Insurance Act, 2017

Section Commencement Section This Act shall come into force on such date as the Minister may, by statutory instrument appoint; but the Minister may appoint different dates for different provisions of this Act.

Section Interpretation Section In this Act, unless the context otherwise requires— “ actuary " means a person who is a member or a fellow of a professional institute, faculty, society or association of actuaries, and recognized by the Authority . “ Africa-Re " means the African Reinsurance Corporation established under the Agreement Establishing the African Reinsurance Corporation; “ Authority " means the Insurance Regulatory Authority of Uganda continued in existence by this Act; “ bancassurance authorisation ” means an authorisation to undertake bancassurance; “ Board " means the Board of the Authority ; “ Chief Executive Officer " means the Chief Executive Officer of the Authority ; “ commercial bank " has the meaning assigned to it in the Financial Institutions Act, 2004; “ control ", in relation to a licensee , has the meaning specified in the Regulations; “ constituting documents " means— (a) in the case of a company, its memorandum and articles of association; and (b) in the case of any other entity, such document or documents that constitute and govern the entity;" " control function " means— (a) in relation to an insurer, a function specified in section 61 (1); (b) in rela...

Section Meaning of “bancassurance” Section Without limiting the general effect of subsection (1), bancassurance includes an arrangement under which— Subject to subsection (3), bancassurance is an arrangement between a financial institution and an insurer or HMO under which the financial institution distributes to its customers, through its distribution channels, an insurance product of the insurer or HMO. a financial institution acts as an agent for the insurer or HMO; or a financial institution enters into a group or master insurance contract , as policy holder , with the intention that the customers of the financial institution , or a class of them, obtain insurance cover under the contract. An insurance contract entered into by a financial institution as a policyholder where the sole purpose of the policy is to provide benefits to employees of the financial institution , whether or not the employees are required to contribute towards the cost of the contract shall not be taken as bancassurance. For purposes of bancassurance, “Financial Institution" means a company classified as a Bank under the Second Schedule to the Financial Institutions Act 2004 and licensed as a bank by the...

Section Meaning of “unauthorised business” Section Subject to any exemption granted in accordance with this Act, a person carries on unauthorised business where the person carries on any business or activity for which a licence is required without a valid licence issued by the Authority .

Section Meaning of “insolvent” Section An insurer or HMO is insolvent where the insurer or HMO does not meet the minimum solvency capital requirements prescribed in the Regulations. An insurance intermediary is insolvent if the value of its liabilities exceeds the value of its assets or is unable to pay its debts as they fall due for payment.

Section Classification of insurance business Section For the purposes of this Act, insurance business comprises life insurance business and non-life insurance business .

Section Insurers to be bodies corporate Section Subsection (1) does not apply to a— A person shall not carry on insurance business in Uganda except a company incorporated under the Companies Act, 2012, an insurance corporation established by law, a cooperative insurance society registered under the Cooperative Societies Act or a mutual insurer . foreign reinsurer that enters into a reinsurance contract with a licensed insurer or a retrocession agreement with a licensed reinsurer ; or foreign insurer that carries on insurance business in accordance with an exemption granted by the Authority under section 34 (4).

Section Formation of mutual insurers Section The memorandum of association of a mutual insurer shall state— Any twenty five persons but not more than three hundred may, by subscribing their names to a memorandum of association, form a mutual insurer . the insurance business or any class of the insurance business which is to be carried on; the name of the company, including the expression “mutual insurance company” in that name; the location of the principal office of the company; the limitation of liability of its members; the amount of guarantee capital; the rights of the contributors towards the guarantee capital; the methods of clearing the guarantee capital; the particulars of the governing body of the company; the method of distributing surplus; the articles and rules governing the company. Where a person desires to become a member of a mutual insurer , he or she shall enter into the instrument of subscription for members, the subject matter and the amount of insurance desired and he or she shall affix his or her signature to the instrument. An application for licensing a mutual insurer under this Act shall be made within a period that may be prescribed by the Authority .

Section Use of the word “insurance” and persons to carry on insurance business Section A person shall not issue any insurance policy, other than a person licensed under this Act, on— Subject to subsection (2) and to any exemptions specified in the Regulations, a person shall not, except with the prior written approval of the Authority , use the words “insurance", “assurance” or “reinsurance” or any derivations in English or any other language as part of his or her business name other than a licensee , provided that the name does not suggest that the licensee carries on any licensable business other than the business that it is authorised by its licence to carry on. persons who at the time of effecting the insurance contract are residents of Uganda; goods or assets situated in Uganda; ships, aircraft or other vehicles registered in Uganda; or goods imported from other countries except personal effects and donations. All local risks and persons, including imports shall be insured by insurance companies licensed to carryout business in Uganda. The regulations may prescribe other words or phrases to which subsection (1) applies. A person who contravenes this section is liable to a fine...

