CHAPTER 392
INSURANCE ACT

Arrangement of Sections

   Section

PART I
PRELIMINARY

   1.   Short title

   2.   Interpretation

   3.   Classification of insurance business

PART II
REGULATION OF INSURERS AND OTHERS

   4.   Insurance business

   5.   Insurance brokerage

   6.   Loss adjustment

   7.   Assessment of losses

   8.   Claims agency

   9.   Insurances agency

   10.   Application for insurer’s license

   11.   Grant of insurer’s license

   12.   Amendment of license

   13.   Broker’s license

   14.   Loss adjustor’s license

   14A.   Conduct of Business as surveyor

   15.   Assessor’s license

   16.   Insurance agent’s license

   17.   Term of license

   18.   Refusal of license

   19.   Restrictions on business of insurer

   20.   Restrictions on business of broker

   21.   Brokers to transmit premiums

   22.   Holding out

   23.   Insurers not to accept business from unlicensed agents

   24.   Person acting on behalf of unlicensed insurer

PART III
MANAGEMENT AND SHAREHOLDING

   25.   Principal office for insurance business

   26.   Appointment of chief executive officer

   27.   Absence of chief executive officer

   28.   Dismissal of chief executive officer

   29.   Supervision of other appointment

   30.   Employment in two insurers or brokers prohibited

   31.   Insurer’s shareholding in a broker or agent

   32.   Criminal liability of directors

PART IV
FINANCIAL REGULATION OF INSURERS

   33.   Reserves for unexpired risks

   34.   Reserves for outstanding claims

   35.   Statutory funds

   36.   Insurer not carry on business unless solvency requirements are met

   37.   Insurers to submit solvency statements

   38.   Admitted assets

   39.   Admitted liabilities

   40.   Valuation of assets and liabilities

   41.   Capital and other requirements

   42.   Publication of authorized capital

   43.   Re-insurance

   44.   Investment programme

   44A.   Investments of funds

   45.   Accounts and balance sheets

   45A.   Financial year of Insurer and insurance broker

   46.   Life insurer to appoint an actuary

   47.   Qualifications of actuary

   48.   Actuary’s rights and duties

   49.   Life insurers to distribute surplus to policy holders

PART V
TRANSFER OF INSURANCE BUSINESS

   50.   Amalgamation or transfer of insurance business

   51.   Application for approval of amalgamation or transfer

   52.   Notification of policy holders

   53.   Determination of application for approval of amalgamation or transfer

   54.   Effect of amalgamation or transfer

PART VI
WINDING-UP OF INSURERS

   55.   Registrar entitled to be informed and to be heard in connection with winding up of insurer

   56.   Ascertainment of value of liability under policies

   57.   Scheme for re-insurance of policy holders of insurer that is winding up

   58.   Valuation and application of statutory funds

   59.   Preferred creditors of an insurer

PART VII
RETURNS TO BE MADE BY INSURERS

   60.   Returns

   61.   Insurer to provide Registrar with copies of circulated documents

   62.   Notification of changes in particularsof the insurer

   63.   Notification of changes in auditor

PART VIII
DISCIPLINARY ACTION

   64.   Scope of power under this part

   65.   Restriction of business

   66.   Restrictions on dealing with assets

   67.   Maintenance of assets

   68.   Suspension or revocation of license, or refusal of license renewal

   69.   Rescission or variation of prohibition or requirement

   70.   Notices

   71.   Winding up orders

   72.   Receiving orders

PART IX
INSURANCE POLICIES

   73.   Approval of proposal and policy forms

   74.   Premium rates

   75.   Policies to be printed in clearly legible form

   76.   Payment of premiums

   77.   Currency

   78.   Policies and payments to be issued and made in Zambia

   79.   Action by policy holders against insurers

   80.   Policies not invalidated by failure to comply with law

   81.   Minor may insure his life

   82.   Limitation on who may benefit from a life policy

   83.   Protection of proceeds of life policy on during life of holder

   84.   Protection of beneficiaries of life policy on death of policy holder

   85.   Protection afforded in respect of policy inuring to spouse or children

   86.   Further protection afforded in respect of life policy inuring

   87.   Selection for realization of life policies

   88.   Partial realization and partial conversion of policies

   89.   Provisions where life policy assigned or cannot be kept up

   90.   Incorrect statements in proposal for life policy

   91.   Life policies intended to defraud creditor

   92.   Proof of age

   93.   Age incorrectly stated in life policy

   94.   Death of insured by his own act

   95.   Lost or destroyed life policies

   96.   Cancellation of life policy

   97.   Discrimination between life policies prohibited

   98.   Premium rates on life policies

PART X
ADMINISTRATION

   99.   Functions and duties of Registrar

   100.   Repealed

   101.   Power to call for information and production of books or papers

   102.   Examination of re-insurance treaties

   103.   Annual report

   104.   Repealed

   105.   Repealed

   106.   Establishment of Committee

   107.   Functions of Committee

   108.   Repealed

PART XI
THE INSURANCE FIDELITY FUND

   109.   Establishment of Fidelity Fund

   110.   Construction of Fidelity Fund

   111.   Purpose of Fidelity Fund

   112.   Disbursements from Fidelity Fund

   113.   Management of Fidelity Fund

   114.   Liability of Fidelity Fund to be limited

   115.   Recovery of disbursements from defaulters

PART XII
APPEALS

   116.   Appeals against decision of Registrar

   117.   Effects of lodgement of appeal

   118.   Determination of appeal

   119.   Notification of decisions

PART XIII
GENERAL PROVISIONS

   120.   All insurance to be placed with Zambia insurers

   121.   Documents to be signed and copies supplied

   122.   Inspection of documents

   123.   Certified documents as evidence

   124.   Display of certain information

   125.   Insurance forms subject to approval

   126.   Change of name of insurer or broker

   127.   Adaptation of prescribed forms

   128.   False statements etc.

   129.   Certain titles not be used except by persons licensedunder this Act

   130.   Misleading advertisements etc. prohibited

   131.   General penalty

   132.   Regulations

   133.   Repealed

   134.   Membership of professional body

   135.   Repeal of Cap. 392

      SCHEDULE

AN ACT

to regulate the Insurance Industry; to repeal the Insurance Act; and to provide for matters connected with or incidental to the foregoing.

[13 February 1998]

Act 27 of 1997,

Act 26 of 2005.

PART I
PRELIMINARY

 

1.   Short title

This Act may be cited as the Insurance Act, 1997.

 

2.   Interpretation

In this Act, unless the context otherwise requires—

...

[“Administration Fund” rep by s 2(a) of Act 26 of 2005.]

admitted asset”, in relation to an insurer, has the meaning assigned to it in section 38;

“assessor” means a person who, where a claim is made against an insurer for loss or damage, assesses the extent of the loss or damage;

“auditor” has the meaning assigned to it in the Companies Act;

“Authority” means the Pensions and Insurance Authority established by section 4 of the Pensions Scheme Regulation Act;

[Ins by s 2(c) of Act 26 of 2005.]

“Board” means the Pensions and Insurance Authority Board established by section6 of the Pensions Scheme Regulation Act;

[Subs by s 2(c) of Act 26 of 2005.]

“broker” means a person who, on behalf of an insured person or a person who intends to take up an insurance policy arranges insurance policies;

[“Chairperson” rep by s 2(a) of Act 26 of 2005.]

“child” includes a child born out of wedlock, a step child, an unborn child or an adopted child;

[Am by s 2(b) of Act 26 of 2005.]

claims agent” means a person who negotiates, on behalf of an insured person, the settlement of an insurance claim with an insurer or the insurer’s representative;

“Committee” means the Policy Holders’ Protection Committee referred in section 106;

[Ins by s 2(c) of Act 26 of 2005.]

company” has the meaning assigned to it in the Companies Act;

[“Council” rep by s 2(a) of Act 26 of 2005.]

director”has the meaning assigned to it in the Companies Act;

“due date of a premium” means the date of commencement of the period of insurance cover referable to that premium under the contract of insurance;

“Fidelity Fund”means the Insurance Fidelity Fund established under section 109;

“financial year” has the meaning assigned to it in the companies Act;

“general insurance business” means insurance business other than life insurance business;

“holder”, in relation to a policy, means the person who is entitled to enforce a benefit provided for in the policy;

“holding company” has the meaning assigned to it in the Companies act;

“insurance agent” means a person who, not being a salaried employee of an insurer—

      (a)   initiates insurance business; or

      (b)   does any act in relation to the receiving of proposals for insurance, the issue of temporary insurance cover-notes, or the collection of premiums;

On behalf of an insurer;

“insurance brokerage” means the business of acting as a broker;

“insurance business” means the business of issuing policies of insurance, and includes re-insurance business;

“insurer” means a company that carries on insurance business;

“life insurance business” means the business of issuing life policies;

“life insurer” means a company that carries on life insurance business;

“life policy” means a policy under which the insurer assumes a contingent obligation dependent on human life, and includes any contract of insurance customarily regarded as a life insurance contract, but does not include-

      (a)   a funeral policy;

      (b)   a policy under which the contingent obligation dependent on human life forms a subordinate part of the insurance effected by the policy;

      (c)   a policy for a period of less than two years; or

      (d)   a policy of a kind or description prescribed by regulations made under this Act;

“long term insurance business” means insurance business of such classes as the Ministry may, on the recommendation of the Board, by statutory instrument, prescribe.

[Ins by s 2(c) of Act 26 of 2005.]

“loss adjustor” means a person who makes assessments of liability, or settles claims, on behalf of an insurer;

“minor” means a person under the age of eighteen years;

“policy” means an insurance contract of any kind;

“re-insurance” means the transfer, whether in whole or in part, of a risk assumed by an insurer, to another insurer;

“Registrar” means the Registrar of Pensions and Insurance appointed under the Pensions Scheme Regulation Act, 1996;

“Secretary” has the meaning assigned to it in the Companies Act;

“Subsidiary” has the meaning assigned to it in the Companies Act’

“statutory fund” means a fund maintained under section 35;

“unexpired risk” means the obligation of an insurer under policy during the period remaining under the policy at any particular time.

 

3.   Classification of insurance business

   (1) Subject to sub-sections (2) and (3), insurance business shall, for the purposes of this Act, be divided into—

[S 3(1) am by s 3(a) of Act 26 of 2005.]

      (a)   long term insurance business; and

[S 3(1)(a) am by s 3(b) of Act 26 of 2005.]

      (b)   general insurance business.

   (2) Notwithstanding sub-section (1), and subject to sub-section (3), the Registrar may, at the request of an insurer, and on such conditions limitations as the Registrar may fix, determine that any long term insurance business or general insurance business of any particular kind which the insurer carries on or intends to carry on shall be treated for the purposes of this Act as insurance business of a separate class:

Provided that no class of insurance business shall be established under this sub-section in such a manner that it consists partly of life insurance business and partly of general insurance business, without the insurer having obtained a separate license for each of the two types of insurance business.

[S 3(2) am by s 3(c) of Act 26 of 2005.]

   (3) The Registrar shall not accede to a request made under sub-section (2) unless he is satisfied that his determination will not be detrimental to the interests of any person and that it will not defeat the objects and purposes of this Act.

   (4) Subject to sub-section (5), no insurer may transact both general and long term insurance business.

[S 3(4) ins by s 3(d) of Act 26 of 2005.]

   (5) Notwithstanding sub-section (4), an insurer transacting both general and long term insurance business immediately before the coming into operation of this Act shall be permitted to transact both general and long term insurance business for a period not exceeding one year from the date on which this Act comes into operation:

Provided that the Zambia State Insurance Corporation may be permitted to transact both general and long term insurance business for such longer period not exceeding three years from the date on which this Act comes into operation as the Minister may, in consultation with the Board, in writing authorize.

[S 3(5) ins by s 3(d) of Act 26 of 2005.]

PART II
REGULATION OF INSURERS AND OTHERS

 

4.   Insurance business

   (1) On and from a date prescribed by the Minister by statutory instrument, a person shall not carry on insurance business unless the person is a company licensed under this Act as an insurer.

   (2) On and from the date prescribed under sub-section (1), an insurer shall not carry on insurance business except—

      (a)   in accordance with the terms and conditions of its license under this Act; or

      (b)   where a license is suspended or revoked or its terms and conditions are changed, to the extent certified by the Registrar, or by the liquidator of the insurer, as reasonably necessary for the protection of the interests of policy-holders.

   (3) A person who contravenes this section shall be guilty of an offence and shall be liable, on conviction, to a fine not exceeding twenty thousand penalty units or to imprisonment for a period not exceeding two years, or to both.

 

5.   Insurance brokerage

   (1) On and from a date prescribed by the Minister by statutory instrument, a person shall not engage in insurance brokerage unless the person is a company or partnership licensed under this Act as a broker.

