurer to make payments pursuant to

the policy where in the Central Bank’s opinion, such
payments would be prejudicial to the financial viability
of the insurer or to the interests of its policyholders.
180. (1) An ordinary policy shall not be forfeited by Non-forfeiture of

reason only of non-payment of any premiums where the ordinary policies in
surrender value of the policy, calculated as at the day non-payment

certain cases of
of
immediately preceding that on which the premium falls

premiums
due, exceeds the sum of the amount of the debts owing

to the insurer under, or secured by, the policy and the
amount of the overdue premium.
(2) An insurer may until payment of the overdue
premium, charge compound interest on it, on terms not
less favourable to the policyholder than such terms, if
any, as may be specified in the policy.
(3) The overdue premium and any interest
charged on it under this section which remains unpaid
shall for the purposes of this Act be deemed to be a debt
owing to the insurer under the policy.
(4) An ordinary policy shall not be forfeited by
reason only of non-payment of any premiums where the
surrender value of the policy, calculated as at the day
immediately preceding that on which the premium falls
due, does not exceed the sum of the amount of the debts
owing to the insurer under, or secured by, the policy and
the amount of the overdue premium, unless on, or after
the day on which the premium fell due—
(a) the insurer liable under the policy serves a
late-payment notice on the policyholder
stating—
(i) the date of the notice, the due date
of the premium and the amount
due or payable to the insurer; and
(ii) that the policy will be forfeited at
the expiration of twenty business
days after the date of the notice if
the premium or a sum sufficient
to keep the policy in force is not
paid to the insurer within that
period; and
(b) a period of at least twenty business days

has elapsed after service of the notice.
(5) For the purposes of subsection (4), a notice
posted to the last known address of the policyholder
shall be deemed to be service of the notice on the
policyholder.
Treatment of debts 181. Where, in pursuance of any provision of this Part

on issue of paid-up
a policyholder is entitled to receive or an insurer is
required to issue a paid-up policy and there is any debt
policies
owing to the insurer under or secured by the policy, the

insurer may elect—
(a) to treat the debt as a debt secured by the
paid-up policy and thereupon the paid-up
policy shall be security for the debt owing to
the insurer; or
(b) in ascertaining the amount of the paid-up
policy, to reduce the amount by taking into
account, on a basis approved by the Central
Bank, the debt owing to the insurer and
thereupon the debt shall cease to be owing
to the insurer.
E. Payment of Policy Monies
Interest of life 182. (1) The property and interest of any person in a
insured to be
policy upon his own life shall not be liable to be applied
or made available in payment of his debts by any
protected in certain
cases
judgment, order or process of any court.

(2) Where a person who has effected a policy on
his life dies, the monies payable upon his death under or
in respect of such policy shall not be applied or made
available in payment of his debts by any judgment,
order or process of any court, or by retainer by an
executor or administrator, or in any other manner,
except by virtue of—
(a) a contract or a charge made by the person
whose life is insured; or
(b) an express direction contained in his will or

other testamentary instrument executed by
him that the monies arising from the policy
shall be so applied.
(3) A direction to pay debts or a charge of debts
upon the whole or any part of the testator’s estate or a
trust for the payment of debts, is not an express
direction for the purposes of subsection (2)(b).
(4) The provisions of subsection (2)(b) shall apply
only where no named beneficiary has been designated in
183. (1) A policyholder may designate his legal Designation of

personal representative, trustee or beneficiary as the generally
beneficiaries
person to receive the proceeds of the insurance policy—

(a) at the time of making a contract of
insurance; or
(b) at any time subsequent to the making of the
contract.
(2) A designation made under subsection (1)—
(a) shall be in the form and effected in the
manner specified in the contract of
insurance;
(b) shall be submitted to the insurer at its
principal office in Trinidad and Tobago
within the lifetime of the policyholder;
(c) shall, subject to section 184(2)(b), not affect
the right of a policyholder to assign,
exercise rights under or in respect of,
surrender or otherwise deal with, the
contract of insurance as provided therein or
as may be agreed upon with the insurer;
and
(d) may, subject to section 184(1) and (2)(a), be
altered or revoked from time to time and
such alteration or revocation shall be made
by declaration which shall be submitted to

the insurer at its principal office in Trinidad
and Tobago within the lifetime of the
policyholder.
(3) Where the policyholder is the life insured, a
designation made in favour of the “heirs”, “next-of-kin”
or “estate” of the life insured or the use of words of like
import in a designation, shall be deemed to be a
designation of the legal personal representative of the
life insured.
(4) Where a designation is made in favour of a
legal personal representative or is deemed under
subsection (3) to be so made, that legal personal
representative shall receive the proceeds of the
insurance policy on behalf of the beneficiaries of the life
insured’s estate.
(5) An insurer shall, in a contract of insurance,
specify the requirements for the making of a valid
submission under subsection (2)(b) and (d).
Irrevocable 184. (1) A policyholder may designate irrevocably a

designation of
beneficiaries named beneficiary—
(a) at the time of the making of a contract of
insurance; or
(b) by declaration at any time subsequent to
the making of the contract.
(2) Where a policyholder designates a beneficiary
irrevocably, then so long as the designated beneficiary is
alive—
(a) subject to section 185, the policyholder shall
not alter or revoke the designation without
the beneficiary’s consent; and
(b) the policyholder shall not assign, exercise
rights under or in respect of, encash any
units accruing to, surrender or otherwise
deal with, the insurance policy without the
beneficiary’s consent.
(3) The provisions of section 183(2)(a) and (b)

shall apply to a designation made under subsection (1).
(4) For the purposes of sections 184 to 192,
“declaration” means an instrument signed by the
policyholder and signed and witnessed by a Justice of
the Peace, Notary Public or Commissioner of Affidavits
in which the policyholder designates, alters or revokes
the designation of his legal personal representative,
trustee or a beneficiary.
185. (1) Where under section 184(1), in respect of a life Alteration or

policy, a named beneficiary is the policyholder’s spouse designation
revocation of
or cohabitant then, if during the subsistence of the cessation of marriage

on
insurance policy, the named beneficiary ceases to be the

policyholder’s spouse or cohabitant, otherwise than by
death—
(a) the policyholder may alter or revoke the
irrevocable designation without the consent
of the named beneficiary; and
(b) such alteration or revocation shall be made
by declaration which shall be submitted to
the insurer at its principal office in Trinidad
and Tobago within the lifetime of the
policyholder.
(2) A designation by a policyholder shall not be
regarded as irrevocable unless the words creating the
irrevocable designation are clear and unequivocal and—
(a) are prominently displayed on the proposal
form and signed by the policyholder; and
(b) there is sufficient evidence that the
meaning of the word “irrevocable” was
explained to the policyholder at the time
that the proposal form was signed.
186. (1) Notwithstanding the designation of a Policyholder entitled

beneficiary irrevocably under section 184(1), a to dividends
policyholder is entitled, while living, to the dividends or
bonuses declared on a contract of insurance, unless the
contract otherwise provides.
(2) Unless the contract of insurance otherwise

directs, an insurer may apply the dividends and
bonuses declared on a contract of insurance to that
contract for the purpose of keeping the contract in force.
Circumstances in 187. Where the policyholder is the life insured and

where the proceeds of an insurance policy are payable to
which insurance
proceeds are not
a beneficiary, such proceeds shall not form part of the

part of policyholder’s
estate
policyholder’s estate and shall not, as from the date that
the proceeds of the insurance policy become payable, be
subject to the claim of any of the policyholder’s creditors.
Presumption of 188. Except in cases where the policyholder expressly

provides for the creation of a trust, there shall be no
trust negated
presumption of a trust in a contract of insurance.
Appointment of 189. (1) A policyholder may, in a contract of insurance

or by declaration, appoint a trustee for a beneficiary and
trustee
may alter or revoke that appointment by declaration.

(2) Where an insurer makes a payment to a
trustee for a beneficiary, the insurer shall be discharged
from further liability to the extent of the payment.
Beneficiary 190. Where a beneficiary predeceases the life insured

and no disposition of the share of the deceased
predeceasing life
insured
beneficiary in the insurance money is provided in the

contract of insurance or by a declaration, the deceased
beneficiary’s share of the policy proceeds shall be
payable as follows:
(a) to the surviving beneficiary;
(b) if there is more than one surviving
beneficiary, to the surviving beneficiaries in
equal shares; or
(c) if there is no surviving beneficiary, to the
estate of the life insured.
191. A beneficiary may, on the death of a life insured, Right to enforce

enforce for his own benefit, and a trustee appointed payment of proceeds
pursuant to section 189 may enforce as trustee, the
payment of the proceeds of an insurance policy made
payable to him in the contract of insurance, or by a
declaration, and in accordance with the provisions
thereof.
192. A life insured under a group policy may, in his Power of group life
own name, enforce a right given to him under the group insured to sue insurer
policy.
193. (1) Notwithstanding section 183, where under a Payment of policy

policy, money is payable by an insurer to the legal monies without
personal representative of a deceased person the probate or letters of

production of grant of
insurer may, without requiring the production of any certain cases

administration in
grant of probate or letters of administration, pay the

money together with any bonuses, which have been
added to the policy, to a person who satisfies the
insurer that he is entitled—
(a) under the will or on the intestacy of the
deceased person, to the property of such
person; or
(b) to obtain probate of the will of the deceased
person or to take out letters of
administration of his estate,
but the insurer shall not in the aggregate pay to such
person more than twenty-five thousand dollars, or such
other amount determined by the Minister under
section 279(4), and shall retain such percentage of the
total sum due under the policy for payment as may be
determined by the Board of Inland Revenue for the
purposes of such duties as may be due on the estate of
the deceased.
(2) Every person to whom money is paid pursuant
to this section shall apply the money in administering
the estate of the deceased and, if the insurer thinks fit,
it may require those persons to give sufficient security
by bond or otherwise that the money paid will be so
applied.
(3) Notwithstanding section 183, where under a

policy there is no named beneficiary, the insurer may
pay a maximum sum of twenty-five thousand dollars, or
such other amount determined by the Minister under
section 279(4), to a funeral home to offset funeral
expenses of the life insured without requiring the
production of any grant of probate or letters of
administration.
Insurer discharged 194. Where an insurer makes a payment pursuant to

from further liability
section 193, the insurer shall be discharged from all
further liability with respect to—
in certain cases
(a) the money paid to the Board of Inland

Revenue; and
(b) the application of the money paid under any
policy issued by it.
Death of policyholder 195. (1) Where the policyholder, not being the life
who is not the life
insured, predeceases the life insured and a person
satisfies the insurer that he is entitled—
insured
(a) under the will or on the intestacy of the

deceased policyholder, to the benefit of the
policy; or
(b) to obtain probate of the will or to take out
letters of administration of the estate of the
deceased policyholder,
the insurer may, without requiring the production of
any grant of probate or of letters of administration,
endorse on the policy a declaration that the
requirements of paragraph (a) or (b) have been satisfied
and that the person has become the policyholder.
(2) Subsection (1) does not confer on a person who
becomes the policyholder any beneficial interest in the
policy which he would not otherwise have had.
(3) This section does not apply to—
(a) a policy, the surrender value of which at the
date of the death of the deceased
policyholder, exceeds ten thousand dollars;
or
(b) a policy which is one of two or more policies

held by the deceased policyholder and
issued by the same insurer if the aggregate
of the surrender values of those policies at
the date of the death of the deceased
policyholder exceeds ten thousand dollars.
(4) For the purposes of subsection (3), the
surrender value of a policy is the amount, including any
amount in respect of bonus additions, which would be
paid by the insurer issuing the policy upon its
surrender.
196. (1) An insurer may pay to the Central Bank any Insurer may pay
money payable by it in respect of a policy for which, in money to the Central
the opinion of the insurer, no sufficient discharge can

Bank
otherwise be obtained.
(2) The receipt of the Bank for any money paid
under subsection (1) shall be a good and valid discharge
to the insurer for the money so paid, and the money
shall be dealt with according to an order made by the
Court.
Consolidated Fund any monies received under this
section and there shall be paid from the Consolidated
section or any order granted under subsection (2).
(4) Upon the payment of monies to any person
pursuant to an order made by the High Court under
subsection (2), the Central Bank shall be discharged
from all further liabilities, costs, claims, actions, or any
liability in damages or any other remedy whatsoever
including costs to such person or his heirs and assigns.
197. (1) Every insurer shall, within forty business Unclaimed money
days after the end of its financial year, publish in the
Gazette and in at least two daily newspapers circulated
in Trinidad and Tobago, a statement showing all
policies in respect of which amounts remain payable by

the insurer for a period of seven years and the
statement shall be submitted to the Central Bank
within five business days of publication.
(2) The insurer may deduct the cost of publication
from any unclaimed money.
(3) Every statement published under sub-
section (1) shall require the person entitled to the
amount payable or his legal personal representative to
submit a claim to the insurer within sixty business days
from the date of publication in the Gazette or daily
newspapers, whichever is published later.
(4) Where any amount payable under a policy
included in the statement published under sub-
section (1) remains unclaimed, the insurer shall pay
such sum into the Central Bank within twenty business
days after the expiration of the period stated in
subsection (3).
(5) Every insurer shall, at the time of making
the payment to the Central Bank referred to in
subsection (4), submit a listing in respect of each policy
which shall specify—
(a) the policy number and date of issue;
(b) the name and last known address of the
policyholder; and
(c) the amount due and the date on which it
became due.
Consolidated Fund any money received under sub-
section (4).
(7) Where unclaimed money is paid into the
Central Bank and a person subsequently makes a claim
on such money, the insurer, if it is satisfied that the
person is entitled to the money shall request the Central
Bank to pay over the money to the insurer.
(8) Where the Central Bank has received a

request in accordance with subsection (7), the Central
Bank shall release the money to the insurer and the
insurer shall thereupon pay the money to the person.
Central Bank under subsection (4), and the insurer
subsequently sells or disposes of that class of insurance
business, the purchasing insurer shall be entitled to
make the request under subsection (7) and the Central
Bank shall release the money to that insurer which
shall thereupon pay the money to the person.
Central Bank under subsection (4) and the insurer has
ceased to carry on insurance business and has not sold
or disposed of such business, a person may apply to the
Central Bank for a release of the money and the person
shall furnish the Central Bank with information and
documents as may be specified by the Central Bank.
(11) The Central Bank, where it is satisfied that
the person who applied for a release under sub-
section (10) would have been paid the unclaimed money
by the insurer, may release the monies to the person.
(12) Where the insurer has paid into the Central
Bank an amount in respect of a policy and the insurer
satisfies the Central Bank that the amount paid exceeds
the amount which would have been payable under the
policy, the Central Bank shall refund to the insurer the
amount of the excess.
(13) There shall be paid from the Consolidated
section.
(14) In this section, “unclaimed money” means all
sums of monies which become legally payable by an
insurer in respect of policies and are not claimed within
seven years after the maturity date of the policy.
F. Provisions Relating to Industrial Life Insurance

Business
Objection to policies 198. (1) Where, within twenty business days of the
delivery of an industrial policy by an insurer—
(a) to the policyholder; or
(b) at the place of abode of the policyholder, to
some other person residing at that place
and apparently not less than sixteen years
of age, and by whom any premium in
respect of the policy is paid on behalf of the
policyholder,
the policyholder returns the policy to the insurer with
an objection in writing to any term or condition of the
policy, the insurer shall forthwith refund any premium
paid in respect of the policy which shall thereupon be
cancelled.
(2) Where an industrial policy is sent by post by
an insurer to the person to whom it is issued, it shall,
unless the contrary is proved, be deemed to have been
delivered to him at the time at which it would reach him
in the ordinary course of post.
(3) For the purposes of this section, a policy shall
be deemed to have been returned to an insurer with an
objection if the policy and the written objection are
posted for transmission to the insurer by registered
letter.
Return of industrial 199. Where an insurer carries on industrial life
policy and premium
insurance business, or any person authorized by such
insurer takes possession of an industrial policy or a
receipt book after
inspection
premium receipt book or any other document issued in

connection with the policy, a receipt for the policy, book
or document shall be given to the person from whom it
was received, and the policy, book or document shall be
returned to that person on demand at any time after the
expiration of twenty business days from the receipt
thereof, unless—
(a) it is required for the purposes of evidence in
legal proceedings;
(b) the policy has been terminated by reason of

the satisfaction of all claims arising under
it; or
(c) in the case of a policy, the insurer is entitled
to retain the policy as security for money
owing to the insurer by the policyholder.
200. A person who wilfully makes or orders or allows Falsification
to be made any entry or erasure in, or omits any entry
or orders or allows any entry to be omitted from a
collecting book or a premium receipt book, with intent to
falsify the book or to evade any of the provisions of this
Act, commits an offence.
201. (1) Where an agent or sales representative of an Voidance of policy

insurer writes or fills in any particulars in a proposal for
an industrial policy with the insurer, then,
notwithstanding any agreement to the contrary
between the applicant and the insurer, a policy issued in
pursuance of the proposal shall not be void by reason
only of an incorrect or untrue statement contained in
such particulars unless the incorrect or untrue
statement was in fact made by the applicant to the
agent or sales representative for the purposes of the
proposal.
(2) The burden of proving that an incorrect or
untrue statement was made by the applicant lies on the
insurer.
(3) Nothing in this section shall allow the
voidance of any policy for any reason or in any
circumstances for, or in which the policy could not have
been void apart from the provisions of this section.
202. Every industrial policy issued by an insurer Particulars to be
shall contain—
specified on policies
(a) an endorsement or a statement in

distinctive type specifying whether the
policy is, or is not a participating policy; and
(b) a short statement in a form approved by the

Central Bank setting out—
(i) the right of the policyholder to be
granted a paid-up policy;
(ii) the right of the policyholder to
surrender his policy and to receive
in cash the surrender value of the
policy; and
(iii) the conditions under which the
policy may be forfeited.
Issue of premium 203. (1) An insurer shall, in respect of each industrial

policy issued by it, issue to the policyholder a premium
receipt book
receipt book.
(2) An insurer shall not issue or permit to be
used one premium receipt book in respect of two or more
policies held by different policyholders who are not
members of the same household.
(3) Every premium receipt book issued by an
insurer shall contain in respect of each policy to which it
relates—
(a) an endorsement or a statement in
distinctive type of the particulars referred
to in section 202;
(b) an entry made by the insurer of the
following matters:
(i) the surname and initials of the
policyholder and, where the policy
is issued in respect of the life of a
person other than the policy-
holder, the surname and initials of
that person;
(ii) the date and number of the policy;
(iii) the amount of the weekly or other
periodical premium; and
(c) a notice stating that proof of age may be

required before payment of the sum
insured.
204. (1) Every payment in respect of premiums under Premium receipt book
an industrial policy made to an agent, a sales topremiums show date to which
representative or an employee of the insurer shall be paid

have been
recorded by the agent, sales representative or employee

in the premium receipt book so as to clearly indicate the
date to which premiums have been paid in respect of the
policy or policies to which the premium receipt book
relates, and the record shall—
(a) where it is the first entry on a page of the
premium receipt book, be signed by the
agent, sales representative or employee
with his usual signature; and
(b) where it is not such an entry, be signed by
the agent, sales representative or employee
with his usual signature or be initialled by
him.
(2) Where a premium receipt book relates to
more than one policy and any payment for premiums on
the policies is made which is less than the aggregate of
the weekly or other periodical premiums in respect of all
those policies, the person making the payment shall be
required by the agent, sales representative or employee
of the insurer to state the policy or policies in respect of
which no payment or an insufficient payment is made,
and the agent, sales representative or employee shall
clearly record the fact stated in the premium receipt
book.
(3) The insurer shall, unless the amount of the
deficiency referred to in subsection (2) is paid before any
further premiums are paid—
(a) cause a separate premium receipt book to
be issued in accordance with section 203 in
respect of any policy in relation to which the
deficiency exists; and
(b) cause to be cancelled the particulars and

entry relating to any such policy in the
premium receipt book.
Guarantor not liable 205. Any provision in an agreement whereby the

to refund commission
guarantor of an agent of any insurer is, or may be
required to pay to the insurer the amount of any
on lapsed policies
commissions repayable by the agent on account of

lapsed industrial policies shall be void.
Certificate of 206. Any provision in an agreement, whereby the

indebtedness not
production in any legal proceedings of a certificate
signed by an officer of an insurer may be deemed to be
conclusive evidence
conclusive evidence of the indebtedness or the amount of

the indebtedness to the insurer of any agent or of any
guarantor of an agent, shall be void.
Non-forfeiture of 207. (1) An industrial policy on which less than one

industrial policy in
year’s premiums have been paid shall not be forfeited by
reason only of the non-payment of any premium, unless
certain cases of
non-payment of
the premium has remained unpaid for not less than four
premiums
weeks after it became due.

