Cap. 487 Art. 38Protection of clients monies.

(1) Without prejudice to sub-article (3), every tied insurance intermediary, shall, in respect of monies held by him or it in relation to a policy of insurance, keep such monies held by him or it separate from his or its own monies and shall, in respect of those monies maintain separate accounts in accordance with requirements determined by Insurance Distribution Rules made for the purposes of this article.

(2) No person shall have or obtain any recourse or right against monies standing to the credit of the account referred to in sub-article (1) in respect of a claim or right against a person acting as a tied insurance intermediary until all proper claims arising out of insurance distribution activities against those monies have been satisfied, even in the event of bankruptcy of the individual or insolvency of the company, as the case may be.

(3) Notwithstanding the provisions of sub-articles (1) and (2):

(a) monies received by the tied insurance intermediary from a person in relation to a contract of insurance shall be treated as having been paid to the authorised undertaking issuing or offering the contract, and on whose behalf the tied insurance intermediary carries on tied insurance intermediaries activities; and

(b) monies paid by the authorised undertaking to the tied