Section 14: Maintenance of financially sound condition

14. Maintenance of financially sound condition (1) An insurer shall maintain its business in a financially sound condition by generally conducting its affairs so as to be in a position at all times to— (a) meet its liabilities as they arise; and (b) keep the solvency margin required under this Part. (2) An insurer shall, notwithstanding the circumstances which prevent it from maintaining a financially sound condition, be deemed to contravene subsection (1) where it fails to meet any requirement under this Act or any solvency rule relating to— (a) the solvency margin and the method of its valuation and calculation; I15 – 17 [Issue 1] Insurance Act (b) the maintenance of any technical provisions and reserves; and (c) the kinds and spread of investment of assets. (3) An officer of an insurer who knows or reasonably suspects that the insurer does not meet the requirement of subsection (1) shall forthwith inform the Commission in writing. [S. 14 amended by s. 8 of Act 16 of 2007 w.e.f. 28 September 2007.]