S.L. 386.10 чл. 15Liability of cells carrying on exclusively business of affiliatedinsurance or business of reinsurance. Transitory provision.

(1) Notwithstanding the provisions of regulation 14, where a cell exclusively carries on business of affiliated insurance or business of reinsurance and provided that it is specifically permitted by the memorandum and articles of association of the cell company, the company may, by specific written agreement to that effect, provide that only the cellular assets of that cell may be utilised to satisfy the cellular liability of such cell: Provided that, where the business of the cell in question relates to compulsory insurance, the cell company shall be obliged to establish to the satisfaction of the competent authority sufficient guarantees for the protection of insureds, policyholders, creditors or other interested parties.

(2) For the purposes of this regulation:

"business of affiliated insurance" means the business of a cell which carries on business of insurance or reinsurance restricted to risks originating from:

(a) an undertaking being the sole holder of the cell shares of the particular cell; or

(b) undertakings in which the undertaking referred to in paragraph (a) holds a participating interest; or

(c) an undertaking being the sole user of the particular cell; or

(d) undertakings which are the sole users of the particular cell and in which the undertaking referred to in paragraph (c) holds a participating interest; "business of reinsurance" means the business of a cell which carries on an activity consisting in accepting risks ceded by an insurance undertaking or by another reinsurance undertaking; and

"compulsory insurance" means any insurance which a person is required by law to have in effect.

(3) Specific written agreements entered into in terms of sub-regulation (1) shall be operative as between the contracting parties, and shall not be of prejudice or advantage to third parties.

(4) A cell which exclusively carries on business of affiliated insurance or business of reinsurance and which has entered into a specific written agreement which provides that only the cellular assets of that cell may be utilised to satisfy the cellular liability of such cell, in line with this regulation, before the entry into force of the Companies Act (Cell Companies Carrying on Business of Insurance) (Amendment) Regulations, 2024 may continue to pursue the business on the basis of the said specific written agreement entered into in accordance with sub-regulation (1), as approved by the competent authority prior to the entry into force of the Companies Act (Cell Companies Carrying on Business of Insurance) (Amendment) Regulations, 2024 in line with this regulation, until ten (10) years from the date of the coming into force of the said regulations, without prejudice to anything done or omitted to be done under the provisions of these regulations, the Insurance Business Act, and regulations and Insurance Rules issued thereunder:

Provided that where a cell continues to pursue the business of affiliated insurance or business of reinsurance on the basis of the specific written agreement entered into in accordance with sub-regulation (1), such cell shall continue to comply with and adhere to the provisions of these regulations during the specified ten (10) years:

Provided further that, for the purposes of this regulation, during the specified ten (10) years, the provisions of paragraph 5.5.95 of Chapter 5 of the Insurance Rules shall not apply.

(5) Without prejudice to sub-regulation (4), this regulation shall cease to have effect on the date of coming into force of the Companies Act (Cell Companies Carrying on Business of Insurance)

(Amendment) Regulations, 2024 and shall only remain applicable to those specific written agreements entered into in accordance with sub-regulation (1) before the entry into force of the Companies Act (Cell Companies Carrying on Business of Insurance) (Amendment) Regulations, 2024.