(2) An industrial policy on which at least one
year’s but less than two years’ premiums have been paid
shall not be forfeited by reason only of the non-payment
of any premium, unless the premium has remained
unpaid for not less than eight weeks after it became due.
(3) An industrial policy on which at least two
years’ premiums have been paid shall not be forfeited by
reason only of the non-payment of any premium, unless
the premium has remained unpaid for not less than
twelve weeks after it became due.
(4) Where an industrial policy on which at least
three years’ premiums have been paid has been
forfeited by reason of the non-payment of any premium,
the insurer shall, without requiring any application
from the policyholder, issue a paid-up policy for an
amount not less than that specified in the table
included in the policy.
(5) Where a paid-up policy is issued pursuant to

subsection (4) and the contingency occurs which would
have rendered the insurer liable under the original
policy, the insurer shall thereupon be liable under the
paid-up policy.
(6) The insurer shall notify the policyholder in
writing of the fact that the paid-up policy has been
granted and shall specify the amount of the policy and
the contingency upon which the policy is payable.
(7) An industrial policy shall not be forfeited by
reason only of the non-payment of any premium where
the non-payment is as a result of non-collection by the
insurer.
G. Miscellaneous
208. (1) Where— Lost policy
(a) the policyholder; or

(b) a person claiming the benefit of the
provisions of section 191, 193 or 195 in
respect of a policy,
alleges that the policy is lost, defaced or has been
destroyed, the insurer liable under the policy may,
subject to this section, on written application by the
holder of the policy or by the person referred to in
paragraph (b) and upon such evidence as to the loss,
defacement or destruction of the policy as the insurer
considers sufficient, issue to the applicant a special
policy in substitution for the policy.
(2) Where an application is made under sub-
section (1)(b), the insurer shall not issue a special policy
to such person unless it is satisfied that the provisions
of section 193 or 195 should be applied in favour of the
applicant.
(3) A special policy shall—

(a) be a copy, as nearly as can be ascertained,
of the policy in substitution for which it is
issued;
(b) contain copies of every endorsement on the
original policy registered by the insurer;
and
(c) state the reason for the issue of such a
policy.
(4) Before issuing a special policy, the insurer
shall give at least twenty business days’ notice of its
intention to do so in the Gazette and in at least two daily
newspapers circulated in Trinidad and Tobago.
(5) The costs of the advertisement and all other
costs incurred in the issue of a special policy shall be
paid by the applicant at the time when the application
is made.
(6) The fact that a special policy has been issued
and the reason for its issue shall be recorded by the
insurer in the appropriate register.
(7) Where an insurer fails to issue a special
policy within six months after the receipt of a written
application under subsection (1) the High Court may, on
an application by the policyholder, beneficiary or any
person claiming the benefit pursuant to section 191, 193
or 195 and upon such evidence as to the loss or
destruction of the original policy as it deems
sufficient, order the insurer, upon such terms and
within such time as the High Court thinks fit, to issue a
special policy to the applicant.
(8) Where the holder of a special policy or a
person claiming the benefit of the provisions of
section 193 or 195 in respect of a special policy claims
that the special policy is lost or has been destroyed, the
provisions of this section shall apply as if the special
policy were an original policy issued by the insurer.
209. A policy shall not be avoided merely on the Effect of capital

ground that the person whose life is insured suffered punishment or suicide
capital punishment or died by his own hand or act,

on policy
whether or not at the time of his death he was mentally

ill, where, upon the true construction of the policy, the
insurer thereby agreed to pay the sum insured on the
happening of either of those events.
210. Any term or condition of a policy which limits, to Conditions as to war

an amount less than the sum insured, the amount risk void
payable under the policy in the event of the death of the
life insured occurring as a result of war, shall not have
any force or effect unless the person who effected the
policy agreed in writing to the insertion in the policy of
that term or condition.
PART VIII
GENERAL INSURANCE
211. Except as explicitly provided otherwise, this Application of this

Part shall apply to all insurers carrying on general Part
insurance business.
212. (1) Every insurer shall include in its financial Computation of

statements and returns adequate provisions for its insurance liabilities
policy liabilities including unexpired risks and
outstanding claims determined in accordance with
financial reporting standards.
(2) Every insurer shall furnish to the Inspector
details of the methods and assumptions used in
calculating the liabilities required under subsection (1)
at the time of submission of its financial statements and
returns.
(3) The Inspector may disallow any methods or
assumptions used in calculating the liabilities referred
to in subsection (1) where, in the opinion of the
Inspector, they do not result in adequate provision for
liabilities and the Inspector may—
(a) direct an insurer to adopt any method or
assumption as he considers necessary; and
(b) reject the financial statements and returns

and the provisions of section 148(3) shall
apply mutatis mutandis to this section.
(a) “provisions for outstanding claims” means
the amount set aside by an insurer at the
end of its financial year for the purpose of
meeting its unsettled claims, (including
claims in respect of which the amounts have
not been determined and claims arising out
of incidents which have not been notified to
the insurer) under contracts of insurance, in
respect of incidents occurring before the end
of that year and for the purpose of meeting
expenses likely to be incurred in connection
with the settlement of such claims; and
(b) “provision for unexpired risk” means the
amount set aside by an insurer at the end of
its financial year, in respect of risk to be
borne by the insurer after the end of its
financial year under contracts of insurance
entered into before the end of that year and
includes the unearned premium less any
deferred acquisition cost plus any
additional provision for unexpired risk,
required as a result of the liability
adequacy test in the financial reporting
standards.
Average provision 213. (1) An insurer may not rely on an average

provision included in a general insurance contract in
respect of property unless, before the contract was
entered into—
(a) the insurer clearly informed the insured; or
(b) in the case of a policy covering a group
insurance scheme, the insurer clearly
informed the insured group policy provider;
or
(c) in the case of a policy insuring residential

developments, the insurer clearly informed
the homeowners’ association,
in writing of the nature and effect of the provision
including whether the provision is based on indemnity
or on replacement value of the property that is the
subject matter of the contract.
(2) For the purposes of this section, “average
provision” means a provision in a general insurance
contract in respect of property which allows an insurer
to pro rate the value of a claim by a policyholder, where
the sum insured under the contract is less than the
insurable value of the property, using the following
formula:
C x (S/I)
Where—
“C” is the value of the claim;
“S” is the sum insured at the date the contract
was issued; and
“I” is the insurable value of the property at the
date the contract was issued.
214. (1) The appointed actuary of an insurer carrying Reports for general
on general insurance business shall investigate the
insurance business
financial condition of the insurer and submit a report in

accordance with section 159, and the provisions of that
section shall apply mutatis mutandis to this section.
(2) Notwithstanding subsection (1), within three
years of the commencement of this Act, the report
required to be submitted under this section may be
prepared by the chief financial officer of an insurer
where an actuary has not yet been appointed.
Inspector may require 215. (1) Subject to subsection (5), every insurer
actuarial reports
carrying on general insurance business shall—
(a) cause its appointed actuary to make
a valuation each financial year, of its
policy liabilities including provisions for
unexpired risks and outstanding claims and
to prepare a report of the valuation; and
(b) submit the actuarial report referred to in
paragraph (a) to the Inspector within sixty
business days after the end of its financial
year.
(2) The appointed actuary shall apply the
standards of accepted actuarial practice with respect to
the work required under this Act and the Regulations.
(3) The actuarial report required under sub-
section (1) shall include a description of any matters for
which the actuary was unable to obtain information or
for which he was not satisfied with the information
provided.
(4) Where an insurer causes its appointed
actuary to make an investigation and the results of the
investigation are made public, the insurer shall cause a
copy of the actuarial report to be submitted to the
Inspector within five business days of making the
results of such report public.
(5) Notwithstanding subsection (1), within three
years of the commencement of this Act, the actuarial
valuation and report required to be submitted under
this section may be limited to the accident and sickness
class of business only.
PART IX
PENSION FUND PLANS
Plan to be registered 216. (1) No person may establish or operate a

privately administered pension fund plan (hereinafter
referred to as “a plan”) in Trinidad and Tobago unless
the plan is registered under this Part.
(2) A plan which was registered under the

former Act or the Insurance Act, 1966 shall be deemed
to be registered under this Part.
217. (1) Subject to the provisions of this Part, where a Qualifications for
plan establishes a fund under trusts which is subject to
registration of plan
the laws of Trinidad and Tobago, in connection with an

undertaking or a combination of undertakings
carried on wholly or partly in Trinidad and Tobago, and
the main purpose of that fund is—
(a) the provision of superannuation allowances
on retirement to persons employed in the
undertaking or in the combination of
undertakings in connection with which the
fund is established;
(b) the provision of pensions to the spouses of
persons who are or have been so employed
and of periodical allowances to, or in respect
of the children of such persons; or
(c) the assurance of capital sums on the death
of persons who were so employed,
such a plan shall be qualified for registration under this
Part if the Rules of the plan comply with the
requirements set out in Part I of Schedule 4.
(2) Where a plan establishing a fund for any of
the purposes set out in subsection (1)(a), (b) or (c) is in
operation before the commencement of this Act, that
plan shall, subject to such directions as to the
amendment of its Rules as the Central Bank may give,
be treated as qualified for registration under this Part
although—
(a) the fund created under the plan is not
established under trusts; or
(b) the plan does not comply with the
requirements set out in Part I of Schedule 4.
Registration 218. (1) An application for the registration of a plan

under this Part shall be addressed to the Central Bank
and shall—
(a) be in the form prescribed;
(b) be signed by the trustees of the plan;
(c) specify the address at which communica-
tions concerning the plan shall be received
(hereinafter referred to as “the address of
the plan”); and
(d) be accompanied by—
(i) two copies of the trust deed and of
the Rules of the plan;
(ii) a copy of the actuarial report on
which the plan is based;
(iii) a list of the names and addresses
of the trustees of the plan;
(iv) in the case of an insured plan, a
copy of the policy of insurance
related to benefits provided by the
plan; and
(v) such other documents or further
information as may be prescribed.
(2) Where an application is made in accordance
with the provisions of this Part for the registration of a
plan, the Central Bank shall register the plan and the
Rules thereof where it is satisfied that the plan has
qualified for registration.
(3) The Central Bank shall on registering a plan
under this Part, enter in the register the address of the
plan and the names and addresses of the trustees.
(4) Where—
(a) the trust deed or the Rules, or both, of a
plan registered under this Part (hereinafter
referred to as “a registered plan”) are
amended; or
(b) there is any change in the address of the

plan or in the names or addresses of the
trustees thereof,
the trustees shall, within fifteen business days of the
amendment or the change, apply for the registration of
the amendment or for the correction of the register in
respect of the change.
(5) An application for an amendment or for the
correction of the register in respect of a change shall be
addressed to the Central Bank and shall—
(a) be in the form prescribed;
(b) be signed by one of the trustees of the plan;
and
(c) be accompanied—
(i) in the case of an amendment, by
two copies thereof signed by one of
the trustees; or
(ii) in the case of a change, by such
particulars as may be necessary
for the correction of the register.
219. (1) An amendment to a trust deed or Rules, or Amendment not valid

both, of a registered plan shall not be valid unless the until registered
amendment is registered.
Chap. 32:01
(2) Where an application for the registration of

an amendment is made in accordance with
section 218(5), the Central Bank shall register the
amendment, where it is satisfied—
(a) that the trust deed or the Rules, or both, as
amended, would not have disqualified the
plan from registration under this Part; or
(b) in the case of a plan which should be
harmonised with the system of national
insurance established under the National
Insurance Act, that the plan otherwise
complies with the requirements of any

Regulations made under that Act for the
purpose of harmonization.
Certificate of 220. (1) The Central Bank shall, on registering any

plan or any amendment to the trust deed or the Rules,
registration
or both, of a registered plan under this Part, issue to the

applicant a certificate of registration.
(2) Any document purporting to be a certificate
of registration issued by the Central Bank under sub-
section (1), shall be received in evidence and be deemed
to be so issued without further proof, unless the
contrary is shown, and shall be conclusive evidence of
the fact certified.
Cancellation of 221. (1) The registration of a registered plan shall not

be cancelled unless the plan has been wound up.
registration
(2) The decision to wind-up a pension plan shall

be recorded by board resolution.
(3) The Central Bank, trustees and the
management committee shall be informed of a person’s
intention to wind-up a plan, in writing, within twenty
business days of the board resolution and such
notification to the Central Bank, trustees and the
management committee shall be done simultaneously
and accompanied by a copy of the relevant board
resolution.
(4) The written notice shall specify the wind-up
date and the reasons for the wind-up.
(5) Notwithstanding subsection (1), (2) or (3), the
registration of a registered pension plan shall not be
cancelled unless the plan has been wound up.
(6) The trustees of a registered plan shall,
within ten business days of the completion of the
winding up of the plan, notify the Central Bank in
writing that the winding up has been completed.
(7) On receiving notice in writing that a

registered plan has been wound up, the Central Bank
shall cancel the registration of the plan where it is
satisfied that—
(a) the plan has been wound up; and
(b) the assets of the plan have been applied in
accordance with the Rules of the plan.
222. (1) The fees payable in respect of— Fees to be prescribed
(a) the registration of a plan;

(b) the registration of any amendment to the
trust deed or the Rules, or both of the
registered plan; or
(c) the correction of the register occasioned by
a change in the name or address of a trustee
or a change in the address of a registered
plan,
shall be such as may be prescribed in the Regulations.
(2) Notwithstanding the provisions of sub-
section (1), no fees shall be payable in respect of the
registration of any amendment to the Rules of a
registered plan where the amendment is solely for the
purpose of complying with the requirements of any
Regulations made under the National Insurance Act, for
the purpose of harmonisation.
223. (1) Where an application is made under this Part Power to delete
for the registration of a plan, the Rules of which were provisions for
made before the commencement of this Act, and the against perpetuities
avoiding the rule
Central Bank is satisfied that the Rules of the plan

contain provisions which were embodied only for the
purpose of avoiding the application to the trusts of the
plan of the rule of law relating to perpetuities, the
Central Bank may, at the request of the trustees who
made the application—
(a) amend the Rules by deleting those
provisions; and
(b) make any further amendments which are,

in the opinion of the Bank, necessary as a
result of the deletion.
(2) Where the Rules of a plan are amended by
the Central Bank pursuant to subsection (1), the Rules
shall, when registered, have effect subject to the
amendments.
Supplementary 224. (1) The Central Bank may require any person
who is an employer, an insurer, a trustee or an officer of
provisions as to
powers of Central
Bank
a plan for the registration of which application has been
made under this Part, or of any registered plan, to
furnish either by statutory declaration or otherwise, any
information or explanation which may be necessary for
the proper exercise and performance of the powers and
duties of the Central Bank under this Part.
(2) Where the trustees of a registered plan
commit a breach of trust by making an unauthorized
investment or by violating any rule of the plan, which is
necessary for registration under this Part, the Central
Bank shall have the same remedies in all respects for
the breach of trust as if it were a person beneficially
interested in the plan.
(3) The Central Bank or any person authorized
by the Central Bank in writing may, at any reasonable
time, inspect or examine any books, records or other
documents relating to a registered plan or any plan in
respect of which an application for registration is made
under this Part, or any securities or obligations in which
pension fund monies of any such plan are invested.
Penalties for default 225. (1) Every trustee and the secretary of a
registered plan commit an offence where in respect of
that plan, there is default in complying with any of the
requirements of this Part relating to—
(a) accounts and reports;
(b) the making of applications for the

registration of any amendment to the trust
deed or to the Rules, or both, of the plan or,
the correction of the register in respect of a
change in the address of the plan or in the
names and addresses of the trustees
thereof; or
(c) the giving of notice to the Central Bank of
the winding up of the plan.
(2) It is a defence to any proceedings instituted
under subsection (1) against the trustees and the
secretary of a registered plan to prove that the default
occurred without their consent or connivance and was
not facilitated by any neglect on their part.
(3) A person who is lawfully required under this
Part by the Central Bank to furnish any information or
explanation which could with reasonable diligence, be
furnished by him and who fails to comply with any such
requirement within ten business days after written
notice thereof has been delivered to him, commits an
offence.
(4) A person who commits an offence under this
Part is liable on summary conviction to a fine of
twenty thousand dollars and in the case of a
continuing offence to a fine of two thousand dollars for
every day during which the offence is committed after
conviction thereof.
226. (1) The trustees of each plan registered under Annual accounts and
this Part shall— balance sheet to be
submitted
(a) submit annually to the Central Bank a

