Section 142B

the assets of an insurance fund as established under the

Financial Services Act 2013 shall first be applied to meet the liabilities of that fund;

where the assets of an insurance fund, other than a life fund relating to participating life policies, exceed its liabilities, the surplus assets may be applied to meet the liabilities of its other insurance funds which are deficient and if the surplus assets of two or more insurance funds are applied, the surplus assets shall be applied proportionately to the amounts of the surpluses and if the surplus assets are applied to meet the liabilities of two or more insurance funds which are in deficit, the surplus assets shall be applied proportionately to the amounts of the deficiencies;

any deficiency subsisting after application of the assets of the insurance funds under paragraphs (a) and (b) shall be met out of the assets of the shareholders’ funds, and unsatisfied liabilities to a policy owner and claimant under a policy shall have priority over other unsecured liabilities other than preferential debts specified under subsection 527(1) of the Companies Act 2016 and debts due and claims owing to the Government under section 10 of the Government Proceedings Act 1956; and

any other assets held by the insurance company, including surplus assets in a life fund relating to participating life policies, shall be used in a manner as may be prescribed by the Corporation.

Valuation of assets and liabilities of a takaful operator or insurance company