Section Continuance of the Insurance Regulatory Authority of Uganda Section The Authority is a body corporate with perpetual succession and a common seal and may for the purposes of discharging its functions under this Act— The Insurance Regulatory Authority of Uganda established under the repealed Act is continued in existence in accordance with this Act. acquire, hold or dispose of movable and immovable property; sue and be sued in its corporate name; do all acts and things that a body corporate may lawfully do. The common seal of the Authority shall be in a form determined by the Board . The common seal of the Authority shall be applied in accordance with Schedule 3.

Section Objectives of the Authority Section The objectives of the Authority are— In considering the measures to be taken to protect persons who are, or who may become, policy holders of insurers or customers of other licensees, the Authority shall have regard to— to promote and facilitate the maintenance of a sound, efficient, fair, transparent and stable insurance sector; to promote and uphold public confidence in the insurance sector; to protect the interests of persons who are, or who may become, policy holders of insurers or customers of other licensees; to regulate and supervise licensees on a risk-sensitive basis; to promote effective competition in the insurance sector in the interests of consumers, the growth and development of the insurance sector and the development of an inclusive insurance sector. the differing degrees of experience and expertise that different policy holders and customers may have in relation to insurance products and the insurance sector; the need that policy holders and customers may have for advice and accurate information; and the general principle that policy holders and customers should take responsibility for their informed decisions. In seeking...

Section Functions of the Authority Section For the attainment of its objectives, the functions of the Authority are— In undertaking its functions, the Authority shall have regard to— to regulate, supervise, monitor and control the insurance sector; to establish standards for the conduct of business in the insurance sector and to issue such guidance as it considers appropriate; to control entry to and exit from the insurance sector through the issuance, variation or revocation of licences in accordance with this Act; to take appropriate action against persons carrying on unauthorised business; to supervise licensees on an individual basis and, where appropriate, on a group wide and cross border basis; to monitor compliance with, or investigate conduct that constitutes or may constitute a contravention of this Act; to take action in relation to licensees that are insolvent or likely to become insolvent; to monitor the operation of the insurance sector and to conduct inquiries and investigations into any matter relating to the insurance sector or participants in the insurance sector; to keep under review the effectiveness of this Act and regulations and, where appropriate, initiate an...

Section Power to cooperate with other authorities Section The Authority may, on the written request of any domestic or foreign supervisory authority , or domestic law enforcement authority— The Authority may, in deciding whether to exercise the power conferred on it by this section, take into account— A decision by the Authority shall be made only where the Authority — is satisfied that the domestic or foreign supervisory authority is subject to adequate legal restrictions on further disclosure of the information and documents and that it will not, without the written permission of the Authority — undertake on-site inspections or obtain information or documents; or appoint one or more competent persons to investigate any matter that requires investigation. a domestic and in the case of a foreign supervisory authority , whether reciprocal assistance would be given to the Authority in the country or territory of the foreign supervisory authority ; the nature and seriousness of the matter to which the request for assistance relates and whether the assistance can be obtained by other means; the relevance of the information or documentation to the enquiry to which the request relates; w...

Section Board of the Authority Section The Board shall comprise of— The Authority shall have a Board , which shall be the governing body of the Authority . a chairperson; a representative of the ministry responsible for finance, who shall be at the rank of Commissioner or above; a representative of the Governor of the Bank of Uganda; a representative of the Insurance Training College; a representative of the ministry responsible for health; two persons representing the public, one of whom shall be the deputy chairperson; the Chief Executive Officer of the Capital Markets Authority ; and the Chief Executive Officer of the Uganda Retirements Benefits Regulatory Authority ; and the chief executive officer, who shall have no right to vote. The chairperson and the persons referred to in subsection (2)(f) shall be appointed by the Minister from among persons who have knowledge, experience and skills in insurance, banking, finance and actuarial science. The Minister shall, when appointing the members of the Board , ensure that there is a balance of skills and gender.