[S 5(1) am by s 4 of Act 26 of 2005.]

   (2) A person who contravenes this section shall be guilty of an offence and shall be liable, on conviction, to a fine not exceeding twenty thousand penalty units or to imprisonment for a period not exceeding two years, or to both.

 

6.   Loss adjustment

   (1) On and from a date prescribed by the Minister by statutory instrument, an insurer shall not engage a person, otherwise than under a contract of employment, to act as a loss adjustor unless the person is licensed under this Act as a loss adjustor.

   (2) Where this section is contravened—

      (a)   the insurer; and

      (b)   the person engaged to act as a loss adjustor, shall be guilty of an offence and shall be liable, on conviction, to a fine not exceeding twenty thousand penalty units, and where it is proved that the offence was committed with the knowledge or connivance of the Director, Chief Executive Officer or employee, then that Director, Chief Executive Officer or employee shall be guilty of the like offence and shall be liable, on conviction, to a fine not exceeding twenty thousand penalty units or to imprisonment for a period not exceeding two years, or to both.

 

7.   Assessment of losses

   (1) An insurer shall not engage a person, otherwise than under a contract of employment, to act as an assessor unless the person is licensed under this Act as an assessor.

   (2) Where this section is contravened, both—

      (a)   the insurer; and

      (b)   the person engaged to act as an assessor;

shall be guilty of an offence and shall be liable, on conviction, to a fine not exceeding twenty thousand penalty units, and where it is proved that the offence was committed with the knowledge or connivance of the Director, Chief Executive Officer or employee then that Director, Chief Executive Officer or employee shall be guilty of the like officer and shall be liable, on conviction, to a fine not exceeding twenty thousand penalty units or to imprisonment for a period not exceeding two years, or to both.

 

8.   Claims agency

   (1) A person shall not carry on a claims agency business unless the person—

      (a)   is licensed under this Act as a broker or as a claims agent; or

      (b)   is a registered legal practitioner.

   (2) A person who contravenes this section shall be guilty of an office and shall be liable, on conviction, to a fine not exceeding twenty thousand penalty units or to imprisonment for a period not exceeding two years, or to both.

 

9.   Insurances agency

   (1) A person shall not carry on an insurance agency business unless the person is license under this Act as an insurance agent.

   (2) An insurance agent’s license shall allow the holder of the license to act as and insurance agent for only one registered insurer named in the license.

   (3) A person who contravenes this section shall be guilty of an offence and shall be liable, on conviction, to a fine not exceeding twenty thousand penalty units or to imprisonment for a period not exceeding two years, or to both.

 

10.   Application for insurer’s license

   (1) A company having share capital may apply for an insurer’s license.

   (2) An application under sub-section (1) shall be in a form approved by the Registrar and shall specify—

      (a)   the name and address of the company;

      (b)   the class or classes of insurance business for which the applicant seeks authorization under the license;

      (c)   such other matters, including any matters relating to the assets and liabilities of the company and its ability to meet its obligations, as may be required to complete the form.

   (3) The application shall be accompanied by copies of—

      (a)   the certificate of incorporation of the company;

      (b)   the certificate of share capital of the company;

      (c)   the articles of the company;

      (d)   each proposal and policy form that is to be used by the company;

      (e)   a detailed statement of assets and liabilities of the company, and their locations if not located in Zambia;

      (f)   such other documents as to the manner in which the applicant proposes to carry on business, and such financial forecasts and other documents and information, the Registrar may require.

 

11.   Grant of insurer’s license

   (1) A person shall not carry on insurance business in Zambia unless that person is registered as such under this Act.

   (2) The Registrar shall issue the applicant with a license authorizing the applicant to engage in insurance business in the classes for which licensing is sought if on the lodgment of an application by the applicant for an insurer’s license, the Registrar is satisfied that -

      (a)   the business to be authorized by the license will be carried on by the applicant in accordance with this Act and with generally accepted and prudent insurance principles and practices;

      (b)   the applicant’s articles will not prevent compliance by the applicant with any of the requirements of this Act that are applicable to the license and are in all other respects satisfactory;

      (c)   the applicant will protect the interests of policy holders in preference to,. But not to the exclusion of, the interests of shareholders or other providers of its capital;

      (d)   the applicant is likely to be at all times capable of meeting its obligations to policy holders;

      (e)   the applicant is able to meet such minimum financial, solvency and liquidity requirements, or other criteria, as may be prescribed by or under this Act in respect of insurance business of the kind authorized by the license and

      (f)   the applicant is generally competent to conduct insurance business in the classes for which licensing is sought.

   (3) Where the Registrar is not satisfied as to the matters referred to in paragraphs (e) and (f) of sub-section (1), he may allow the applicant to amend the application in respect of the classes for which licensing is sought.

Subject to this Act, a license under this section shall remain in force for a term of one year, but shall be renewable on application made as prescribed by regulations made under this Act.

 

12.   Amendment of license

   (1) An insurer may apply for amendment of its license so as to obtain authorization to conduct a class of insurance business not currently authorized by the insurer’s license.

   (2) An application under sub-section (1) shall be in a form approved by the Registrar and shall specify the class of insurance business for which authorization is sought.

   (3) The applicant shall be accompanied by copies of—

      (a)   each proposal and policy form that is to be used by the insurer in relation to that class of insurance

      (b)   a detailed statement of assets and liabilities of the insurer, and their locations if not located in Zambia, and

      (c)   such proposals as to the manner in which the applicant proposes to carry on the business, and such financial forecasts and other documents and information, as the Registrar may require.

   (4) The Registrar shall amend the license so as to authorize the applicant to engage in insurance business of the class for which authorization is sought if on the lodgment of an application under sub-section (1), the Registrar is satisfied that—

      (a)   the class of business to be authorized by the license, as amended in accordance with the application, will be carried on by the applicant in accordance with this Act and with generally accepted and prudent insurance principles and practices;

      (b)   the applicant’s articles are consistent with the conduct or that class of insurance business;

      (c)   the applicant is likely to be at all times capable of meeting its obligations to be policy holders;

      (d)   the applicant has sufficient capital to conduct insurance business in that class; and

      (e)   the applicant is generally competent to conduct insurance business in that class.

   (5) The amendment referred to in sub-section (4) shall be subject to such conditions or limitations as the Registrar may specify in the license.

 

13.   Broker’s license

   (1) A person shall not carry on insurance brokerage in Zambia unless that person is registered as such under this Act.

   (2) The Registrar shall issue a broker’s license to an individual who has a minimum of ten years experience as a licensed agent

   (3) Except as provided by section 18, the Registrar shall issue a broker’s license to a partnership or corporate firm if

      (a)   a majority of its directors are persons who, in the opinion of the Registrar, are of good repute and-

      (i)   have had ten years’ practical experience at management level in insurance brokerage or other comparable work; or

      (ii)   hold qualifications approved by the Registrar and have had an adequate practical experience of insurance brokerage; or

      (b)   where there are only two directors, one of them meets the criteria specified in paragraph (a) and the Registrar is satisfied that the business will be under the management of that director;and

[S 13(3)(b) am by s 5(a) of Act 26 of 2005.]

      (c)   the applicant is able to meet such minimum financial or other criteria as may be prescribed under this Act.

[S 13(3)(c) ins by s 5(b) of Act 26 of 2005.]

 

14.   Loss adjustor’s license

Except as provided by section 20, the Registrar shall issue a loss adjuster’s license to –

      (a)   any individual who, in the opinion of the Registrar, is of a good repute and who satisfies the Registrar that he has suitable qualifications and experience to perform the duties of a loss adjustor; or

      (b)   any company other than an insurer or broker that, in the opinion of the Registrar, is of good repute and which satisfies the Registrar that its managers and employees have suitable qualifications and experience to enable the company to perform the duties of a loss adjustor.

 

14A.   Conduct of Business as surveyor

A person shall not carry on business as an insurance risk surveyor unless that person is registered and licensed as such under this Act.

[S 14A ins by s 6 of Act 26 of 2005.]

 

15.   Assessor’s license

Except as provided by section 20 the Registrar shall issue an assessor’s license to -

      (a)   any individual who, in the opinion of the Registrar, is ofa good repute and who satisfies the Registrar that he has suitable qualifications and experience to perform the duties of an assessor; or

      (b)   any company that, in the opinion of the Registrar, is of good repute and which satisfies the Registrar that its managers and employees have suitable qualifications and experience to enable the company to perform the duties of an assessor.

 

16.   Insurance agent’s license

   (1) A person shall not carry on business as an insurance agent in Zambia unless that person is registered as such under this Act.

   (2) Except as provided by section 20, the Registrar shall issue an insurance agent’s license to—

      (a)   any individual who, in the opinion of the Registrar, is of good repute and who satisfied the Registrar that he has suitable qualifications and experience to perform the duties of an insurance agent; or

      (b)   any company that, in the opinion of the Registrar, is of good repute and which satisfies the Registrar that its managers and employees have suitable qualifications and experience to enable the company to perform the duties of an insurance agent.

 

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17.   Term of license

Subject to this Act, a license under this Act shall remain in force for a term of one year, or for such shorter or longer term as may be specified in the license, but shall be renewable on application made in accordance with the regulations made under this Act.

 

18.   Refusal of license

The Registrar may refuse to license an individual as a loss adjustor, assessor, or insurance agent or broker under this Act on the ground that-

      (a)   he has not provided the Registrar with such information relating to him or any person employed by or associated with him, or to any circumstance likely to affect his method of conducting business, as may be prescribed by regulations made under this Act;

      (b)   he has become mentally or physically incapable of performing the duties that are to be performed under the license;

      (c)   he is an undischarged bankrupt;

      (d)   it appears to the Registrar that the applicant should not be licensed because the applicant or any of his employees has been convicted, whether in Zambia or elsewhere, of an offence involving fraud or dishonesty, or has been convicted of an offence against this Act or any regulations made under this Act;

      (e)   it appears to the Registrar that, by reason of any other circumstances which either are likely to lead to improper conduct of business by, or reflect discredit on the method of conducting business of the applicant, the applicant should not be licensed; or

      (f)   the Registrar has reason to believe that the applicant will not efficiently, honestly and fairly perform the duties that are to be performed under the license.

   (2) The Registrar may refuse to license a company as a broker, loss adjustor, assessor, claims handler or insurance agent under this Act on the ground that-

      (a)   the company has not provided the Registrar with such information relating to it or any person employed by or associated with it, or to any circumstance likely to affect its method of conducting business, as may be prescribed by regulations made under this Act.

      (b)   Any director of the company has become mentally or physically incapable of performing the duties of a broker;

      (c)   Any director of the company is an undischarged bankrupt;

      (d)   It appears to the Registrar that the company should not be licensed because-

      (i)   the company;

      (ii)   or any director, controller or secretary of the company;

      (iii)   any officer concerned in the management of the company’s business; or

      (iv)   any employee of the company;

has been convicted, whether in Zambia or elsewhere, of an offence involving fraud or dishonesty, or has been convicted of an offence against this Act or any regulations made under this Act;

      (e)   it appears to the Registrar that, by reason of any other circumstances which either are likely to lead to improper conducting of business by, or reflect discredit on the method of conducting business of, the company, the company should not be licensed; or

      (f)   the Registrar has reason to believe that the company will not efficiently, honestly and fairly perform the duties that are to be performed under the license.

 

19.   Restrictions on business of insurer

An insurer shall not carry on any business other than insurance business, unless—

      (a)   the Registrar has, by notice in writing, approved the business as reasonably ancillary to insurance business carried on by the insurer; and

      (b)   the proportion of turnover of the insurer attributable to the non-insurance business in any financial year does not exceed five per centum, or such other proportion as the Minister may, by statutory instrument, prescribe.

 

20.   Restrictions on business of broker

A broker shall not carry on any business other than insurance brokerage; unless—

      (a)   the Registrar has, in writing, approved the business as reasonably ancillary to insurance brokerage carried on by the broker; and

      (b)   the proportion of turnover of the broker attributable to the non-insurance business in any financial year does not exceed such proportion as the Minister may, by statutory instrument, prescribe.

[S 20(b) am by s 7 of Act 26 of 2005.]

 

21.   Brokers to transmit premiums

   (1) Where any premium on a policy is paid to a broker by a client, the broker shall, within thirty days ofdue date of the premium, transmit the premium, less any agreed commission or other charges payable by the insurer to the broker, to the insurer who is the issuer of the policy concerned.

[S 21(1) am by s 8(a) of Act 26 of 2005.]

   (2) If the broker contravenes sub-section 1, the broker shall, in addition to the outstanding premium, pay to the insurer interest on the premium at the Bank of Zambia rate.

[S 21(2) subs by s 8(b) of Act 26 of 2005.]

