Insurance Act, 2017 (Act No. 18 of 2017)Chapter 9 : ResolutionPart 3 : Business Rescue55. Application of Companies Act to business rescue of insurers and controlling companies |
| (1) | Despite any other law under which an insurer or controlling company is established or incorporated, Chapter 6 of the Companies Act applies, subject to this section and with the necessary changes, in relation to an insurer or a controlling company, to the exclusion of any similar provisions under the Co-operatives Act or any other law under which an insurer or controlling company is established or incorporated, and in such application the Prudential Authority must be deemed to be an affected person. |
| (2) | In the application of Chapter 6 of the Companies Act— |
| (a) | a reference to the Commission must be construed as a reference also to the Prudential Authority; |
| (b) | the reference to creditors must be construed as a reference also to the policyholders of the insurer; |
| (c) | a reference relating to the inability of an insurer or a controlling company to pay all its debts, must be construed as relating also to its inability to comply with the financial soundness requirements of this Act; and |
| (d) | in addition to any question relating to the business of an insurer, it must be considered if any proposed action is in the interests of policyholders of an insurer or, in the case of a controlling company, the interests of policyholders of the insurers that are part of the insurance group. |