Insurance Act, 2017 (Act No. 18 of 2017)Chapter 4 : Licensing, Suspension and Withdrawal of Licence26. Variation of licence conditions |
| (1) | The Prudential Authority may amend, delete, replace or vary any licensing conditions or impose other or additional licensing conditions— |
| (a) | on application by an insurer or controlling company; |
| (b) | when it is in the public interest, including transformation of the insurance sector; |
| (c) | when, in the case of an insurer, it is in the interests of the policyholders or potential policyholders of the insurer; |
| (d) | when, in the case of a controlling company, it is in the interests of maintaining the financial soundness of any insurer that is part of the insurance group; |
| (e) | when revoking a suspension of a licence; |
| (f) | in the circumstances referred to in section 48; or |
| (g) | in the case of an insurer, if an insurer has ceased to enter into insurance policies relating to a class or sub-class of insurance business, to the extent that its licence for that class or sub-class of insurance business is no longer justified. |
| (2) | An amendment, a deletion, a replacement or a variation of any licensing condition, or the imposition of other licensing conditions pursuant to subsection (1), may be made for a specific period subject to certain conditions being met. |
| (3) | If a variation of licence conditions results in an insurer no longer being licensed for a specific class or sub-class referred to in Schedule 2, the Prudential Authority must direct the insurer to make arrangements to the satisfaction of the Prudential Authority to— |
| (a) | discharge its obligations under all insurance policies entered into in respect of that class or sub-class before the variation; |
| (b) | ensure the orderly resolution of that insurance business of the insurer; or |
| (c) | transfer that insurance business to another insurer under section 50 by a specified date. |
| (4) | The Prudential Authority, on varying, amending or imposing other licensing conditions, must publish a notice thereof on the official website. |