Cap. 403 Art. 39Undertakings ceasing to carry on business.

(1) Subject to the following provisions of this article, if an authorised insurance undertaking intends to cease either wholly or partly to carry on the business it is authorised to carry on, such undertaking shall, not later than six months before the date on which it intends to cease to carry on such business, give notice thereof in writing to the competent authority and the authorised insurance undertaking shall comply with any provision of this Act that may be required of it in such circumstances.

(2) Where an authorised insurance undertaking gives notice to the competent authority under sub-article (1), the competent authority -

(a) shall require the undertaking to -

(i) give publicity to the matter, amongst its policyholders and in the press in the form and manner as may be determined by Insurance Rules made for the purpose of this article;

(ii) discharge all its liabilities to its policyholders and creditors in a manner acceptable to the competent authority;

(iii) appoint a person which shall service or, as the case may be, run-off such business; and

(b) may require the undertaking to ascertain that its technical provisions meet the requirements of article 18E.

(3) The competent authority shall, not later than thirty days before the proposed date on which an authorised insurance undertaking as aforesaid intends to cease to carry on the business it is authorised to carry on, issue a permit to the authorised insurance undertaking concerned -

(a) authorising it to cease to carry on such business and to service or run-off that business, as from a specified date;

(b) specifying the conditions under which such service or run-off shall be carried out; and

(c) authorising a person to carry out such service or run-off.