balance sheet and statement of accounts for
each accounting year within six months of
the expiration of that accounting year; and
(b) file with the Central Bank annually or at
such periods and in such form as may be
prescribed any information or return
relating to such plan.
(2) The balance sheet and statement of accounts

referred to in subsection (1) shall—
(a) before they are submitted to the Central
Bank, be audited by an auditor approved by
the Central Bank; and
(b) be prepared in accordance with the forms
set out as Forms A and B respectively, of
Schedule 4 Part II of Schedule 4.
Actuarial 227. (1) The trustees of each registered plan shall

investigation
appoint an actuary or a consulting actuary to make an
investigation into the financial condition of the plan and
to report on his findings.
(2) An investigation under subsection (1) shall be
made every three years or at such shorter intervals as
the Central Bank may specify.
(3) A copy of the report prepared in accordance
with Part III of Schedule 4 and signed by the actuary
shall be furnished to the Central Bank within nine
months after the date of the investigation.
(4) The provisions of subsections (1) and (3) shall
not apply to a plan insured with an insurer, but the
trustees of such a plan shall obtain from the insurer a
certificate to the effect that the plan has been valued by
an actuary.
(5) The certificate required under subsection (4)
together with the Tables set out in Part III of
Schedule 4 shall be deposited by the trustees with the
Central Bank.
Investments 228. (1) The trustees of a registered plan shall not

invest the assets of the plan except—
(a) in such securities as may be allowed in
Schedule 7 Schedule 7; and
(b) in any other manner as prescribed by the
Regulations.
(2) No trustee may invest the assets of a pension

fund in the equity, debentures or other evidence of
indebtedness of the employer or any subsidiary or
associate of the employer or of any company of which the
employer is a subsidiary or an associate.
(3) The Minister may, on the recommendation of
the Central Bank, prescribe by Order, subject to
negative resolution of Parliament, the percentage which
a plan’s assets originating in Trinidad and Tobago shall
bear to the total of its assets.
229. The rule of law relating to perpetuities shall not Rules of law against
apply and shall be deemed never to have applied to the perpetuities
apply
not to
trusts of a registered plan.
PART X
ASSOCIATION OF UNDERWRITERS
230. (1) No association of underwriters may carry on Registration of

insurance business in Trinidad and Tobago unless it is underwriters
association of
registered under this Part and the provisions of

section 23(1), (4) and (5) shall apply mutatis mutandis.
(2) An application for registration of an
association of underwriters shall be accompanied by—
(a) a copy of its statute or deed of association;
(b) a certificate stating, in the case of an
association of underwriters established
outside of Trinidad and Tobago that—
(i) the association of underwriters
has been established for at least
five years;
(ii) the law of the country in which it
was established provides for the
regulation of associations of
underwriters; and
(iii) the association of underwriters is

operating in accordance with that
law;
(c) a list of the names and addresses of its
members operating in Trinidad and Tobago
and persons appointed as its agents or
brokers in Trinidad and Tobago;
(d) evidence of payment to the Central Bank of
the application fee prescribed in Schedule 2;
and
(e) any further information the Central Bank
may require.
(3) The Central Bank may register an
association of underwriters where it is satisfied that the
association of underwriters complies with the provisions
of this Part.
(4) An association of underwriters may be
registered to carry on any class of general insurance
business listed in Schedule 1 and the accident and
sickness class of insurance business.
(5) An association of underwriters constituted
outside of Trinidad and Tobago shall authorize a person
resident in Trinidad and Tobago as its principal
representative, to accept on behalf of the members of the
association of underwriters, service of process in any
legal proceedings and any notices or other
correspondence from the Central Bank and such person
shall meet the criteria set out in Schedule 5.
(6) Upon the commencement of this Act, the
Central Bank shall issue to every association of
underwriters carrying on insurance business in
Trinidad and Tobago immediately before the
commencement of this Act, a certificate of registration
specifying the classes of insurance business for which it
is registered.
(7) An association of underwriters that

dollars.
231. (1) The Central Bank shall upon approval of an Applicant to be

application made under section 230 notify the applicant Bank’s decision with
informed of Central
in writing of its approval and the requirement to make respect to application

the deposit under section 233.
(2) Upon receipt of evidence by the applicant
that the deposit has been made in accordance with
section 233 and that the application fee has been paid,
the Central Bank shall issue a certificate of registration
to the association of underwriters signed by the
Governor which shall specify the classes of general
insurance business and the accident and sickness class
of insurance business in respect of which the association
of underwriters is registered and which shall be prima
facie evidence of its registration.
(3) Where the decision is made to reject an
application, the Central Bank shall notify the applicant
in writing of its rejection and shall give reasons to the
applicant within ten business days of the date of
rejection.
232. An association of underwriters may carry on its Restriction on

insurance business through brokerages registered
registration
under this Act.
233. (1) An association of underwriters shall not be Deposit by association

registered under this Part to carry on any class of of underwriters
general insurance business unless it has deposited with
the Central Bank the greater of an amount equal to—
(a) the minimum stated capital that would be
required of an insurer that is carrying on
the class or classes of business it intends to
carry on; or
(b) forty per cent of the premium income of its

members, with respect to Trinidad and
Tobago insurance business during the
financial year last preceding the date of the
deposit.
(2) Where an association of underwriters has
made a deposit as required by subsection (1), it shall at
the end of each financial year, deposit an amount equal
to the difference between the last preceding deposit and
the amount required by subsection (1).
(3) A deposit made in pursuance of this section
may be either in the form of cash or in the form of
approved securities or partly in the form of cash and
partly in the form of approved securities.
Deposits form part 234. (1) All deposits made by an association of

of assets
underwriters pursuant to this Act shall form part of the
assets of the association of underwriters.
(2) All interest and dividends accruing due on
any approved securities shall be paid to the association
of underwriters.
(3) A deposit made in respect of any type of
insurance business shall be retained by the Central
Bank until the association of underwriters ceases to be
registered in respect of that class of insurance business
or the deposit is required in the winding up of the
association of underwriters.
Maturity of assets 235. (1) An association of underwriters shall notify the

Inspector, in writing, of the maturity of an asset held in
in the deposit
the deposit at least ten business days prior to the

maturity date of such asset.
(2) Where an asset in the deposit has matured,
the Central Bank shall continue to hold the cash
equivalent of the asset and such cash shall form part of
the deposit.
236. (1) An association of underwriters whose Release of deposit

registration has been revoked and is not under liability upon revocation
to its policyholders may apply in writing to the Central
Bank for a release of its deposit.
(2) On making an application under
subsection (1), the association of underwriters shall—
(a) file with the Central Bank a list of its
policyholders whose risks have not been
provided for and who have not surrendered
their policies; and
(b) publish at least once a week for twelve
consecutive weeks in the Gazette and in at
least two daily newspapers circulated in
Trinidad and Tobago a notice—
(i) of its intention to apply to the
Central Bank for the release of its
deposit on a date specified in the
notice being a day not less than
four months after the date of the
publication of the first notice; and
(ii) requesting any policyholder who
is opposed to the release of the
deposit to file his opposition in
respect of any outstanding
liabilities with the Central Bank
on or before the date specified in
the notice.
(3) Where no opposition is filed with the Central
Bank in accordance with subsection (2)(b)(ii), the
Central Bank may release the deposit to the association
of underwriters.
(4) Where the Central Bank has received any
opposition under subsection (2)(b)(ii), the Central Bank
may—
(a) apply to the High Court for a winding up
order in accordance with section 34(11); or
(b) apply to the High Court for an order to

make payment from the deposit to those
policyholders and to release any remaining
funds to the association of underwriters.
Release of deposit 237. (1) Notwithstanding section 234(3), an associa-

tion of underwriters may apply in writing to the
where an insurer is
still a going concern
Inspector for a partial release of its deposit where it is
in excess of the requirements of this Act.
(2) The Inspector, where he is satisfied that the
deposit retained by the Central Bank is in excess of the
requirements of section 233 in respect of continuing
policyholders, may release to the association of
underwriters such portion of the excess in the deposit
as the Inspector considers appropriate in the
circumstances.
Central Bank may 238. Notwithstanding the provisions of section 234

where an association of underwriters is in liquidation,
release deposit to
liquidator
the Central Bank shall pay to the liquidator all monies
and securities held as a deposit under section 233 in
respect of that association of underwriters and the
liquidator shall, in accordance with the provisions of
this Act, apply such monies and securities towards
discharging the liabilities under Trinidad and Tobago
policies for—
(a) accident and sickness class of insurance
business; and
(b) general insurance business.
Inspector to furnish 239. The Inspector shall, where an association of

underwriters so demands, furnish it with a certificate
certificate of deposit
setting out the nature and extent of any deposit held by

the Central Bank under this Act in respect of the
association of underwriters together with particulars of
any approved securities forming the whole or part of the
deposit.
240. (1) Where the Inspector is satisfied that by Deposit to be

reason of depreciation in the value of securities or for in deficit
increased where
any other cause, the value of approved securities

deposited by an association of underwriters under
section 233 falls short of the value required by this Act,
the Inspector shall by notice in writing require the
association of underwriters to deposit within five
business days with the Central Bank monies or
approved securities, or both, to a value which the
Inspector considers sufficient to bring the amount of the
deposit up to the value required by this Act.
(2) An association of underwriters which fails to
deposit with the Central Bank monies or approved
securities, or both, when required to do so by notice
under subsection (1) commits an offence and is liable on
conviction on indictment to a fine of five million
dollars.
241. Where any monies or approved securities, or Responsibility for

both, retained by the Central Bank as, or as part of the
lost securities
deposit required to be made by an association of

underwriters under section 233 are, while so retained,
lost, stolen, destroyed or damaged, the loss suffered by
all persons interested in the monies or the approved
securities shall be remedied by the payment of monies
by the Central Bank for that purpose.
242. An association of underwriters may at any time Substitution of

substitute for any monies or approved securities
statutory deposit
retained by the Central Bank as, or as part of the

deposit required to be made under section 233, any
other monies or approved securities where the total
amount then deposited is not less than the amount
required to be deposited under this Act and the monies
or approved securities so substituted shall be subject to
the same charge or liability as the monies or approved
securities for which they were substituted.
Maintenance of 243. (1) An association of underwriters shall at all

deposit
times maintain the deposit required under section 233
and shall fund the deposit as follows:
(a) annually, based on its audited financial
returns; and
(b) quarterly, based on its quarterly return,
within five business days after the submission of its
returns.
(2) An association of underwriters that
dollars.
Documents and 244. (1) An association of underwriters established in

information relating
Trinidad and Tobago and registered under this Part,
shall, within six months of the end of its financial year,
to insurance business
to be furnished to
furnish to the Inspector such documents and

Inspector
information as he may require.

(2) An association of underwriters established
outside of Trinidad and Tobago and registered under
this Part shall, within six months of the end of each
financial year, furnish to the Inspector—
(a) a certified copy of such returns relating to
the insurance business of its members
during the preceding year as are required to
be made to the supervisory authority or
other public authority in the country in
which the association of underwriters is
established;
(b) a certificate, signed by the Chairman or
other presiding officer of the association of
underwriters and signed by, or on behalf of,
the supervisory authority or other public
authority stating whether the association of
underwriters has complied with the
requirements of the law governing the
regulation of associations of underwriters in
the country in which it is established;
(c) the latest annual list of the names of its

members and the names of the members of
its committee or other governing body;
(d) a list of the names and addresses of its
members operating in Trinidad and Tobago
and persons appointed as its agents and
brokers in Trinidad and Tobago;
(e) a statement of receipt and expenditure by
its members in Trinidad and Tobago during
the preceding year; and
(f) any other documents and information as
required by the Inspector.
(3) In addition to the annual submission under
subsections (1) and (2), an association of underwriters
shall submit—
(a) a statement of receipt and expenditure by
its members in Trinidad and Tobago during
the preceding quarter; and
(b) a calculation of its assets and liabilities in
respect of its Trinidad and Tobago business,
within twenty business days after the end of each
quarter.
(4) Every association of underwriters shall,
within six months of the end of its financial year publish
in at least two daily newspapers circulated in Trinidad
and Tobago the statement referred to in sub-
section (2)(e).
245. (1) The Inspector may make or cause to be made Additional powers of
an examination and inquiry into the affairs or business the Inspector
of each association of underwriters for the purpose of
satisfying itself that the provisions of this Act are being
observed and that the association of underwriters is in a
sound financial condition, and the Inspector shall
specify the frequency, form and content of any such
reporting requirement.
(2) The Inspector may impose any reporting

requirement on associations of underwriters that it
considers necessary for the purpose of satisfying itself
that the provisions of this Act are being observed and
that the association of underwriters is in a sound
financial condition, and the Inspector shall specify the
frequency, form and content of any such reporting
requirement.
(3) The Inspector may require an association of
underwriters to cause an actuary to make an
investigation into its financial condition, including a
valuation of its liabilities in respect of every class of
insurance business and to furnish the Inspector with a
report of the result of the investigation.
(4) The Inspector may, by notice, require any
association of underwriters registered under this Part—
(a) to furnish him at such time and in such
manner as he may determine with such
information in connection with association
of underwriters’ insurance business as he
may specify;
(b) to produce at such time and place as he may
determine such books or papers in
connection with the association of
underwriters’ insurance business as he may
specify; or
(c) to produce forthwith to any person
authorized in writing by the Central Bank
or Inspector such books or papers as the
Central Bank or Inspector may specify.
(5) The Inspector may issue compliance
directions to an association of underwriters and
section 155 shall apply mutatis mutandis to this Part.
Registered association 246. (1) The Central Bank shall prohibit a registered
of underwriters may
association of underwriters from writing new policies in
any class of insurance business where the Central Bank
be prohibited from
writing business
is satisfied that it is in the interest of the policyholders

or prospective policyholders to do so.
(2) Where the Central Bank exercises its power

under subsection (1), it shall notify the registered
association of underwriters in writing of its decision and
shall state the reasons therefore.
247. An association of underwriters shall not offer a Product approval

new or amended product to policyholders or potential
policyholders in Trinidad and Tobago without first
furnishing the Inspector with the information required
under section 33 or 164 and the provisions of those
sections shall apply mutatis mutandis to this Part.
248. (1) The Board may revoke the registration of an Revocation of

association of underwriters, if at any time it is satisfied registration
that the circumstances specified in subsection (2) so
warrant and shall give written notice to the registered
association of underwriters stating that it has revoked
the registration of the association of underwriters giving
reasons for doing so.
(2) The circumstances referred to in sub-
section (1) are that the Board is satisfied that—
(a) the registration was procured as a result of
any misleading or false representation or in
consequence of any incorrect information,
whether such representation was made or
information was supplied wilfully or
otherwise;
(b) the association of underwriters or any of its
members is insolvent;
(c) the association of underwriters has
committed, is committing, or is about to
commit an act, or is pursuing, or is about to
pursue any course of conduct, that is an
unsafe and unsound practice;
(d) the association of underwriters has
contravened any of the provisions of this
Act or of the Regulations or any condition,
direction or requirement imposed under
this Act;
(e) the association of underwriters has

unreasonably delayed the payment or
settlement of any claim arising under any
policy issued or effected in Trinidad and
Tobago by it, or on its behalf;
(f) the persons who manage the association of
underwriters are not fit and proper persons
to manage the association of underwriters;
or
(g) the employees of the association of
underwriters are incapable of carrying on
the relevant class of insurance business in
an efficient manner.
(3) Notwithstanding subsection (1), the Central
Bank shall at any time revoke the registration under
this Part of a registered association of underwriters if
requested to do so by the association of underwriters or
if it is satisfied that the members of the association of
underwriters have not commenced business within one
year of registration or have ceased to carry on business
in Trinidad and Tobago.
(4) Where the Central Bank revokes the
registration of an association of underwriters, it shall
state in writing its reasons.
Policies issued before 249. An association of underwriters, the registration

rejection of
of which has been revoked shall continue to carry on
business relating to policies issued by it before the date
application or
revocation of
on which it was notified of the revocation unless the

registration
Central Bank is satisfied that it has made suitable

arrangements for its obligations under such policies.
PART XI
JURISDICTION OF COURTS, APPEALS AND OFFENCES
Jurisdiction of local 250. Every policy issued in Trinidad and Tobago

courts
through a person or an office in Trinidad and Tobago
shall, notwithstanding any agreement to the contrary,
be governed by the laws of Trinidad and Tobago and

shall be subject to the jurisdiction of the courts of
251. (1) Summary proceedings for an offence under Jurisdiction and

this Act may, without prejudice to any jurisdiction limitation
exercisable apart from this subsection, be taken against
a registrant including an unincorporated body, and a
financial holding company in any place at which it has
a place of business, and against an individual in any
place at which he is for the time being located.
(2) Notwithstanding anything in any other law

to the contrary, any complaint relating to an offence
under this Act which is triable by a Magistrate’s Court
in Trinidad and Tobago may be so tried if it is laid at
any time within seven years after the commission of the
offence or within eighteen months after the relevant
date.
(3) In this section, the “relevant date” means the

date on which evidence sufficient in the opinion of the
Central Bank of Trinidad and Tobago to justify the
institution of summary proceedings comes to its
knowledge.
(4) For the purpose of subsection (3), a

certificate as to the date on which evidence referred to
in subsection (3) came to the knowledge of the Central
Bank of Trinidad and Tobago shall be conclusive
evidence of that fact.
252. In any proceedings where a certificate signed by Documents to be

the Governor, a true copy of, or extract from a document received in evidence
certified as such by the Governor or a Deputy Governor
or a copy of the Gazette or daily newspaper purporting
to contain the document certifies—
(a) that a particular person is, or is not a
registrant or insurance consultant or was or
was not registered at a particular time;
(b) the date on which a particular registrant or

