Cap. 403 Art. 18CPowers of the competent authority in deteriorating financial conditions.

(1) Notwithstanding the provisions of articles 16 and 18

and without prejudice to any of the measures that may be taken by the competent authority pursuant to article 28, where the solvency position of the authorised insurance or reinsurance undertaking continues to deteriorate, the competent authority shall have the power to take all measures necessary to safeguard the interests of policyholders, in the case of contracts of insurance, or the obligations arising out of contracts of reinsurance.

(2) In considering the measures to be taken, the competent authority shall take into account the level and duration of the deterioration of the solvency position of the undertaking concerned.