   (3) Notwithstanding sub-clause (2) any broker who contravenes this section shall be guilty of an offence and be liable, on conviction, to a fine not exceeding twenty thousand penalty units.

   (4) All moneys received by a broker either from, or for a client shall be deposited in a separate client account and shall not in any circumstances be mixed with moneys belonging to the broker provided that moneys earned by way of interests on sums deposited in such client accounts shall accrue to the benefit of the broker.

[S 21(4) ins by s 8(c) of Act 26 of 2005.]

   (5) The Registrar may require a broker to disclose where the client accounts referred to in sub-section (4) are maintained and in what form they are maintained.

[S 21(5) ins by s 8(c) of Act 26 of 2005.]

   (6) No client account shall be maintained in a bank in which the broker or a director of such broker has a financial interest.

[S 21(6) ins by s 8(c) of Act 26 of 2005.]

   (7) A broker shall prepare, as at 31st March, 30th June, 30th September and 31st December of each year, a statement in the prescribed form showing the premium due to insurers from the broker for the prescribed durations and shall furnish each such statement, duly signed, to the Registrar within two months after the end of the period to which it relates.

[S 21(7) ins by s 8(c) of Act 26 of 2005.]

 

22.   Holding out

A person who falsely holds himself out to be licensed under this Act in any capacity shall be guilty of an offence and shall be liable, on conviction, to a fine not exceeding twenty thousand penalty units or to imprisonment to a period not exceed two years, or to both .

 

23.   Insurers not to accept business from unlicensed agents

An insurer who accepts any insurance business from an unlicensed insurance agent shall be guilty of an offence and shall be liable, on conviction, to a fine not exceeding thirty thousand penalty units.

 

24.   Person acting on behalf of unlicensed insurer

   (1) Subject to sub-section (2), a person who causes another person to enter into, or to make an application to enter into, a contract of insurance with a person who is not a licensed insurer shall be guilty of an offence.

   (2) Notwithstanding subject (1), a person who contravenes sub-section (1) shall have a good defence if–

      (a)   the insurance as a whole is placed by a licensed insurance broker;

      (b)   a substantial portion of the risk insured is placed with a licensed insurer; and

      (c)   the insurance broker concerned notified the Registrar in the manner prescribed of the placing of the insurance business.

   (3) Where the insurance broker concerned notified the Registrar in accordance with paragraph (c) of sub-section (2), the Registrar shall, on receipt of the notification, advise the insurance broker–

      (a)   that he has approved the placing of the insurance business; or

      (b)   has served in the insurance industry for a period;

      (i)   of not less than ten years for an insurer;

      (ii)   of not less than seven years for a broker; or

      (iii)   of not less than five years for an assessor, insurance agent or loss adjuster.

   (4) The Registrar may, if he is not prepared to give his approval under paragraph (b) of sub-section (3) give such directions to the insurance broker as he thinks fit as to the action such broker should take

   (5) A broker who neglects or fails to comply with any reasonable direction of the Registrar under sub-section (3) shall be guilty of an offence, and shall be liable, on conviction, to a fine not exceeding twenty thousand penalty units or to imprisonment for a term not exceeding two years, or to both.

PART III
MANAGEMENT AND SHAREHOLDING

 

25.   Principal office for insurance business

   (1) A licensed insurer or broker shall maintain a principal office in Zambia.

   (2) The office referred to in sub-section (1) shall only be used for the purpose of transacting insurance business.

   (3) The licensed insurer or broker shall notify the Registrar of the address of the principal office of that insurer or broker and, where the insurer or broker proposes to change that address, shall notify the Registrar of the new address not later than three weeks after the change.

 

26.   Appointment of chief executive officer

   (1) A licensed insurer or broker shall be represented in Zambia by a chief executive officer who shall be the principal officer of the insurer or broker and shall be appointed in writing subject to the prior approval of the Registrar in accordance with this section.

[S 26(1) am by s 9 of Act 26 of 2005.]

   (2) Where the appointment of a chief executive officer is revoked, notice of the revocation shall be given to the Registrar.

   (3) Every notice to the Registrar regarding the appointment of a person as chief executive officer shall contain the following particulars;

      (a)   the person’s full name;

      (b)   his date and place of birth;

      (c)   his citizenship;

      (d)   his academic and professional qualifications;

      (e)   his work experience, giving dates and nature of previous employment;

      (f)   whether he has ever been convicted of an offence involving fraud or dishonesty, and if so, the date, place and full details of the offence; and

      (g)   whether he has ever been adjudged bankrupt, applied to take the benefit of any law for the relief of bankrupt or insolvent debtors, compounded with his creditors or made any assignment of his remuneration for their benefit and, if so, full details thereof.

   (4) The Registrar shall not approve the appointment of a person as chief executive officer unless he is satisfied that the person-

      (a)   is resident in Zambia;

      (b)   has served in the insurance industry for a period—

      (i)   of not less than ten years for an insurer;

      (ii)   of not less than seven years for a broker;or

      (iii)   of not less than five years for an assessor, insurance agent or lossadjustor.

      (c)   has power of attorney sufficient to authorize him to act for the licensed insurer or broker in all matters necessary to secure the compliance by the insurer or broker with the provisions of this Act and the regulations made under this Act; and

      (d)   is not disqualified by any regulations under this Act from the appointment, and is in all respects a fit and proper person to be the chief executive officer of the insurer or broker.

   (5) A copy of the power of attorney referred to in paragraph (c) of sub-section (4) shall be lodged with the Registrar immediately after any appointment of a chief executive officer

 

27.   Absence of chief executive officer

Where the chief executive officer of an insurer or broker is, or is about to be, absent from Zambia for a period exceeding three months, or is for any reason unable to perform his duties as chief executive officer, the insurer or broker shall appoint another person resident in Zambia to act as chief executive officer of the insurer or broker for the purposes of this Act during such absence or inability and shall notify the Registrar immediately.

 

28.   Dismissal of chief executive officer

   (1) If it appears to the Registrar that the person appointed as chief executive officer of an insurer or broker is not a fit and proper person to hold office as such, the Registrar, after giving the person concerned an opportunity to be heard, may, if he thinks fit, by notice to the insurer or broker, direct the insurer or broker to revoke the appointment, with effect from a time specified in the notice.

   (2) A notice under this section shall specify the reasons for the Registrar’s action, and the insurer or broker to whom the notice is addressed shall comply with the notice.

 

29.   Supervision of other appointment

The Minister may, by statutory instrument, extend the provisions of sections 26 to 28, with or without modification, to any office having duties of a kind prescribed by that instrument in relation to the business of an insurer or broker.

[S 29 am by s 10 of Act 26 of 2005.]

 

30.   Employment in two insurers or brokers prohibited

   (1) A manager or employee of an insurer or broker shall not be a manager or employee of another insurer or broker.

   (2) A person who contravenes this section shall be guilty of an offence and shall be liable, on conviction, to a fine not exceeding ten thousand penalty units or to imprisonment for a term not exceeding twelve months, or to both.

 

31.   Insurer’s shareholding in a broker or agent

   (1) An insurer, any subsidiary company of an insurer or any director of an insurer or any of its subsidiary companies, shall not, directly or indirectly hold shares in, or have any other financial or controlling interest in, the affairs of a broker or insurance agent.

   (2) A person who contravenes this section shall be guilty of an offence and shall be liable on conviction—

      (a)   to a fine not exceeding twenty thousand penalty units; and

      (b)   if the offence continues, to a fine of twenty thousand penalty units for every month during which the offence continues.

 

32.   Criminal liability of directors

Where an offence under this Act committed by a company is proved to have been committed with the consent or connivance of any director or chief executive officer, then such director or chief executive officer shall be guilty of the like offence and punishable accordingly.

PART IV
FINANCIAL REGULATION OF INSURERS

 

33.   Reserves for unexpired risks

   (1) In assessing liabilities for the purposes of its annual accounts, an insurer transacting general insurance business shall set aside reserves for unearned premium, to meet liabilities on the unexpired risk as at the end of the financial year, using—

      (a)   the 24th method or fifty per centum of the net premium income in respect of all classes of business, whichever is higher;

      (b)   the total uncollected premium in addition to forty per centum of the premium income received in respect of policies or renewals issued during the year; or

      (c)   any other method approved in writing by the Registrar.

   (2) In sub-section (1)—

“gross premium” means a premium after deduction of any discount or rebate and any tax relating thereto, but without any deductions for commissions or re-insurance premiums;

“net premium income” means income from the balance of the gross premium after deduction from of any premium paid or payable by the insurer to intermediaries and re-insurance coded;

“the 24th method” means themethod by that name prescribed by regulations made under this Act;

“unearned premium” means that part of a premium collected under a policy that, at any particular time, is attributable to the unexpired risk or the unexpired period of insurance.

 

34.   Reserves for outstanding claims

An insurer shall make adequate provision in its accounts for liabilities in respect of claims incurred but not settled at the end of the financial year, including provision for claims incurred but not reported computed in accordance with a method not less than that prescribed by the Minister.

 

35.   Statutory funds

   (1) As from the date on which it commences to carry on the insurance business in Zambia, an insurer shall establish and maintain a fund, under an appropriate name, in respect of the life insurance business carried on by it, with assets identifiable to that fund.

   (2) As from the date on which it commences to carry on any general insurance business in Zambia, an insurer shall, subject to sub-section (3), establish and maintain a fund, under an appropriate name or names, in respect of the general insurance business carried on by it.

   (3) As an alternative to comply with sub-section (2), an insurer may, in respect of its general insurance business, establish and maintain, from the date on which it commences to carry on any general insurance business in Zambia, a number of separate funds, under appropriate names, in respect of different classes of general insurance business carried on by it.

   (4) The insurer shall keep separate accounts of receipts and payments in respect of each insurance fund maintained for purposes of this section.

   (5) For the purposes of this section, primary insurance and reinsurance business of the same class shall be regarded as belonging to different classes.

 

36.   Insurer not carry on business unless solvency requirements are met

   (1) An insurer shall not carry on life insurance business unless the admitted assets of the insurer, so far as they are identifiable with the statutory fund maintained in respect of life insurance exceed the admitted liabilities in respect of that fund, or exceed it by such margin as may be prescribed by regulations made under this Act in relation to life insurance.

   (2) An insurer shall not carry on insurance business of any class other than life insurance unless the admitted assets of the insurer, so far as they are identifiable with the statutory fund maintained in respect of that class, exceeds the admitted liabilities in respect of that class by ten per centum, or such higher or lower margin as may be prescribed by regulations made under this Act in relation to that class of insurance business.

   (3) An insurer that carries on business in contravention of this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding fifty thousand penalty units.

 

37.   Insurers to submit solvency statements

   (1) An insurer shall, within one hundred and twenty days after every financial year, submit to the Registrar a solvency statement as at the end of the financial year.

[S 37(1) am by s 11 of Act 26 of 2005.]

   (2) The Registrar may at any time require an insurer to submit, within thirty days after requisition, a solvency statement as at the date specified in the requisition.

   (3) For the purposes of this section,“solvency statement” means—

      (a)   in relation to general insurance business, a statement, made in a manner approved by the Registrar, that sets out the admitted assets and liabilities in respect of each class of insurance business of an insurer and, if the insurer satisfies the requirements of section 39, demonstrates that fact; and

      (b)   in relations to life insurance business, an actuary’s report on the state of the statutory fund maintained in respect of life insurance, conforming to section 48;

 

38.   Admitted assets

   (1) For the purposes of this Act, an asset shown in the accounts of an insurer and which is not excluded by or under this section shall be an admitted asset of the insurer.

   (2) Subject to this section, the following assets shall be excluded:

      (a)   an unpaid premium that became due to the insurer more than sixty days previously, other than -

      (i)   an amount due to it under a re-insurance policy; or

      (ii)   a premium that is secured under automatic non-forfeiture conditions against the surrender value of a life policy; that has not actually been received by the insurer, (even if it has been received on its behalf by a broker or other intermediary);

      (b)   any asset title which is held by a person other than the insurer;

      (c)   a loan that is unsecured or, in the opinion of the Registrar inadequately secured;

      (d)   an asset that is mortgaged or charged for the benefit of a person other than the insurer, to the extent that it is so mortgaged or charged;

      (e)   a loan to, debenture of, or share in any insurer that is a related company of the insurer;

      (f)   a guarantee given to the insurer, other than a guarantee given by a re-insurer in the course of re-insurance transactions;

      (g)   an asset defined by regulations made under this Act to be either -

      (i)   an intangible asset; or

      (ii)   a prepaid preliminary or organisational expense;

      (h)   an asset held outside Zambia, other than an amount due from a foreign insurer;

      (i)   such other classes of assets as may, on the recommendation of the board, be prescribed by the Minister by statutory instrument.

