Insurance law

So, um, in several cases, this requirement goes further and will also capture any issuance, transfer or disposal of the shares in the licensee, whether directly or indirectly, and not just transactions resulting in the change of control.

So this prior approval regime applies across the key regulatory statutes, including the Banks and Trust Companies Act, the Securities Investment Business Act, the Insurance Act, and others.

Um, so crucially, each of these statutes provide, provides an exemption where the licensee or the parent entity in its ownership chain is a listed, is listed on CIMA's approved stock exchange.

So the rationale for this is straightforward, that listed entities are already subject to robust disclosure, governance, and regulatory oversight, making additional CIMA approval unnecessary in many cases.

Um, and they imposed greater levels of regulation.

So piracy led directly to insurance regulation.

Um, but that's enough insurance.

Let's return to the pirates.

What are the advantages of separating from that definition?

See, I mean, traditionally when, when the, when the, uh, IDA act or Insurance Act got passed, uh, you know, it was life in general.

Uh, over a period of time, I think the regulators realized that, uh, there is, you know, health is such a large category in itself that there is merit in kind of calling it out separately.

So even though technically, you know, it still sits within what is the general insurance, but through the creation of a standalone health insurance category, I mean, the message is that, uh, it's a separate category in itself.

Right.

Can I ask, how does that apply in relation to insurance bonds? So a personally owned insurance bond, which is an investment value, but I believe operates under the Insurance Act.

Yeah, it should work exactly the same, Damien, and it would be you'd get those particulars from the insurance company at the time when you're requesting all of those particular information as executor to be able to administer the estate.

Thanks for your call, Damien.

And the result is that if you don't notify it within the time stipulated, and it's a condition precedent, the insurer gets what, to my mind, is a get-out-of-jail-free card.

And you can compare it with the way that the Insurance Act, when it came in, was very good about relieving what seemed like the unfairness as to how warranties operated because you could have a breach of warranty completely unconnected with the loss.

So, Jonathan, could you just give us a quick example of what you mean by warranty?

Yeah, so a warranty is a term of the policy whereby the insured promises that a certain thing exists or will exist.