insurance consultant became or ceased to
be registered;
(c) whether or not a particular registrant’s or
insurance consultant’s registration is, or
was restricted; or
(d) the date on which a restricted registration
expires or expired,
such certificate or document shall be admissible in
evidence.
Appeals 253. (1) Except where otherwise provided by this Act

or the Regulations, an appeal shall lie to a Judge of the
High Court from any decision, direction, refusal, ruling
or order of the Minister, the Central Bank, the Board or
the Inspector given or made under this Act.
(2) An appellant may, within fifteen business
days of the receipt of the notification of the decision,
direction, refusal, ruling or order of the Minister, the
Central Bank, the Board or the Inspector, file with the
Registrar of the Supreme Court, an appeal against such
decision, direction, refusal, ruling or order, setting forth
the ground of appeal.
(3) Notwithstanding that an appeal lies under
this Act or under the Regulations from any decision,
direction, refusal, ruling or order of the Minister, the
Central Bank, the Board or the Inspector, such decision,
direction, refusal, ruling or order shall be binding upon
the appellant unless, on an inter partes application
made to the High Court for the grant of an injunction
before the determination of the appeal, the High Court
is satisfied that circumstances exist that warrant the
stay of the particular decision, direction, refusal, ruling,
order or any further action by the Minister, the Central
Bank, the Board or the Inspector and grants an
injunction to the appellant on such terms and conditions
as the High Court may direct.
(4) Where a Judge grants an injunction under

subsection (3)—
(a) no further action may be taken by the
Minister, the Central Bank, the Board or
the Inspector in respect of any decision,
direction, refusal, ruling or order to which
the injunction relates; and
(b) the injunction shall have effect—
(i) unless otherwise revoked, varied
or suspended by the High Court,
before any proceedings to which
the appeal relates, are concluded;
or
(ii) until the High Court determines
the appeal,
whichever is earlier.
(5) On an appeal, the appellant and the Minister,
the Central Bank, the Board or the Inspector as
respondent may appear personally or be represented by
an Attorney-at-law or any other person.
(6) On an appeal, a Judge or the Court of Appeal,
as the case may be, may confirm, reverse or vary any
decision, direction, refusal, ruling or order made or
given by the Minister, the Central Bank, the Board or
the Inspector.
(7) Subject to this Part, the procedure for
determining appeals shall be in accordance with the
Civil Proceeding Rules of the Supreme Court of
Judicature.
254. (1) Any person who, in purported compliance Offences

with any requirement under this Act or the Regulations,
furnishes any information, provides any explanation or
makes any statement which he knows or has reasonable
cause to believe to be false or misleading commits an
offence.
(2) A person who knowingly or recklessly

contravenes—
(a) any provision of this Act or any Regulations
or Order made hereunder; or
(b) any direction, requirement or measure
given or made by the Central Bank, the
Board or the Inspector,
commits an offence and the offence shall be deemed to
be continued so long as the default continues.
(3) Any person who contravenes this Act or the
Regulations for which no other penalty is expressly
provided, commits an offence and is liable––
hundred thousand dollars and to imprison-
ment for two years and in the case of a
continuous offence, to a fine of sixty
continues; or
hundred and fifty thousand dollars and to
imprisonment for one year and in the case
of a continuous offence, to a fine of thirty
continues.
(4) Where a person is convicted of an offence
under this Act, the court may, in addition to any
punishment it may impose, order that person to comply
with the provisions of this Act or any Regulations or
Order made hereunder or any direction, requirement or
measure given or made by the Central Bank, the Board
or the Inspector, in respect of which the person was
convicted.
(5) In any proceedings for an offence under this
Act or the Regulations, it shall be a defence for the
person charged to prove that he took all reasonable
precautions and exercised all due diligence to avoid the

commission of the offence by himself or by any person
under his control.
Act or the Regulations, where it is proved that the
person charged intended to deceive, defraud or profit
from the offence, the penalty shall be a fine ten times
the amount stipulated for that offence and to
imprisonment for twenty years.
(7) The court may, in addition to any other
punishment it may otherwise impose under sub-
section (6)—
(a) order the person to comply with the require-
ment in respect of which the person was
convicted;
(b) where it is satisfied that as a result of the
commission of the offence the convicted
person acquired any monetary benefits or
that monetary benefits accrued to the
convicted person’s spouse or other
dependant, order the convicted person to
pay restitution to the party deceived or
defrauded, in an amount equal to the
court’s estimation of those monetary
benefits.
(8) Where a person commits an offence under
this Act and such offence is proved to have been—
(a) committed with the acquiescence, consent
or connivance of—
(i) any director or officer of the
company;
(ii) any person purporting to act in a
capacity referred to in sub-
paragraph (i); or
(iii) an actuary or auditor of the

insurer or financial holding
company; or
(b) attributable to any neglect on the part of—
(i) any director or officer of the
company;
(ii) any person purporting to act in a
capacity referred to in sub-
paragraph (i); or
(iii) an actuary or auditor of the
company,
the persons referred to in paragraph (a) or (b) shall be
presumed to have also committed the offence.
Financial fraud on 255. (1) A person who perpetrates a financial fraud on

policyholders
policyholders commits an offence.
(2) Any director or officer of an insurer, financial
holding company, brokerage or agency who—
(a) falsifies the accounts of the insurer,
brokerage or agency which leads to a loss of
policyholders’ funds;
(b) uses policyholders’ funds for his own benefit
or for the benefit of his relatives and
persons connected with him which leads to
a loss of policyholders’ funds; or
(c) provides to the Central Bank or Inspector
false or misleading financial data or other
relevant information with the intent to
conceal the true financial position of an
insurer, brokerage or agency,
perpetrates a financial fraud on policyholders.
(3) Any sales representative who uses
policyholders’ funds for his own benefit or for the
benefit of persons connected with him which leads to a
loss of policyholders’ funds perpetrates a financial fraud
on policyholders.
(4) Any person who commits an offence under

this section is liable on conviction on indictment to a fine
of ten million dollars and to imprisonment for ten years.
256. A person who by— Offence to induce
(a) knowingly making a false, misleading or contract of insurance

person to enter into
deceptive statement;
by means of a false
statement
(b) recklessly making, dishonestly or

otherwise, any statement which is false,
misleading or deceptive; or
(c) dishonestly concealing material facts,
induces or attempts to induce another person to enter
into or cancel or offer to enter into or cancel any contract
of insurance commits an offence and is liable on
conviction on indictment to a fine of five million
dollars and to imprisonment for five years.
257. (1) A person other than a registrant shall not Restriction on issuing
issue or cause to be issued any advertisement inviting insurance
the public to enter into contracts of insurance with that
advertisement
person or with some other person.

(2) For the purpose of this section—
(a) an advertisement issued by a registrant by
way of display or exhibition in a public place
shall be treated as issued by the registrant
on every day on which it causes or permits
the advertisement to be displayed or
exhibited;
(b) an advertisement issued by any person on
behalf of, or to the order of a registrant shall
be treated as an advertisement issued by
that registrant; and
(c) an advertisement inviting the entering into
of contracts of insurance with an insurer
specified in the advertisement shall be
presumed, unless the contrary is proved, to
have been issued by the insurer.
(3) Any person who contravenes this section

commits an offence.
section it shall be a defence for the person charged to
prove that he is a person whose business it is to publish
or to arrange for the publication of advertisements and
that he received the advertisement in the ordinary
course of business and did not know and had no reason
to suspect that the publication would constitute such an
offence.
Advertisement 258. (1) Where a person alleges that or where in the

opinion of the Inspector, a registrant has issued or
caused to be issued any advertisement which is
misleading or objectionable, the Inspector may require
the correction or withdrawal of the advertisement or
any part thereof.
(2) A registrant that does not correct or
withdraw the advertisement or any part thereof as
required by the Inspector, commits an offence.
Information not to be 259. (1) No registrant, financial holding company,

controlling shareholder, significant shareholder or
disclosed
affiliate of a registrant, and no director, officer,

employee or agent of a registrant, financial holding
company or other controlling shareholder or affiliate
who receives information in the course of his duties
relating to the business or other affairs of a policy-
holder, consumer of the insurer or of any other person
shall disclose the information unless—
(a) the disclosure is required under compulsion
of law; or
(b) the policyholder, consumer or other person
concerned expressly consents to the
disclosure.
(2) Notwithstanding subsection (1), a registrant

or a person authorized by the registrant may, with the
consent of the policyholder, consumer or other person
concerned, exchange information with another
registrant.
(3) This section does not apply to—
(a) information disclosed in good faith in the
course of the performance of duties or
responsibilities imposed by this Act or in
the implementation of measures countering
money laundering and terrorist financing;
and
(b) the provision of information necessary to
combat fraud against insurers.
(4) This section does not apply to information
which at the time of disclosure is, or has already been
made available to the public from other sources or to
information in the form of a summary or collection of
information so framed as not to enable information
relating to any particular person to be ascertained
from it.
260. (1) The Central Bank may issue to any person Administrative fines
who, there is reasonable cause to believe, has committed
an offence referred to in Schedule 6, a notice offering the Schedule 6
person the opportunity to dispense with any liability to
conviction in respect of that offence by payment of the
administrative fine specified for the offence in
Schedule 6.
(2) Where a person is given a notice under this
section, criminal proceedings shall not be taken against
him for the offence specified in the notice until the
expiration of fifteen business days commencing from the
day after which the notice was served.
(3) Where a person fails to pay the

administrative fine referred to in subsection (1), or
where he pays the administrative fine but continues to
commit the offence after the expiration of fifteen
business days following the date of receipt of the notice
referred to in subsection (1), that person is liable on
summary conviction for the offence committed.
(4) Where a person paid an administrative fine
under subsection (1), but continues to commit the
offence and is convicted under subsection (3), he is liable
to the criminal penalty prescribed in Schedule 6 from
the date after which he made the payment.
(5) Payment of an administrative fine under this
section shall be made to the Central Bank and a
certificate that payment of the penalty was made to the
Central Bank by the specified date shall, if the
certificate purports to be signed by an authorized officer
of the Central Bank, be admissible as evidence of the
facts stated therein.
(6) All monies received under this section shall
be paid into the Central Bank and credited to the
Consolidated Fund.
(7) A notice under subsection (1) shall—
(a) specify the offence alleged;
(b) give such particulars of the offence as are
necessary for giving reasonable information
of the allegation; and
(c) state—
(i) that criminal proceedings shall
not be laid until the expiration of
fifteen days from the date of
receipt of the notice where
payment of the administrative
fine is made and the commission
of the offence is discontinued;
(ii) the amount of the administrative

fine and the fact that it is to be
paid to the Central Bank; and
(iii) that the Central Bank shall not
accept any payments in respect of
a notice under subsection (1) after
the expiration of the fifteen
business days.
(8) In any proceedings for an offence to which
this section applies, no reference shall be made to the
giving of any notice under this section or to the payment
or non-payment of an administrative fine thereunder
unless in the course of the proceedings or in some
document which is before the court in connection with
the proceedings, reference has been made by, or on
behalf of the accused to the giving of such a notice, or, as
the case may be, to such payment.
(9) Administrative fines under this section in
respect of insurers shall be calculated with reference to
the insurer’s proportion of the industry’s new gross
annualized premium income.
(10) Where an insurer’s proportion of the
industry’s new gross annualized premium income is two
and a half per cent or less, it shall pay fifty per cent of
the administrative fine prescribed in Schedule 6.
(11) The Minister, after consultation with the
Central Bank may by Order, vary the percentage of the
insurer’s proportion of the industry’s new gross
annualized premium income stated in respect of
subsection (10).
261. (1) A person who without reasonable excuse Offence to suppress

alters, suppresses, conceals or destroys or refuses to
information
produce any document which he is liable to produce or

has been so required to produce commits an offence.
(2) A person shall not, with intent to defeat the

purposes of this Act or with intent to delay or obstruct
the carrying out of an investigation under this Act send,
cause to be sent, or conspire with another person to send
out of Trinidad and Tobago a book, other document or
any money or property belonging to, or under the control
of an insurer or a financial holding company.
(3) A person who contravenes subsection (1) or
(2) commits an offence and is liable on conviction on
indictment to a fine of ten million dollars and to
imprisonment for ten years.
PART XII
FACILITATION OF TRANSFERS AND UNDERTAKINGS
Definitions 262. In this Part—

“the appointed day” means such day as is
appointed by a Vesting Order for the
coming into force of that Order;
“existing” means existing or in force, as the
case may require, immediately before the
appointed day;
“insurer” includes a foreign insurer under
section 281;
“security” includes a mortgage or charge,
whether legal or equitable, debenture,
guarantee, lien, pledge whether actual or
constructive, hypothecation, indemnity,
undertaking or other means of securing
payment or discharge of a debt or liability
or obligation whether present or future,
actual or contingent;
“undertaking” means the insurance business
and business of a financial nature carried
on by an insurer or any part of the business
so carried on;
“will” includes a codicil and any other
testamentary writing.
263. (1) Where an agreement has been entered into for Vesting Order
the acquisition by a person (hereinafter referred to as
the “transferee”), of the undertaking of an insurer
(hereinafter referred to as the “transferor”), the
transferee may, for the purpose of effecting the transfer
to and the vesting in the transferee of the undertaking,
make a written application to the Minister, notice of
which shall be published in the Gazette and in at least
two daily newspapers published and circulated in
(2) Upon the making of such an application, the
Minister may, if he thinks fit, make an order under this
Part called a “Vesting Order”, transferring to and
vesting in the transferee the undertaking, as from the
appointed day, and thereupon all such existing
property, rights, liabilities and obligations as are
intended by the agreement to be transferred and vested
shall, by virtue of this Act, and without further
assurance be transferred to, and shall vest in the
transferee, to the intent that the transferee shall
succeed to the whole or such part of the undertaking of
the transferor as is contemplated by the agreement.
(3) For the avoidance of doubt a Vesting Order
shall take effect on the appointed day specified in the
Order, whether or not the Vesting Order is published in
the Gazette and in at least two daily newspapers
published and circulated in Trinidad and Tobago, after
the appointed day.
(4) No transfer or vesting effected by a Vesting
Order shall—
(a) operate as a breach of covenant or condition
against alienation;
(b) give rise to any forfeiture; or
(c) invalidate or discharge any contract or
security.
(5) Notwithstanding any other law, a Vesting

Order may in the discretion of the Minister, provide for
the carrying forward by the transferee and setting off
for corporation tax purposes of such of the losses of the
transferor as may be specified, as if the undertaking of
the transferor had not been permanently discontinued
on the appointed day and a new undertaking had been
set up and commenced by the transferee.
Supplementary 264. (1) Without prejudice to the generality of

section 265, the effect of a Vesting Order as regards the
provisions as to
undertaking thereby transferred shall be that on and

transfers
from the appointed day—

(a) every existing contract to which the
transferor was a party, including a contract
of insurance, whether in writing or not,
shall be construed and have effect as if—
(i) the transferee had been a party
thereto instead of the transferor;
(ii) for any reference however worded
and whether express or implied,
to the transferor there were
substituted, as respects anything
falling to be done on, or after the
appointed day, a reference to the
transferee; and
(iii) for any reference however worded
and whether express or implied, to
the directors or to any director,
officer, clerk or servant of the
transferor were, as respects
anything falling to be done on, or
after the appointed day, a
reference as the case may require
to the directors of the transferee
or to such director, officer, clerk or
servant of the transferee as the
transferee may appoint or, in

default of appointment, to the
director, officer, clerk or servant of
the transferee who corresponds as
nearly as possible to the first
mentioned director, officer, clerk
or servant;
(b) any contract between the transferor and
policyholder or person claiming through a
policy shall become a contract between the
transferee and that policyholder or person
claiming through a policy;
(c) any existing instruction, direction,
mandate, power of attorney or consent
given to the transferor shall have effect as if
given to the transferee;
(d) any security transferred to the transferee
by a Vesting Order that immediately before
the appointed day was held by the
transferor as security for the payment or
discharge of any debt or liability or
obligation, whether present or future,
actual or contingent, shall be held by, and
be available to, the transferee as security
for the payment or discharge of such debt
or liability or obligation; and any such
security which extends to future advances
or liabilities shall, on and from the
appointed day, be held by, and be available
to, the transferee as security for future
advances by and future liabilities to, the
transferee in the same manner and in all
respects as future advances by, or liabilities
to, the transferor were secured thereby
immediately before the appointed day;
(e) any judgment or award obtained by, or

against the transferor and not fully
satisfied before the appointed day shall be
enforceable by, or against the transferee;
and
(f) unless the agreement provides to the
contrary, any officer, clerk or servant
employed by the transferor immediately
before the appointed day shall become an
officer, clerk or servant, as the case may be,
of the transferee on terms and conditions
not less favourable than those on which he
was so employed immediately before the
appointed day, and such employment with
the transferor and transferee respectively,
shall be deemed for all purposes to be a
single continuing employment, except that
no director, officer, secretary or auditor of
the transferor shall by virtue only of a
Vesting Order become a director, officer,
secretary or auditor, as the case may be, of
the transferee.
(2) Subsection (1)(a)(ii) and (iii) shall apply to
any statutory provision, to any provision of any existing
contract to which the transferor was not a party and to
any provision of any other existing document, not being
a contract but including in particular a will, as they
apply in relation to a contract to which subsection (1)(a)
applies.
(3) Any property or rights transferred to, and
vested in, the transferee which immediately before the
appointed day were held by the transferor, whether
alone or jointly with any other person—
(a) as trustee or custodian trustee of any trust,
deed, settlement, covenant, agreement or
will, and whether originally so appointed or
not, and whether appointed under hand or
seal, or by order of any Judge;
(b) as executor of the will of a deceased person;