[S 38(2)(i) am by s 12 of Act 26 of 2005.]

   (3) Paragraph (b) of sub-section (2) shall not have the effect of excluding-

      (a)   a security or other document endorsed in favour of a bank solely for the purpose of collection or realization of any interest, bonus or dividend; or

      (b)   assets held on trust for the insurer in compliance with any direction given under this Act, except the extent that their value exceeds the amount or proportion specified in the direction.

   (4) The insurer shall attribute each admitted asset to a statutory fund.

   (5) for the purposes of sub-section (4), a particular admitted asset may be divided and the several parts attributed to different statutory funds.

 

39.   Admitted liabilities

   (1) For the purposes of this Act, any current, contingent or prospective liability shown in the accounts of an insurer that is not excluded by or under this section is an admitted liability of the insurer

   (2) The following liabilities shall be excluded—

      (a)   a liability in respect of share capital or a reserve in lieu of capital approved by the Registrar;

      (b)   a liability in respect of such matters as the Registrar may by notice in writing direct; and

      (c)   a liability prescribed by regulations made under this Act.

   (3) The insurer shall attribute each admitted liability to a statutory fund.

   (4) For the purposes of sub-section (3), a particular admitted liability may be divided and the several parts attributed to different statutory funds.

 

40.   Valuation of assets and liabilities

   (1) The Registrar may, by notice in writing, require an insurer to furnish him with such information as he specifies in the notice with respect to any liability or asset of the insurer.

   (2) Where the Registrar is not satisfied that the value of a liability or asset of the insurer as determined by the insurer has been correctly determined for the purposes of this Act, he may, after giving the insurer an opportunity of making representations, by notice in writing require the insurer to produce a valuation of the liability or asset made by an independent valuator approved by the Registrar.

   (3) The Registrar may order the company to substitute the value obtained by the independent valuator for the asset or liability in the books and statements of the company.

 

41.   Capital and other requirements

   (1) The Minister may, on the recommendation of the Board, by statutory instrument, prescribe the minimum paid-up share capital to be maintained by a licensed insurer.

[S 41(1) am by s 13 of Act 26 of 2005.]

   (2) For the purpose of this section, the Minister may prescribe different amounts in respect of insurers authorized to conduct different classes, or different combinations of classes, of insurance business.

 

42.   Publication of authorized capital

   (1) An insurer shall not publish a statement or issue a document in which a statement of its authorised capital is mentioned, unless the statement also mentions the amount of its subscribed capital and of it said up capital.

   (2) An insurer shall not publish a statement or issue a document in which a statement of its subscribed capital is mentioned, unless the statement also mentions the amount of its paid-up capital.

 

43.   Re-insurance

An insurer shall, within three months after the beginning of each financial year, submit to the Registrar such particulars as the Minister may on the recommendation of the Board, by statutory instrument prescribe in relation to its re-insurance programme for the year.

[S 43 am by s 14 of Act 26 of 2005.]

 

44.   Investment programme

   (1) An insurer shall, after the commencement of this Act, prepare and furnish to the Registrar a statement of the investment policy.

   (2) The investment policy shall be reviewed annually and the updated statement shall be filed with the Registrar.

 

44A.   Investments of funds

   (1) An insurer may invest in such type of investment as may be approved by the Registrar.

   (2) The Minister may, on the recommendation of the Board, by statutory instrument, issue investment guidelines to insurers relating to the limits for investment categories.

[S 44A ins by s 15 of Act 26 of 2005.]

 

45.   Accounts and balance sheets

   (1) In this section—

“company accounts” means the annual accounts for the financial year of a company prepared for the purposes of Companies Act;

“insurance accounts” means the documents required by sub-section (2) to be prepared by an insurer in relation to a financial year.

   (2) An insurer shall, within ninety days after the end of each financial year, cause to be prepared in accordance with the regulations-

      (a)   a balance sheet as at the end of that financial year;

      (b)   a profit and loss account for that financial year; and

      (c)   a revenue account for that financial year;

in relation to the insurance business of the insurer, and shall effect a reconciliation between them and the company accounts for that year.

   (3) The insurance accounts and the reconciliation shall be audited by the auditor together with the company accounts, and the auditor shall prepare a report on them, supplementary to his report on the company accounts, which shall state whether, in the auditor’s opinion—

      (a)   the insurance accounts have been properly prepared in accordance with the regulations; and

      (b)   such accounts give a true and fair view of the state of the insurer’s insurance business in that financial year.

   (4) The insurer shall lodge a copy of the insurance accounts and auditor’s report to the Registrar with the copy of the company accounts and auditor’s report circulated to the shareholders for the purposes of the Companies Act.

   (5) Where the insurer is a subsidiary of a holding company that—

      (a)   is not an insurer; and

      (b)   is required to prepare group accounts for the purposes of the Companies Act;

the holding company shall provide a copy of the group accounts to the Registrar at the same time as it makes its annual return to the Registrar of Companies.

 

45A.   Financial year of Insurer and insurance broker

The Financial year for every insurer and insurance broker shall be a period of twelve months ending on 31st December in each year.

[S 45A ins by s 16 of Act 26 of 2005.]

 

46.   Life insurer to appoint an actuary

   (1) A life insurer shall, before commencing the business of life insurance, appoint a person to be the actuary of the insurer.

   (2) A life insurer—

      (a)   appoints an actuary;

      (b)   removes an actuary from office; or

      (c)   for any reason ceases to have an actuary;

it shall within seven days after the event lodge a notice of that fact with the Registrar, and, where an actuary is dismissed or not re-appointed at the end of his term, shall specify the reasons for the change.

   (3) If a life insurer does not have an actuary for a period of three months, that life insurer shall be guilty of an offence and shall be liable to a penalty of one thousand penalty units for every day during which it continues to operate without an actuary.

 

47.   Qualifications of actuary

A life insurer shall not appoint a person as an actuary to the insurer for the purposes of this Act unless he has an actuarial qualification approved by the Registrar for the purposes of this Act.

 

48.   Actuary’s rights and duties

   (1) The actuary of a life insurer shall make, at the end of every third financial year, an investigation into the financial condition of the insurer’s life insurance business for the purpose of ascertaining whether there is any surplus for distribution, and shall make a report thereon.

   (2) The actuary shall prepare the estimate of the present value of the liabilities of the insurer for all its unmatured obligations using assumptions that are, in the opinion of the actuary reasonable and appropriate, having regard to the circumstances of the insurer and its policies in force.

   (3) The Registrar may review these assumptionsand the calculation of the liabilities, or may retain the service of an independent actuary to conduct such a review, and if the circumstances so warrant, may order the insurer to substitute the values obtained under the direction of the Registrar for those used by the insurer in the books and statements of the insurer for the financial period under review.

   (4) The actuary may make similar investigations at any other time.

   (5) The actuary’s triennial report shall be furnished by him to the directors of the insurer in sufficient time to enable an abstract of the report to be circulated to members with the accounts of the company for the financial year just ended.

   (6) The Minister may, by statutory instrument, prescribe the form and content of an abstract under sub-section (3).

   (7) The actuary of a life insurer shall have a right of access at all reasonable times to the accounting records and other records, including registers, of the insurer and to require from any officer such information and explanations as he thinks necessary for him to perform his duties as actuary.

   (8) If the actuary fails to obtain all the information and explanations which, to the best of his knowledge and belief, are necessary for the purposes of an investigation, he shall state that fact in his report.

   (9) An actuary of a life insurer shall be entitled to attend any general meeting of the company and to receive all notices of and other communications relating to any general meeting which any member of the insurer is entitled to receive, and to be heard at any general meeting on any part of the business of the meeting which concerns him as actuary, not withstanding that he retires at that meeting or resolution to remove him from office is passed at that meeting.

   (10) If an actuary, in the course of the performance of his duties as actuary of a life insurer, is satisfied that—

      (a)   there has been a contravention of, or failure to comply with, any of the provisions of this Act; and

      (b)   the circumstances are such that in his opinion the matter has not been or will not be adequately dealt with—

      (i)   by comment in the actuary’s report; or

      (ii)   by otherwise bringing the matter to the notice of the directors of the insurer or, if the insurer is a subsidiary, of the directors of any holding company of the insurer;

he shall forthwith report the matter to the Registrar in writing.

 

49.   Life insurers to distribute surplus to policy holders

   (1) Where the actuary’s triennial report on a life insurer assess a surplus in the statutory fund maintained in respect of life insurance, at least ninety per centum of the surplus shall be distributed to the policy holders.

   (2) If the statutory fund maintained for life insurance is in deficiency, no dividend shall be declared by the insurer or by a holding company of the insurer.

PART V
TRANSFER OF INSURANCE BUSINESS

 

50.   Amalgamation or transfer of insurance business

Notwithstanding any other law, an insurer shall not—

      (a)   amalgamate with another insurer; or

      (b)   transfer his insurance business or part of his insurance business to another insurer;

Unless the amalgamation or transfer has been approved by the Registrar in accordance with this Part.

 

51.   Application for approval of amalgamation or transfer

   (1) Where it is proposed to amalgamate two or more insurers, or otherwise to transfer insurance business from one insurer to another, the insurers concerned shall lodge with the Registrar an application for approval of the amalgamation or transfer, together with—

      (a)   the proposed agreement under which the amalgamation or transfer will take place;

      (b)   either—

      (i)   an application for a new license, where an amalgamation will result in the formation of a new company; or

      (ii)   an application for an amendment of an existing license, in the case of a transfer of any insurance business that will require an amendment of the license of the transferee insurer so as to authorise it to conduct the insurance business to be transferred;

      (c)   where an insurer that is party to the amalgamation is a life insurer, or the business to be transferred includes life insurance—

      (i)   a report, made by the actuary or the insurer concerned, on the state of each statutory fund affected by the amalgamation or transfer and, if only part of the life insurance business of an insurer is to be transferred, a report on the state of each such fund that would result from the division; and

      (ii)   an abstract of any such report.

   (2) After lodging an application under this section with the Registrar, the insurers concerned shall cause to be published in the Gazette notice of the proposed amalgamation or transfer.

 

52.   Notification of policy holders

   (1) Where an insurer that is party to the amalgamation is a life insurer, or the business to be transferred includes life insurance business, each insurer concerned shall send to each of its life policy holders—

      (a)   a statement of the nature of the amalgamation or transfer;

      (b)   an abstract of the material facts in the agreement for the amalgamation or transfer; and

      (c)   an abstract of each of the actuary’s reports;

being statements and abstracts approved by the Registrar, together with an address at which a copy of the documents lodged with the Registrar may be inspected.

   (2) Where an insurer to be amalgamated conducts general insurance business, or where general insurance business is to be transferred, the insurers concerned shall send to the holders of policies other than life policies—

      (a)   a statement, approved by the Registrar, of the nature of the proposed amalgamation; and

      (b)   notice of an address at which a copy of the documents lodged with the Registrar may be inspected.

 

53.   Determination of application for approval of amalgamation or transfer

   (1) The Registrar, after considering an application under this Part and such representations as may be made by policy holders and shareholders of the insurers concerned and by any other persons whom he considers are entitled to be heard, shall approve the agreement if he is satisfied—

      (a)   that policy holders will not be disadvantaged by the amalgamation or transfer; and

      (b)   that he should grant a license to any insurer for which a license is sought and approve any required license amendment.

   (2) When the amalgamation or transfer has been finalised, the insurers concerned shall forthwith notify the Registrar of that fact and supply him with such evidence as he may require, including evidence that all requirements of the Companies Act have been complied with in relation to the amalgamation or transfer.

   (3) On receipt of the requisite evidence, the Registrar shall—

      (a)   revoke the license of any dissolved insurer;

      (b)   as may be appropriate—

      (i)   issue a license to an amalgamated company as an insurer as from the date of the amalgamation; and

      (ii)   approve any necessary license amendments so as to authorise the transferee of any insurance business to engage in the appropriate classes of insurance business.

 

54.   Effect of amalgamation or transfer

   (1) If an amalgamation or transfer has taken place in accordance with the foregoing provisions of this Part, the owner of a policy shall no longer have any claim against the original licensed insurer, but, in place thereof, his claim shall be against the amalgamated insurer or transferee insurer, as the case may be.

PART VI
WINDING-UP OF INSURERS

 

55.   registrar entitled to be informed and to be heard in connection with winding up of insurer

   (1) A court that makes any order for the winding-up of an insurer shall give such directions to the liquidator as appear to it necessary or desirable with respect to the winding-up.

   (2) the Liquidator of an insurer shall give the Registrar such information as the Registrar may require in connection with the winding-up of any insurer, and shall report to the Registrar whenever he intends to apply to the court for instructions and shall furnish the Registrar with a copy of any application intended to be lodged.

