As enacted

Contents

Regulation of Insurance Industry Act 2000 · As enacted · Part III · General Provisions Applicable to Insurers

31. Reinsurance

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

An insurer may, subject to such terms and conditions that may be specified by the Board in order to ensure that the interests of policy holders and the insurers are adequately safeguarded, reinsure with any other insurer in or outside Sri Lanka, any liability arising out of any contract or policy of insurance, effected or issued by the first-mentioned insurer.

(2)

The Board may by a notice in writing, require any insurer carrying on reinsurance to furnish such information as it may deem necessary to ascertain whether such insurer has the necessary funds to satisfy any claim that may be made on such insurer to comply with the requirements of such notice.

(3)

The Board may from time to time, by Notification published in the Gazette, prohibit all insurers, from reinsuring with any specified reinsurer in or outside Sri Lanka, risks upon policies or contracts of insurance issued or effected in respect of insurance business transacted in Sri Lanka, where any such arrangement with that reinsurer is detrimental to the national interest :

Provided however, that before issuing any Notification under this subsection, the Board shall inform the insurer or insurers who is or are carrying on reinsurance business with such specified reinsurer in or outside Sri Lanka, of its intention to issue such Notification, and shall consider any representations made by such insurer or insurers, with reference to its proposed decision.

Read on from s 32

Part IV