Section 5
Classification of, and construction of references to, insurance business
of Financial Services Act 2013
(1)
For the purposes of this Act, insurance business shall be divided into two classes—
(a)
life business, which in addition to all insurance business concerned with life policies shall include any type of insurance business carried on as incidental only to the life insurer’s business; and
(b)
general business, which means all insurance business which is not life business.
(2)
For the purposes of this Act, the reinsurance of liabilities under insurance policies shall be treated as belonging to the same class and description as the insurance policies being reinsured.
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(3)
Notwithstanding anything in subsection (1) or the determination of a policy to a particular insurance fund by a licensed insurer, if the
Bank is satisfied that any part of the licensed insurer’s business which belongs to a particular class or description of insurance business ought in that licensed insurer’s case to be treated as belonging to another class or description, the Bank may direct that it shall be so treated for the purposes of this Act.
(4)
For the purposes of this Act—
(a)
the activity of—
(i)
effecting a contract of insurance; or
(ii)
carrying out a contract of insurance, by way of business shall constitute the carrying on of insurance business;
(b)
a person is deemed to effect, or carry out, a contract of insurance by way of business if he—
(i)
engages in such activity in a manner which in itself constitutes the carrying on of a business;
(ii)
holds himself out as willing and able to engage in such activity; or
(iii)
regularly solicits other persons to engage with him in transactions constituting such activity; and
(c)
a reference to carrying on insurance business includes carrying it on through an agent, or as an agent, but “insurer”
does not include an insurance agent as such nor in the case of a person who is both insurer and insurance agent, any business done by that person as an insurance agent.
(5)
For the purposes of this Act—
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(a)
the Minister may, on the recommendation of the Bank, prescribe any business or activity as insurance business;
(b)
the Bank may determine such business or activity to belong to a particular class referred to in subsection (1) or description, of insurance business; and
(c)
the businesses set out in Schedule 4 shall not be treated as insurance business.