 

56.   Ascertainment of value of liability under policies

   (1) Where an insurer is being wound up, the liquidator shall ascertain, in such manner and upon such basis as the court may approve, the value of the liability of the insurer to every person appearing by its books to be the holder of, or interested in, policies of the insurer, and shall in such manner as he thinks appropriate give notice to every such person of the value so ascertained, and every person to whom notice is so given shall be boundby the value so ascertained, unless he disputes the valuation in such manner and within such time as is prescribed by rules of the court or as the court may in a particular case allow.

 

57.   Scheme for re-insurance of policy holders of insurer that is winding up

   (1) The Registrar shall make arrangements for the re-insurance by another licensed insurer, of policies of policy holders who have policies with the insurer that is being wound-up, at face value or at a discount calculated in accordance with sub-section (2).

   (2) For the purposes of any arrangements under this section, the value of the liability under any policy effected by the arrangements shall be the value thereof as ascertained in accordance with section 56.

   (3) A court supervising the winding-up may, on the application of the Registrar, approve a scheme for implementation of arrangements under this section.

   (4) In considering any scheme referred to in sub-section (3), the court shall have primary regard to the interests of the policy holders.

   (5) Without limiting the generality of sub-section (3), the terms of a scheme referred to in that sub-section may deem a policy holder to be a party to a contract with another licensed insurer in relation to the policies concerned, and the scheme, when approved by the court, shall have effect in accordance with its terms.

 

58.   Valuation and application of statutory funds

In the winding-up of an insurer, the value of the liabilities and assets of any of its statutory funds shall be ascertained separately from the value of any other assets or liabilities of the insurer, and no assets of any such fund shall be applied to the discharge of any liabilities of the insurer other than those in respect of which the fund was created, except in so far as those assets exceed the liabilities of the fund concerned.

 

59.   Preferred creditors of an insurer

Notwithstanding any provision of the Companies Act to the contrary, in the distribution, for the purposes of a winding-up of a licensed insurer, of assets of the insurer other than those identified with a statutory fund—

      (a)   the holders of life policies issued by the insurer shall have preference against all other unsecured creditors of the insurer; and

      (b)   the owners of all other policies issued by the insurer shall rank before any other unsecured creditors of the insurer after the holders of life policies:

Provided that such claims shall not have priority over claims in respect of costs of or incidental to the conduct of the winding-up.

PART VII
RETURNS TO BE MADE BY INSURERS

 

60.   Returns

An insurer shall prepare at the end of each financial year ofthe insurer, in respect of that year, statements in the prescribed form relating to the business carried on during the year and the business in force at the end of the year and shall furnish those statements to the Registrar within three months after the end of the financial year.

 

61.   Insurer to provide Registrar with copies of circulated documents

   (1) An insurer shall lodge with the Registrar a certified copy of any document circulated to its shareholders, policy holders, or debenture holders, or to any class of them, at the same time as it is so circulated.

   (2) An insurer shall lodge with the Registrar a certified copy of the minutes of the proceedings of any general meeting, as entered in the minute book of the insurer, within twenty-eight days after the holding of the meeting.

 

62.   Notification of changes in particulars of the insurer

An insurer shall notify the Registrar of any proposed change in the following particulars of the insurer, together with the date of proposed change of, before the change occurs:

      (a)   the name of the company;

      (b)   the type of company (whether public or private);

      (c)   the share capital of the company;

      (d)   the articles of the company;

      (e)   the financial year of the company; or

      (f)   any other particulars prescribed by regulations made under this Act.

 

63.   Notification of changes in auditor

   (1) An insurer or broker shall, with the approval of the Register, given in writing, appoint an auditor and shall notify the Registrar of the dismissal of such auditor within seven days after the dismissal.

   (2) Where an auditor is dismissed or fails to be re-appointed at the annual general meeting the insurer or broker shall, by written notice to the Registrar, specify the reason for the dismissal or failure to re-appoint

[S 63 subs by s 17 of Act 26 of 2005.]

PART VIII
DISCIPLINARY ACTION

 

64.   Scope of power under this part

   (1) The powers conferred on the Registrar by this Part may only be exercised in relation to any person licensed under this Act if it appears to the Registrarthat—

      (a)   the person is not a fit and proper person to be the holder of this license;

      (b)   the person has contravened or failed to comply with any provision of, or requirement under, this Act or regulations made under this Act or, in purported compliance with any such provision or requirement, has furnished the Registrar with information that is false, inaccurate or misleading; or

      (c)   the exercise of the power is otherwise necessary for the protection of current or future policy holders;

and the provisions of this Part shall accordingly be construed subject to this section.

   (2) For the purposes of this section, the Registrar may take into account any matters that could be taken into account in deciding whether to suspend or revoke a license.

   (3) The powers conferred on the Registrar by this Part, other than the power to suspend or revoke a license, may be exercised in relation to a person whose license has been suspended or revoked, whether or not the suspension or revocation is the subject of appeal, as if a reference in this Part to a licensed person included a reference to any such person.

   (4) The Registrar shall, before taking any action under this section, satisfy himself, so far as he reasonably can, that the action would not unfairly operate to the detriment of any person.

   (5) The Registrar may reverse, vary, or discharge any direction given by him under this Part or suspend the operation of such a direction.

 

65.   Restriction of business

   (1) The Registrar may by notice in writing prohibit a person licensed under this Act from doing any one or more of the following:

      (a)   entering into transactions of a class or description specified in the notice or entering into them otherwise than in circumstances so specified or to an extent so specified;

      (b)   soliciting business from persons of a class or description specified in the notice or from persons other than persons of such a class or descriptions; or

      (c)   carrying on business in a specified manner or otherwise than in a specified manner.

   (2) A prohibition under this section may relate to transactions entered into in connection with or for the purposes of the business in respect of which the person is licensed or to other business which is carried on in connection with, or for the purposes of any such business.

 

66.   Restrictions on dealing with assets

The Registrar may, as regards any assets, whether they are the assets of a person licensed under this Act or not, by notice in writing—

      (a)   prohibit a person so licensed from disposing of such assets or prohibit him from dealing with them in a manner specified in the notice; or

      (b)   require a person so licensed to deal with such assets in and only in, a manner specified in the notice.

 

67.   Maintenance of assets

   (1) The Registrar may by notice in writing require a person licensed under this Act to maintain assets of such value as appears to the Registrar to be desirable with a view to ensuring that the licensed person will be able to meet his liabilities in respect of the business to which his license relates.

   (2) The Registrar may direct that, for the purposes of any requirement under this section, assets of any specified class or description shall or shall not be taken into account.

 

68.   Suspension or revocation of license, or refusal of license renewal

   (1) The Registrar may suspend or revoke a license held under this Act by any person, or may refuse to renew such a license, if –

      (a)   the licensee, after being reminded of his failure, has continued to fail to comply with any requirement made of him by or under this Act;

      (b)   the licensee has become mentally or physically incapable of performing his duties under the license;

      (c)   the licensee has become bankrupt;

      (d)   the licensee or any employees of the licensee, where the licensee was a party to the crime committed, has been convicted, whether in Zambia or elsewhere, of an offence involving fraud or dishonesty, or has been convicted of an offence against this Act or any regulations made under this Act;

      (e)   it appears to the Registrar that, by reason of any other circumstances which either are likely to lead to improper conduct of business by, or reflect discredit on the method of conducting business of, the applicant, the license—

      (i)   should be revoked; or

      (ii)   should be suspended, or remain unrenewed, until the licensee takes such action as the Registrar may specify

      (f)   the Registrar has reason to believe that the applicant is no longer efficiently, honestly and fairly performing the duties that are to be performed under the license.

   (2) The Registrar may suspend or revoke a license held under this Act by a company, or may refuse to review such a license, if-

      (a)   the company, after being reminded of its failure, has continued to fail to comply with any requirement made of it by or under this Act;

      (b)   any director of the company has become mentally or physically incapable of performing his duties in connection with the company;

      (c)   any director of the company has become bankrupt;

      (d)   the company, any director or chief executive officer of the company if the Chief Executive Officer was a party to the crime committed has been convicted, whether in Zambia or elsewhere, of an offence involving fraud or dishonesty, or has been convicted of an offence against this Act or any regulations made under this Act;

      (e)   it appears to the Registrar that, by reason of any other circumstances which either are likely to lead to improper conduct of business by, or reflect discredit on the method of conducting business of, the company the license—

      (i)   should be revoked; or

      (ii)   should be suspended, or remain unrenewed,

until the licensee takes such action as the Registrar may specify

      (f)   the Registrar has reason to believe that the company is no longer efficiently, honestly and fairly performing the duties that are to be performed under the license; or

      (g)   in the case of an insurer’s license or broker’s license, the company no longer meets such minimum financial, solvency and liquidity requirements, or other criteria, as may be prescribed by or under this Act;

      (h)   in the case of a broker’s license, the company no longer meets such minimum financial requirements or other criteria, as may be prescribed by or under this Act.

 

69.   Rescission or variation of prohibition or requirement

The Registrar may, either of his own motion or on the application of a licensed person on whom a prohibition or requirement has been imposed under this Part, rescind or vary the prohibition or requirement if it appears to the Registrar that it is no longer necessary for the prohibition or requirement to take effect or continue in force, or that it should take effect or continue in force in a different form.

 

70.   Notices

   (1) The power to impose, rescind or vary a prohibition or requirement under this Part shall be exercisable by written notice served by the Registrar on the licensee concerned, and any such notice shall take effect on such date as is specified in it.

   (2) If the Registrar refuses to rescind or vary a prohibition or requirement on the application of the licensee to whom it applies, it shall serve notice on that person to that effect.

   (3) A notice imposing a prohibition or requirement, or varying a prohibition or requirement otherwise than on the application of the licensee to whom it applies, and any notice under sub-section (2), shall state the reasons for which the prohibition or requirement has been imposed or varied or, as the case may require, why the application for variation or rescission was refused.

   (4) The Registrar may give public notice of any prohibition or requirement imposed by him under this Part and of any rescission or variation thereof, and any such notice may, if the Registrar considers it necessary, include a statement of the reasons for the prohibition, requirement, variation or rescission.

 

71.   Winding up orders

Chapter VII of the Banking and Financial Services Act, 1994, shall apply to the insolvency and liquidation of the insurers with the necessary modifications, so however that the words “insurer”, “premium”, “insurance business”, “Chief Executive Officer”, “twenty million penalty units” and “Registrar”, shall be substituted for the words “bank”, “deposit”, “banking or financial services business”, “officer”“ten million penalty units” and “Bank of Zambia”, respectively.

 

72.   Receiving orders

If it appears to the Registrar that it is desirable for the protection of policy holders to do so, the Registrar may present a petition for a receiving order in accordance with the Bankruptcy Act against an individual licensed under this Act if the individual concerned has committed an act of bankruptcy within the meaning of that Act shall, with the necessary modifications, apply in relation to any such petition as it applies in relation to a petition presented by a creditor.

PART IX
INSURANCE POLICIES

 

73.   Approval of proposal and policy forms

   (1) An insurer shall not use any proposal or form unless—

      (a)   the form has been submitted to the Registrar at least thirty days before such use; and

      (b)   the Registrar has not, by notice in writing to the insurer concerned, prohibited use of the form.

   (2) An insurer who contravenes sub-section (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding twenty thousand penalty units.

 

74.   Premium rates

   (1) The Registrar may, request premium rates being charged by the insurer at any time to be submitted to him.

   (2) The Registrar may after considering the rates used by the insurer, order the insurer to cease using rates that are determined to be inappropriate.

 

75.   Policies to be printed in clearly legible form

No person shall issue a policy containing printed provisions which are not in clear type face with letters of a size not less than eight point.

 

76.   Payment of premiums

   (1) A contract of general insurance shall cease to operate if a premium is not paid within thirty days after the due date of the premium, or within such period as the contract may stipulate.

[S 76(1) am by s18 of Act 26 of 2005.]

   (2) For the purposes of this section, a premium paid to a broker who arranged the contract shall be deemed to have been paid to the insurer.

 

77.   Currency

In every policy the sum insured, the premium and every other sum of money mentioned in the policy shall be stated in the currency of Zambia or in any foreign currency acceptable to banks and financial institutions licensed under the Banking and Financial services Act.

 

78.   Policies and payments to be issued and made in Zambia

Every policy issued in respect of a proposal for insurance made to a licensed insurer shall be issued in Zambia by a licensed insurer, and all premiums and payments arising under or out of the policy shall be payable in Zambia.

 

79.   Action by policy holders against insurers

   (1) The holder of a policy shall, notwithstanding any contrary provision in the policy, be entitled to enforce his rights under the policy against the insurer named in the policy in any competent court in Zambia.

