Section 7: Licensing

7. Licensing (1) An application for a captive insurance business licence shall be made to the Commission through a captive insurance agent in such form and manner as may be specified in FSC Rules and shall be accompanied by— (a) a business plan, including in respect of the proposed captive insurance business— (i) a description in terms of intended classes of business and cover, limits of liability, details of reliance placed on reinsurers, outline of investment and dividend strategies; (ii) the amount and liquidity of its assets relative to the risks to be assumed; (iii) the overall soundness of its plan of operation; and C2 – 5 [Issue 10] Captive Insurance Act 2015 (iv) a projected balance sheet, profit forecast and statement of cash flows; (b) the investment policy of the captive insurance business; (c) information on the adequacy of the expertise, experience and character of the persons who will manage the captive insurance business; (d) information on the adequacy of the loss prevention programmes of the policyholders of the applicant; (e) a certified copy of the incorporation documents of the applicant; (f) particulars of any substantial shareholder, director, captive insurance agent or of any person being proposed to act as an officer of the captive insurer; and (g) a non-refundable prescribed fee. (2) On receipt of an application, the Commission may require the applicant to provide such additional information or document as it may consider necessary to determine the application. (3) The Commission may require an applicant to retain, at his own cost, external and independent legal, financial or examination services to review the qualifications of the applicant or of his captive insurance agent and make recommendations to the Commission. (4) Where the Commission is satisfied that the applicant is able to comply with the requirements of this Act, it may, subject to such conditions as it may determine, issue to the applicant a captive insurer licence. (5) A captive insurer shall pay such annual fee as may be prescribed in the FSC Rules. (6) Any person who, for the purpose of making an application for a licence— (a) makes a representation or statement which he knows to be false in a material particular; or (b) recklessly makes a representation or statement which is false in a material particular, shall commit an offence and shall, on conviction, be liable to a fine not exceeding 500,000 rupees and to imprisonment for a term not exceeding 2 years. (7) A captive insurance agent shall notify the Commission of any material change in the information submitted under this section within 15 days of that change, whether that change occurs before or after the issue of the licence.