Section Disqualification from appointment as member of the Board Section A person shall not be appointed to the Board who— has been convicted of an offence other than a traffic offence under this Act or of an offence involving dishonesty or fraud by a competent court in Uganda or elsewhere; has been adjudged bankrupt under any law in force in Uganda and has not been discharged; has been convicted of an offence and sentenced to a term of imprisonment for six months or more without the option of a fine by a competent court in Uganda or elsewhere; or is a Member of Parliament, a Minister or a member of a local government council; is a public officer, except those stated under section 14 (2)(b)(c)(g)(h) and (i); is a director or employee of a licensee or who has a financial interest in a licensee , including a shareholder of a licensee ; is disqualified from acting as a director of a company under the Companies Act, 2012.

Section Tenure of office of members of the Board Section The Minister may, at any time suspend or remove a member of the Board only— A member of the Board shall hold office for three years and is eligible for reappointment for one further term. The members of the Board shall hold office on terms and conditions specified in their instruments of appointment. A member of the Board may, at any time, resign from his or her office in writing addressed to the Minister , giving notice of not less than one month. for inability to perform the functions of his or her office arising from infirmity of body or mind; for misbehaviour or misconduct; for incompetence; for absence, without prior permission of the chairperson, or without reasonable cause to the satisfaction of the Minister , from more than four consecutive meetings of the Board ; for bankruptcy or insolvency; for conviction of a criminal offence, in Uganda or elsewhere, in respect of which the maximum penalty exceeds six months imprisonment without the option of a fine; where information relating to the conduct of a member, which could have precluded his or her appointment if it had been made available to the Minister , is brought to...

Section Remuneration of members of the Board Section The chairperson and members of the Board shall be paid such remuneration determined by the Minister and specified in their instruments of appointment.

Section Functions of the Board Section Without limiting the general effect of subsection (1), the Board shall— ensure that the Authority establishes and maintains— The Board shall be responsible for the general direction and supervision of the Authority . advise the Government on policy matters concerning insurance generally, and assist in the co-ordination and implementation of the government policy relating to insurance; oversee the operations and management of the Authority ; an appropriate governance framework; and adequate procedures; and controls, including an internal audit function and rules governing the disclosure of interests by employees, consultants, experts, advisors and agents of the Authority ; provide guidance to the Chief Executive Officer and staff of the Authority ; establish and approve rules and procedures for appointment, promotion, termination, discipline and terms and conditions of service of the staff of the Authority ; review and approve strategic, business and operating plans, budgets, reports and audited financial statements of the Authority ; perform any other function conferred by this Act or which may be necessary for the proper implementation of thi...

Section Meetings of the Board and related matters Section Schedule 3 has effect in relation to meetings of the Board and other matters provided for in that Schedule.

Section Committees of the Board Section The Board may appoint committees— to inquire into and advise the Board on any matter concerning the functions of the Authority as the Board may refer to the committee; to exercise such powers or perform such functions of the Authority as the Board may delegate or refer to the committee. A committee appointed under subsection (1) shall consist of a chairperson and other persons whether members of the Board or not as the Board may determine. The Board may require a committee appointed under this section to act jointly or in co-operation with any other committee. The members of a committee appointed under this section may be paid such allowances as the Board may, with the written approval of the Minister , determine. Subject to any direction given by the Board , a committee appointed under this section may regulate its own procedure.

Section Chief Executive Officer Section The Chief Executive Officer shall cease to hold office if— The Authority shall have a Chief Executive Officer who shall be appointed by the Minister on the recommendation of the Board on terms and conditions specified in his or her instrument of appointment. The Chief Executive Officer shall be a person of high moral character and proven integrity, with relevant professional qualifications and experience relating to the functions of the Authority . The Chief Executive Officer shall hold office for five years and is eligible for reappointment for one further term. he or she resigns; he or she is declared bankrupt or insolvent or has made an arrangement with his or her creditors; he or she is convicted of a criminal offence, in Uganda or elsewhere, in respect of which the maximum penalty exceeds six months imprisonment without the option of a fine; he or she is removed from office by the Minister , on recommendation of the Board , for incompetence, inability to perform the functions of his or her office arising from infirmity of body or mind; or he or she is removed from office by the Minister for misbehaviour, misconduct or incompetence. Where...