   (2) Any question of law arising in any action under a policy may validly provide that the amount of any liability under the policy shall be determined by arbitration and any such arbitration shall be held in Zambia in accordance with the Arbitration Act.

   (3) Notwithstanding sub-section (1), a policy may validly provide that the amount of any liability under the policy shall be determined by arbitration and any such arbitration shall be held in Zambia in accordance with the Arbitration Act.

 

80.   Policies not invalidated by failure to comply with law

A policy issued to any person before or after the commencement of this Act shall not be invalid, nor shall it be unenforceable by that person, by reason only of the fact that the person contravened or failed to comply with the provisions of any enactment in force applying to that policy.

 

81.   Minor may insure his life

   (1) A minor may, with the consent of his guardian, effect a life policy upon his own life and pay any premium under the policy with any money at his disposal.

   (2) A minor who is married may effect a life policy upon his own life for his own benefit or for the benefit of his spouse and children or any of them and pay any premium due under the policy with any money at his disposal.

   (3) Subject to this section, a minor who has effected a life policy upon his own life under sub-section (1) or (2) shall be the holder of the policy and shall have the right to exercise all the powers and privileges of the holder in relation to the policy as if he were of full age.

   (4) A minor who has effected a life policy upon his own life shall not, without the consent of his guardian, pledge, assign or surrender the policy while he remains a minor.

 

82.   Limitation on who may benefit from a life policy

   (1) A life policy shall name the beneficiary under that policy.

 

83.   Protection of proceeds of life policy on during life of holder

   (1) Where a life policy that was taken by a person on his own life and which has subsisted for three years or more from the date of payment of the first premium—

      (a)   is attached in execution of a judgment or order of any court at the instance of a creditor of that person; or

      (b)   becomes part of that person’s estate in bankruptcy;

during the lifetime of that person, the proceeds on realisation of the policy shall, to the extent specified in sub-section (2), be protected against that person’s creditors and against any claim in connection with the attachment or bankruptcy.

   (2) The protection afforded by this section—

      (a)   shall, subject to paragraph (b), extend, if the policy is pledged, to so much of the proceeds on realisation of the policy as exceeds the amount of the liability secured by the pledge, but no further; and

      (b)   shall not, in any event, extend to so much of the proceeds of realisation as may exceed one million kwachaor such large amount as may be prescribed by regulations made under this Act.

   (3) If moneys due or paid by the insurer under a life policy referred to in sub-section (1) or assets acquired with, or partly with those moneys –

      (a)   are attached in execution of a judgment or order of any court at the instance of a creditor of a person by whom the policy was effected; or

      (b)   become part of the estate in bankruptcy of the person by whom the policy was effected;

during the period of five years after the date when the monies due or paid under the policy first become due, the money or assets concerned shall, to the extent specified in sub-section (4), be protected against that person’s creditors and against any claim in connection with the attachment or bankruptcy.

   (4) The protection afforded by the provisions of sub-section (3) in respect of moneys or assets of a person referred to in that sub-section—

      (a)   shall, subject to the provisions of paragraph (b), extend, in the case of an asset which is pledge or mortgaged, to so much of the proceeds on realisation of the asset as exceeds the amount of the liability, secured by the pledge or mortgage, but no further;

      (b)   shall extend to those moneys or proceeds on realisation of those assets in so far as those moneys or proceeds, together with-

      (i)   all other moneys due or paid to that person under life policies referred to in sub-section (1);

      (ii)   the value of all other existing assets of that person acquired with moneys paid under life policies referred to in sub-section (1) or with such moneys and other moneys; and

      (iii)   therealisable value of all life policies referred to in sub-section (1) of which that person is the holder;

do not exceed one thousand kwacha or such larger amount as may be prescribed by regulations made under this Act; and

      (c)   shall not extend to any moneys due or paid under a life policy referred to in sub-section (1) on surrender of the policy or to any assets acquired with those moneys or with those moneys and other moneys.

   (5) For the purposes of this section—

      (a)   a life policy which an insurer issues in exchange for or in consideration of the surrender of another life policy under which the insurer was previously liable shall be regarded as having been effected on the date on which the surrendered policy was issued, if the insurer received no payment other than the value of the surrendered policy as a consideration for the new policy;

      (b)   a life policy which an insurer issues in terms of sub-section (3) of section eight-eight shall be regarded as having been effected on the date on which the old life policy for which it was substituted was issued.

 

84.   Protection of beneficiaries of life policy on death of policy holder

If, on the death of the holder of a life policy, money or assets in respect of which protection is afforded by section 83, a dependant has a claim under the policy or to the money or assets, and the policy, money or assets—

      (a)   are attached in execution of a judgment or order of any court at the instance of a creditor of the deceased holder; or

      (b)   become part of the deceased holder’s estate in bankruptcy;

the dependant shall, in respect of his claim, enjoy the protection afforded by section 83.

 

85.   Protection afforded in respect of policy inuring to spouse or children

   (1) If –

      (a)   before or during marriage, a person effects or assigns, for the benefit of his or her spouse or of his or her spouse and children a life policy on his or her life or on the life of his or her spouse; or

      (b)   a person effects or assigns such a life policy for the benefits of his or her children, including children to be born to him or her;

then, subject to the provisions of this section and, in the case of a policy which is assigned, to the terms of the assignment, the policy or moneys due to be paid thereunder by those moneys—

      (i)   shall not be liable to be attached in execution of a judgment order or any court at the instance of a creditor of the person by whom the policy was effected or assigned; and

      (ii)   shall not form part of the estate in bankruptcy of the person by whom the policy was effected or assigned.

   (2) A benefit conferred or purported to be conferred upon a spouse or child under a life policy referred to in sub-section (1) by virtue of the assignment of a life policy referred to in that sub-section shall, notwithstanding any agreement to the contrary between the insurer and the person by whom the policy was effected, but subject, in the case of a policy which is assigned, to the terms of the assignment, be enforceable against the insurer liable under the policy at the suit of the spouse or child or the legal representative of the spouse or child, not withstanding that the spouse or child has not accepted the benefit and is not a party to the contract of insurance.

   (3) A life policy shall not, for the purposes of this section, be treated as having been effected for the benefit of the spouse or children of the person by whom the policy was effected unless, at the time of its issue, the policy expressly so provides.

 

86.   Further protection afforded in respect of life policy inuring

   (1) If, before or during marriage, a person effects or assigns for the benefit of his spouse a life policy on his or her life and the policy—

      (a)   is attached in execution of a judgment or order of any court at the instance of the creditors of the spouse for whose benefit the policy was effected or assigned; or

      (b)   becomes part of the estate in bankruptcy of that spouse;

the proceeds on realisation of the policy shall, to the extent specified in sub-section (2) of section 85, be protected against creditors of the spouse for whose benefit the policy was effected and against any claim in connection with the attachment or bankruptcy.

   (2) The provisions of sub-sections (3) to (5) of section 85 and of sub-sections (2) and (3) of section 85,shall, with any necessary modifications, apply to—

      (a)   a life policy referred to in sub-section (1);

      (b)   moneys due or paid thereunder by the insurer, or

      (c)   any assets acquired with those moneys or with those moneys and other moneys.

 

87.   Selection for realization of life policies

If—

      (a)   two or more life policies or assets in respect of which protection is afforded by the provisions of section 83,84 or 85, being the property of one person, are attached in execution of a judgment or order of any court at the instance of a creditor; or

      (b)   the holder of two or more life policies or assets in respect of which protection is afforded by those provisions in adjudged or otherwise declared bankrupt;

And a part only of the aggregate realisable value of the policies or assets is protected, the judgment creditor, or as the case may be, the trustees of the estate in bankruptcy shall determine which policy or policies or other assets or asset shall be realised, wholly or partly in order to make available to him so much of the aggregate realisable value as is not protected.

 

88.   Partial realization and partial conversion of policies

   (1) A judgment creditor of the holder of a life policy or the trustee of his estate in bankruptcy who is entitled to a part of the realisable value of the policy may, if he is in possession of the policy, deliver it to the insurer who is liable under the policy for the purposes of the payment to him of the sum to which he is entitled,

   (2) If a judgment creditor or trustee referred to in sub-section (1) is not in possession of the life policy to which the provisions of that sub-section relate, the holder or any other person in possession of the policy shall, at the request of the judgment creditor or trustee, deliver it to the insurer who is liable under the policy for the purposes of the payment to the judgment creditor or trustee of the sum to which he is entitled.

   (3) On receipt of a life policy delivered to him in terms of sub-section (1) or (2), the insurer shall—

      (a)   at the request of the judgment credit or trustee referred to in sub-section (1), pay to him a sum equal to the part of the realisable value of the policy to which he is entitled; and

      (b)   at the request of the holder of the policy, issue to him a new policy of the same class, but for a sum insured equal to the difference between—

      (i)   the full sum under the old policy, including any bonus which may have accrued in connection with it; and

      (ii)   an amount which bears the same ratio to the full sum insured under the old policy, including any bonus, as the amount paid by the insurer to the judgment creditor or trustee referred to in sub-section (1) bears to the full realisable value of the old policy

   (4) When an insurer has made the payment and issued a new life policy as provided in sub-section (3), the old life policy shall lapse.

 

89.   Provisions where life policy assigned or cannot be kept up

If a person who—

      (a)   has effected or ceded a life policy for the benefit of his or her spouse or for a spouse and children; or

[S 89(a) am by s 19 of Act 26 of 2005.]

      (b)   holds a life policy in trust for any other person and is obliged to pay the premiums on the policy;

is or has been unable to pay the premiums, that person may, with the consent of each person who has an interest in the policy or, if any such person is a minor, with the consent of his guardian or the Registrar of the High Court, agree with the insurer liable under the policy—

      (i)   to exchange the policy for a paid-up life policy of a value equal to that of the original policy according to the insurer’s current tariff, payable at the time and in the manner stipulated in the original policy to the person or persons entitled to the sum insured by the original policy;

      (ii)   to borrow from the insurer upon the security of the policy such sums as may be necessary to keep the policy in force or to revive it; or

      (iii)   to apply any bonus which may have accrued in connection with the policy to a temporary or permanent reduction of premiums or to the payment of any premiums which have fallen due.

 

90.   Incorrect statements in proposal for life policy

   (1) Notwithstanding anything contained in or incorporated in a life policy, a life policy shall not be avoided by reason only of an incorrect statement made in a proposal or other document on the faith of which the policy was issued or reinstated by the insurer, unless the statement was material to the risk of the insurer and was made in the knowledge that it was untrue or with no reasonable belief that it was true.

   (2) Where an agent or servant of an insurer writes or fills in, or has written or filled in, any particulars in a proposal for a policy of insurance with the insurer, then, notwithstanding any law and any agreement to the contrary between the proposer and the insurer, a policy issued in pursuance of the proposal shall not be avoided by reason only of an incorrect or untrue statement contained in the particulars so written or filled in, unless the incorrect or untrue statement was in fact made by the proposer to the agent or servant for the purposes of the proposal; and the burden of proving that the statement was so made shall lie upon the insurer.

 

91.   Life policies intended to defraud creditor

   (1) Nothing in this Part shall be construed as derogating from the power of a competent court to set aside, under the law relating to bankruptcy, any cession of a life policy made with intent to benefit someone at the expense of a creditor.

[S 91(1) am by s 20 of Act 26 of 2005.]

   (2) If a premium upon a life policy was paid with intent to benefit a person at the expense of a creditor of the person making the payment, a competent court may order the holder of the policy to pay a sum equal to the aggregate of all premiums so paid, with interest as such rate as the Minister may, by statutory instrument, prescribe, on the amount each premium so paid from the date of its payment to the person to whose detriment the premium was or the premiums were paid or, if the person has been adjudged or otherwise declared bankrupt, to the trustee of his estate in bankruptcy.

   (3) An order under sub-section (2) for the payment of a sum of money shall have the effect of pledging the life policy referred to in that sub-section to the person entitled to the payment as security for the payment and, until the payment is made, that person shall be entitled to possess the policy.

 

92.   Proof of age

If—

      (a)   a claim is made for a benefit under a life policy which has insured for a period of three years from the date of the payment of the first premium;

[S 92(a) am by s 21(a) of Act 26 of 2005.]

      (b)   the age or date of birth of the insured unless the contrary is proved by the records of a medical examination of the insured person has not been admitted by the insurer liable under the policy; and

      (c)   the person claiming the benefit shows that, owing to circumstances beyond his control, and through no default either of himself or of the person by whom the policy was effected, there was not, at any time after the date of the payment of the first premium under the policy, in existence or available any documentary evidence affording reasonable proof of the age or date of birth of the insured unless the contrary is proved by records of a medical examination of the insured;

any written statement made in the proposal or application for the policy as to the age or date of birth of the insured person shall be accepted, for the purposes of the claim, as the correct age or date of birth of the insured person, made at the instance of the insurer, within the period of three years referred to in paragraph (a) or in any other manner.