(c) as administrator of the estate of a deceased
person;
(d) as judicial trustee appointed by order of any
Judge; or
(e) in any other fiduciary capacity whatsoever,
shall, on and from the appointed day be held by the
transferee, whether alone or jointly with such other
person, in the same capacity, upon the trusts, and with
the powers and subject to the provisions, liabilities and
obligations applicable thereto, respectively.
265. The transfer of and vesting in the transferee of Transfers subject to

an undertaking by a Vesting Order shall, unless stamp duty
exempted, either generally or in some particular case,
by the Order, be subject to the provisions of the Stamp
Duty Act, as if the Order was, in each of the cases in Chap. 76:01
which the duty is imposed on the several instruments
specified in the Schedule to that Act, an instrument
between party and party within the contemplation of
the Act.
PART XIII
MISCELLANEOUS
266. Registrants and insurance consultants shall Standards of market
comply with the standards on market conduct as conduct
prescribed in Schedule 11. Schedule 11
267. An insurer shall fully settle all judgment claims Settlement of

within forty business days of a judgment order, unless judgment claims
there is a stay of execution.
268. (1) In the case of an individual life policy, upon Proof of policy
acceptance of the risk, an insurer shall issue a policy
within twenty business days of acceptance of the risk.
(2) In the case of a group policy, the insurer shall
issue a certificate to the insured within twenty business
days of acceptance of the risk.
(3) In the case of a general insurance policy,

upon first acceptance of the risk, the insurer shall issue
a policy to the insured and upon each renewal date
thereafter, the insurer shall issue a certificate to the
insured, within twenty business days of receipt of all
relevant documentation pertaining to the risk.
Issue of capital by 269. (1) A person shall not publish in respect of an

insurer or in respect of a company proposed to be formed
company
to carry on insurance business a prospectus, notice,

circular, advertisement or other invitation offering to
the public for subscription any shares in the insurer or
proposed company unless the prospectus, notice,
circular, advertisement or other invitation is first
approved by the regulatory authority under the
Act No. 17 of 2012 Securities Act and copies of the approved documents are
submitted to the Central Bank.
(2) A person who is acting as the promoter of any
such proposed company shall not accept any office of
profit in the company or any payment or pecuniary
advantage other than as provided in the prospectus,
notice, circular, advertisement or other invitation.
Register to be kept 270. (1) An insurer shall keep in accordance with this
section—
(a) a register of its Trinidad and Tobago
policies; and
(b) a register of its foreign policies.
(2) An insurer shall appoint an officer in charge
of the registers referred to in subsection (1).
(3) The Inspector shall be notified in writing of
the name of the officer in charge of the registers referred
to in subsection (1) and of any change of the officer in
charge of the registers within five business days of such
appointment.
(4) Upon request by a person having a beneficial

interest in a Trinidad and Tobago policy, an insurer
shall search its register of Trinidad and Tobago policies
for evidence of the existence of a Trinidad and Tobago
policy.
(5) An officer designated by the insurer shall
issue a report of the results of the search within forty
business days of receipt of the request to the person
making the request.
(6) Where it is subsequently discovered that a
Trinidad and Tobago policy existed at the date of the
request and the person was not so informed, the insurer
shall compensate any person having a beneficial
interest in that policy with interest at the weighted
average of the prime rate of interest on any amount
claimed and due to such person under the policy
calculated from the date on which the person would
have been entitled to such payment until full payment
is made.
271. (1) Every Trinidad and Tobago policy and foreign Registration of policy
policy existing at the date of the commencement of this
Act shall as at that date be registered by the insurer in
the register required to be kept under section 270.
(2) An insurer shall specify the address of its
registered office on every Trinidad and Tobago policy
issued by it.
(3) Every policy issued by an insurer shall
immediately after issue be registered by the insurer in
the register.
(4) All money payable in respect of a Trinidad
and Tobago policy shall, unless the insurer and the
policyholder otherwise agree, be payable at the
registered office.
Serving of notice 272. (1) Where a notice is required or permitted by

this Act to be given to, or served upon a person, the
notice shall be in writing and may be given or served—
(a) where the notice is addressed to a person
other than a company, by serving it upon
him personally or by sending it by
registered post addressed to him at his
usual or last known place of abode or
business; and
(b) where the notice is addressed to a company,
by serving it personally upon the person
last known to the Central Bank or the
Inspector as being a director or the
principal representative or an officer of the
company or by sending it by registered post
addressed to such person at his address last
known to the Central Bank or the Inspector.
(2) Where a notice is sent by registered post, it
shall be deemed to have been given or served on the date
on which it would have been delivered in the ordinary
course of post.
(3) In this section, “company” includes a body
corporate which has ceased carrying on insurance
business in Trinidad and Tobago.
Authority to sign 273. Any document required by, or under this Act to
documents
be signed by a director, may be signed by any other
officer of the company where—
(a) the officer is authorized to do so by the
board of directors; and
(b) the board of directors has notified the
Central Bank or the Inspector in writing of
the authorization.
Printing of documents 274. Where a document is by this Act required to be

printed, the Central Bank may permit it to be
typewritten or to be reproduced by such means as the
Central Bank may approve.
275. Failure on the part of an insurer to comply with Policy not invalidated
any provision of this Act shall not in any way invalidate in certain cases
a policy issued by the insurer.
276. Notwithstanding any other written law, for the Currency

purpose of this Act, insurance business may be carried
on in any currency.
277. (1) Before making or amending Regulations Consultations

under this Act, the Minister may consult with the
registrants and other persons who may be affected by
the draft regulations or amendment.
(2) Before making or amending Guidelines
referred to in section 278, the Central Bank shall issue
draft Guidelines or draft amendments thereof and shall
consult for a period not exceeding sixty business days
with the registrants who may be affected by the draft
Guidelines or amendments.
(3) Where, in the opinion of the Minister, any
matter to be dealt with in Regulations has become
urgent, the Minister may proceed to make such
Regulations without the consultation referred to in
subsection (1), and may subsequently consult within
sixty business days with the registrants and other
persons who may have been affected by the Regulation
or amendment.
(4) Where, in the opinion of the Governor after
consultation with the Inspector, any matter proposed to
be dealt with in Guidelines or by an amendment
thereof has become urgent, the Central Bank shall
proceed to issue the Guidelines or amendments thereof
without following the process referred to in sub-
section (2), and shall subsequently consult with the
registrants who may have been affected by the
Guidelines or amendments.
278. (1) The Central Bank may issue Guidelines to— Guidelines
(a) facilitate compliance with this Act and
Regulations;
(b) enable the Central Bank to meet its

objectives; or
(c) aid compliance with the Proceeds of Crime
Act, the Anti-Terrorism Act, or any other
written law in relation to the prevention of
money laundering and combating the
financing of terrorism which may be in force
from time to time.
(2) Guidelines issued under this section shall not
be regarded as a statutory instrument.
(3) Contravention of a Guideline although not an
offence, shall not prevent the Central Bank or the
Inspector from taking action under section 155.
Central Bank to issue 278A. (1) The Central Bank may issue Guidelines on
any matter it considers necessary to give effect to a
Guidelines for
declared agreements
declared agreement.
(2) Where Guidelines are issued under sub-

section (1), a declared agreement shall have the
meaning assigned to it under section 3 of the Tax
Information Exchange Agreements (United States of
Act No. 4 of 2017 America) Act, 2017.
(3) Where a person has failed to comply with

Guidelines issued by the Central Bank under sub-
section (1), the Central Bank shall direct that person
to—
(a) cease and or refrain from committing the
act, pursuing the course of conduct, or
committing a violation; or
(b) perform such acts as in the opinion of the
Central Bank are necessary to remedy the
situation; and
(c) perform such acts as are required to give
effect to a declared agreement.
(4) Guidelines under this section shall be

subject to the approval of the Minister and laid in
Parliament at the earliest opportunity.
279. (1) The Minister may, upon recommendation by Regulations and

the Central Bank, make Regulations for generally amendment of
giving effect to the provisions of this Act.

Schedules
(2) Regulations made under this Act shall be

subject to negative resolution of Parliament, unless the
Regulations affect constitutional rights in which case,
they shall be subject to affirmative resolution of
Parliament.
(3) The Minister may, by Order, upon
recommendation by the Central Bank, amend the
Schedules.
(4) The Minister may, by Order, upon
recommendation by the Central Bank, vary the amount
specified—
(a) in the definition of “insolvent” in
section 4(2);
(b) in section 193(1) and (3); and
(c) in section 195(3) and (4).
(5) Any amendment to Schedule 6 shall be
subject to affirmative resolution of Parliament.
280. The Insurance Act is repealed. Chap. 84:01 repealed
281. (1) Notwithstanding section 280, the former Act Transitional and
and the Regulations made thereunder shall apply to a savings provisions
foreign insurer for a period of eighteen months from the
commencement of this Act in order to facilitate a
reorganization of the foreign insurer’s business such
that the foreign insurer can comply with the
requirements of section 21(1) of this Act.
(2) A foreign insurer shall reorganize its
business pursuant to subsection (1) within a period of
eighteen months from the commencement of this Act or
within such shorter period as the Central Bank may
direct.
(3) For the purposes of this section, “foreign

insurer” means a branch of a foreign insurance
company, which is registered under the former Act to
carry on insurance business in Trinidad and Tobago.
(4) Where a foreign insurer engages in a
reorganization of its business pursuant to sub-
section (1) or (2), the Central Bank may exempt the
foreign insurer from the requirements of sections 84 to
87 of the former Act.
(5) A foreign insurer shall not transfer its
business or any part thereof to a local company unless
such company is first registered as an insurer in
accordance with Part III.
(6) Where a foreign insurer fails to comply with
the requirements of subsection (2) within the time
specified thereunder, the foreign insurer shall be in
contravention of section 21 of this Act.
282. The Proceeds of Crime Act, the Central Bank Consequential

Act, the Married Persons Act and the Financial
amendments
Institutions Act are amended to the extent as specified

in Schedule 12. Schedule 12
SCHEDULE 1
(Sections 4, 24 and 230)
TYPES AND CLASSES OF INSURANCE BUSINESS

For the purposes of this Act, “insurance business” shall be
categorized according to types of insurance business and each type
of insurance business will be subdivided into classes as follows:
TYPE A—GENERAL INSURANCE BUSINESS
(1) “Liability Insurance Business” means the business of
effecting and carrying out contracts of insurance against
risks of the persons insured incurring liabilities to third
parties, not being risks arising out of, or in connection
with the use of, motor vehicles or out of, or in connection
with the use of, vessels or aircraft or risks incidental to the
construction, repair or docking of vessels or aircraft, or
policies insuring employers against liability to pay

compensation or damages to workers in their employment.
(2) “Marine, Aviation and Transport Business” means the
business of effecting and carrying out contracts of
insurance where the policyholder has a residential or
business connection to Trinidad and Tobago—
(a) upon vessels or aircraft or upon the machinery,
tackle, furniture or equipment of vessels or
aircraft;
(b) upon goods, merchandise or property of any
description whatever on board of vessels or
aircraft;
(c) upon the freight of, or any other interest in, or
relating to vessels or aircraft;
(d) against damage arising out of, or in connection
with, the use of vessels, or aircraft, including
third-party risks;
(e) against risks incidental to the construction,
repair or docking of vessels including third-party
risks;
(f) against transit risks (whether the transit is by
sea, inland water, land or air, or partly one and
partly another), including risks incidental to the
transit insured from the commencement of the
transit to the ultimate destination covered by the
insurance; or
(g) against any other risks insurance against which
is customarily undertaken in conjunction with,
or as falls within the definition by virtue of any
of the foregoing paragraphs.
(3) “Motor Vehicle Insurance Business” means the business of
loss of, or damage to, or loss or damage arising out of, or in
connection with the use of, motor vehicles, inclusive of
third-party risk but exclusive of transit risks.
(4) “Pecuniary Loss Insurance Business” means the business of
any of the following risks:
(a) of loss to the persons insured arising from the
insolvency of their debtors or from the failure

(otherwise than through insolvency) of their
debtors to pay their debts when due;
(b) of loss to the persons insured arising from their
having to perform contracts of guarantee entered
into by them;
(c) of loss to the persons insured attributable to
their incurring unforeseen expenses; or
(d) neither falling within any of the foregoing
paragraphs nor being a kind such that the
carrying on of the business of effecting and
carrying out contracts of insurance against them
constitutes the carrying on of insurance business
of some other class,
and excludes risks of loss to the persons insured
attributable to interruptions of the carrying on of business
carried on by them or to reductions of the scope of business
so carried on.
(5) “Personal Accident Short-Term Insurance Business” means
the business of effecting and carrying out contracts of
insurance—
(a) in the case of accident—
(i) insurance against loss resulting from
bodily injury to, or the death of, a person
caused by an accident; or
(ii) insurance whereby an insurer undertakes
to pay a certain sum or sums of insurance
monies in the event of bodily injury to, or
the death of, a person caused by an
accident; or
(b) in the case of sickness—
(i) insurance against loss resulting from the
sickness or disability of a person other
than loss resulting from an accident or
death;
monies in the event of the sickness or
disability of a person other than as a
result of an accident; or
(iii) insurance whereby an insurer undertakes
monies to reimburse expenses incurred for
the health care, including the preventive
care of a person other than as a result of
an accident.
Contracts of insurance referred to in paragraph (5)
under “Personal Accident Short-Term Insurance
Business” are required to be—
(a) attached as riders or additional benefits to other
General Insurance contracts and meet all of the
following criteria:
(i) have a policy period no longer than one
year;
(ii) have a period for which benefits may be
payable following a sickness or accident of
no longer than five years;
(iii) have no provision for guaranteed
renewability or guaranteed extension of
cover;
(iv) provide indemnity only if an event
indemnified by the General Insurance
contract to which it is attached occurs
prior to, or simultaneous with accident or
sickness; and
(v) have a premium no more than twenty-five
per cent of the premium of the General
Insurance contract to which they are
attached; or
(b) standalone contracts of insurance and meet all of
the following criteria:
(i) have a policy period no longer than one
year plus odd business days;
(ii) have a period for which benefits may be
payable following a sickness or accident of
no longer than five years;
(iii) have no provision for guaranteed
renewability or guaranteed extension of

cover;
(iv) to the extent that the policy provides
benefits on death, that this component of
the policy is a minor component and the
benefits relate only to specific causes of
death; and
(v) to the extent that the policy provides cover
for medical and/or hospital expenses, that
this cover is incidental to other coverage
under the policy and is not the main
component of the policy.
(6) “Property Insurance Business” means the business of
risks of loss of, or damage to, real or personal property, not
being risks of a kind such that the business of effecting
and carrying out contracts of insurance against them
constitutes marine, aviation and transport insurance
business or motor vehicle insurance business and includes
risks of loss to the persons insured attributable to
interruption of the carrying on of business carried on by
them or to reduction of the scope of business so carried on.
(7) “Workers Compensation Insurance Business” means the
insurance against the liability of an employer to pay
compensation to workers, whether under statute or
negligence, for accident or injury related to the
employment.
Incidental Business
If a single policy covers risks that would fall into more than one
class, the insurer may classify it into the class that represents the
predominant risk. All other risks on the policy would be included in
the dominant class and may be referred to as incidental business.
For example, a Home policy may include a legal liability cover,
but the entire policy can be classified as Property.
This provision does not prohibit an insurer from allocating a
policy to more than one class if it wishes to do so. An insurer should
consider allocating a policy to more than one class if each of the
components is significant in its own right, the insurer determines
the premium separately for each component and the insurer is able
to separate claims into the relevant classes.
Market Practice
In determining the appropriate class for any policy, the insurer
may consider normal market practice in making such
determinations, in addition to the definitions in this Schedule. For
example, major risks in the petroleum industry or insurance of
certain construction projects may conventionally be regarded as
Marine business, even though the definitions in this Schedule may
classify the policy as Property.
If an insurer uses market practice in determining the
appropriate class it must do so on a consistent basis.
TYPE B—LONG-TERM INSURANCE BUSINESS

(1) “Accident and Sickness Insurance Business” means the
insurance—
(a) in the case of accident—
(i) insurance against loss resulting from
bodily injury to, or the death of, a person
caused by an accident; or
monies in the event of bodily injury to, or
the death of, a person caused by an
accident; and
(b) in the case of sickness—
(i) insurance against loss resulting from the
sickness or disability of a person other
than loss resulting from an accident or
death;
monies in the event of the sickness or
disability of a person other than as a
result of an accident; or
(iii) insurance whereby an insurer undertakes
monies to reimburse expenses incurred for
the health care, including the preventive

care of a person other than as a result of
an accident,
and is not Personal Accident Short-Term Insurance
Business.
(2) “disability income insurance” means insurance whereby an
insurer undertakes to pay a certain sum of monies in the
event of—
(a) bodily injury to a person caused by an accident;
or
(b) sickness or disability of a person other than as a
result of an accident.
(3) “Industrial Life Insurance Business” means the business of
effecting and carrying out contracts of insurance upon
human life, premiums in respect of which are contracted
to be paid at intervals of less than forty business days and
which are usually received by means of collectors.
(4) “Life Insurance Business” means the business of effecting and
carrying out contracts of insurance that are payable—
(a) on the death of a person;
(b) on the happening of an event or contingency
dependent on human life; or
(c) at a fixed or determinable future time,
for a term dependent on human life, and without
restricting the generality of the foregoing includes—
(i) insurance whereby an insurer, as part of a
contract of life insurance undertakes to
pay an additional amount of insurance
monies in the event of the death by
accident of the person whose life is
insured;
(ii) insurance whereby an insurer as part of a
contract of life insurance undertakes to
pay insurance monies or to provide other
benefits in the event that the person
whose life is insured becomes disabled as a
result of bodily injury or disease; or
(iii) an undertaking to provide an annuity
contract.
SCHEDULE 2
(Sections 18, 24, 26, 27, 51, 111 and 230)
APPLICATION AND ANNUAL FEES

PART A
The following fees shall be payable by insurance companies in

accordance with the provisions of this Act:
Application Fee Annual Fee

Matters
Payable in Payable in
in Respect of
Section Trinidad and Trinidad and
which Fee is
Tobago Tobago
Payable
Dollars Dollars
24 Application by a 10,000 100,000 payable

company to the no later than the
Central Bank for thirty-first day
registration of January in
under this Act each year or
to carry on such later date
i n s u r a n c e as may be
business specified by the
Central Bank
26 Application by a 10,000 25,000 payable

foreign insurance no later than the
company for the thirty-first day
approval in of January in
writing of the each year or
Central Bank to such later date
establish, as may be
acquire or open a specified by the
representative Central Bank
office in Trinidad
and Tobago
27(1) Application by 10,000 NIL

a local insurer
for the prior
approval of the
Central Bank to
establish, close
or relocate a
branch outside
Trinidad and
Tobago
APPLICATION AND ANNUAL FEES—CONTINUED

PART A
Application Fee Annual Fee

Matters
Payable in Payable in
in Respect of
Section Trinidad and Trinidad and
which Fee is
Tobago Tobago
Payable
Dollars Dollars
51 Application for a 10,000 100,000 payable

permit to carry no later than the
on the business thirty-first day
of a financial of January in
holding company each year or
such later date
as may be
specified by the
Central Bank
230 Application to be 10,000 100,000 payable

registered as an no later than the
association of thirty-first day
underwriters of January in
each year or
such later date
as may be
specified by the
Central Bank
PART B
INTERMEDIARIES
The following fees shall be payable by intermediaries in

accordance with the provisions of this Act:
Registration Fee
Matters in Respect of
Section Payable in Trinidad
which Fee is Payable
and Tobago Dollars
111 Application to be 1,000

registered as a sales
representative

registered as an agent

registered as a broker

registered as an adjuster
(individual)

registered as an agency

registered as a brokerage

registered as an adjuster
(company)

registered as an
insurance consultant
SCHEDULE 3
(Section 170)
FORM A
ABSOLUTE ASSIGNMENT
Policy Number............................ on the life of .................................

