S.L. 403.25 Art. 17Contributions to Fund A.

(1) The contributions to Fund A to be made by insurers pursuant to article 50 of the Act are those prescribed by this regulation.

(2) Subject to the provisions of the following sub-regulations, the Management Committee shall in every calendar year for the purpose of Fund A:

(a) in so far as that purpose relates solely to general business, require every insurer carrying on general business in Malta, whether or not such business constitutes, in whole or in part, business of a protected risk, to pay a contribution to Fund A to be utilised exclusively for the payment of claims relating to protected risks situated in Malta as defined in regulation 3(2)(a); and

(b) in so far as that purpose relates solely to long term business, require every insurer carrying on long term business in Malta, whether or not such business constitutes, in whole or in part, business of a protected commitment, to pay a contribution to Fund A to be utilised exclusively for the payment of claims relating to protected commitments as defined in regulation 3(2)(a) where Malta is the country of the commitment.

(3) The obligation to pay contributions under sub-regulation

(2) shall also apply to an insurer, other than an insolvent insurer which was licensed under the Insurance Business Act, 1981, repealed by the Act, or is authorised under the Act to carry on business of long term insurance, whether or not such business constitutes, in whole or in part, business of a protected commitment and which ceased to carry on that business and is carrying on servicing of such business, or which ceases to carry on that business and shall carry on servicing of such business. The obligation to pay contributions shall continue until the insurer proves to the satisfaction of the competent authority that it has no further liability arising from such business.

(4) Without prejudice to sub-regulation (3), where an insurer is authorised to carry on both long term business and general business in Malta, separate treatment shall be given to contributions paid by the insurer into Fund A under this regulation:

(a) in respect of long term business, to be utilised exclusively for the payment of claims relating to protected commitments where Malta is the country of the commitment, as construed in regulation 3(4)(a)(ii); and

(b) in respect of general business, to be utilised exclusively for the payment of claims relating to protected risks situated in Malta as construed in regulation 3(4)(a)(i).

(5) Subject to the provisions of regulations 8 and 9, the amount every insurer shall be required to contribute to Fund A, in accordance with sub-regulation (2) shall be:

(a) if the contribution is made in accordance with sub-regulation 2(a), zero point one two five per centum (0.125%) of, and calculated by reference to, the gross premium income by the insurer for the year ending last before the beginning of such calendar year in respect of general business relating to risks situated in Malta; and COMPENSATION FUND)

(b) if the contribution is made in accordance with sub-regulation 2(b), zero point one two five per centum (0.125%) of, and calculated by reference to, the gross premium income by the insurer for the year ending last before the beginning of such calendar year in respect of long term business effected after 30 June 1986 relating to commitments where Malta is the country of commitment.

(6) A sum not exceeding five (5) per centum from the total amount of contributions payable to the Protection and Compensation Fund under sub-regulation (2), as may be determined by the Management Committee, shall be at the disposal of the Management Committee to meet ordinary expenses incurred by the administration of the Protection and Compensation Fund, other than extraordinary expenses incurred in relation to Fund A.

(7) Expenses incurred with respect to Fund A pursuant to, or in consequence of, regulation 3(2)(a) shall be paid out as follows:

(a) in relation to protected risks situated in Malta as defined in regulation 3(2)(a), from the contributions made in respect of general business; and

(b) in relation to protected commitments where Malta is the country of the commitment as defined in regulation 3(2)(a), from the contributions made in respect of long term business.

(8) The contributions payable by every insurer under sub-regulation (2) shall be due on the first day of July of each calendar year but may be paid on any working day during such month.

(9) Any contribution payable under this regulation remaining unpaid by any insurer for any reason whatsoever, other than by reason of the insolvency of the insurer, shall be recoverable by the Protection and Compensation Fund from the said insurer in the same manner as an administrative penalty is recoverable by the competent authority under the regulations made for the purposes of article 67 of the Act, and, in any such recovery, any reference to "the competent authority" made in those regulations shall be deemed to be a reference to "the Protection and Compensation Fund".