- Laws of Fiji

Last Updated: 1 August 2022

[INS 38] Liabilities38

(1) In computing the amount of the liabilities of an insurer, all contingent and prospective liabilities (other than liability in respect of share capital) must be taken into account.

(2) For purposes of this Act, the Reserve Bank may by notice in writing served on the insurer, direct that the insurer make in its accounts a provision, or further provision—

(a)of a specified amount; or
(b)of an amount determined in a particular manner.

(3) If a direction has been given to an insurer under subsection (2) and it appears at any time to the Reserve Bank that the direction is no longer necessary or should be varied, the Reserve Bank must, by written notice to the insurer, revoke or vary the direction.

(4) If an insurer to which a direction has been given under subsection (2) or (3) applies in writing to the Reserve Bank for the direction to be revoked or varied, the Reserve Bank must—

(a)revoke or vary the direction if the Reserve Bank is satisfied that the direction is no longer necessary or should be varied; or
(b)refuse to revoke or vary the direction in any other case,

and must give the insurer written notice of its decision.

(5) If an insurer in respect of whom a direction has been given under subsection (2) or (3) commences to be wound up, the direction ceases to have effect.