...........................……………………......................................................
Policy Owner (if not the above) ...........................................................
Assignee: (Name) .................................................................................
(Address) ..............................................................................................
...............................................................................................................
In consideration of ...............................................................................
the undersigned hereby assigns and transfers all rights, title,

and interest in the above-mentioned policy, issued
by..........................................................................................................
unto the above-named assignee, his executors, administrators,
successors and assigns including the right to surrender the same
for the surrender value and to receive any dividends and other
amounts payable thereunder, whose receipt or acquittance for all
amounts payable shall be a full discharge of all claims thereunder.
Dated at ...................... this ........... day of ............................., 20....
Signed in the presence of:
................................. ...........................................
Witness Policy Owner
...............................................................................................................
...............................................................................................................
____
NOTE: Additional lines are provided for signature of persons with beneficial
interests.
FORM B
(Section 170)
ASSIGNMENT AS SECURITY
Policy Number .................... on the life of ...........................................

...............................................................................................................
Policy Owner (if not the above) ...........................................................
Assignee: (Name) .................................................................................
(Address) ..............................................................................................
...............................................................................................................
the undersigned, hereby assigns and transfers as security all
rights, title and interest in ..................................................................
and to the above-mentioned policy issued by .....................................
...............................................................................................................
unto the above-named assignee, his executors, administrators,
successors and assigns whose receipt or acquittance for all the
amounts payable under the said policy shall be a full discharge of
all claims thereunder.
This assignment does not confer on the assignee the right to
surrender the policy for the surrender value.
Dated at ……………. this …………. day of ………………, 20 …….
Signed in the presence of:
................................ ......................................
Witness Policy Owner
...............................................................................................................
...............................................................................................................
____
NOTE: Additional lines are provided for signature of persons with beneficial
interests.
FORM C
(Section 174)
MEMORANDUM OF DISCHARGE
Policy Number ......................... Life Assured .....................................

...............................................................................................................
Policy Owner (if not above) .................................................................
all the rights, title and interest in and to the above-mentioned
policy assigned to the undersigned on .................................................
................................................ as security ............................................
for securing ..........................................................................................

are hereby relinquished and the policy discharged.
Dated at ................... this ............... day of ..........................., 20 ....
................................... ...........................................
Witness Signature of Assignee
SCHEDULE 4
(Sections 217, 226 and 227)
PART I
Requirements as to the Trust Deed and Rules of
Registered Pension Fund Plans
1. The Trust Deed and Rules of a plan qualified for registration

under this Act shall make provision for the following matters:
(a) the whole of the objects for which the plan is
established;
(b) the appointment and removal of trustees;
(c) the vesting in the trustees of all property belonging
to the plan;
(d) the investment in the names of the trustees of all
capital money belonging to the plan and for authorizing
the investments, if any, in addition to those authorized
by law, in which the trustees may invest such moneys;
but the Rules of a plan may provide for the deposit of
such moneys with an institution licensed under the
Financial Institutions Act;
(e) the making of contributions to the plan by the
employers of persons employed in the undertaking or
combination of undertakings in connection with
which the plan is established;
(f) the contributions payable to, and the rates of benefits
payable from the fund, or the method of calculating
benefits so payable;
(g) the conditions on which persons may become and
may cease to be contributors to and entitled to benefits
from the fund;
(h) the protection of the vested rights of contributors to
the plan;
(i) the preparation of all statements of accounts,
balance sheets and reports required by this Act to be
prepared;
(j) the supply (on demand) to every person having any
rights in the plan, being a person who is, or has been
employed in the undertaking in connection with
which the plan is established, of a copy of the Rules
of the plan and of all amendments thereof, and of the
latest statements of accounts, balance sheets and
report prepared in accordance with the requirements
of this Act;
(k) the circumstances in which the plan may be wound
up and in the event of winding up, the use of the plan
to purchase immediate annuities for contingent
pensioners; and
(l) the method by which the Rules may be amended.
PART II
FORMS
Form A
PENSION FUND PLAN
Revenue Account for the period ....................................................

to …………………………………
Revenue $ Expenditure $
1. Amount of the 1. Superannuation

Fund at the Benefits—
beginning of the (a) p e n s i o n
to retired
period* employees;
2. Contributions by (b) w i d o w s ’
pensions;
employees (c) orphans’
3. Contributions by pensions;
employer (d) r e t i r e -
m e n t
4. Any additional gratuities
contribution by 2. Death grants
employer to meet 3. Return on contri-
deficiency or butions on with-
back service drawal
liabilities 4. Other expendi-
ture (to be speci-
5. Interest dividend fied)
and rents
5. Amount of the
6. Other income (to Fund at the end
be specified) of the period*
*May be omitted for an insured pension fund plan.

Form B
PENSION FUND PLAN
Balance Sheet as at .......................... 20.... for ……...….…………
...............................................................................................................
Liabilities $ Assets $
Amount of fund as at Mortgage
Pensions due but not Stock Exchange

yet paid
Securities
Other benefits (to be Other assets (to be
specified) due but not specified)
yet paid
(Note to be completed for an insured pension fund plan)
Details of Mortgages
Name of Nature of Original Method of Rate of Amount Date or

borrower security amount repayment interest outstanding outstanding
of loan on the period of
valuation repayment
date
Details of Stock Exchange Securities
Security Date of Nominal Rate of Market Book Value

redemption Amount Interest or value as value used in
Dividend at the valuation
valuation
date
PART III
[Section 277(3) and (5)]
ACTUARIAL VALUATION
The first part of the report shall contain statistics as at the

valuation date in respect of the following:
(a) Changes in the membership of the fund during the
intervaluation period as well as the membership of
the fund on the valuation date as follows:
Number of Cessations of Membership
Number of
Age Number of Number Transfer members
Group members of new or on Withdrawal Death Retirement at the end
at beginning entrants deferred of the
of period pensions period
Under
25
25-30
30-35
35-40
40-45
45-50
50-55
55-60
60-65
TOTAL
(b) Changes in the number of pensioners of the fund

during the intervaluation period as follows:
Number Number of Number of Number of Number of Number of
Age pensioners pensioners pensioners pensioners pensioners
Group at beginning at pension died during ceasing to at end of
of period during receive period
pensions for
other causes
Ill Health Age Ill Health Age Ill Health Age Ill Health Age Ill Health Age
Under
35
35-45
45-55
55-65
65-75
75 and
Over
TOTAL
2. The second part of the report shall contain the

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

the results of the valuation, an analysis of the surplus or
deficiency shown and a recommendation as to how much of the
surplus can be regarded as disposable, or, if a deficiency, the
manner in which the deficiency can be liquidated.
4. The report shall close with any further observations the

actuary may wish to offer on the valuation.
SCHEDULE 5
(Sections 11, 24, 26, 28, 29, 34, 36, 40, 51, 52,
53, 54, 61, 65, 78, 93, 113, 121 and 230)
MINIMUM CRITERIA FOR REGISTRATION

Where the provisions of the Act require a person to be fit and
proper or to meet the criteria of Schedule 5, the following will be
considered:
A. INDIVIDUALS TO BE FIT AND PROPER PERSONS
1. Every person who is, or is to be, a director, officer, actuary,

controlling shareholder, significant shareholder or acquirer, of a
registrant or financial holding company, principal representative of
an association of underwriters, agent, broker, sales representative,
adjuster or principal representative of an foreign insurance
company must be a fit and proper person to hold the particular
position.
2. In determining whether an individual is a fit and proper
person to hold any particular position, regard shall be had to his
good character and probity, competence and soundness of judgment
for fulfilling the responsibilities of that position, the diligence with
which he is fulfilling or likely to fulfill those responsibilities and
whether the interests of policyholders or potential policyholders of
the registrant or financial holding company are, or are likely to be,
in any way threatened by his holding that position.
3. In addition to the criteria in paragraph 2, regard may be had
to the previous conduct and activities in business or financial
matters of the individual in question and, in particular, to any
evidence that he has—
(a) been convicted of an offence involving fraud, insider
trading, money laundering, terrorist financing or
other dishonesty or violence;
(b) contravened any provision of this Act or any other
written law appearing to the Central Bank to be
designed for the protection of members of the
public against financial loss due to dishonesty,
incompetence or malpractice by persons concerned in
the provision of banking, insurance, investment or
other financial services or the management of
companies or against financial loss due to the
conduct of discharged or undischarged bankrupts;
(c) engaged in any business practices that are deceitful,
oppressive, unsafe, unsound or otherwise improper,
whether unlawful or not, or which otherwise
discredit his method of conducting business;
(d) an employment record which leads the Central Bank
to believe that the person carried out an act of
impropriety in the handling of his employer’s
business;
(e) engaged in or been associated with any other

business practices or otherwise conducted himself in
such a way as to cast doubt on his competence and
soundness of judgment;
(f) not met the criteria under subhead B, paragraph 3;
and
(g) any other matter which the Central Bank may
specify.
B. SHAREHOLDERS TO BE FIT AND PROPER
1. In determining whether a company is a fit and proper person

to be a controlling shareholder, significant shareholder or acquirer,
regard shall be had to, but not limited by, the following criteria,
whether:
(a) the directors and officers of the company have
satisfied the fit and proper criteria set out in
subhead A;
(b) the company has been found guilty of insider trading
or fraud involving trading in securities by local or
foreign authorities;
(c) the company has been convicted of an offence;
(d) the company has contravened any provisions of this
Act or any other law;
(e) in the opinion of the Central Bank the company has
not carried on its business in a prudent manner;
(f) in the opinion of the Central Bank the company is
insolvent or is likely to become insolvent;
(g) the company has suspended, or is about to suspend
payment, or is unable to meet its obligations as they
fall due;
(h) in the opinion of the Central Bank the affairs of the
company or any associated person are being
conducted in a manner prejudicial to the soundness
of the company in question or the financial system of
(i) the composition of the board of directors meets the
requirements of subhead C, paragraph 3; and
(j) any other matter which the Central Bank may
specify.
2. In determining whether a company has carried on its business

in a prudent manner under paragraph 1(e), the Central Bank shall
take into consideration—
(a) the capital of the company in relation to the size and
nature of the business or proposed business of the
insurer or financial holding company;
(b) credit concentration or proposed credit concentration
and risk exposures or proposed risk exposures in the
company and the insurer or financial holding
company;
(c) separation of the business or proposed business of the
company from other business and from other
interests of any controlling shareholder or significant
shareholder of the company;
(d) internal controls and accounting systems or proposed
internal controls and accounting systems of the
company;
(e) risk management systems and policies or proposed
risk management systems and policies of the
company;
(f) arrangements for any business, or functions relating
to any business, of the company or the insurer or
financial holding company to be carried on by any
person other than the company or the insurer or
financial holding company; and
(g) such other matters as the Central Bank may specify.
3. The following criteria shall also be considered in determining

whether a controlling shareholder is fit and proper under this
paragraph:
(a) the nature and sufficiency of the financial resources
of the controlling shareholder as a source of
continuing financial support for the insurer or
(b) the soundness and feasibility of the controlling
shareholder for the future conduct and development
of the insurer’s or financial holding company’s
business; and
(c) the business record and experience of the controlling
shareholder.
C. INSURER, FINANCIAL HOLDING COMPANY, AGENCY AND

BROKERAGE TO BE FIT AND PROPER
1. In determining whether an insurer, financial holding

company, agency and brokerage is a fit and proper person, regard
shall be had to the criteria listed in subhead B, paragraph 1 and to
the criteria listed in this subhead.
2. At least two individuals with sufficient experience and

knowledge of the business to direct effectively the business of the
registrant or financial holding company.
3. In the case of a local insurer, financial holding company,

agency or brokerage—
(a) such number of directors without executive
responsibility for the management of its business as
the Central Bank considers appropriate having
regard to the circumstances of the company and the
nature and scale of its operations; and
(b) the directors shall be selected from amongst persons
drawn from diverse occupations, and the overall
composition of the board should reflect a reasonable
mix of skills and experience, in matters relating to
finance, economics, accountancy, industry, commerce,
law or administration.
4. An insurer, financial holding company, agency or brokerage

shall not be regarded as conducting its business in a prudent
manner unless it maintains or, as the case may be, will maintain
net assets which, together with other financial resources available
to the company of such nature and amount as are considered
appropriate by the Central Bank, to be—
(a) commensurate with the nature and scale of the
company’s operations;
(b) the classes and types of insurance business in which
the company is involved;
(c) sufficient to safeguard the interests of its policyholders
and potential policyholders;
(d) the risks inherent in its operations and in the
operation of any affiliate so far as is capable of
affecting the company; and
(e) any other factors appearing to the Central Bank to be
relevant.

adequate liquidity.
6. For the purposes of paragraph 5, the Central Bank may, to
such extent as it thinks appropriate, take into account as liquid
assets, assets of the company and facilities available to it which are
capable of providing liquidity within a reasonable period.
manner unless it makes or, as the case may be, will make adequate
provision for depreciation or diminution in the value of its assets.
8. An insurer shall not be considered as having met its
obligations to policyholders unless it has made adequate provision
in respect of policyholder liabilities and claims reserving.
9. Where payment of principal or interest which is due and
payable on any credit exposure granted by an insurer or financial
holding company has not been made or effected for a period of sixty
days, such credit exposure shall be considered non-performing
unless it is fully secured and is in the process of collection.
adequate systems of internal control of its business and records.
11. Records and systems shall not be regarded as adequate unless
they are such as to enable the business of the insurer, financial
holding company, agency or brokerage to be prudently managed
and the company to comply with the duties imposed on it by, or
under this Act.
12. For the purposes of paragraph 4, “net assets”, in relation to a
company, means stated capital and reserves.
D. TRUSTEE TO BE FIT AND PROPER
In determining whether a trustee is a fit and proper person, the

Central Bank shall have regard to matters listed in subhead C
where appropriate to the function of trustee.
E. INTEGRITY AND SKILLS
The business of an insurer, financial holding company, agency,

brokerage or trustee or in the case of a company which has applied
for registration or a permit, will be carried out with integrity and
professional skills appropriate to the nature and scale of its
activities.
SCHEDULE 6
(Sections 260 and 279)
ADMINISTRATIVE FINES
PART A
INSURERS
Section General Description of Criminal Penalty Administrative

Offence (applicable only Fine
on summary
conviction)
18(2) Failure to pay annual fees $500,000 plus $10,000 for

not later than the 31st day $50,000 for each each day the
of January in each year or day the offence offence
such later date as may be continues continues
specified by the Central
Bank
26(1) Failure of a foreign $300,000 plus $75,000
insurance company to $30,000 for each
obtain prior approval of the day the offence
Central Bank before continues
establishing, acquiring or
opening a representative
office in Trinidad and
Tobago or failure of a
foreign insurance company
to give notice in writing to
the Central Bank before
closing or relocating a
representative office in
Trinidad and Tobago
27(1) Failure of an insurer to $500,000 plus $125,000

obtain the prior approval $50,000 for each
of the Central Bank day the offence
in writing before continues
establishing, closing or
relocating a branch outside
Trinidad and Tobago
notify the Central Bank $30,000 for each
in writing before establish- day the offence
ing, acquiring, opening, continues
closing or relocating a
representative office out-
side Trinidad and Tobago
SCHEDULE 6—CONTINUED
PART A
INSURERS—Continued
on summary
conviction)
31 Failure of company to $500,000 plus $125,000
notify Central Bank of any $50,000 for each
change in particulars day the offence
specified in the company’s continues
application
32(1) Making an alteration to $500,000 plus $125,000
articles of incorporation or $50,000 for each
continuance, by-laws or day the offence
other constituent documents continues
without notifying and
receiving the approval of
the Inspector
submit to the Inspector $50,000 for each
copies of altered articles day the offence
of incorporation or con- continues
tinuance, by-laws or other
constituent documents
66 Director of an insurer or $500,000 $125,000
financial holding company
being present or voting at a
meeting of the board of
directors or a committee of
the board of directors of
that insurer or financial
holding company on a
contract which would
result in a direct or indirect
financial benefit
67(3) Failure of a director of an $600,000 plus $10,000 for
insurer or of a financial $60,000 for each each day the
holding company to notify day the offence offence
the Inspector of material continues continues
adverse effects on the
financial condition of the
company
PART A
on summary
conviction)
67(4) Failure of a director of an $600,000 plus $10,000 for
insurer to submit within $60,000 for each each day
five business days to day the offence the offence
the Inspector reasons for continues continues
resignation, removal or
departure from office or
the reasons why he
opposes his removal or
departure from office
67(5) Failure of a director of $600,000 plus $10,000 for
an insurer or of $60,000 for each each day
a financial holding day the offence the offence
company to establish continues continues
and maintain procedure for
remuneration
67(6) Failure of an insurer or of a $600,000 plus $10,000 for
financial holding company $60,000 for each each day
to submit to its audit day the offence the offence
committee an annual continues continues
report regarding total
remuneration paid to
directors and officers
within twenty business
days after the end of the
financial years
67(7) An insurer awarding or $600,000 plus $10,000
paying any bonus to its $60,000 for each
directors or officers where day the offence
its assets are insufficient to continues
meet the requirements
under the Regulations or
the bonus would reduce the
assets of the insurer below
such requirements
68(1) Failure of an insurer $500,000 plus $125,000
to appoint an audit $50,000 for each
committee as constituted day the offence
under this section continues
PART A
on summary
conviction)
appoint an independent $50,000 for each
director and financial day the offence
expert as chair of the audit continues
committee
69 Failure of an insurer or $400,000 plus $8,000 for
to submit to the Inspector day the offence the offence
reports as described under continues continues
this section within sixty
business days after the end
of its financial year or
when required by the
Inspector
73(2) Failure of the board of an $500,000 plus $125,000
insurer to provide the $50,000 for each
Inspector with the policies day the offence
and documentation when continues
requested, and the results
of the compliance reviews
within sixty business days
after the end of its financial
year
change policies and $50,000 for each
documentation as specified day the offence
by the Inspector within continues
sixty business days
take such action to $50,000 for each
establish policies and day the offence
documentation within the continues
period specified by the
Inspector
PART A
on summary
conviction)
75(4)(a) Failure of an insurer or $300,000 plus $75,000
financial holding company $30,000 for each
to serve on the Central day the offence
Bank a written notice of continues
intention to appoint an
audit entity to act as an
auditor
76(1) Failure of a local insurer or $300,000 plus $75,000
financial holding company $30,000 for each
to give written notice and day the offence
reasons to the Inspector of continues
the removal or replacement
of an auditor, or where a
person ceases to be an
auditor
76(2) Failure of an auditor of an $300,000 plus $75,000