Section Functions of the Chief Executive Officer Section Subject to this Act and to the general supervision and control of the Board , the Chief Executive Officer is responsible for— The Chief Executive Officer is responsible for the day to day operations and administration of the Authority and shall be the accounting officer of the Authority . the implementation of the policies and programmes of the Authority and reporting on them to the Board ; the proper management of the funds and property of the Authority ; the organisation and control of the staff of the Authority ; the development of an operating plan to guide the Authority in achieving its objectives; the development of an economic, efficient and cost effective internal management structure; proposing and implementing the strategic plan, business plan and annual plan of the Authority ; ensuring that the policies of the Authority are implemented and that the agreed objectives, targets and service standards are met; providing advice as required on all matters within the Authority ’s responsibility; and performing any other duty necessary for the implementation of this Act as may be assigned to him or her by the Board . The Ch...

Section Secretary to the Authority Section The secretary to the Authority shall be responsible for— There shall be a secretary to the Authority who shall be appointed by the Board on terms and conditions specified in the instrument of appointment. arranging the business at meetings of the Board ; taking the minutes of the meetings of the Board ; keeping the records of the decisions and other policy records of the Board . In the performance of his or her functions, the secretary is answerable to the Chief Executive Officer . The secretary to the Authority shall possess the relevant professional qualifications and experience relating to the functions of the Authority .

Section Other officers and staff of the Authority Section The Board may appoint such officers and staff of the Authority as may be necessary for the proper and efficient performance of the functions of the Authority . The employees appointed under this section shall hold office on terms and conditions determined by the Board and specified in their instruments of appointment. The Board shall regulate the manner of appointment, terms and conditions of service and the discipline of the staff appointed under this section.

Section Funds and sources of revenue of the Authority Section The funds and sources of revenue of the Authority shall consist of— money appropriated by Parliament for the purposes of the Authority ; grants, gifts or donations from the Government or other sources made with the approval of the Minister ; monies accruing to the Authority by way of revenue; licence fees and charges payable by licensees under this Act; annual compliance fee; and any other monies, including fines imposed by the Authority for contravention or non-compliance with this Act. Every licensee shall pay to the Authority an annual contribution of a sum determined by the Authority , by regulations, after consulting with the Uganda Insurers Association, the Uganda Association of Insurance Brokers, the Uganda Association of Engineers, Valuers and Loss Assessors, Insurance Agents Association and HMOs. All monies under sub section (1)(d), (e) and (f) received by the Authority shall be retained by the Authority and used in accordance with the provisions of section 29(3) of the Public Finance Management Act.

Section Duty to operate on sound financial principles Section In the performance of its functions under this Act, the Board shall have due regard to sound financial principles.

Section Power to open and operate bank accounts Section The Authority may, with the authority of the Accountant General, open and maintain such other accounts as are necessary for the performance of the functions of the Authority

Section Borrowing powers Section Subject to article 159 of the Constitution, the Board may, with the approval of Parliament, borrow money as may be required for meeting its obligations or for the discharge of the functions of the Authority under this Act.

Section Estimates of income and expenditure Section The Chief Executive Officer shall, within three months before the end of each financial year, cause to be prepared and submitted to the Board for its approval, estimates of the income and expenditure of the Authority for the next financial year. The Board shall, within two months of receipt of the estimates referred to in subsection (1), cause to be submitted to the Minister for his or her approval, the estimates of income and expenditure as approved by the Board .

Section Financial year of Authority Section The financial year of the Authority shall be same as the financial year of Government.

Section Accounts and audit Section The Authority shall keep proper books of accounts and all records relating to the transactions and affairs of the Authority . The Auditor General or an auditor appointed by the Auditor General shall, in each financial year, audit the accounts of the Authority . The Auditor General shall submit the audited accounts of the Authority to Parliament in accordance with the Public Finance Management Act, 2015.

Section Publication of accounts by the Authority Section The Authority shall publish its audited financial statements at least annually in a Uganda newspaper with wide circulation.

Section Prohibition on unlicensed insurance intermediary business Section Without limiting the application of subsection (1)— Subsection (1) does not apply to— Subject to subsection (3), a person shall not carry on, or purport to carry on, business as an insurance intermediary unless the person holds a valid insurance intermediary licence issued by the Authority . a person is considered to carry on business as an insurance intermediary if, by way of business, the person offers to act as an insurance intermediary for a person in Uganda directly or indirectly; a person purports to carry on business as an insurance intermediary if that person uses any name, style, designation, description, title or trademark that represents or implies that the person is an insurance intermediary . a foreign reinsurance broker that acts for, or in relation to, contracts involving a reinsurer ; or a person authorised to carry out bancassurance under this Act who acts as the insurance agent of an insurer. The Authority may, by regulations, grant an exemption to a person incorporated outside Uganda to provide any insurance intermediary services where the Authority is satisfied that those services cannot b...

