Section 106: Appointment of conservator

106. Appointment of conservator Where the Commission has reasonable cause to believe that— (a) the stated capital of the insurer is impaired or there is a threat of such impairment; or (b) the insurer has, or its directors have— (i) engaged in practices detrimental to the interests of its policy holders and creditors; (ii) knowingly or negligently permitted its chief executive officer, any of its other managers, officers, employees, I15 – 67 [Issue 1] Insurance Act insurance agents or salesperson to contravene any provision of this Act, or any FSC Rule, or any enactment relating to anti-money laundering or prevention of terrorism or guidelines and directions issued by the Commission; (c) contraventions referred to in paragraph (b) (ii) are likely to occur; (d) the assets of the insurer are not being maintained in accordance with solvency rules, or is not sufficient to give adequate protection to its policy holders or creditors; (e) the solvency margin of the insurer is or is likely to be deficient, it may appoint a conservator, who may be an employee of the Commission or any other person appointed by the Commission to be conservator. [S. 106 amended by s. 37 of Act 16 of 2007 w.e.f. 28 September 2007.]