[S 92(c) am by s 21(b) of Act 26 of 2005.]

 

93.   Age incorrectly stated in life policy

   (1) If, after the issue of a life policy, it is proved that the policy is based upon an incorrect statement of the age of the person whose life is insured, the sum insured and other benefits under the policy shall, subject to the provisions of sub-section (2), be the same as those which the premiums payable under the policy been based upon a correct statement of the person’s age.

   (2) If the Registrar is satisfied that the actual nature of life policies of any particular kind is such as to render the application of the provisions of sub-section (1) inequitable, he may direct an insurer to apply, in relation to policies of that kind, such other method of making adjustments in respect of incorrect statements of age as may appear to the Registrar to be equitable.

 

94.   Death of insured by his own act

   (1) No life policy in which it is provided that the policy shall bevoid in the event of the insured, whether sane or insane, dying by the insured’s own act within a stipulated period shall be void for that reason if the insured died by the insured’s own act after the expiration of that period.

[S 94(1) subs by s 22(a) of Act 26 of 2005.]

   (2) A life policy in which no provision such as is referred to in sub-section (1) is contained shall not be void by reason of the insured, whether sane or insane, dying by the insured’s own act at any time after the issue of the policy.

[S 94(2) ins by s 22(a) of Act 26 of 2005.]

   (3) Where a person who is a beneficiary under a life policy is responsible for his death of the insured, that person’s benefit under that policy shall be void.

[S 94(2) renumbered as s 94(3) by s 22(b) of Act 26 of 2005.]

 

95.   Lost or destroyed life policies

   (1) If a life policy is lost or destroyed and the loss or destruction is proved and advertised in the manner prescribed by regulations made under this Act, the insurer liable under the policy shall, at the request of the holder of the policy and on payment by that holder to the insurer of the prescribed fee, issue to the holder—

      (a)   a correct and certified copy of the policy, in which shall be inscribed any endorsement, made by the insurer on the original policy after its issued; and

      (b)   a correct and certified copy of any record in the possession of the insurer of any dealings with the policy after its issue.

   (2) A certified copy a life policy issued under sub-section (1) shall for all purposes—

      (a)   take the place of the policy lost or destroyed; and

      (b)   be the sole evidence of the contract made by the policy.

 

96.   Cancellation of life policy

   (1) Any life policy issued after the commencement of this Act may be cancelled by the holder within thirty days of the receipt of the policy by the holder.

   (2) In the event of a cancellation under this section, all premiums paid shall be refunded to the holder:

Provided that the insurer shall be entitled to deduct an appropriate amount in respect of expenses and the amount of any medical fees incurred, all of which shall be tabulated and brought to the attention of the holder in writing:

 

97.   Discrimination between life policies prohibited

   (1) No insurer shall make, or permit to be made, any discrimination in respect of the rate prohibited or the rate of premiums charged or the rate of bonuses granted between life policies which are of the same kind and under which the persons whose lives are insured have an equal expectation of life.

   (2) Nothing in sub-section (1) shall apply in life policies which—

      (a)   are re-insurance contacts;

      (b)   are for large sums at preferential rates in accordance with the current tariff of the insurer concerned;

      (c)   insure at preferential rates the lives of employees of one employer or a combination of employers or members of the families of such employees or the lives of a group of persons carrying on the same occupation; or

      (d)   are of a class prescribed.

   (3) No director, servant or agent of an insurer shall accept any proposal or application for a life policy in respect of which—

      (a)   a promissory note, bill of exchange or other negotiable instrument, not being a cheque payable on the date of issue; or

      (b)   an acknowledgement of debt, not being a stop order;

in favour of the insurer or any other person has been given for the first year’s premium or any part thereof.

 

98.   Premium rates on life policies

   (1) An insurer carrying on life insurance business shall not issue any life policy of insurance, unless the rate of premium chargeable under the policy is a rate which has been approved by an actuary as suitable for the class of policies to which that policy belongs and that rate and the actual bases therefore, together with the actuary’s certificate, have been filed with the Registrar at least thirty days before giving effect to the rate.

   (2) The Registrar may require the insurer to obtain and to furnish to him, within such time as he may specify, a report by an actuary as to the suitability of the rate of premium chargeable under any class of policy issued by the insurer and, if the actuary considers that the rate is not suitable, a report as to the rate of premium which the actuary approves as suitable in respect of that class of policy.

   (3) Where a requirement is made under sub-section (2) in respect of the rate of premium chargeable under any class of policy, the insurer shall not issue, after the expiry of the period specified by the Registrar, any policy of that class under the insurer has, in accordance with the requirement, obtained the approval of the actuary to the rate of premium and notified the Registrar that, that approval has been obtained.

   (4) An actuary, when approving a rate of premium in respect of a class of policy under this section, shall have regard to the maximum rate of commission or rebate prescribed in respect of that class of policy.

   (5) Where a rate of premium is approved by an actuary in respect of a class of policy, the insurer shall not, except with the approval of the Registrar, pay or allow in respect of any policy of that class a commission or rebate at a greater rate than the maximum rate of commission or rebate to which the actuary had regard when approving the rate of premium.

   (6) A person who contravenes any of the provisions of this section shall be guilty of an offence.

PART X
ADMINSTRATION

 

99.   Functions and duties of Registrar

   (1) The Registrar shall have the functions and powers conferred on him by or under this Act or any other written law.

   (2) In the performance of functions under this Act the Registrar—

      (a)   shall be subject to the direction of the Pensions and Insurance Authority Board; and

      (b)   shall at all times have regard to the need to protect the rights, benefits and other interests of policy holders and any beneficiaries of policies of insurance.

[S 99(2) subs by s 23(a) of Act 26 of 2005.]

   (3) The Board shall as soon as reasonably practicable after each year ending on 31st December, furnish to the Minister a report on the working of this Act during that year.

[S 99(3) rep by s 23(a) of Act 26 of 2005; s 99(4) renumbered as s 99(3) by s 23(b) of Act 26 of 2005.]

 

100.   …

[S 100 rep by s 24 of Act 26 of 2005.]

 

101.   Power to call for information and production of books or papers

   (1) In this section “member” means a person regulated under this Act.

[S 101(1) am by s 25(a) of Act 26 of 2005.]

   (2) The Registrar may, by notice in writing, require a member to supply him with information relating to his insurance business, and that person shall comply with the requirement within such period after receipt of the notice as may be specified therein failing which he shall be deemed to have failed to comply with the provisions of this Act.

   (3) The information supplied under this section shall be certified by a principal officer of the member of the insurance industry in question and, if the notice so requires, also by an auditor.

   (4) The Registrar may by notice in writing—

      (a)   require a member, to produce, at such time and place as he may specify, such books or documents as he may specify; or

      (b)   authorise any person, on producing, if required to do so evidence of his authority to require a member to produce to him any books or documents which that person may specify.

   (5) Where by virtue of sub-section (3) the Registrar or a person authorised by him has power to require the production of books or documents from a member, the Registrar or that person shall have the same power to require production of those books or documents from any person who appears to him to be in possession of them.

   (6) Where any person from whom production of a document is required claims a lien on the document produced by him, the production shall be without prejudice to the lien.

   (7) The power conferred by or by virtue of sub-sections (3) and (4) to require a member or other person to produce books or documents shall include power—

      (a)   if the books or documents are produced—

      (i)   to take copies of them or extracts of or from them, and

      (ii)   to require that person, or any other person who is a present or past director of, auditor of, or is or was at any time employed by, the member in question, to provide an explanation of any of them;

      (b)   if the books or documents are not produced, to require the person who was required to produce them to state, to the best of his knowledge and belief, where they are.

   (8) A person who in purported compliance with requirement imposed under this section furnishes information which he knows to be false in a material particular, or who recklessly furnishes information which is false in a material particular, or who, having been required to produce a book or document for examination, alters, mutilates, damages, destroys, conceals or removes it without the written consent of the Registrar, shall be guilty of an offence and liable to a fine not exceeding five thousand penalty units or to imprisonment for a term not exceeding twelve months or to both.

   (9) For the purposes of checking and verifying any information supplied to the Registrar under this Act or regulations made thereunder, the Registrar or any other person authorized by the Registrar in writing may examine the books, vouchers, receipts and such other documents, as the Registrar may consider necessary, of a member.

[S 101(9) ins by s 25(b) of Act 26 of 2005.]

   (10) As a result of an examination carried out under sub-section (9), the Registrar may cause such investigation as the Registrar considers necessary to be carried out into the affairs of a member and such investigation may include a special audit by an auditor named by the Registrar.

[S 101(10) ins by s 25(b) of Act 26 of 2005.]

   (11) The officers or agents of the member shall cause the books of the member to be available for examination or investigation so far it is in their power.

[S 101(11) ins by s 25(b) of Act 26 of 2005.]

   (12) The Registrar shall cause a summary of the conclusions arrived at as a result of an investigation carried out under this section to be sent to the member concerned.

[S 101(12) ins by s 25(b) of Act 26 of 2005.]

   (13) The Registrar may recover from the member concerned all expenses necessarily incurred in connection with an investigation carried out under sub-section (10) where such investigation reveals that the member supplied false or fraudulent information.

[S 101(13) ins by s 25(b) of Act 26 of 2005.]

   (14) Where an examination or investigation carried out under this section reveals that the information supplied by a member was fraudulent or false, the Registrar shall dismiss such information.

[S 101(14) ins by s 25(b) of Act 26 of 2005.]

 

102.   Examination of re-insurance treaties

   (1) The Registrar may—

      (a)   call upon an insurer to submit for his examination at his office all reinsurance treaties and other re-insurance contracts entered into by the insurer; and

      (b)   by notice in writing, require an insurer to supply him with copies of any of the documents referred to in paragraph (a) certified by a principal officer of the insurer.

   (2) The Registrar shall not approve a reinsurance treaty if examination of a document referred to in sub-section (1) the Registrar considers that any reinsurance treaty, contract or arrangement or any terms or conditions therein are not favourable to the insurer or are not in the interests of the economy or the insurance industry or in the public interest.

 

103.   Annual report

The Board shall, within six months after the end of each calendar year, submit to the Minister a report on the Authority’s activities in relation to this Act and on the state of the insurance industry during that year.

[S 103 subs by s 26 of Act 26 of 2005.]

 

104.   …

[S 104 rep by s 27 of Act 26 of 2005.]

 

105.   …

[S 105 rep by s 27 of Act 26 of 2005.]

 

106.   Establishment of Committee

   (1) The Board shall constitute a Policy Holder’s Protection Committee which shall consist of—

      (a)   a representative of the Ministry responsible for finance and national planning who shall be the Chairperson;

      (b)   one representative of the Zambia Institute of Certified Accountants;

      (c)   one person nominated by an organization which is representative of the insurers;

      (d)   one person nominated by an organization which is representative of the insurance brokers; and

      (e)   two persons representing policy holders.

   (2) The Vice-Chairperson of the Committee shall be appointed by the Minister from among the members referred to in paragraphs (b) to (e) of sub-section (1).

   (3) Subject to sub-section (4) a member of the Committee shall hold office for a period of two years from the date of appointment but may be eligible for re-appointment for a further term of two years.

   (4) The office of a member shall become vacant—

      (a)   if that member is absent without reasonable excuse from three consecutive meetings of the Committee of which a member has notice;

      (b)   upon the member’s death;

      (c)   if the member is adjudged bankrupt;

      (d)   if the member becomes mentally or physically incapable of performing the duties of a member of the Committee; or

      (e)   the member is convicted of an offence under any written law and sentenced therefore to imprisonment for a term exceeding six months.

   (5) Where a vacancy occurs in terms of sub-section (4), the Board may appoint a new member in accordance with sub-section (1), to hold office for the unexpired part of the member’s term.

   (6) A member of the Committee shall be paid such allowances as the Board may, with the approval of the Minister, determine.

   (7) The Committee shall meet for the transaction of business at least once in every three months at such places, and such times as the Chairperson of the Committee may determine.

   (8) The quorum at any meeting of the Committee shall be four of the members of the Committee.

   (9) There shall preside at meeting of the Committee—

      (a)   the Chairperson;

      (b)   in the absence of the Chairperson, the Vice-Chairperson; or

      (c)   in the absence of both the Chairperson and the Vice-Chairperson, such member as the members present may elect from their number for the purposes of that meeting.

   (10) The determination of any matter before the Committee shall be according to the votes of the majority of the members present and considering the matter.

   (11) The Committee may invite any person whose presence in its opinion desirable to attend and to participate in the deliberations of a meeting of the Committee but such person shall have not vote.

