Non-Resident Insurance Undertakings Act 1967 (1989 Revision)

Summary

This 1967 Bermuda Act (1989 Revision) regulates non-resident insurance undertakings that conduct insurance business in Bermuda through a manager, agent, or other representative, rather than through a locally incorporated company. It establishes a permit system administered by the Minister of Finance, with fees payable to the Accountant General, and creates offences for conducting business without a valid permit or breaching its conditions.

• Permit requirement: Anyone conducting insurance business in Bermuda as manager, agent, or otherwise on behalf of a non-resident insurance undertaking must do so under a permit issued by the Minister, or commits an offence.
• Application fee: A permit will not be issued until a $10,000 payment to the Accountant General is evidenced by receipt.
• Annual renewal payment: Every permit must include a condition requiring payment of $10,000 to the Accountant General on or before 31 March each year following the year of issue.
• Relief for late payment: The Accountant General may accept late payment plus a $1,000 penalty as compliance, where non-payment was not due to wilful neglect or default.
• Exemption: The Act does not apply to a non-resident undertaking whose entire insurance business concerns persons, property and risks outside Bermuda.
• Lloyd's treated as one undertaking: All members of the Society of Lloyd's of London (and similarly operating undertakings) are collectively treated as a single non-resident insurance undertaking.
• Revocation process: The Minister may revoke a permit for breach of its conditions after serving notice and considering representations; revocation notices must be published in the Gazette and a local newspaper.
• Offences and penalties: Breach of the permit requirement or its conditions is punishable summarily by up to 1 month imprisonment or a $15,000 fine (first offence), rising to 6 months or $30,000 for repeat offences.
• Interaction with Companies Act 1981: Only specified sections of Part XI of the Companies Act 1981 (150A provisions) apply to non-resident insurance undertakings, as if they were permit companies.
• Savings clause: Policies made before 31 March 1967 and related ongoing business are unaffected by the Act.

The Act is still in force and applies specifically to non-resident insurance undertakings and those acting as their managers or agents in Bermuda; it does not apply to Bermuda-incorporated insurers or Bermuda residents authorised to conduct insurance business locally.

Key obligations

• A manager, agent, or other person acting on behalf of a non-resident insurance undertaking must hold a valid Ministerial permit before conducting insurance business in Bermuda.
• Before a permit is issued, a receipt showing payment of $10,000 to the Accountant General must be produced.
• Each permit requires payment of $10,000 to the Accountant General on or before 31 March in every year following the year of issue.
• Permit holders and those acting on their behalf must comply with all conditions and limitations specified in the permit.
• The Minister must serve notice and consider representations before revoking a permit, and must publish any revocation notice in the Gazette and at least one newspaper circulating in Bermuda.

Applies to

non-resident insurance undertakings, managers or agents acting on behalf of non-resident insurance undertakings, members of the Society of Lloyd's of London

Deadlines

• on or before the 31st day of March in each year subsequent to the year of issue: Annual permit renewal payment of $10,000 to the Accountant General required to maintain a permit.