PROVISIONS RELATING TO DEPOSITS UNDER (SECTIONS 43, 44, 118 AND 141)

1. The assets which a company is required to deposit with the Commission shall consist of

-(a) cash;

(b) unencumbered securities of, or guaranteed by, the government;

(c) other securities, at an accepted value and on the conditions established by the Commission; or

(d) any combination of (a) to (c).

2. (1) All deposits made by or on behalf of a company pursuant to section 43, 44, 118 or 141 shall be deemed to form part of the assets of the company.

(2) All interest and dividends accruing due on any securities deposited pursuant to section 43,44, 118 or 141 shall be paid to the company.

3. The Commission shall, on demand by a company, furnish to the company a certificate in writing setting out the nature and extent of any deposit held by the Commission under section 43, 44,118 or 141 in respect of that company together with the particulars of the securities (if any) forming the whole or part of the deposit.

4. (1) Where the Commission is satisfied that, by reason of depreciation in the value of securities or other cause, the value of money and prescribed securities deposited by or on behalf of a company with it falls short of the value required by Part III or Part IV, it shall, by notice in

writing, require the company to deposit with it money or prescribed securities or both to a value deemed by the Commission to be sufficient to bring the amount of the

deposit to the value required by Part III or Part IV, as the case may be.

(2) A notice under this paragraph shall not be issued until the Commission has given an opportunity to the company to be heard in connection with the matter.

(3) Any company which fails to deposit with the Commission money or prescribed securities or both as required by it under this paragraph is guilty of an offence, and the Commission may, if it considers it necessary in the interest of the policyholders, cancel the registration of the company.

5. Where any moneys or securities held by the Commission as, or as part of, the deposit required to be made by the company under section 44, 118 or 141 are lost, stolen, destroyed or damaged while so deposited, the injury

occasioned to all persons interested in the moneys or

securities shall be made good out of moneys to be provided for the purpose by Parliament.

6. (1) A company may at any time substitute for any security or cash held by the Commission as, or as part of, the deposit required to be made under section 44, 118 or 141, any prescribed security, but so that the total amount then deposited is not less than the amount required by Part III or Part IV, and any security so substituted shall be subject to the same charge or liability as the security or cash

withdrawn.

(2) (a) when a company has ceased to transact business and has given written notice to that effect to the Commission, or when the registration of a company has been cancelled, the securities and cash of the company in the hands of the Commission shall not be delivered to the company

until all his outstanding risks are insured or until surrenders thereof are obtained to the satisfaction of the Commission;

(b) upon making application for its

securities or cash, a company shall file with the Commission, in respect of all policies issued locally, a list of all policyholders who have not been so reinsured or who have not surrendered their policies and the company shall at the time publish, and continue the

publication at least once a week for twelve consecutive weeks, in the Gazette and in at least one newspaper published in The Bahamas and approved by the

Commission, a notice that he will apply to the Commission for the release of his securities and cash on a certain day not less than three months after the date on which the notice is first published in the Gazette and calling upon the

policyholders opposing such release to file notice of their opposition with the Commission on or before the day so named;

(c) after the day so named in the said notice, if the Commission is satisfied that the deposit of the company with it is substantially in excess of the

requirements of Part III or Part IV, as the case may be, in respect of the

continuing policyholders, it may release

to the company such portion of the excess as it thinks proper in the circumstances, and shall continue to hold the remainder of the deposit for the protection of the continuing policyholders as provided for in Parts III and IV;

(d) thereafter from time to time as such policies lapse, or proof is adduced that they have been satisfied, further amounts may be released on the authority

aforesaid;

(e) notwithstanding this paragraph, where the company is in liquidation the securities of such company may, on the order of any court having jurisdiction under this Act or the Companies Act be released by the Commission to the liquidator.

(3) Where the registration of a company which has not commenced to carry on insurance business in The Bahamas is cancelled pursuant to Part III or Part IV, the Commission shall refund to such company any moneys and deliver to it any securities, deposited by it pursuant to section 43, 118 or 141.