insurer or financial holding $30,000 for each
company to forthwith give day the offence
written notice and reasons continues
to the Inspector of the
removal or replacement of
an auditor before the
expiration of his
engagement, and where a
person ceases to be an
auditor
78(1) Failure to appoint an $500,000 plus $125,000
actuary as specified under $50,000 for each
this section day the offence
continues
78(3) Failure of insurer to notify $300,000 plus $75,000
the Inspector as required $30,000 for each
under this section day the offence
continues
PART A
on summary
conviction)
give written notice to the $30,000 for each
Inspector of the removal day the offence
or replacement of an continues
appointed actuary, and
where the person ceases to
be an appointed actuary,
and failure to give reasons
to the Inspector for such
removal or replacement
79(2) Failure of the appointed $300,000 plus $5,000 for
actuary to give written $30,000 for each each day
notice to the Inspector and day the offence the offence
insurer if he resigns or does continues continues
not seek reappointment
and failure to give reasons
to the Inspector for such
resignation or decision
79(4) Failure of the appointed $300,000 plus $75,000

actuary to submit a written $30,000 for each
statement to the Inspector day the offence
and the insurer setting out continues
the nature of any
disagreement
notify the Inspector of $50,000 for each
shares held in a company day the offence
providing necessary continues
support service and shares
and ownership interests
held in excess of any limit
imposed by this section
88 Failure of an insurer to $500,000 plus $125,000
obtain the necessary $50,000 for each
approvals of the Central day the offence
Bank under this section continues
PART A
on summary
conviction)
89(1) Incurring of a credit $500,000 plus $125,000
exposure by an insurer to a $50,000 for each
person in an aggregate day the offence
amount that exceeds continues
twenty-five per cent of its
capital base except as
prescribed by this section
89(2) Incurring by an insurer of $500,000 plus $125,000
any large exposure to a $50,000 for each
person, including a day the offence
borrower group or related continues
group, where the aggregate
principal amount of all
large exposures will exceed
eight hundred per cent of
the capital base of the
insurer
reduce credit exposure, $50,000 for each
increase capital, or make day the offence
adequate provision for continues
potential losses as
prescribed by this section
notify the Inspector of all $50,000 for each
credit exposures to persons day the offence
which are in excess of the continues
limits under section 89 and
of the measures that shall
be taken to reduce the
credit exposures that are in
excess of those fixed limits
or to increase capital
comply with the general $50,000 for each
limit on credit exposures to day the offence
connected parties or continues
connected party groups
PART A
on summary
conviction)
90(4) Incurring of a credit $500,000 plus $125,000
exposure by an insurer to a $50,000 for each
director or officer or their day the offence
relatives in an amount continues
greater than the limit
specified in this section
90(6) Incurring a credit exposure $500,000 plus $125,000
by an insurer to a $50,000 for each
connected party or day the offence
connected party group on continues
terms and conditions not
similar to the terms and
conditions on which such
credit exposure is offered to
the public, or without the
approval of the board of
directors

notify the Inspector of all $50,000 for each
credit exposures to day the offence
connected parties and continues
connected party groups
which are in excess of the
limits prescribed under
this section
comply with the require- $50,000 for each
ment of the Inspector to set day the offence
aside, change, limit or continues
reduce a credit exposure to
a connected party or
connected party group
PART A
on summary
conviction)
92(1)(a) The direct or indirect $500,000 plus $125,000
acquisition by an insurer of $50,000 for each
its own shares or the day the offence
shares of its holding continues
company or financial
holding company
128(1) Failure of an insurer to $300,000 plus $6,000 for
submit to the Central Bank $30,000 for each each day
a listing of its agencies day the offence the offence
or sales representatives continues continues
within sixty business days
after the end of the
financial year
144(1) Failure of an insurer or $500,000 plus $10,000 for
to submit to the Inspector day the offence the offence
financial statements in continues continues
accordance with this
section
144(3) Failure of an insurer and $500,000 plus $10,000 for
to submit audited financial day the offence the offence
statements on the request continues continues
of the Inspector in respect
of any—
(a) subsidiary of the
insurer;
(b) financial holding
company or
company in which
the insurer or
financial holding
company is a
significant share-
holder; or
(c) member of the
financial group
which the financial
holding company
controls
PART A
on summary
conviction)
to submit financial state- day the offence the offence
ments signed by two continues continues
directors of the relevant
company
to submit audited returns day the offence the offence
to the Inspector in continues continues
section
145(2) Failure of an insurer $500,000 plus $10,000 for
carrying on long-term $50,000 for each each day
insurance business to day the offence the offence
submit to the Inspector a continues continues
balance sheet with a
certificate signed by the
appointed actuary
to submit quarterly day the offence the offence
returns to the Inspector continues continues

to publish audited day the offence the offence
financial statements in continues continues
section
keep at its offices and $30,000 for each
to make available day the offence
for inspection certain continues
information
PART A
on summary
conviction)
submit actuarial reports $50,000 for each each day
within the prescribed time day the offence the offence
to the Inspector continues continues
158(3) Failure of insurer to $500,000 plus $10,000 for
submit a copy of any $50,000 for each each day
actuarial reports, the day the offence the offence
results of which are made continues continues
public, within the
prescribed time to the
Inspector
obtain approval of the $50,000 for each
pricing of its policy by an day the offence
actuary before issuing the continues
policy
furnish the Inspector with $50,000 for each
a report by its appointed day the offence
actuary on the continues
appropriateness of the
pricing of a class of policy
162 Failure of an insurer to $500,000 plus $125,000
obtain approval of an $50,000 for each
actuary to amend day the offence
commission or premium continues
publish a statement of $40,000 for each each day
unclaimed monies and to day the offence the offence
submit the statement to continues continues
the Central Bank in
section
PART A
on summary
conviction)
197(4) Failure of an insurer to pay $500,000 plus $10,000 for
into the Central Bank such $50,000 for each each day
unclaimed money within day the offence the offence
the prescribed time period continues continues
under this section

submit listing as required $30,000 for each each day
under this section day the offence the offence
continues continues
include in its financial $50,000 for each each day
statements and returns a day the offence the offence
reserve for policy liabilities continues continues
including unexpired risk
and outstanding claims

submit to the Inspector $50,000 for each each day
details of the methods and day the offence the offence
assumptions used in continues continues
calculating the reserve for
outstanding unexpired risk
and outstanding claims
244(1) Failure of an association of $500,000 plus $10,000 for
underwriters established $50,000 for each each day
in Trinidad and Tobago to day the offence the offence
submit documents and continues continues
information relating to its
insurance business to the
Inspector
underwriters established $50,000 for each each day
outside of Trinidad and day the offence the offence
Tobago to submit continues continues
documents and
information as required by
this section
PART A
on summary
conviction)
244(3) Failure of an association $500,000 plus $10,000 for
of underwriters to submit $50,000 for each each day
documents and information day the offence the offence
relating to its insurance continues continues
business as required under
this section
underwriters to publish a $40,000 for each each day
statement of receipt and day the offence the offence
expenditure continues continues
underwriter to submit to $50,000 for each each day
the Inspector information day the offence the offence
as prescribed in this continues continues
section
258(2) Failure of a registrant to $300,000 plus $75,000
correct or withdraw a $30,000 for each
misleading or objectionable day the offence
advertisement continues
269(1) Failure by a person to $300,000 plus $75,000
obtain the approval of the $30,000 for each
regulatory authority under day the offence
the Securities Act and continues
submit to the Central Bank
copies of the documents as
required under this
subsection
269(2) Acceptance by a promoter $300,000 plus $75,000

of any office or profit or $30,000 for each
any payment or pecuniary day the offence
advantage which is not continues
provided in the prospectus
notice, circular, advertise-
ment or other invitation
referred to in this section
PART A
on summary
conviction)
270(1) Failure of insurer to $300,000 plus $75,000
maintain a register of $30,000 for each
policies in accordance with day the offence
this section continues
270(3) Failure to notify the $300,000 plus $75,000
Inspector in writing of the $30,000 for each
identity or change in day the offence
identity of the person in continues
charge of the register in
section

search its register of $50,000 for each each day
Trinidad and Tobago day the offence the offence
policies within the time continues continues
prescribed in this section
270(5) Failure of the officer desig- $500,000 plus $10,000 for
nated by the insurer to $50,000 for each each day
submit reports as required day the offence the offence
under this section continues continues

register a policy $50,000 for each
day the offence
continues

enter the address of its $30,000 for each
registered office on every day the offence
Trinidad and Tobago policy continues

register a policy $30,000 for each
immediately after its issue day the offence
continues
PART B
AGENCIES AND BROKERAGES
on summary
conviction)
115(2) Failure of an agency or $20,000 plus $5,000
brokerage to disclose $2,000 for each
information to the day the offence
consumer as required by continues
this section
brokerage to comply with $2,000 for each
reporting requirements as day the offence
may be specified by the continues
Central Bank
116(4) Failure of a brokerage to $20,000 plus $5,000

submit a plan for the $2,000 for each
increase of its minimum day the offence
stated capital as required continues
under this section
brokerage to prominently $1,000 for each
display a certificate of day the offence
registration or a copy of a continues
certificate of registration
as required by this section
120 Failure to produce $10,000 plus $2,500
certificate upon request $1,000 for each
day the offence
continues
brokerage to give notice $1,000 for each
within five business days day the offence
to the Central Bank where continues
a contract has been
terminated as required by
this section

brokerage to make return $1,000 for each
to the Central Bank on its day the offence
agents, brokers and sales continues
representatives as
required by this section
PART B
AGENCIES AND BROKERAGES—Continued
on summary
conviction)
brokerage to issue a receipt $2,000 for each
to a consumer day the offence
continues
133(7) Failure to submit reports $20,000 plus $5,000

to the Central Bank on the $2,000 for each
consumer trust account day the offence
within the specified time in continues
this section
136 Failure of an agency $20,000 plus $5,000
or brokerage to submit $2,000 for each
financial statements with- day the offence
in the time prescribed in continues
this section
PART C
BROKERS, AGENTS, ADJUSTERS AND SALES REPRESENTATIVES

on summary
conviction)
120 Failure of an agent, broker $5,000 plus $500 $1,250
or sales representative to for each day the
produce certificate upon offence continues
request
132(2) Failure of a sales $8,500 plus $850 $2,125
representative to issue a for each day the
receipt to a consumer offence continues
PART D
TRUSTEES OFPENSION FUND PLANS

on summary
conviction)
226(1) Failure of trustees to $20,000 plus $5,000
submit annual accounts $2,000 for each
and balance sheets to the day the offence
Central Bank continues
227(3) Failure of trustees to $20,000 plus $5,000
submit report of $2,000 for each
actuarial investigation to day the offence
the Central Bank continues
SCHEDULE 7
(Section 228)
ASSETS IN WHICH REGISTERED PLANS MAY BE

INVESTED
The Trustees of a registered plan may invest the assets of the

plan in the following:
1. (a) the bonds, debentures, stocks, or other evidences
of indebtedness of, or guaranteed by the
Government of—
(i) Trinidad and Tobago;
(ii) any Commonwealth country or dependency
or the Republic of Ireland;
(iii) any member country of the Organisation
of Economic Co-operation and
Development;
(iv) the United States of America or a state
thereof approved by the Inspector.
(v) the country in which the head office of the
company is situated or a province or state
thereof; or
(vi) any country approved by the Central
Bank;
(b) the bonds, debentures or other evidence of

indebtedness of a corporation incorporated in
Trinidad and Tobago which are fully secured by a
statutory charge upon real estate or upon the
plant or equipment or other tangible assets of the
corporation used in the transaction of its business;
(c) the bonds, debentures or other evidence of
indebtedness issued by an authority or other body
without share capital established and empowered
pursuant to a statute of Trinidad and Tobago to
administer, regulate the administration of,
provide or operate port, harbour, airport, bridge,
highway, tunnel, transportation, communication,
sanitation, water, electricity, or gas services or
facilities and for any of these purposes to levy,
impose or make taxes, rates, fees or other charges
which may be used only in carrying out the objects
of the authority or other body and are sufficient to
meet its operation, maintenance and debt service
charges;
(d) the bonds, debentures or other securities of, or
those guaranteed by international financial
institution approved by the the Central Bank;
(e) guaranteed investment certificates issued by a
trust company incorporated in any country listed
in subparagraph (a) which at the date of vesting
thereof in trust, complied with the requirements
set out in subparagraph (f) in respect of the
payment of dividends;
(f) the fully paid ordinary shares, preferred shares,
bonds, debentures or other evidence of
indebtedness of a company incorporated in any
country listed in subparagraph (a) which during a
period of five years ending less than one year
before the date of purchase thereof has either paid
a dividend in each such year upon its ordinary
shares or had earnings in each such year available
for the payment of a dividend upon such shares, of
at least four per cent of the average value at which
the shares were carried in the capital stock
account of the company during the year in which
the dividend was paid or in which the company
had earnings available for the payment of
dividends, as the case may be;
(g) ordinary shares, preferred shares, bonds or
debentures of a company incorporated in Trinidad
and Tobago and approved by the Minister;
(h) the units, certificates or other evidence of

participation in a scheme for indebtedness of the
Unit Trust Corporation of Trinidad and Tobago;
(i) unit certificates, shares or other evidence of
participation in financial assets not exceeding ten
per cent of the Statutory Fund Requirement and
whose portfolio is regulated either by authorities
in Trinidad and Tobago or in any—
(i) member country of the Organisation of
Economic Co-operation and
Development;
(ii) Commonwealth country; or
(iii) other country,
that the Minister may by Order declare an
approved country; or
(j) the shares of a venture capital company registered
under the Venture Capital Act.
2. Mortgages and other titles for repayment of loan secured by—

(a) real estate or leaseholds for a term of years or
other estate or interest in real estate in Trinidad
and Tobago where the amount of the loan
together with the amount of indebtedness under
any mortgage or other charge on the real estate or
interest therein ranking equally with or superior
to the loan does not exceed eighty per cent of the
value of the real estate or interest therein, subject
to the exception that a company—
(i) may upon the sale of real estate in which
its funds are invested, accept a mortgage
or other title for repayment on such real
estate, as part payment and secured
thereon for more than eighty per cent of
the sale price of such real estate; or
(ii) may invest in a mortgage or other title for
repayment on real estate where the
amount of indebtedness under any
mortgage or other charge on such real
estate or interest therein ranking equally
with or superior to the loan does not
exceed ninety per cent of the value of the
real estate as long as that portion of the
indebtedness in excess of seventy-five per
cent of the value of the real estate is
guaranteed by the Housing Development
Corporation by a company registered
under this Act to carry on that class of
insurance business;
(b) real estate or leaseholds in Trinidad and Tobago

notwithstanding that the loan exceeded the amount
which the company may otherwise invest in, if the
excess is guaranteed or insured by the Government or
through an agency of the Government of Trinidad
and Tobago; or
(c) ground rents, mortgages or hypothecs on real estate
or leaseholds in Trinidad and Tobago or in the
country in which the head office of the company is
situated, where the amount of the mortgage or
hypothec together with the amount of indebtedness
under any mortgage or hypothec on the real estate or
leasehold ranking equally with or superior to the
mortgage or hypothec which is invested in does not
exceeding eighty per cent of the value of the real
estate or leasehold covered thereby.
3. Real estate or leaseholds in Trinidad and Tobago for the

production of income either alone or jointly with any other
company transacting insurance business in Trinidad and Tobago or
with any other company incorporated in Trinidad and Tobago
where—
(a) a lease of the real estate or leasehold is made to,
or guaranteed by the Government of Trinidad
and Tobago or an agency of the Government or a
municipality in Trinidad and Tobago and the lease
provides for a net revenue sufficient to yield a
reasonable interest return during the period of the
lease and to repay at least eighty-five per cent of
the amount invested in the real estate or leasehold
within the period of the lease but not exceeding
thirty years from the date of investment; or
(b) the real estate or leasehold has produced in each of
the three years immediately preceding the date of
investing therein net revenue in an amount which
if received in each year following the date of
investment, would be sufficient to yield a reasonable
interest return on the amount invested in the real
estate or leasehold and to repay at least eighty-five
per cent of that amount within the portion of the
economic lifetime of the improvements to the real
estate or leasehold which remain at the date of
investment but not exceeding forty years from that
date.
4. Cash balances deposited with—
(a) any bank or other financial institution licensed under
the Financial Institutions Act; or
(b) any building society which may be approved by the