   (12) The Committee shall cause minutes to be kept of the proceedings of every meeting of the Committee.

[S 106 subs by s 28 of Act 26 of 2005.]

 

107.   Functions of Committee

The Committee shall—

      (a)   subject to the direction of the Board, be responsible for the administration of the Fidelity Fund and for the settlement of claims against that Fund; and

      (b)   have such other functions as may be conferred on it by the Board.

[S 107 subs by s 29 of Act 26 of 2005.]

 

108.   …

[S 108 rep by s 30 of Act 26 of 2005.]

PART XI
THE INSURANCE FIDELITY FUND

 

109.   Establishment of Fidelity Fund

The Minister shall, by statutory instrument, establish an Insurance Fidelity Fund for the purpose of indemnifying or otherwise protecting policy holders and other persons interested in the policies prejudiced by the inability of an insurer carrying on business in Zambia to meet its liabilities.

 

110.   Construction of Fidelity Fund

The Fidelity Fund shall consist of—

      (a)   all moneys paid to the Authority by way of annual or other periodic license fees charged under this Act;

[S 110(a) am by s 31 of Act 26 of 2005.]

      (b)   all moneys recovered by, or on behalf of, the Registrar by the exercise of any right of action conferred by this Part; and

      (c)   all other moneys accruing to the Fund.

 

111.   Purpose of Fidelity Fund

   (1) The Fidelity Fund shall be held and applied on such terms and conditions as the Minister may, on the recommendation of the Board, by regulation determine for the purpose of compensating persons who suffer pecuniary loss occasioned by any default of an insurer or broker licensed under this Act or any employee of such an insurer or broker in the course of, or in connection with, any insurance, insurance brokerage or related business.

[S 111(1) am by s 32(a) of Act 26 of 2005.]

   (2) Such amounts standing to the credit of the Fund as are not immediately required for the purposes of the Fund may be invested, by the Board in Government-issued securities or in any manner authorised by law for the investment of trust funds.

[S 111(2) am by s 32(b) of Act 26 of 2005.]

 

112.   Disbursements from Fidelity Fund

Subject to this Part, there shall be paid out of the Fidelity Fund as and when required and in such orders as the Board considers proper—

      (a)   the amount of all claims, including costs, allowed by the Board;

      (b)   all legal and other expenses incurred in investigating or defending claims made under this Act or incurred in relation to the Fidelity Fund or in the exercise by the Board of the rights, powers and authorities vested in it by this Act in relation to the Fund;

      (c)   all premiums payable in respect of contracts of insurance or indemnity entered into by the Board;

      (d)   the expenses incurred or involved in the administration of the Fidelity Fund; and

      (e)   all other moneys lawfully payable out of the Fund in accordance with the provisions of this Act or regulations made under this Act.

 

113.   Management of Fidelity Fund

The Minister may, on the recommendation of the Board, make regulations prescribing all such matters and things as are necessary or expedient to be prescribed for or with respect to the administration, management and application of the Fidelity Fund.

[S 113 am by s 33 of Act 26 of 2005.]

 

114.   Liability of Fidelity Fund to be limited

Payment from the Fidelity Fund shall be limited, in respect of each insurer or broker in default, to such amount as the Minister may, on the recommendation of the Board, by statutory instrument, prescribe.

[S 114 am by s 34 of Act 26 of 2005.]

 

115.   Recovery of disbursements from defaulters

Any disbursement from the Fidelity Fund that is accountable to the default of any licensee, or employee of any licensee, under this Act shall be a debt due to the Fund from the licensee concerned.

PART XII
APPEALS

 

116.   Appeals against decision of Registrar

Any person aggrieved by the decision of the Registrar—

      (a)   to refuse the grant, renewal or amendment of a license under this Act;

      (b)   to suspend or cancel a license under this Act;

      (c)   as to the conditions to be imposed at any time on a license under this Act;

      (d)   to take any disciplinary action under Part VIII; or

      (e)   to refuse to consent to any transfer or amalgamation under Part V;

may, within thirty days after being notified of the decision, appeal to the Minister.

 

117.   Effects of lodgement of appeal

Lodgment of an appeal under this Part does not stay the effect of the registrar’s decision against which the appeal is made;

 

118.   Determination of appeal

   (1) The Minister shall determine any appeal made to him under this Part, having regard to the provisions of this Act, the circumstances of the case and the public interest.

   (2) A determination of the Minister under this section may include such directions to the Registrar as the Minister thinks fit for the disposal of the matter, and the Registrar to give effect to any such directions.

 

119.   Notification of decisions

Whenever that Registrar makes a decision against which an appeal lies by virtue of the Part, the licensee or applicant affected by the decision shall be informed by notice in writing to the decision and of the reasons therefore; and any notice shall inform the person so notified of his rights of appeal.

PART XIII
GENERAL PROVISIONS

 

120.   All insurance to be placed with Zambia insurers

   (1) All assets, liabilities and interests situated in Zambia shall be insured with insurers licensed under this Act.

   (2) Not withstanding sub-section (1), where a particular type of insurance is not available locally, the Registrar shall approve the placing of such insurance outside Zambia on such terms and conditions as the Registrar shall think fit.

   (3) This section shall not apply to reinsurance business.

   (4) Any person who fails to comply with the provisions of this section shall be guilty of an offence and shall be liable, upon conviction, to a fine not exceeding fifty thousand penalty units or imprisonment for a term not exceeding three months or to both.

 

121.   Documents to be signed and copies supplied

   (1) Every document furnished to the Registrar by an insurer or other licensee in accordance with a requirement under this Act—

      (a)   in the case of a document in a prescribed form, shall be signed by the persons specified in the form; and

      (b)   in the case of a document furnished by a company, shall be signed—

      (i)   by the Chairman and one other director of the company; and

      (ii)   by the chief executive officer of the company; and

      (c)   in any other case, by such other persons as are required, by regulations made under this Act, to sign or certify the document.

   (2) Where a document furnished as referred to in sub-section (1) is a copy of a document, it shall be certified, in the manner prescribed by regulations made under this Act, to be a true copy of the document

   (3) A person who has furnished the Registrar with any document as referred to in sub-section (1) shall, at the request of the Registrar furnish such copies or further copies of that document as the Registrar may reasonably require.

 

122.   Inspection of documents

   (1) Any person may, on payment to the Registrar of the fee prescribed by regulations made under this Act, furnish any person with a certified copy of, or abstract from, any document furnished to the Registrar under this Act.

   (2) The Registrar shall, on payment of the prescribed fee prescribed by regulations made under this Act, furnish any person with a certified copy of, or abstract from, any document furnished to the Registrar under this Act.

   (3) At the request of any person, the Registrar shall furnish the person, without charge, with the address of the principal office in Zambia of any licensed insurer or licensed broker and the name of its chief executive officer.

 

123.   Certified documents as evidence

Any document purporting to be certified by the Registrarto be a document furnished to him under this Act shall, in any legal proceedings, be taken to be a document so furnished, until the contrary is proved.

 

124.   Display of certain information

   (1) The Board may if the Board considers it to be in the public interest, require every licensed insurer to display at all times when open for business, in a conspicuous place in every place in Zambia in which he carries on business, such information or particulars as he may determine.

[S 124(1) am by s 35 of Act 26 of 2005.]

   (2) An insurance agent shall, in respect of a licensed insurer for which he is an agent, maintain a record of the information required under sub-section (1) to be displayed by an insurer for whom he acts and shall, on request, make the information available for inspection by any person without charge.

 

125.   Insurance forms subject to approval

   (1) Every licensed insurer and licensed broker shall lodge with the Registrar copies of all standard policy forms and proposal forms respectively used by them.

   (2) The Registrar may, on grounds which appear to him sufficient, prohibit the use of any form lodged with him under this section unless the form is amended in accordance with his directions.

   (3) An insurer, broker or insurance agent who uses any form prohibited by the registrar under sub-section (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding twenty thousand penalty units.

 

126.   Change of name of insurer or broker

   (1) No licensed insurer or broker shall change his name without the consent of the Registrar.

   (2) The Registrar shall hold the consent to change the name under sub-section (1) if he considers that the change would be contrary to the public interest.

   (3) The Registrar shall cause notice of a change in the name of any licensed insurer or broker to be published in the Gazette.

 

127.   Adaptation of prescribed forms

The Registrar may alter any form prescribed under this Act, for the purpose of adapting the form to meet the circumstances of any person licensed under this Act or who has applied for a license under this Act.

 

128.   False statements etc.

If a person issues a document referred to in this Act which is false in any material particular, that person and every other person who, knowing of its falsity, took part in the preparation or issue of the document, or signed it, shall be guilty of an offence, and shall be liable on conviction to a fine not exceeding twenty thousand penalty units or to imprisonment for a term not exceeding two years or to both.

 

129.   Certain titles not be used except by persons licensed under this Act

   (1) Except with the consent of the Registrar, no person other than a person licensed under this Act shall use in the description or title under which the person is carrying on business in Zambia—

      (a)   the word “assure”, “assurance”, “broker”, “consultant” (when applied to or used in respect of any form of insurance business,) “guarantee”, “indemnity”, “insure”, “insurer”, or “insurance”;

      (b)   a literal translation of any of the words mentioned in paragraph (a); or

      (c)   any combination of letters in which any of the mentioned in paragraph (b) appears.

   (2) The Registrar—

      (a)   may give any consent under this section conditionally or unconditionally; and

      (b)   may very or withdraw his consent, or may impose new or additional or alternative conditions.

 

130.   Misleading advertisements etc. prohibited

   (1) A person who, by—

      (a)   any advertisement, statement, promise or forecast which he knows to be misleading, false or deceptive:

      (b)   dishonest concealment of material facts; or

      (c)   recklessly making an advertisement, statement, promise or forecast which is misleading, false or deceptive;

induces or attempts to induce another person to enter into or offer to enter into or offer to enter into a contract, transaction or arrangement with a licensee under this Act relating to insurance business, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding twenty thousand penalty units or to imprisonment for a term not exceeding two years, or to both

   (2) For the purposes of this section, an advertisement, statement, promise or forecast issued by a person on behalf of or to the order of another person shall be treated as an advertisement, statement, forecast or promise issued by that other person.

   (3) A person who, in the ordinary course of this business, issues an advertisement, statement, promise or forecast on behalf of, or to the order of, another person, being an advertisement, statement, promise or forecast the issue of which by the other person constitutes an offence under sub-section (1), shall not himself be guilty of the offence:

Provided that nothing in this sub-section shall prevent the prosecution of any person for aiding or abetting the commission of such an offence.

 

131.   General penalty

A person who—

      (a)   contravenes a provision of this Act; or

      (b)   neglects or fails to comply with a directions given by the Registrar under this Act;

for which no penalty is expressly provided shall be guilty of an offence and shall be liable on conviction to a fine not exceeding twenty thousand penalty units or to imprisonment for a period not exceeding two years, or to both.

 

132.   Regulations

   (1) The Minister may, on the recommendation of the Board by statutory instrument, make Regulations for, or with respect to, any matter that by this Act is required or permitted to be prescribed, or that is necessary or expedient to be prescribed for carrying out or giving effect to this Act.

[S 132(1) am by s 36 of Act 26 of 2005.]

   (2) Without limiting the generality of sub-section (1), regulations may be made for or with respect to—

      (a)   the making of any application under this Act, and fees to be paid in connection therewith;

      (b)   requisite qualifications and experience for persons licensed under this Act or who are managers or employees of companies licensed under this Act;

      (c)   prescribing standards of conduct for persons engaged in any business in respect of which licenses are issued under this Act, and regulating or prohibiting any prescribed business practices or methods;

      (d)   the imposition of annual or other periodic license fees to be paid by persons holding licenses under this Act; and

      (e)   any form that is required to be prescribed under this Act.

 

133.   …

[S 133 rep by s 37 of Act 26 of 2005.]

 

134.   Membership of professional body

   (1) Every licensed insurer shall be a member of the InsurersAssociation of Zambia and shall subscribe to conform with the Association’s Code of Conduct.

[S 134(1) am by s 38 of Act 26 of 2005.]

   (2) Every licensed broker shall be a member of the Insurance broker’s Association of Zambia and shall subscribe and conform with the Association’s Code of Conduct.

   (3) An insurer or broker who refuses, neglects or fails to join the Association referred to in sub-section (1) or (2) may be suspended by the Registrar from transacting insurance business for a period of not less than one year and if the refusal, neglect, failure or default continues after the suspension, it shall constitute a ground for revocation of a license.

 

135.   Repeal of Cap 392

The Insurance Act is hereby repealed.

SCHEDULE

[Sch rep by s 39 of Act 26 of 2005.]

 
 

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