Section Insurance intermediary licences Section A licence to carry on business as an insurance intermediary may be issued by the Authority in one of the following categories— an insurance brokers licence , which authorises the holder to carry on business as an insurance broker ; a reinsurance brokers licence , which authorises the holder to carry on business as a reinsurance broker; an insurance agents licence , which authorises the holder to act as an insurance agent ; a micro insurance agents licence , which authorises the holder to act as an insurance agent in respect of micro insurance contracts only; an insurance risk advisors licence , which authorises the holder to carry on business as an insurance risk advisor ; a loss assessors licence , which authorises the holder to carry on business as a loss assessor ; a loss adjustors licence , which authorizes the holder to carry on the business of loss adjustor. For the avoidance of doubt, an insurance brokers licence and a reinsurance brokers licence authorises the holder to assess and advise on insurable risks, without the need to obtain an insurance risk advisors licence . A person shall not use the name of insurance broker or ag...

Section Insurance or reinsurance brokers to be bodies corporate Section No person other than a company incorporated under the Companies Act, 2012 shall carry on business as an insurance or reinsurance broker.

Section Application and qualifications for insurance intermediary licence Section Where the Authority is satisfied that— An application for an insurance intermediary licence or renewal of a licence shall be in a form prescribed by the Authority . The qualifications for obtaining an intermediary licence shall be prescribed by the Authority . The Authority shall not grant a licence or renew an insurance intermediary 's licence if the applicant is not a fit and proper person within the meaning of Schedule 2 to the Act. the financial standing of the applicant is sound; the knowledge, skill and experience of the principal officer are adequate; in the case of a broker, the professional indemnity policy of insurance is satisfactory; the applicant is not disqualified under this Act; the applicant is and is likely to continue to be able to comply with the provisions of this Act and the regulations and directions made or issued under this Act as are applicable to the applicant; the prescribed fee has been paid, A licence shall be issued for two years and may be renewed for two years on each renewal. Every insurance intermediary shall establish and maintain a risk management function and a co...

Section Processing and granting of a licence Section Sections 41 , 42 , 43 , 44 and 45 shall, with the necessary modifications, apply to insurance intermediaries.

Section Restrictions applicable to insurance intermediaries Section The following persons do not qualify to be insurance agents— public officers or employees of local governments; administrators, managers, directors, auditors or employees of insurers or reinsurers, or insurance brokers or reinsurance brokers, risk advisors or loss assessors; or a person who is not fit and proper. An insurance agent shall not act for two or more insurers transacting the same class of insurance business without the written approval of the Authority . An insurance agent shall not act as agent for a reinsurer or undertake any activity that constitutes the business of an insurance broker , a risk advisor or a loss assessor . For avoidance of doubt, an insurance agent may act for one insurer transacting life business and one insurer transacting non-life business but not for two or more insurers transacting the same class of business. An insurance broker and a reinsurance broker shall not undertake any activity that constitutes the business of a loss assessor . A person holding any interest in an insurer shall not be a substantial shareholder of an insurance intermediary unless permitted by the Authority...

Section Application of sections 58, 59 and 60 Section Sections 58 , 59 and 60 shall, with the necessary modifications, apply to an insurance intermediary which is not a natural person.

Section Paid-up capital and professional indemnity for insurance broker or reinsurance brokers Section Every insurance broker or reinsurance broker shall not carry on the business of insurance broking unless it maintains at all times while carrying on that business, a paid-up capital as stipulated in the regulations and shall furnish the Authority with proof of registration of the Authority ’s lien on the deposit. The deposits made under subsection (1) shall be considered part of the assets in respect of the capital of the insurance broker or reinsurance broker. The deposits made under subsection (1) shall be invested by the insurance broker or reinsurance broker in Government securities or in any other investments as may be approved by Authority , and on which the Authority shall have a lien. The security deposits made under subsection (1) shall be available to the insurance broker or reinsurance broker in accordance with section 39 with the necessary modifications. Any income that may accrue from the security deposit shall be payable to the insurance broking company that makes the security deposit. Every insurance intermediary , except an insurance agent , shall not carry on the...