Central Bank.
5. (1) The total accepted value of the pension fund assets

invested in ordinary shares shall not at any time exceed fifty per
cent of the accepted value of the total of such assets in Trinidad and
Tobago of the plan.
(2) Notwithstanding paragraph 5(1) and subject to any

requirements as specified by the Central Bank by notice published
in the Gazette, a registered pension fund plan which has a total
accepted value of assets in excess of one hundred and fifty per cent
of its total liabilities may invest in ordinary shares up to a limit
of—
(a) fifty per cent in respect of that portion of the total
accepted value of assets equivalent to one hundred
and fifty per cent of the total liabilities; and
(b) one hundred per cent in respect of that portion of the
total accepted value of assets in excess of one hundred
and fifty per cent of the total liabilities in such
manner that the aggregate value of the investment
under this subparagraph and subparagraph (a) shall
not exceed seventy per cent of the total accepted
value of the assets of the plan.
(3) For the purposes of paragraph 5(2), total liabilities shall
be determined based on the assumptions used in the latest
actuarial investigation conducted pursuant to section 227 of the
Act and details of the plan’s membership used for the purpose of
determining these liabilities shall comply with such requirements
as specified by the Central Bank.
6. No single mortgage included as an asset in the plan may
exceed ten per cent of the total assets of the plan.
7. A pension fund shall not invest in trust bonds, debentures or
other evidence of indebtedness on which payment of principal or
interest is in default.
8. A pension fund shall not purchase more than thirty per cent of
the ordinary shares of any corporation.
9. The total accepted value of the assets of the plan
invested in unit certificates, shares or other evidence of
participation in financial assets shall not exceed ten per cent of the
total accepted value of the assets of the plan.
10. The total accepted value of the assets of the plan invested
in real estate or leaseholds shall not exceed twenty per cent of the
total accepted value of the assets of the plan.
SCHEDULE 8
(Section 82)
TRANSITIONAL CAPITAL RATIOS
During a transition period no later than the insurer’s fifth
financial year end following commencement of the Regulations, the
following transitional regulatory capital ratios shall be attained by
the dates specified:
Minimum
Minimum
Regulatory
Date Net Tier 1
Capital
Ratio
Ratio
As at the insurer’s first financial year 110% 77%

end following commencement of the
Regulations
As at the insurer’s second financial year 120% 84%

Regulations
As at the insurer’s third financial year 130% 91%

Regulations
As at the insurer’s fourth financial year 140% 98%

Regulations
As at the insurer’s fifth financial year 150% 105%

Regulations
SCHEDULE 9
(Section 42)
SEPARATE ACCOUNTING
Assets vested in trust in overseas jurisdictions shall not be held

in the Trinidad and Tobago policy account.
SCHEDULE 10
(Section 4)
DETERMINATION OF CREDIT EXPOSURE
In determining Credit Exposure:
1. In the case of credit exposure arising from investment in an

asset-backed security, if—
(a) the underlying assets are vested in a trustee on
behalf of the participants or beneficial owners under
a deed of trust constituting the asset-backed
security;
(b) the underlying assets of the asset-backed security
are transferred from the seller to the trustee by way
of an executed instrument of transfer and such
trustee is the registered owner of such assets;
(c) the trustee, without being compelled to take recourse
to the seller, is empowered by the deed of trust
constituting the asset-backed security to take
enforcement action against the issuer of any
securities including in the underlying assets;
(d) participants or beneficial owners under the deed of
trust–constituting the asset-backed security have a
right of action against the trustee, where the trustee
has acted negligently or committed a breach of trust;
and
(e) the seller and trustee are financial institutions
regulated by the Central Bank,
the credit exposure shall be determined using the look through
method.
SCHEDULE 11
(Section 266)
STANDARDS OF MARKET CONDUCT
Definitions
“charge” means any cost or fee which a policyholder must
pay in connection with a product or service
provided by an insurer;
“introductory interest rate” is an interest rate favourable
to the consumer that applies for a specified period of
time at the beginning of the contract;
“key information” means any information which is likely
to influence a policyholder’s actions with regard to a
product or service;
“promotional documents” means any document used as a
marketing or sales material. This may include
printed, electronic or digital posters, cards,
brochures, pamphlets, illustrations.
A. SALES AND MARKETING MATERIALS

General Principles
Insurers should ensure their sales and marketing materials and
procedures do not mislead consumers. Insurers should be legally
responsible for all statements made in marketing and sales
materials they produce related to their products. All marketing and
sales materials should be easily readable and understandable by the
general public.
1. Sales and Marketing Materials
An insurer shall ensure that all information it provides to a

policyholder is clear, accurate and up to date. Key information shall
be brought to the attention of the consumer. The method of
presentation shall not disguise, diminish or obscure important
information—
(a) An insurer must ensure that:
the design, presentation and content of promotional
documents used as Sales and Marketing materials
are clear, fair, accurate and not misleading;
(b) An insurer must ensure that promotional documents

are not misleading in particular in relation to:
(i) the insurer’s ability to provide the product or
service being marketed or sold;
(ii) the scale of the insurer’s activities;
(iii) the extent of the resources of the insurer;
(iv) the nature of the insurer’s or any other
person’s involvement in the product or
service;
(v) the scarcity of the product or service; and
(vi) past performance or possible future
performance of the product or service;
(c) An insurer must ensure that its name is clearly
shown in all promotional documents;
(d) An insurer must ensure that:
small print or footnotes are only used to
supplement or elaborate on the key
information in the main body of the
promotional document and must be of
sufficient size and prominence to be clearly
legible;
(e) An insurer must ensure that a promotional
document that uses promotional or introductory
interest rates clearly states the expiry date of that
interest rate and provides an indication of the rate
that will apply thereafter;
(f) An insurer must ensure that any assumptions or
illustrations, on which a statement, promise or
forecast contained in a promotional document is
based, are clearly stated, reasonable and up to date;
(g) An insurer must ensure that a document that
promotes more than one product sets out clearly the
key information relating to each product in such a
way that a consumer can distinguish between the
products;
(h) Where an intermediary is tied to a single provider for
a particular product or service, the intermediary
must disclose this fact in all promotional documents
for the advertised product or service;
(i) An insurer must ensure that comparisons or

contrasts are based either on facts verified by the
insurer, or on reasonable assumptions stated within
the promotional document. They should be presented
in a clear, fair and balanced way and not omit
anything material to the comparison or contrast.
Material differences between the products must be
set out clearly; and
(j) An insurer must ensure that a promotional
document only describes a product or service as free
where the product or service in its entirety is
available free of charge to the consumer.
2. Marketing Materials for Investment Products

(a) An insurer must ensure that a promotional
document for a product where the consumer may not
get back 100% of the initial capital invested contain
a warning statement, which states that if you invest
in the product, the consumer may lose some or all of
the money invested; and
(b) An insurer must ensure that where the product or
service can fluctuate in price or value, the
promotional document contains a warning
statement, which states that your return on
investment is subject to market conditions and as
such may fluctuate.
B. UNDERSTANDING CONSUMERS’ NEEDS

General Principles
The insurance intermediary or officer should be required to
obtain sufficient information about the consumer to ensure an
appropriate product is offered. Formal “fact finds” should be
specified for long-term savings and investment products and they
should be retained and be available for inspection for a reasonable
number of years.
1. Knowing the Consumer
An insurer shall gather and record sufficient information from

the consumer prior to offering, recommending, arranging or
providing a product or service appropriate to that consumer.
The level of information gathered should be appropriate to the
nature and complexity of the product or service being sought by the

consumer, but shall be to a level that allows the insurer to provide
a professional service and shall include details of the consumer’s—
(a) Needs and objectives including, where relevant—
(i) the length of time for which the consumer
wishes to hold a product;
(ii) need for access to funds (including emergency
funds); and
(iii) need for accumulation of funds.
(b) Personal circumstances including, where relevant—
(i) age;
(ii) health;
(iii) knowledge and experience of financial
products;
(iv) dependents;
(v) employment status; and
(vi) known future changes to his/her circum-
stances.
(c) Financial situation including, where relevant—
(i) income;
(ii) savings;
(iii) financial products and other assets; and
(iv) debts and financial commitments.
(d) An insurer shall endeavor to have the consumer
certify the accuracy of the information it has
provided to the insurer.
2. Assessing suitability
When assessing the suitability of a product or service for a

consumer, the insurer must, at a minimum, consider and
document whether, on the basis of the information gathered under
Provisions B1(a) to (c):
(a) the product or service meets that consumer’s needs
and objectives;
(b) the consumer—
(i) is likely to be able to meet the financial
commitment associated with the product on
an ongoing basis;
(ii) is financially able to bear any risks attaching

to the product or service; and
(c) the product or service is consistent with the
consumer’s attitude to risk.
An insurer must ensure that any product or service offered to a

potential consumer is suitable to that potential consumer, having
regard to the facts disclosed by the potential consumer and other
relevant facts about that potential consumer of which the insurer is
aware.
The following additional requirements apply:

(a) where an insurer offers a selection of product options
to the consumer, the product options contained in the
selection must represent the most suitable from the
range available from the insurer; and
(b) where an insurer recommends a product to a
consumer, the recommended product must be the
most suitable product for that consumer.
C. PRIVACY AND DATA PROTECTION

General Principles
Policyholders have a right to expect that their financial
transactions are kept confidential. Insurers should protect the
confidentiality and security of personal data against any
anticipated threats, or hazards to the security or integrity of such
information, and against unauthorized access.
1. Confidentiality and Security of Policyholders’ Information
An insurer must ensure that, where it communicates with a

policyholder, it has in place appropriate arrangements to ensure
the security of information received from the policyholder and the
secure transmission of information to the policyholder—
(a) electronic policyholder information should be stored
on a secure server that is protected by passwords or
other security protection. Servers should be kept in a
physically secure area;
(b) sensitive policyholder data should not be stored on
computers accessible by an Internet connection.
If sensitive data is stored on such computers,
appropriate software and firewall protection and
intrusion detection devices should be utilized;
(c) secure backup media should be maintained and

archived data kept secure;
(d) all systems should be password protected and
automatically locked once there has been no activity
for a specified period of time. Passwords should be
changed regularly and times of log on and off should
be recorded;
(e) access to physical locations containing electronic
policyholder information, such as buildings,
computer facilities and records storage facilities
should be restricted to authorized individuals only;
(f) procedures should be designed to ensure that
modifications to policyholder records and
information are monitored and recorded and that
checks are in place to detect and/or prevent and deal
with unauthorized modification;
(g) monitoring systems and procedures to detect actual
and attempted attacks on, or intrusions into
information systems should be in place;
(h) employees should be properly trained in maintaining
the security, confidentiality and integrity of
policyholder records and information. Training
should be consistent with the user’s function; and
(i) all new employees should be apprised of the security
policies and procedures and should be trained in
maintaining the security, confidentiality and
integrity of policyholder records and information
within two months of joining the insurer.
D. AGENT TRAINING
1. Insurers must develop, control and approve all illustrative

and promotional documents used by agents in the solicitation of
business.
2. Insurers must have a process in place to ensure that only

authorized illustrative and promotional material are used by
agents in the conduct of a sale.
3. Insurers must put a compliance programme in place to

ensure that after the sale is made, no unauthorized promotional
and illustrative material were used by agents to make the sale, and
that a proper needs analysis was completed.
4. Insurers must have documented training programs for agents

and ensure all agents are put through this process.
E. POST-SALE COMMUNICATION
General Principles
Insurers should ensure their post-sale documents and
communications are clear, fair, complete and do not mislead
policyholders. Insurers shall ensure that information contained in
post-sale documents and other forms of communication is accurate
and up to date, and clearly written. All appropriate and relevant
information must be included on the communication. The method of
presentation of the information shall not disguise, diminish or
obscure important information.
1. An insurer must make adequate disclosure to the policy-

holders of all relevant information on the performance of their
insurance policies.
2. Any and all options presented post-sale to policyholders must

include information that is adequate enough to enable policy-
holders to make informed decisions.
SCHEDULE 12
(Section 282)
CONSEQUENTIAL AMENDMENTS
First Column Second Column
The Proceeds of In section 2(1), in the definition of the term
Crime Act, “financial institution”, delete paragraph (e) and sub-
Chap. 11:27 stitute the following paragraph:
“(e) an insurance company or an agency or
brokerage registered under the Insurance
Act, 2015;”.
The Married Repeal section 11.

Persons Act,
Chap. 45:50
The Central Bank In section 44D(1)(c)—

Act, Chap. 79:02
(a) delete the full stop at the end of subpara-
graph (viii) and substitute a semicolon;
and
(b) insert after subparagraph (viii) the
following new subparagraph:
“(ix) in the case of an insurance
company, to make an
CONSEQUENTIAL AMENDMENTS—CONTINUED
application to the High Court

for an order to amend or
suspend terms of contracts of
insurance when a course of
resolution action is pursued
which involves a restructuring
or transfer of business and,
where in the opinion of
the Central Bank, it is most
advantageous to the general
interests of the policyholders
and the financial condition of
the insurance company.”.
The Financial A. In section 2(1), insert before the definition

Institutions Act, of “acquirer”, the following:
Chap. 79:09 “ “abridged financial statements” means a
summary of financial statements, the
format and contents of which are
agreed to in writing between the
Central Bank and the Institute of
Chartered Accountants of Trinidad
and Tobago.”;
B. In section 5(3)—
(a) in paragraph (b), delete the word “and”;
(b) in paragraph (c), delete the full stop and
substitute the words “; and”; and
(c) insert after paragraph (c), the following
paragraph:
“(d) ensure compliance of licensees
with legislation to combat
money laundering and terrorist
financing.”;
C. In section 8—
(a) in subsection (2)(a), delete the words
“for purposes related to that regulation”
and substitute the words “for
regulatory purposes”;
(b) in subsection (2)(c), delete the words
“the designated authority under the
Proceeds of Crime Act” and substitute
the words “the Financial Intelligence
Unit established under the Financial
Intelligence Unit of Trinidad and

Tobago Act”;
(c) in subsection (3)—
(i) delete the words “the designated
authority” and substitute
the words “the Financial
Intelligence Unit”; and
(ii) delete the words “regulatory
authority” and substitute the
word “person”;
D. In section 23—
(a) in subsection (1)(b), insert after the
word “Act”, the words “or any other
written law”;
(b) in subsection (1)(l), delete the full-stop
and substitute the words “; and”;
(c) after subsection (1)(l), insert the
following paragraph:
“(m) the licensee has failed to comply
with any obligation imposed on
it by any written law for the
prevention of money laundering
or terrorist financing including
the Proceeds of Crime Act,
the Anti-Terrorism Act, the
Financial Intelligence Unit of
Trinidad and Tobago Act
and any Regulations made
thereunder, respectively.”;
E. Insert after section 51(4), the following
section:
“Inspector 51. (4A) Notwithstanding that a
to licensee has offered a new or materially
approve
different product or service in
accordance with subsection (4), the
product
Inspector may subsequently prohibit

the licensee from continuing to offer the
new or materially different product or
service, if in the opinion of the Inspector
the continued use of the new or
materially different product or service
will be fraudulent, unjust, imprudent,
or not in the public interest and the
Inspector shall give written reasons for
the prohibition.”;
F. In section 62, insert after subsection (18),

the following subsection:
“ (19) Where the provisions of this Act
require anything to be done within a
specified period of time and the person
who is required to comply with the time
limit prescribed is unable to do so
because of circumstances beyond his
control, including but not limited to the
occurrence of any hurricane, storm, fire,
flood or any similar natural disaster or
events such as industrial unrest, riot,
public disorder or the like, the Inspector
shall grant such extension of time as
may be reasonably sufficient for the
doing of the act or thing.”;
G. In section 72, delete subsection (11) and
substitute the following subsection:
“ (11) Where the circumstances so
warrant, the Central Bank may apply to
the High Court for the disposal of
shares on such terms and conditions as
the High Court deems appropriate.”;
H. In section 78, delete the words “, by notice,”
wherever they occur.;
I. Insert after section 80(1), the following
subsections:
“ (1A) The Central Bank may
consult with licensees to create
abridged financial statements for the
purpose of publication.
(1B) Every licensee and financial
holding company may publish abridged
financial statements instead of its
financial statements in accordance with
the requirement under section 80(1).”;
J. In section 119(2), delete the words “three
years” and substitute the words “seven years”.
Passed in the House of Representatives this 16th day

of February, 2018.
Clerk of the House
IT IS HEREBY CERTIFIED that this Act is one the Bill for

which has been passed by the House of Representatives
and at the final vote thereon in the House has been
supported by the votes of not less than three-fifths of all
the members of the House, that is to say by the votes of
31 members of the House.
Clerk of the House
Passed in the Senate this 18th day of May, 2018.
Clerk of the Senate (Ag.)
IT IS HEREBY CERTIFIED that this Act is one the Bill for

which has been passed by the Senate and at the final
vote thereon in the Senate has been supported by the
votes of not less than three-fifths of all the members of
the Senate, that is to say, by the votes of 27 Senators.
Clerk of the Senate (Ag.)
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Third Session Eleventh Parliament Republic of

Trinidad and Tobago

REPUBLIC OF TRINIDAD AND TOBAGO

Act No. 4 of 2018

[Assented to 4th June, 2018]

And whereas it is provided in section 13(2) of the

Application 2. This Act applies to—

4. (1) In this Act, unless the context otherwise Interpretation

(b) an agent of an insurer;

“agency” means any company appointed by an

“assignment”, in relation to a policy, does not

brothers or sisters where

“broker” means an individual employed by a

“chief executive officer” means a person who,

(ii) for the purpose of being

(b) has rights that are derived from, or

(b) elect a majority of the directors of

(b) other claims on a counterparty

“entity” means a company, or any trust,

breakdown, theft, loss

(c) insurance business;

“financial statements” means—

(b) any policy issued and effected by

“general insurance business” means insurance

(b) a paid-up policy, not being a policy

“life insured” means an individual on whose life

“local company” means a company incorporated

(d) in the case of a brokerage,

“principal representative” means a person

“receiver-manager” has the meaning assigned

business or other business activity

(ii) acting as a liaison

“significant shareholder” means a person who

“Trinidad and Tobago policy” means any policy

5. (1) For the purposes of this Act, a person or entity Meaning of

(“B”) where A is— group”

(a) a financial holding company, holding

(b) elect a majority of the directors of an entity;

of registrants, and shall have the powers and duties

objectives under this Act.

(5) The Inspector shall make or cause to be made

(9) The Inspector shall take and maintain such

financial holding company, even where in the possession

Power of Inspector to 11. (1) The Inspector may require a—

or brokerage, or employee or any person

relating to the insurer, financial holding

shareholder or affiliate, if he considers that the

(2) Every registrant shall, for the purpose of

qualified officer, employee or agent of the Central Bank.

maintained under this Act or the Regulations and in

and in at least two daily newspapers circulated in

Prohibition against 16. (1) No director, officer or employee of the Central

(2A) The Central Bank may disclose information

(2B) The information referred to in sub-

or circumstance that could have an impact

the Central Bank or any person acting under the

(7) This section does not apply to information

(8) Notwithstanding any provision in this section,

(9) Notwithstanding any provision in this section,

relevant fees set out in Schedule 2 to the Central Bank.