Insurance Act, 2017 (Act No. 18 of 2017)Chapter 2 : Conducting Insurance Business and Insurance Group BusinessPart 3 : Branches of foreign reinsurers and Lloyd's underwriters7. Claims against branches of foreign reinsurers of Lloyd's underwriters |
(1)
| (a) | Any claim against a branch of a foreign reinsurer or a Lloyd’s underwriter in respect of an insurance policy relating to the insurance business for which it is licensed under this Act must be recognised by any competent court in the Republic. |
| (b) | In any action or other proceedings instituted under subsection (1), the representative referred to in section 34 may be cited as a nominal defendant or respondent, and the summons or application commencing the proceedings may be served on him or her. |
| (c) | The representative may institute and conduct any proceedings in a competent court in the Republic as a nominal plaintiff or an applicant on behalf of the branch of a foreign reinsurer or a Lloyd’s underwriter. |
| (2) | The trust referred to in section 41 must— |
| (a) | meet the insurance obligations under an insurance policy referred to in subsection (1), if a branch of a foreign reinsurer or a Lloyd’s underwriter fails to meet any insurance obligations under that insurance policy after— |
| (i) | a court has given a final judgment in respect of a claim; or |
| (ii) | the Prudential Authority has directed the payment of that claim, and any reconsideration or review proceedings in relation thereto have been completed or not been instituted within the period allowed therefor; or |
| (b) | pay a penalty imposed under this Act or under the Financial Sector Regulation Act, if a branch of a foreign reinsurer, Lloyd’s or a Lloyd’s underwriter fails to pay that penalty within the time allowed for payment, and any reconsideration or review proceedings in relation thereto have not been completed or have not been instituted within the period allowed therefor. |