Section Premiums and other monies to be paid to insurer or HMOs directly Section An insurance broker or insurance agent shall not accept a cheque or other payable order from a policy holder or prospective policy holder in respect of premiums or other monies, paid for or on account of an insurer or HMO in connection with an insurance contract or a proposed insurance contract unless the cheque or payable order is made payable to the insurer or HMO. An insurance broker or insurance agent shall not request or authorise the electronic transfer of monies into any of its accounts, including a client account, if those monies are paid for or on account of an insurer in connection with an insurance contract or a proposed insurance contract . An insurance broker or an insurance agent who receives any premiums whether in full or installments or other monies in cash, shall immediately but not later than the next working day from the date of receipt, without any deductions of commissions or otherwise remit the premiums or money in cash to the insurer. Any cash premiums or other monies received by an insurance broker or insurance agent shall not be treated, for any purposes as assets or property...

Section Loans to agents Section An insurance agent shall not, without the prior approval of the Authority , have at any time, a loan outstanding to an insurer, which is in the excess of an aggregate of one hundred currency points.

Section Portfolio transfer Section An insurance intermediary may transfer his or her portfolio to another intermediary, provided that prior approval is obtained from the Authority . The Authority shall not approve a transfer unless it is satisfied that the transferor has settled all financial obligations with all insurers with which there are dealings, prior to the transfer and has provided the Authority all the information the Authority may require. A portfolio shall be transferred in its entirety unless the Authority directs otherwise. Where a transfer is approved, the parties to the transfer shall inform all the policyholders and the insurers with which they place business of the transaction. Where a transfer or sale is effected without the approval of the Authority , the Authority may suspend or revoke the licence of a transferee or seller of a portfolio, and that person shall be prohibited from obtaining another licence for five years from the date of sale or transfer in case of revocation.

Section Direct relationship with an insurer Section The appointment of an insurance agent by a person does not preclude that person or a beneficiary under the policy from having direct communication with the insurer or vice versa.

Section Loss adjustors and loss assessors Section A loss adjustor or loss assessor shall not accept the receipt of and shall not handle any monies representing premiums or any other monies payable to an insurer or to a policyholder under an insurance contract or prospective insurance contract . A loss adjustor or loss assessor that contravenes this section is liable to a fine not exceeding five hundred currency points.

Section Variation, revocation or suspension of an intermediary’s licence Section The Authority — The Authority may impose fines, vary, suspend a licence or revoke a licence of any intermediary, depending on the gravity of the offence where— may vary, revoke or suspend a licence of an intermediary on any ground on which it could have refused to grant the licence ; shall vary, suspend or revoke the licence of an intermediary that fails to satisfy the paid-up capital and security deposit requirements. there is breach of professional etiquette; discounts are given which are not provided for under the authorised premium rates; the whole or part of the intermediary's commission is offered to an insured; terms and conditions are offered which are not included in the policies and endorsements; quotations are given in the intermediary’s own name without the authority of the insurers; monies received in payment of a premium are used for an intermediary’s own benefit or the benefit of third parties, or have not been paid to the insurer in accordance with this Act; the intermediary ceases to carry on business; the prescribed fees payable to the Authority remain unpaid; the intermediary is adju...

Section Prohibition on unauthorised bancassurance Section A financial institution shall not carry on bancassurance without bancassurance authorisation issued under this Act. A financial institution that carries on bancassurance contrary to subsection (1), is liable to a default fine not exceeding ten thousand currency points.

Section Application for bancassurance authorisation Section An application by a financial institution for bancassurance authorisation or renewal of bancassurance authorisation shall be in a form prescribed by the Authority .

Section Revocation of authorisation to undertake bancassurance Section Subject to subsection (2), the Authority — shall revoke an authorisation to undertake bancassurance if— shall revoke an authorisation to undertake bancassurance if the financial institution — the financial institution ceases to hold a licence under the Financial Institutions Act, 2004; or the central bank requests the Authority to revoke the authorisation; and has applied to the Authority in writing for the revocation of its authorisation; or contravenes, or has contravened, the conduct of business requirements applicable to it in this Act or any regulations made under this Act. The Authority shall, before revoking an authorisation under subsection (1)(b)(ii), give the financial institution written notice of its intention to revoke the licence , stating the grounds upon which it intends to revoke the authorisation. The Authority may, in exceptional circumstances where it considers the interests of the policyholders to be at risk, revoke the authorisation without notice. The Authority shall provide written reasons for the revocation of an authorisation under this section.

Section Application of this Part Section This Part applies to insurers, HMOs and micro insurance organisations unless otherwise stated. The Authority may, due to the nature of micro insurance organisations and the circumstances, modify the provisions of this Part to better apply to micro insurance organisations.